How an Advanced Degree May Not Help in Today's Job Market

Once upon a time an advanced degree guaranteed job seekers an edge over other prospective applicants. Today, however, the benefits are not so black and white. In fact, on-the-job experience might be more attractive to potential employers than an advanced degree.

Most people are aware that the country is in the throes of one of the most challenging job markets seen in the nation's history. Unemployment rates crept over the 10 percent mark to reach all-time highs. Those currently looking for a job may think it's better to set those goals aside and go back to school until the employment prospects are better. But is this a wise idea? Perhaps not.

It all comes down to spending money. Individuals with an advanced degree are generally paid anywhere from 20 to 50 percent more than peers who have lesser degrees. As companies look for any way to cut costs, job applicants who are not so educated may seem the better buy. In fact, those with bachelor's or master's degrees may find they're repeatedly passed over for individuals with associate's degrees or simple life experience. Companies actually may be turned off by a higher degree.

What about individuals contemplating more schooling to get a more lucrative position in a company? Again, the plan may backfire. Many companies are turning from an education-based advancement program to a performance-based one. That means workers could have all of the degrees in the world and not make more money.

The cost of continued schooling is also something to consider. Many graduates are already facing mounting debt from educational expenses. Adding more debt onto that number can leave many individuals in a deep financial hole, one that is not easily scaled. Employers are cutting back on tuition reimbursement, and higher degrees do not guarantee a job once school is out.

Before advanced schooling is considered, weigh all of the options.