This may not sit well with parents or teachers eager to see their children and pupils pursue university studies, but the reality is that a degree is neither necessary nor sufficient for many careers today.
If you have decided not to attend university – for whatever reason – and are feeling uncertain as your friends begin their new academic year, I want to reassure you: there are numerous alternative paths to launch a successful career.
Yes, university can be a wonderful experience that helps young people navigate the transitional years between childhood and adulthood.
It can also prepare us for our careers, although often not in the ways we expect. My philosophy degree, which may not seem like obvious training for investment management, proved to be very valuable. It taught me how to analyse problems logically and to question conventional wisdom.
In contrast, a colleague’s economics degree was surprisingly detrimental to his role as our team’s economist. His academic training instilled in him rigid expectations of how things were supposed to work, while the real world rarely conformed to those theories. Although his forecasts were still useful, they often served as a “contrary indicator”, as he was almost always wrong.
In reality, many people never utilise the material they study at university in their professional careers, particularly in the face of increasingly complex challenges that span multiple disciplines.
Like me, undergraduates may acquire the valuable skills of problem-solving and presenting coherent ideas. However, these skills can also be developed through the “university of life”.
Choosing to start work sooner can help young people gain relevant experience and expertise while avoiding the estimated £50,000 debt incurred by the average student over a three-year course.
This figure is based on the current maximum annual tuition fee of £9,250 for English universities – capped at this amount since 2017 – plus basic living expenses.
However, a report from Universities UK, the “collective voice” of 141 universities, suggests that funding for each student needs to increase to between £12,000 and £13,000 for the sector to break even.
Universities UK suggests a combination of direct government grants and higher tuition fees could bridge this gap – it appears that the average debt figure of £50,000 is likely to continue rising.
Meanwhile, many successful entrepreneurs have relatively little formal academic training. My former boss, Stewart Newton, who founded Newton Investment Management, did not have a degree. He was an exceptional lateral thinker and was always prepared to act on his ideas, demonstrating the courage of his convictions rather than “analysis paralysis”.
I took note when I sought a derivatives specialist for the firm, appointing a woman who received her training on the job rather than in college. She was brilliant and now leads her own firm.
So, if you don’t believe that university is the right path for you, what alternatives do you have, especially if you are looking for a career rather than just a job?
Apprenticeships can be an excellent way for those aged 16 and older to start their career. Numerous resources are available to assist you – I recommend bestapprenticeships.com which provides a comprehensive guide to apprenticeships along with opportunities categorised by region, industry and level.
Another good website, ratemyapprenticeship.co.uk, lists the top 100 companies with the best-rated apprenticeship schemes, as reviewed by actual apprentices, and includes direct links to company websites.
A diverse range of sectors is represented among the top schemes, including technology, property, retail, finance, hospitality, and media. There really is something for everyone.
Do your homework. Look beyond the initial hourly pay rate to consider the training opportunities provided alongside the work experience. This is a crucial stage in life where you want to acquire as much knowledge as possible – knowledge that will enable you to compete effectively with graduates.
It doesn’t have to be an either/or situation – degree apprenticeships typically involve working 80pc of the time while studying for a degree-level qualification during the remaining 20pc. Generally, a degree apprenticeship takes three to six years to complete, but without accumulating student debt.
It all makes perfect sense in a world where there are numerous reasons to reconsider attending university, yet several obstacles remain.
First, a lingering stigma surrounds apprenticeships, exacerbated by schools’ typical emphasis on university as the “best” option. To be honest, when I interview a young person, I am not particularly interested in their achievements on paper – I want to see that they are intelligent, curious, engaging and eager for success.
In my view, schools are successful if their former pupils embody these qualities, rather than being solely focused on exam results. Parents play a crucial role here – I frequently hear about parental pressure placed on both children and their teachers to achieve top grades and gain admission to prestigious universities, regardless of whether that path is truly the best for their child.
We need to adopt a different mindset, one that prioritises the jobs of the future and the most effective ways to prepare the next generation.
Additionally, the current apprenticeship funding system – an “apprenticeship levy” introduced in 2017 for employers with a payroll exceeding £3m annually – requires reform.
The concept behind the levy was commendable: to enhance employer investment in training after years of decline. However, since its implementation, the number of individuals commencing apprenticeships in England has decreased by over 30pc, with the decline being particularly pronounced among small businesses.
The scheme has been described as “inflexible and complex to navigate” by the CIPD (the professional body for HR and people development).
Thus far, the Government has remained silent on any plans to reform the levy, but addressing this issue should be a priority, especially considering the challenges surrounding university funding and the necessity to equip the nation’s youth with skills relevant to the future job market.
There are other paths to success. I know several young entrepreneurs who took the plunge early on to establish their own businesses. One was encouraged by her father, also an entrepreneur, but most people do not have that advantage.
I have just returned from Kuwait, where I participated in an event aimed at empowering women in the region. I conducted a workshop on raising financially-savvy children and learned that in Kuwait, children are being taught how to create a business plan in school.
This is something we should be doing more of here. With low barriers to startup, we need to help our children envision how they can turn their dreams into reality.
Last week, I learned about two 19-year-olds who recently sold their defence company for an eight-figure sum, outpacing the future earnings of their university-educated peers for many years to come.
We tend to hear primarily about the success stories of young prodigies – admittedly, many others may fail, but at 18, 19, or in their twenties, there is ample time to recover and try again. There’s also nothing to stop those at university starting a side hustle alongside their academic work – a “portfolio career” is no longer the preserve of former senior executives.
Whatever you do, don’t attend university on autopilot or succumb to peer pressure. Reflect on your reasons for going, what you hope to learn, and what you might pursue afterward. The investment of both time and money may be worthwhile for you, or you may have reservations.
Don’t worry, a strong work ethic, a genuine interest in learning, adaptability, the ability to forge connections, and high aspirations are the keys to career success – not the letters after your name.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
