Master’s Degrees Don’t Guarantee Better Job Performance, but They Still Lead to Higher Pay, Say Hiring Managers

While a master’s degree might not necessarily make you a better employee, employers are still willing to offer higher salaries to those who hold one, according to a recent survey by Resume Genius. The survey, which polled 1,000 hiring managers in the U.S., found that 62% believe employees with a master’s degree perform similarly—or even worse—than those with a bachelor’s degree and two years of experience. Yet, 72% of hiring managers still said they would offer a higher salary to candidates with a master’s degree compared to those without one.

The reason behind this salary disparity lies in how a master’s degree is perceived. Despite not guaranteeing superior performance, employers view it as a symbol of commitment, drive, and discipline. Eva Chan, a senior PR expert at Resume Genius, points out that the symbolic value of a master’s degree continues to affect salary decisions, even if employers are increasingly aware that experience often demonstrates the same qualities.

In fact, companies like JP Morgan Chase and Walmart are shifting towards skills-based hiring, favoring work experience over academic credentials. These companies no longer require degrees for many positions, as they recognize the value of hands-on experience in job performance.

Interestingly, the survey also revealed that Gen Z hiring managers were twice as likely as Boomer managers to consider those with a master’s degree as stronger performers. This may be due to younger managers’ recent experience with the education system, making them view advanced degrees as more relevant or aspirational.

Though having a master’s degree may not always result in better job performance, it still offers potential benefits, such as career advancement and higher salaries. However, pursuing a master’s degree comes at a high cost, with the average cost exceeding $62,000 and the typical federal loan debt for graduate students topping $94,000. Ultimately, whether a master’s degree helps or hinders your career depends on your industry and individual goals. Fields like education and urban planning are still tied to pay scales and credentials, while fast-paced industries like tech, media, and marketing may value hands-on experience more.