3 ways work experience outsmarts formal education for professional development - Deepstash
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Meaningful work experience is vital to human capital development

Meaningful work experience is vital to human capital development

Human capital is the potential within each individual. Human capital accounts for two-thirds of the average individual's wealth. Half of that value is linked to work experience. 

The development continues after formal education, as people gain new skills and capabilities in the workplace. Therefore, organisations that prioritize learning and development can have a significant impact on whether or not an individual reaches their potential.


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Work experience is a more important driver of incomes

For workers with less education, adding learning and skills through work experience is an important strategy to get ahead in the labour market.

People without college degrees who start in low-wage jobs rely more on work experience. They continue to accumulate experience and skills with each role they perform. 


1 read

Changing roles can pay off, particularly when people make bold moves

Changing roles can pay off, particularly when people make bold moves

Data shows that skills gained through experience account for 60 - 80% of lifetime earnings for those who move up but only 55% for those who stay in one position or drop down.

The upward groups changed roles more frequently and made bolder moves that stretched their skills.


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Individuals get a lift from early experience in effective organizations

Employers who pay attention to organizational health, training, and internal advancement seem to propel people forward. Their employees are more likely to be upwardly mobile.

However, 80% of job changes involved people moving to new employers. This points to a missed opportunity. Workers increasingly feel empowered to move to employers that will give opportunities to gain new skills and move up. This calls for a renewed emphasis on coaching and designing internal career paths.


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