Gone is the dichotomy between white and blue-collar workers. As the workforce continues to evolve, a new category of employees has emerged: the new-collar workers. The shift in skill and supply inherently means changes in hiring practices. HR professionals and hiring teams must keep up with the demand for a fresh approach to cater to this skilled talent pool.

Discover who new-collar workers are and how your organization can adapt to attract, onboard and retain them.

Who Are New-Collar Workers?

New-collar workers blur the lines between traditional white and blue. Bridging the gap between the two, they possess highly specialized skills acquired through alternative learning rather than conventional four-year university degrees. These skills are pursued through certifications, technical-vocational training or apprenticeships, if not through exposure and self-learning. This sounds very much like a blue-collar employee.

However, like their white-collar counterparts, new-collar workers have the analytical skills required to flourish in technical fields such as AI, cybersecurity and advanced manufacturing, emphasizing a skills-first approach instead of university credentials.

For employers, this means utilizing the pool of skilled employees who have been long neglected due to degree requirements. Some companies have embraced the shift by creating apprenticeship programs, strengthening the idea that technical know-how outweighs a framed diploma on the wall.

Why Are New-Collar Workers on the Rise?

Several factors contribute to this upsurge, including:

  • High demand for skilled labor: The U.S. Bureau of Labor Statistics predicts that by 2030, 60% of new job opportunities will be in industries that do not require a college degree. Construction, maintenance and manufacturing continue to lead, but tech roles — including robotic technicians and data analysts — are also seeing an upward trend. Manufacturing jobs alone have increased by 46%, reflecting a strong demand for hands-on, skilled professionals.
  • Changing perspectives on degrees: The relevance of a degree in today’s labor market continues to be questioned as high-profile leaders like Elon Musk and Tim Cook publicly display their views on it. Inflation on the traditional degree — requiring a bachelor’s degree for roles that do not necessitate it — has slowed the hiring system as it shuts off access to otherwise qualified candidates.
  • Rising costs of traditional education: Increasing tuition costs is another added burden plaguing the workforce. Student loan debt is the fastest-growing household debt in the nation, increasing more than 500% over the last 20 years. This has led many young professionals to seek alternatives to formal education, like certifications and industry-specific training.
  • Broader workforce inclusion: Removing the barriers posed by degrees allows companies to expand their talent pool. This trend toward tapping into underrepresented groups opens up greater workforce diversity.

Adapting Your Hiring Team for the New-Collar Era

The pressure to hire and retain a new pool of niche-specific talent has forced HR managers to rethink their recruitment strategies and onboarding processes.

1. Shift Hiring Mindsets

The change in the workforce requires a cultural shift within your company. It’s a domino effect that should also influence the hiring process. HR leaders must champion the value of skills-first hiring by:

  • Training hiring managers to recognize and evaluate non-traditional qualifications.
  • Acknowledging success stories of new-collar workers within the organization.
  • Aligning performance metrics to become outcomes-based instead of credentials-focused.

2. Reframe Job Descriptions

Traditional job postings often include unnecessary degree requirements disqualifying skilled candidates. Instead, write job descriptions that emphasize capabilities and specific skill sets. For example:

  • Replace the Bachelor’s degree requirement with a preference for proficiency in specific skills.
  • Emphasize transferable skills like problem-solving, adaptability and hands-on experience.
  • Focus on practical achievements such as completed certifications or delivered measurable results in related roles.

3. Center on Skills-Based Hiring

A skills-first approach is the bedrock of the new-collar movement. This prioritizes technical expertise and on-the-job competencies over formal university courses. You can assess candidates’ skills through:

  • Practical tests or case studies during the interview process.
  • Partnerships with platforms offering skills certifications, like LinkedIn or Coursera.
  • Leveraging data to identify skills critical to success in high-demand roles.

4. Strengthen Onboarding Processes

The onboarding process is critical to ensuring a seamless acclimation to new work environments and company culture. Many new-collar hires might be transitioning into structured corporate settings or unfamiliar industries. Statistics show that 69% of employees are more likely to stay with a company for three years if they experience great onboarding.

A solid onboarding process for new-collar hires should include:

  • Structured training to familiarize them with tools, processes and expectations of the role.
  • Mentorship programs to ease the transition and provide guidance.
  • Welcoming communication channels to address questions and concerns.

5. Establish Apprenticeship and Training Programs

Another way to support the onboarding of new-collar workers is by creating opportunities for them to learn while on the job. A lack of career growth opportunities can make employees feel stagnant and may cause turnover rates to rise.

Experiences like apprenticeships, internships and training programs provide them with opportunities to upskill while contributing to your company. Labor gaps are immediately filled in conjunction with building long-term employee loyalty.

6. Foster a Supportive Culture

An inclusive culture celebrating new-collar hires and their contributions is essential for retention. Offer professional development opportunities to help workers grow within the organization. Your company can also establish equitable treatment toward new or old employees by providing access to resources across all roles.

7. Collaborate With Educational Institutions

Your organization can partner with vocational schools and online learning platforms to find new-collar employees and tap into their potential. It’s a win-win situation as it enables you to influence the curricula with demands that align with your industry’s needs. This ensures candidates are immediately job-ready upon graduation.

New Hiring Practices for the New-Collar Wave

The new-collar workforce is a force to be reckoned with. It’s not just a hiring trend — this workforce is here to stay and reshape how talents are acquired in today’s ever-evolving labor market. As you prepare your team for this transition, remember that workers bring about opportunities to rethink traditional hiring norms. It’s time to get ahead of the curve to meet today’s demands and prepare for tomorrow.

This post was written for HRTech247 by Eleanor Hecks. Eleanor is a business and hiring writer and researcher who is passionate about sharing physical and mental health resources with the SMB community. You can find her work as Editor in Chief of Designerly Magazine as well as a staff writer for publications such as HR.com, eLearning Industry and Training Industry.