New Research Reveals Management Education as a Ladder to Economic Mobility

New research from the University of Virginia Darden School of Business’ Sands Institute for Lifelong Learning and The Burning Glass Institute sheds light on the critical intersection of management education and the future of the workforce.

At the heart of the research paper, “Managing Up,” is a conundrum: Over 60% of today’s workforce lacks a college degree, and the degree often serves as a proxy qualification for managerial positions. This reality prevents millions of candidates from stepping into first-time management roles, which can be a gateway to higher earnings and continued career opportunities.

In a fast-moving, high stakes job market, the labor force is expected to shrink over the next decade because of generational retirements, which will create talent shortages. Bridging this talent gap is critical for individuals, organizations and overall labor productivity.

Five key takeaways from the research:

1. First-time management positions are vital conduits for economic mobility. These roles offer opportunities for higher earnings and career advancement. Skills essential for first-time managers, including communication, data analysis, operations and leadership, can be developed through targeted education and training.
2. An estimated 10.1 million “hidden” candidates have the potential to transition into first-time management roles. These high-performing individuals lack access due to limited managerial training pathways in which in a post-secondary degree is often used in the workplace as a proxy for promotability. Alternative and accessible channels, such as certifications and specialized programs, can empower these talents.
3. Universities and business schools play a pivotal role in promoting mobility. Workers with a bachelor’s degree are three times as likely to work in management and earn an average 25% lifetime wage premium. For non-traditional degree seekers, respected universities and business schools with brand recognition can help bridge the opportunity gap by offering business education in innovative formats and providing meaningful certifications in leadership and management.
4. More than one in 20 of all American workers could immediately benefit if they acquire the skills necessary for success in management. First-time management roles offer an estimated average annual earnings increase of $20,000. First-management roles are in high demand – there are over 3.5 million open positions in the U.S. right now. They will grow exponentially over the next decade and offer a strong pathway to career advancement.
5. Management education has the power to transform. “Our analysis highlights the power of accessible and impactful management and leadership education,” says Ashley Williams, CEO of the Sands Institute for Lifelong Learning at UVA Darden. “By unlocking hidden potential and creating pathways to mobility through lifelong learning, we can transform the workforce landscape.”

To learn more, read: Managing Up: Management Education as a Ladder to Mobility by Stuart Andreason, Anne Trumbore, Ashley Williams and Matt Sigelman, produced by the UVA Darden School of Business in collaboration with The Burning Glass Institute.  The paper is the first in a series from the Sands Institute for Lifelong Learning that will explore critical challenges at the intersection of the workplace, management education and society.

Contact:

UVA Darden Media Relations: McGregor McCance
email: mccancem@darden.virginia.edu
phone: 434-326-2311

Burning Glass Media Relations: Jenny Carvalho
email: jcarvalho@burningglassinstitute.org
Phone: 423-773-5878

About the University of Virginia Darden School of Business:
The University of Virginia Darden School of Business prepares responsible global leaders through unparalleled transformational learning experiences. Darden’s graduate degree programs (MBA, MSBA and Ph.D.) and Executive Education & Lifelong Learning programs offered by the Darden School Foundation set the stage for a lifetime of career advancement and impact. Darden’s top-ranked faculty, renowned for teaching excellence, inspires and shapes modern business leadership worldwide through research, thought leadership and business publishing. Darden has Grounds in Charlottesville, Virginia, and the Washington, D.C., area and a global community that includes 19,000 alumni in 90 countries. Darden was established in 1955 at the University of Virginia, a top public university founded by Thomas Jefferson in 1819 in Charlottesville, Virginia.

About The Burning Glass Institute:
The Burning Glass Institute believes that everyone deserves meaningful work and the chance to move up. A fully independent non-profit, the Institute advances data-driven research and practice on the future of work and on the future of learning. We work with educators, employers, and policymakers to develop solutions that build mobility, opportunity and equity through skills. Through our expertise in mining new datasets for actionable insight, The Burning Glass Institute’s discourse-shaping research draws attention to pressing problems and frames the potential for new approaches. Through project-based engagement and collectives, we put ideas into practice, bringing forward solutions that are high-impact and replicable.