A majority of hiring managers (62%) recently surveyed by career resource website Resume Genius say a job candidate with a master’s degree offers no performance advantage over someone with a bachelor’s degree plus two years of experience, with 52% saying performance is the same and 10% saying master’s degree holders perform worse.
The survey of 1,000 U.S. hiring managers, which gauged whether graduate degrees lead to stronger job performance and whether they warrant higher salaries for candidates, also found that 72% would still offer higher salaries to the candidate with a master’s degree. In addition, nearly one in four hiring managers (23%) say they would offer a salary increase of 20% or more.
“Hiring managers aren’t convinced that higher education equals higher results,” Eva Chan, career expert at Resume Genius, said in a statement. “However, the data shows that employers are largely fine paying for the perception of potential that comes with a postgraduate degree. Even when hiring managers don’t see a master’s degree as making someone more effective on the job, the credential still influences their salary offer. That disconnect highlights how traditional signals of value still carry weight in today’s workforce, even as experience becomes just as critical.”
According to Radford’s Career Ladder system, a master’s degree is typically considered equivalent to two additional years of work experience. Using this benchmark, Resume Genius asked hiring managers whether they believe employees with master’s credentials outperform those with a bachelor’s degree plus two years of experience.
According to the data, 62% of hiring managers say a master’s degree offers no performance benefit—either because it makes no difference (52%) or because it results in worse performance (10%).
Full findings are as follows:
- 38% believe candidates with a master’s degree work at a higher level, 24% say master’s degree holders work at a slightly higher level, and 14% say master’s degree holders work at a considerably higher level.
- 52% say performance is about the same between the two groups.
- 10% believe master’s degree holders perform worse than candidates with a bachelor’s degree and two years of work experience.
Perceptions of how much a master’s degree improves job performance vary by age, with younger hiring managers showing the most confidence in its value:
- 47% of Gen Z hiring managers say master’s degree holders perform at a higher level. That figure drops to 38% among millennials and Gen X and 35% among baby boomers.
- 29% of Gen Z say master’s degree holders perform considerably better—more than double the rate of Gen X (11%) and millennials and baby boomers (both 13%).
Meanwhile, older generations are more likely to see no performance difference or even a disadvantage:
- 54% of Gen X and 53% of baby boomers say performance is the same between master’s grads and candidates with a bachelor’s and two years of experience. That number goes down to 51% of millennials and 46% of Gen Z.
- 13% of boomers believe master’s degree holders perform worse—the highest of any group, compared to 11% of millennials, 8% of Gen X, and 7% of Gen Z.
While performance outcomes are mixed, the majority of hiring managers still associate a master’s degree with higher earning potential:
- 72% of hiring managers say they would offer a higher salary to candidates with a master’s degree.
- 64% say they would offer a 10% increase.
- 20% say they would offer a 15% increase.
- 23% say they would offer a 20% increase or more.
- 28% of hiring managers say that a master’s degree doesn’t impact salary offers at all.
According to the report, younger hiring managers are more inclined to offer salary increases to candidates with a master’s degree. The generational breakdown is as follows:
- 80% of Gen Z and 78% of millennial hiring managers say they would offer a higher salary to a candidate with a master’s degree. That figure falls to 67% of Gen X and 62% of baby boomers.
- 31% of Gen Z hiring managers say they would offer a 20% or greater salary increase, compared to 24% of millennials, 21% of Gen X, and 17% of boomers.
By contrast, older hiring managers are more likely to say a master’s degree has no impact on salary decisions:
- 38% of baby boomers say a master’s degree doesn’t affect salary decisions, compared to 33% of Gen X, 22% of millennials, and 20% of Gen Z.
“A master’s degree may not guarantee you’ll be better at the job, but it still holds symbolic value in many workplaces and can help you start with a higher paycheck,” Chan said. “Hiring managers often see it as a signal of drive, discipline, or long-term ambition, even if they admit that real-world experience can be just as, or more, valuable. In some industries, advanced degrees are still deeply embedded in hiring norms.
“For job seekers, the takeaway isn’t that everyone needs to pursue a master’s,” she added. “It’s that a graduate degree can still open doors—especially in more traditional industries like finance, government, education, and healthcare, where credentials carry institutional weight. That said, for many roles in tech, media, or startups, building hands-on experience, skills, and a strong portfolio can be just as powerful, and often more cost-effective, than going back to school for another degree.”
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
