A new survey reveals a surprising disconnect between perceived job performance and pay expectations tied to academic credentials. While 62% of U.S. hiring managers believe a master’s degree doesn’t lead to better job performance compared to a bachelor’s degree plus two years of experience, a majority would still offer higher salaries to those with the advanced credential.
Conducted by Resume Genius, the survey of 1,000 hiring managers found that 52% said the performance between the two types of candidates is about the same, and 10% believe master’s holders actually perform worse. Only 38% felt the degree gave job seekers a notable edge in effectiveness.
“Hiring managers aren’t convinced that higher education equals higher results,” said Resume Genius career expert Eva Chan. “However, the data shows that employers are largely fine paying for the perception of potential that comes with a postgraduate degree.”
Despite doubts about its real-world impact, 72% of respondents said they would offer higher salaries to those with a master’s degree. Nearly a quarter were willing to provide a bump of 20% or more.
The divide was especially evident across generations. Gen Z hiring managers were most likely to believe in the performance benefits of a master’s, while baby boomers were the most skeptical. Still, even older respondents recognized its symbolic value when making salary decisions.
Chan emphasized that while advanced degrees can unlock higher starting pay—especially in traditional fields like finance or healthcare—they aren’t the only route to success. “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,” she said.
