Is pursuing a master’s degree a smart move when it comes to how your skills and abilities are viewed, or are employers placing more value on practical experience?
To find out, Resume Genius surveyed 1,000 U.S. hiring managers about who they view as having higher performance and salary potential: master’s degree holders vs candidates with a Bachelor’s degree plus 2 years of work experience.
- A master’s degree is considered equivalent to two additional years of work experience, but 62% of hiring managers say performance is the same or worse between master’s degree holders and candidates with a bachelor’s degree and 2 years of experience
- 4 in 10 hiring managers (38%) say candidates with a master’s degree perform at a higher level than those with a bachelor’s degree and 2 years of experience
- Gen Z hiring managers are twice as likely as Boomers to see master’s degree holders as stronger performers (29% vs. 13%)
- Nearly 3 in 4 hiring managers (72%) say they would offer higher salaries to candidates with a master’s degree
- 64% would offer a 10% salary increase
- 20% would offer a 15% increase
- 23% would offer a 20% increase or more
- Male hiring managers are more likely than female hiring managers to reward a master’s degree with higher pay (75% vs. 68%)
- Male hiring managers are also 25% more likely to offer a 20% salary bump or greater to candidates with a master’s degree (25% of men vs. 20% of women)
- Hiring managers in the West are 13% more likely to offer bigger salaries to master’s degree holders than those in the Northeast (76% vs. 67%)
62% of hiring managers say having a master’s degree doesn’t make you a better worker
According to Radford’s Career Ladder system, a master’s degree is equivalent to 2 additional years of work experience.
But does higher education actually lead to higher performance on the job?
To find out whether this concept holds true in practice, our poll asked hiring managers whether they believe employees with master’s credentials outperform those with a bachelor’s degree plus 2 years of experience.
The results reveal a divided verdict:
- 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
- 14% say master’s degree holders work at a considerably higher level
Most hiring managers (62%) don’t see a performance boost from a master’s degree:
- 52% say performance is about the same between the 2 groups
- 10% believe master’s degree holders perform worse than candidates with a Bachelor’s degree and 2 years of work experience
While a master’s degree appears to offer some candidates a performance advantage, the majority say it doesn’t guarantee stronger performance — and for many roles, experience alone will be just as powerful in 2025.
Younger hiring managers are bigger believers in advanced degrees
Age matters when it comes to how hiring managers view education.
Our survey found that younger hiring managers — especially Gen Z — are far more likely to believe that a master’s degree leads to stronger job performance.
Here’s the generational breakdown:
- 47% of Gen Z hiring managers say master’s degree holders work at a higher level
- By comparison, only 38% of Millennial and Gen X and 35% of Baby Boomer hiring managers say the same
- When asked whether master’s degree holders perform considerably better, 29% of Gen Z hiring managers agreed — nearly twice as many as Millennials (13%), Gen X (11%), and Baby Boomers (13%)
- 46% of Gen Z hiring managers say performance is about the same between master’s holders and candidates with a Bachelor’s degree plus 2 years of experience
- That’s lower compared to 51% of Millennials, 54% of Gen X, and 53% of Baby Boomers
Meanwhile, skepticism grows with age: 13% of Baby Boomers believe master’s degree holders perform worse than candidates with work experience, which is higher than Millennials (11%), Gen X (8%), and Gen Z (7%).
A master’s degree can mean a 20% higher salary
While having an advanced degree doesn’t always guarantee better job performance, our survey suggests it still often leads to bigger paychecks.
Hiring managers are often willing to offer higher salaries to candidates with advanced degrees. Here’s what we discovered:
- 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
Younger hiring managers are more likely to reward master’s degrees with higher pay
The younger the hiring manager, the more likely they are to offer a salary boost to candidates with a Master’s degree.
As it turns out, Gen Z and Millennial hiring managers are significantly more generous than their older counterparts when it comes to rewarding advanced education.
Here’s the breakdown:
- 80% of Gen Z hiring managers would offer a higher salary to master’s degree holders, compared to 78% of Millennials, 67% of Gen X, and 62% of Baby Boomers
- Gen Z hiring managers are 28% more likely than Boomers to offer a salary increase for a master’s degree
When it comes to large salary boosts:
- 31% of Gen Z hiring managers say they would offer a 20% or greater salary bump
- That finding compares to 24% of Millennials, 21% of Gen X, and only 17% of Boomers
However, not everyone’s convinced — especially older hiring managers:
- 38% of Baby Boomers say that a master’s degree doesn’t impact salary offers — nearly twice the rate of Gen Z hiring managers (20%)
- In comparison, 33% of Gen X and 22% of Millennial hiring managers also say a master’s degree doesn’t affect salary
Men are more likely to offer big salary bumps for master’s degrees
When it comes to rewarding education with higher pay, male hiring managers are more likely to open their wallets.
Responses revealed that men were more generous across the board when it came to salary offers for candidates with a master’s degree.
- 75% of male hiring managers say they would offer a higher salary to someone with a master’s degree, compared to 68% of female hiring managers
- 1 in 4 male hiring managers (25%) say they would offer a 20% or greater salary increase, compared to 20% of female hiring managers
Master’s degrees pay off more in the West
It appears that where you apply for a job can affect your earnings too.
According to our research, hiring managers in the Western region of the U.S. are the most willing to reward a graduate degree with higher pay:
- 8 in 10 hiring managers from the West (76%) would offer a higher salary for those with a master’s degree
- 1 in 4 Western hiring managers (25%) say they would offer a salary increase of at least 20% to a candidate with a master’s degree
By contrast, the Northeast is the least willing to give out a higher salary offer:
- 67% of Northeast hiring managers would offer a higher salary for a master’s degree, compared to 73% in the Midwest and 72% in the South
Conclusion
While getting a master’s degree doesn’t guarantee better job performance, our survey suggests it often leads to higher pay, particularly when applying to companies with younger hiring managers or in certain regions like the West.
If you’re considering a master’s degree, it’s important to weigh the time, cost, and your long-term career goals. Our findings indicate that hiring managers do value further education, but experience can be just as powerful, depending on your field.
If earning a master’s isn’t accessible or the right fit for you, that’s okay. Building strong work experience and skills remains a proven way to grow your career and negotiate higher salaries. A master’s degree can be an advantage, but it’s not the only path to success.
Methodology
The Education and Earnings Report came from a Pollfish survey launched on January 8, 2025, targeting a sample of 1,000 participants. The analysis was conducted from February 3–14, 2025. The study examined how hiring managers perceive the value of a master’s degree compared to a Bachelor’s degree plus 2 years of work experience and the salary implications tied to higher education during the recruitment process.
The data was analyzed using the results provided by Pollfish and the raw data in Google Sheets. The results have a margin of error of ±3% at a 95% confidence level.
To minimize bias, Pollfish uses Random Device Engagement (RDE) to ensure a fair and organic selection process. For further details on Pollfish’s methodology, please visit their website or contact eduardo@resumegenius.com.
About Resume Genius
Since 2009, Resume Genius and its resume builder software have been helping people from all backgrounds and experience levels land their next job faster.
Resume Genius also provides a wide range of free career resources, including customizable resume templates, resume examples for different industries, and resume writing guides, to help job seekers find fulfilling work and reach their career goals.
Resume Genius is led by a team of dedicated career advisors and HR experts and has been featured in The New York Times, Harvard Business Review, Fast Company, CNBC, and USA Today.
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About the Author
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Eva Chan is a Career Expert and Senior Digital PR Writer at Resume Genius. Eva oversees research and data-led campaigns that reveal key trends in today’s workforce and represents the company in media interviews and press features. Her work focuses on guiding job seekers through today’s job market and helping them present their resumes with confidence.
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