3 ways work experience outsmarts formal education for professional development

3 ways work experience outsmarts formal education for professional development

The McKinsey Global Institute used big data to examine 4 million real-world job histories and found that meaningful work experience is critical to human capital development.

Effective organizations who prioritize learning and development can have a major impact on whether or not an individual reaches their potential.



Human capital is often studied in the context of how investments in early childhood development, education, and healthcare translate into a more productive workforce. But human capital is ultimately the potential within each individual.

Its development continues long after formal education ends, as people acquire new skills in the workplace and gain capabilities that they carry with them for the remainder of their careers. This is a critical dynamic, since human capital accounts for two-thirds of the average individual’s wealth. New research from the McKinsey Global Institute finds that half of that value—and often far more for people with less education—is linked to work experience.

We used big data to examine some four million real-world job histories for workers in the United States, Germany, the United Kingdom, and India, paying special attention to the specific bundles of skills required in each role someone held over time and considering how job moves affect