College/Uni is a bit of a farce when the employers don't understand what a degree is. I'll agree with that. Someone with a degree isn't necessarily any good at what they got a degree in - I'll go with that too.
The main benefit of a degree is it demonstrates someone can learn a complex subject, manage deadlines, and self-teach. If someone has a 2-1 or 1st level degree in a difficult subject, they're not necessarily experts in that subject, BUT they are highly adept at learning and adapting to that subject.
If you want someone to get stuck into a job that needs a lot of knowledge straight away (e.g. straight into a sound recording studio), then you need to get the most experienced candidate. If you want to spend a bit of time sculpting a new employee so he/she is an expert at the job you want them to do, you get a high level graduates.
A degree proves you are extremely capable and have a foundation in a subject, but it does not mean you're an expert in it yet. A lot of employers don't understand that concept. Bigger employers (such as IBM, EDS, Microsoft etc etc.) fully understand the concept, so mostly recruit graduates, and spend a lot of time and money developing them with education and work experience. They know top grads are the most capable people around, but they need skill development and experience to become useful.
Basically, big companies can afford to invest for the future to have the best staff (hence grads). Smaller companies need good staff right away, as they can't afford in the investment (hence experience!). But, the reason why big companies like IBM stay in front is their willingness to make that initial investment in their staff and ultimately nurture the best professionals in the industry.
