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HR secrets
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                     niversities are a big industry that has   power is not new; what is new is the ever-increasing
                     remained remarkably resistant to change.   ability to predict performance based on data.
                     While getting a job isn’t the only reason
                     people pursue a degree, it’s an essential   It’s got to be about data
           Uone. If a university degree was no more         Why do recruiters hire university grads rather than
            valuable than a high school diploma, then enrollment   people with a high school diploma? In part it’s
            would drop significantly. Ideally, from the viewpoint   because that’s what has always been done. They
            of business, a university education should add to   seek graduates from “good” universities because it
            someone’s capability – the value shouldn’t be in   seems to make sense.
            the degree, in the piece of paper, it should be in the   However, we are moving away from a world
            education. I’m not sure that always happens and   where we do “what we’ve always done” and “what
            society would be better off if universities raised their   seems to make sense” to a world of “what the data
            game.                                           shows”. We are getting better at analysing what
              People without university degrees do find     characteristics lead to good performance and so
            themselves at a disadvantage in the job market no   recruiters should end up relying less on the piece of
            matter how competent they are. That’s a result of   paper or school reputation in deciding whom to hire.
            how recruiters work. Potentially, recruiters could
            assess the capabilities of anyone who applied   The new world of credential-less
            regardless of their education, but historically it’s been
            easier to narrow the applicant pool by requiring a   hiring
            degree.                                         At the moment we rely on whether or not a person
              We normally look to politicians or the universities   has a university degree as an important piece of
            themselves to drive change, but maybe that’s not   data in screening candidates. We can get more
            the right lever; maybe it’s recruiters who will disrupt   predictive measures. When that happens, it will lead
            university education.                           to a revolution in universities. Students will flock to
                                                            the programmes that add to their real capability and
            The incredible power recruiters have            steer clear of the ones that don’t.
                                                              Perhaps in the future the self-educated
            over universities                               drop-out who has spent time participating in
            Let’s start with a simplified scenario. Imagine if   Toastmasters and studying Khan Academy videos
            recruiters found that an MBA graduate was no more   will find themselves scoring higher on a recruiter’s
            likely to succeed as a manager than a smart high   assessment tests than someone whose main
            school dropout. Universities would have to ensure   claim to competence is the name on their degree.
            their MBA programmes really did add to a student’s   Recruiters will succeed in bringing the revolution to
            ability to be a manager, not simply rely on the   higher education where others have failed because
            reputation of the degree.                       they’ll have the data to know what education really
              A more detailed scenario would be that recruiters   makes a difference.
            might learn that they didn’t need the data point   Once again, people may pursue university
            of what degree a person has to select the best   education for reasons other than its impact on
            performers. Imagine if the best predictor of    their career. However, if a student is investing a
            managerial potential was a series of tests given by   lot of time and a lot of money in a degree then it
            a recruiter. It is likely that MBA grads, on average,   should genuinely improve their capability. University
            would score higher on those tests than dropouts; but  programmes that do that should be cheered; those
            knowing what degree a person has wouldn’t add to   that don’t should be changed. Recruiters can make
            the accuracy of the prediction of performance. As a   that happen.
            student, you’d have to decide whether an MBA was
            the best way to get your scores up since the scores,
            not the degree, would guide the hiring decision.  David Creelman is CEO of Creelman Research,
              Recruiters have great power over the education   creelmanresearch.com. He is best known for his
            system because one of the main reasons students   workshops on Agile Analytics, Evidence-based
            go to university is that it will impress recruiters. This   Management and the Future of Work.


                                                                                          HR FUTURE · JUNE 2018  13
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