The Education System is Broken

This week’s topic is focused on the human side, or Talent aspect of the HR Perfect Storm. But to really get a sense of where this is happening, we’ll need to step outside of the organization first. That’s where this wave is coming from; the Education System. The timing of this particular blog post is somewhat ironic given the latest announcement by Bernie Sanders to wipe out student debt. Of course wiping out student debt today would surely start a slippery slope; for the next generation, or SUV buyers, or underwater mortgage borrowers, etc…. you get the picture. As you’ll see in this blog, further government involvement (debt forgiveness & “Free” Tuition) will only decrease the value and worth of a higher education.

Going back to the mid 1990’s, my first real professional job was as a campus Hall Director at a small state college. My building housed all male Freshman; yes, I could write a book just on what I saw in those four years. The reason I bring this up is I had an opportunity to see firsthand how students were, or were not challenged. My greatest concern was when asked to proofread or edit final drafts for papers that students were about to submit. I recall reading papers that, in terms of flipping houses, were more tear down’s than fixer uppers.

Why do I mention this? Our institutions of Higher Education have lowered their standards. But don’t just take my word on this. Here’s what renowned economist Dr. Richard Vedder, who has studied higher education over the past fifty years, has to say about higher education today;

“So the kids are not learning as much, they’re paying more to learn less – so they’re getting less for more. And then, as a consequence of too many kids going to traditional college, we have this underemployment problem where college kids – because it’s a tight labor market right now – for all the money going into educating them, there’s not much of a vocational result.”

I would encourage you to take a look at his recent interview as well as his book ‘Restoring the Promise: Higher Education in America.” The above quote goes directly to my concern as it relates to Talent and the “HR Perfect Storm.” This in turn has had a ripple effect and is impacting the corporate landscape. How? Those Training & Development programs that have been the hallmark of many organizations are now too lowering their standards as a result. What used to be an influx of new graduates that had solid basics, is now a greater burden for organizations to fundamentally develop and train. This will place additional burden and strains on existing HR departments and processes if things don’t change.

I recently moderated a CHRO roundtable on the topic of talent. As we discussed trends, it became apparent that in the current talent crisis, the one thing that had the most concern was the lack of skills new graduates were demonstrating. Examples given were things like: HR helping new employees open a bank account to deposit their check, teaching basic meeting facilitation skills or helping with conflict / confrontation skills. My point to all this, HR has notoriously been stretched thin managing the business and supporting leadership initiatives, now they must provide “Adulting Skills?”

This topic has been a particular passion of mine, not because I’m rooting for any particular outcome. I’m quite honestly surprised that an institution built on the premise of “education” is not able to see the impending implosion of their model. Recall in my first post of “Wednesday Words” that I mentioned “The Pace of Digital Growth.” How does that line up with the concept of a 4 year degree? Imagine the number of business cycles that will occur during that time of a typical student in a four year program.

The evidence that change is coming is on display almost daily in the Wall Street Journal. The core premise for employers requiring college degrees for a position was to ensure a baseline aptitude or skillset for a new employee. Think of a degree as the “Good Housekeeping” seal of approval. What has happened, to the detriment of higher education, is they have diminished their own brand. Why else would companies such as Google, Apple, Ernst & Young, Starbucks, Nordstom (Connley, 2018) among others do away with the college degree requirement. Just this week a CBS Moneywatch article was posted; “Two-thirds of American employees regret their college degrees.” The central argument is around the debt acquired for a degree. Essentially buyers remorse as the time and investment are not viewed with value.

The limited pool of “capable” degreed candidates with skills wasn’t enough to fill available vacancies. This has led organizations to look more closely at skills and aptitude as indicators of success, rather than a piece of paper. The very nature of natural progression from High School on to College is being challenged in it’s own “Higher Education Perfect Storm.”

When you consider the student debt crisis, coupled with a scarcity of tradesmen, excess of unskilled college graduates that are underemployed, the prospects for more of the same just don’t ring true. Now, this is not representative of all Higher Education. What has impressed me is the number of community colleges and two year programs that have been more closely aligned with business and technical trades. These institutions operate more like businesses and understand they are producing students for a corporate consumer.

Keep your eye out for other small ripples happening in the labor market. In the past year momentum has picked up for “Signing Days” by employers for High School students. Much like the Athlete signing days where top high school athletes sign letters of intent for colleges, businesses are signing top talent for their organizations. Articles in the Wall Street Journal underscore this growing trend: “Facing Historic Labor Shortages, Companies Snap Up Teenagers” (Levitz, 2018)

With the Graduation season just in our rear-view mirror, I was recently asked for any advice I would give to my younger self, or graduates. My advice was the following; Develop Critical Thinking as a skill – too many Graduates have been taught to just binge and purge information with little processing. Exposing oneself to multiple experiences, views, sources, opportunities (even bad ones) develops perspectives and helps engage Critical Thinking as a skill. Lastly, be curious, be fierce and be hungry. “That’s not my job” should not be in your vocabulary.”

Let me attempt to bring this to a relevant close as it relates to Talent and the HR Perfect Storm. As I stated in my first Wednesday Words regarding my son and his journey, we plan to evaluate all options as it relates to his education. There are more resources now than ever before to support his academic preparation as well as identifying his talents and interests.

HR organizations in general cannot afford to operate in the same manner as they have for many years. The changes we’ve discussed so far just in the attitude toward technology, and what technology can do for HR is a critical foundational factor. HR Departments MUST turn over as much as they can to self-service and AI processes to focus on the human aspect of incoming talent demonstrated above. Talent is the essential component to organizations in today’s world of business and can be the make-or-break factor. It’s time to prepare for the next generation employee.