|By PR Newswire||
|March 20, 2014 04:00 AM EDT||
CHICAGO, March 20, 2014 /PRNewswire/ -- For many companies, an associate or bachelor's degree is increasingly becoming the new high school diploma. According to a new CareerBuilder survey, 27 percent of employers say their educational requirements for employment have increased over the last five years and 30 percent are hiring more college-educated workers for positions that were previously held by high school graduates.
Looking only at a subset of companies hiring STEM workers in 2014, those figures rise to 46 and 43 percent, respectively.
The national survey was conducted online by Harris Poll on behalf of CareerBuilder from November 6 to December 2, 2013, and included a representative sample of 2,201 hiring managers and human resources professionals across industries and company sizes.
The rising bar is even extending beyond the bachelor's degree in some cases. One in five employers (20 percent) are now targeting Master's degree holders for positions primarily held by those with four-year degrees. A third (33 percent) of employers are sending current employees back to school for an advanced degree, and a majority of that group (81 percent) are at least offering partial funding.
"The economic value of a college education for workers has long been known, but as occupations evolve and as companies rely more heavily on professionals with strong interpersonal and technical skill sets, workers can't afford to stop their education at high-school," said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. "The trend toward higher-educated labor is already paying off for companies. We see that both in our surveys and data analytics research."
Ferguson notes, however, that higher-education institutions and policy makers must do more to control and bring down the costs of attaining a degree. Businesses, on the other hand, should continue to invest in training and development, he says.
Value of hiring college-educated labor
A large majority of employers hiring college-educated workers for occupations previously held by high-school graduates are seeing positive results. Eighty-six percent cite at least one positive impact, including revenue:
- Higher-quality work: 56 percent
- Productivity: 45 percent
- Innovation/Idea generation: 41 percent
- Communication: 41 percent
- Employee retention: 27 percent
- Revenue: 19 percent
- Customer loyalty/retention: 17 percent
- None: 16 percent
Big data research supports survey findings
Research published in The Talent Equation by Ferguson and co-authors Lorin Hitt (professor, Wharton School, UPenn) and Prasanna Tambe (assistant professor, Stern School, NYU) suggests that for some occupations, rising education requirements pays off for businesses. The authors analyzed the career histories of more than 20 million resumes, connecting these workers to the bottom lines of thousands of employers. The regression-based analysis specifically linked the firms' workforce education-levels to changes in company performance.
For some job functions, particularly in areas that don't traditionally require a college education, hiring more workers with college degrees appears to significantly affect a company's bottom line.
- Customer service workers: A company that increases its number of customer service workers with bachelor's degrees by 10 percent is associated with about $26,000 higher value added* per employee.
- Sales workers: A 10 percent increase in sales workers with college degrees is associated with about $31,000 higher value added per employee.
- Management workers: A 10 percent increase in management workers with college degrees is associated with about $63,000 value added per employee.
For large firms, this amounts to a significant return for a relatively modest increase. However, these positive associations, the analysis discovered, do not exist for all occupations.
For example, the correlation disappeared for information technology workers. Workers' skills and other intangible assets like development programs and workflow structure, the author's found, depreciate almost as fast as a company's physical assets – e.g. computer software and hardware. This lends credence to the view that hiring for degrees alone cannot ensure a successful workforce, especially in tech-related occupations.
Reasons for hiring more degree holders
Employers are essentially split on the reasons for why they are hiring more college-educated workers for traditionally high-school level work:
- 58 percent said they're able to get degree holders "because of the tight labor market."
- 55 percent said "skills for my positions have evolved, requiring higher-educated labor."
For more information about the author's research, visit www.talentequationbook.com
*Value added is defined as (total – cost of materials) divided by number of employees.
This survey was conducted online within the U.S. by Harris Poll on behalf of CareerBuilder among 2,201 hiring managers and human resource professionals between November 6 and December 2, 2013 (percentages for some questions are based on a subset, based on their responses to certain questions). With a pure probability sample of 2,201, one could say with a 95 percent probability that the overall results have a sampling error of +/-2.09 percentage points. Sampling error for data from sub-samples is higher and varies.
CareerBuilder is the global leader in human capital solutions, helping companies target and attract great talent. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors and 1 million jobs. CareerBuilder works with the world's top employers, providing everything from labor market intelligence to talent management software and other recruitment solutions. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit www.careerbuilder.com.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 1, 2015 09:00 PM EDT Reads: 658
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 1, 2015 06:30 PM EDT Reads: 153
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 1, 2015 04:45 PM EDT Reads: 481
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Aug. 1, 2015 03:15 PM EDT Reads: 327
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 1, 2015 03:00 PM EDT Reads: 517
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Aug. 1, 2015 02:45 PM EDT Reads: 453
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 1, 2015 11:15 AM EDT Reads: 180
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 1, 2015 10:30 AM EDT Reads: 215
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 294
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 1, 2015 09:45 AM EDT Reads: 393
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 1, 2015 09:45 AM EDT Reads: 139
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Aug. 1, 2015 09:45 AM EDT Reads: 189
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 1, 2015 08:00 AM EDT Reads: 311
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Aug. 1, 2015 08:00 AM EDT Reads: 1,689
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Jul. 31, 2015 11:45 PM EDT Reads: 790