The Employer Side of the Equation, Sean R. Gallagher, Northeastern University

CONFERENCE ON ADULT LEARNER ENROLLMENT MANAGEMENT 2013

The Employer Side of the Equation

Sean R. GallagherNortheastern University

Wednesday, July 17, 2013


• Contextual perspectives and insight on the often unexamined role of employer dynamics in the adult learner enrollment landscape

• Evidence-based synthesis of multiple sources– Proprietary surveys/analyses– Hundreds of meetings– Third-party research

• Dialogue and discussion

Session Objective

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Increasing Calls For Attention to Employers

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A Global Imperative

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“(Unemployment and underemployment) represents not just a gigantic pool of untapped talent; it is also a source of

social unrest and individual despair.

Paradoxically, there is a critical skills shortage at the same time. (Across

countries) only 43% of employers surveyed agreed that they could find enough skilled

entry-level workers. This problem is not likely to be a temporary blip; in fact, it will probably get much worse… by 2020 there

will be a global shortfall of 85 million high- and middle-skilled workers.”

Source: McKinsey & Company, “Education to Employment” (2012)


Employers: Multiple Roles in the Higher Ed Ecosystem

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EMPLOYERS

Hiring Graduates

Informing Curriculum

Policy & Decision Influence

Funding/Tuition

Assistance

Executive Education & Training


Themes We Will Discuss

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Job market (e.g. occupation/industry and skills trends)

Role of college credentials in the hiring process

Influence on adult learner decision-making

Perception of online degrees

Tuition assistance dynamics

Marketing and selling to employers effectively


A Relatively Healthy Job Market for College Degree Holders

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Source: Bureau of Labor StatisticsTable A-4. Employment status of the civilian population 25 years and over by educational attainment (July 2013)http://www.bls.gov/news.release/empsit.t04.htm

Unemployment Rate by Educational Attainment Level


Employers’ Use of College Credentials in Hiring

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• Understudied area• Recruiting as a key strategic priority for employers

(“talent war” / “skills shortage”)• College credentials normative, especially BA/BS • Dynamics:– Human capital and signaling/screening

• Prestige and other signals

– “Experienced hiring” vs. “college recruiting”– No link between grades and performance?

• (Cappelli, Rivera, Google…)


The Current Job Landscape Demands Bachelor’s & Graduate Degrees

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“Requested Educational Credentials” Across 3.9 Million National Job Postings Note: Both Required and Preferred – Totals Exceed 100%

Source: BurningGlass LaborInsight, April-July 2013


Top Occupations (Bachelor’s and Graduate Degrees)

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Real-Time Job Postings (BurningGlass Labor Insight, April-July 2013)

Note: Strong correlation with credentials/majors (Business, Computer Science, Nursing, Engineering, etc.)


Top Skills Desired By Employers Apply Across Programs/Disciplines

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• Communication• Writing• Leadership• Teamwork• Critical Thinking• Problem Solving• International/Intercultural Competency• Innovation/Entrepreneurship• Project Management• Technical: Sales, Business Development, SQL, JAVA, Patient Care

Sources: Employer Interviews, BurningGlass, Georgetown Center for Education and the Workforce


Rise of the Professional Graduate Degree

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• Economic/salary premium for advanced degrees– All post-2000 college wage premium growth– 30-35%+ premium varying by industry/occupation

• Credential upgrading/inflation by professional and industry bodies

• 20-25% of jobs vs. 11% attainment

• 36% growth in graduate enrollment nationally, 2000-2010– 5 million more Americans now hold a master’s

credential


Regional Variation in Industry Demands/Culture, Human Capital

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X Washington, D.C.

X San Jose, CA

X Austin, TX

X Boston, MA

X Seattle, WA

X Portland, OR Salt Lake City, UT X

X Charlotte, NC

Source: U.S. Census, BLS


Employer Influence on Adult Learner Decision-Making

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• Conversations with (a) managers and (b) co-workers among more influential and credible “word of mouth” marketing channels

• Employer policies and partnerships as a consideration

• Industry Associations as powerful endorsements or channels – underleveraged


Employer Perception of Online Degrees

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• Still limited understanding – growing area of research

• Consistently better accepted for advanced degrees/continuing education – vs. entry-level or initial credential

• Alignment and “fit” with certain employees, learning styles, culture

• Excitement and interesting regarding online models

• HR Managers’ Views (2010 SHRM Poll)– 87% had more favorable view of online degrees in 2010 vs. 2005– 49% still viewed an online degree as “less favorable”– 55%, felt an online degree would make “no difference” – Harder to distinguish “online” degrees as worlds blur and traditional schools offer

online and blended programs


Online Degrees: Changing Consumer Perception and Other Dynamics

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• Consumer/Public Perception in 2012 national poll by Northeastern:

“Online education will be just as recognized and accepted among employers as a traditional college degree in the near future (5-7 yrs)”

– 58% agree• 68% agree among 18-30 age group

• Beware the influence of MOOCs?


Employer-Provided Tuition Assistance

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• Offered by about 75% of companies– $20 billion in annual spending

• Retention, recruiting, training

• ~45% of all adult learners receive some financial support

• Tax-free benefit status was at risk with “fiscal cliff”– Made permanent by Congress January 2013 (IRC: 127)

– ~1 million students annually benefit

• Decline since 2009– Recession prompted re-evaluation of benefits and greater focus on

ROI, value, outcomes

– Growing alignment with talent management strategies

Sources: SHRM, Eduventures, EdLink, EdAssist, NCES, Northeastern University


Tuition Assistance Search Trends: Seasonality and – Decline?

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Jan.

Aug.

Aug.

Jan.Jan.

Aug.Jan. Aug.

Aug.

Jan.

Consumer Searches

Source: Google Trends, July 2013


Employer “Buying”/Partnership Decisions Are Dispersed

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• Human Resources• Line/department/functional unit managers• Executives & senior management• Training managers and directors• Individual employees


B2B: An Emerging Trend/New Frontier for EM

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• Employers prefer an active “sales” dialogue

• Need for creativity in reaching adult students/professionals

• Various B2B models and growing number of institutional examples– Northeastern– Other non-profits: Drexel, Indian Wesleyan,

Liberty, Brandman, etc.– For-profit universities– “Elites” : MIT, Harvard, Stanford, etc.


A “Solution Selling” / Consultative Sales Approach

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Characteristics • Customer-centric

– Dialogue: problem solving based on understanding of challenges

• Long-term relationship• Complex

– More decision-makers– Longer sales cycle

Implications• Requires a broader skill set and more time

– Listening, probing, questioning vs. positioning• Demands a consultative approach

– Needs assessment -> solution mapping


Employer Business Development Role Example (M.I.T.)

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Job Requirements:

REQUIREMENTS: a master's degree (Ph.D. desirable) in a relevant technical discipline; minimum of ten years' experience working with industry within the U.S. and internationally; ability to relate effectively to faculty and manage relationships with senior executives in a large corporate environment; proven ability to understand, communicate, and present complex business and technical information in sales and service contexts; and ability to develop, manage, and close complex sales. Experience in business-to-business technical sales, technology transfer, marketing, or consulting desirable; as is international travel and business experience. An MBA and fluency with languages (in addition to English) also desirable. A degree from, knowledge of, and experience at MIT a plus; as is experience working with Japanese and/or Korean companies. MIT-00009471-Q


Concluding Recommendations

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• Innovate and adapt to the call for industry alignment

• Consider distinctions by credential/level, sector, region, etc.

• Need for more research and knowledge sharing– Degrees in hiring; online perception; TAP changes; effective sales models…

• Monitor changes in the “credentialing” landscape– Key moment for degrees vs. competency, certificates, badges, etc.

• Outcomes and assessment increasingly important – proving ROI

• Continued work to demonstrate credibility and efficacy of online models

• Dedicate capacity to and engage employers actively through business

development activities of various types

• Integrate disparate functions and views


QUESTIONS / DISCUSSION

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Sean R. GallagherSenior Strategist & Market Development OfficerNortheastern [email protected]: @HiEdStrat

mailto:[email protected]

mailto:[email protected]