Attention Economy


Tuesday, October 13, 2015

Ernst and Young’s Bold Experiment

The UK branch of Ernst and Young has dropped the requirement that applicants possess a college degree –
https://www.timeshighereducation.com/news/ernst-and-young-drops-degree-classification-threshold-graduate-recruitment
“One of the UK’s biggest graduate recruiters is to remove degree classification from the entry criteria for its hiring programmes, having found “no evidence” that success at university was correlated with achievement in professional qualifications.
Accountancy firm Ernst and Young, known as EY, will no longer require students to have a 2:1 degree and the equivalent of three B grades at A level to be considered for its graduate programmes.”

Ernst and Young's recruitment policy change actually makes sense. Pervasive grade inflation and an explosion of majors lacking rigor has negatively affected the undergraduate system in both the UK and the US. Historically, a fundamental function of the university system was to provide good and honest signals regarding the abilities of degree recipients. Over the past decade or so, universities have failed to perform a decent job of evaluating students.

Research on Signaling and Grade Inflation
INTERNATIONAL ECONOMIC REVIEW [Vol. 48, No. 3, August 2007]
A SIGNALING THEORY OF GRADE INFLATION BY WILLIAM CHAN, LI HAO, AND WING SUEN
Abstract
When employers cannot tell whether a school truly has many good students or just gives easy grades, a school has incentives to inflate grades to help its mediocre students, despite concerns about preserving the value of good grades for its good students. We construct a signaling model where grades are inflated in equilibrium. The inability to commit to an honest grading policy reduces the efficiency of job assignment and hurts a school. Grade inflation by one school makes it easier for another school to do likewise, thus providing a channel to make grade exaggeration contagious.

 ---
Related:
What do Leading Companies Look for in Potential Employees?
Some interesting insights from Google’s chief recruiter:
“For every job, though, the No. 1 thing we look for is general cognitive ability, and it’s not I.Q. It’s learning ability. It’s the ability to process on the fly. It’s the ability to pull together disparate bits of information.”  

Grade Inflation – The New Normal at US Universities
“Students aren’t getting smarter," said Stuart Rojstaczer, a writer and former science professor who calls himself the country’s “grade inflation czar.” “They aren’t studying more. When they graduate they are less literate. There’s no indication that the increase of grades nationwide is related to any increase in performance or achievement”. …“If you give everybody an A, either people are not going to take it seriously or those who do take it seriously might get the wrong impression,” Healy said. “When students receive grades, they’re receiving feedback on how well they did in their courses, if they put in an equal amount of effort [in] each one. And [if] they receive higher grades in some subjects, they logically come to the conclusion that they are good at certain things. It wouldn’t normally occur to them that they happened to receive a grade that was out of line”. …Meanwhile, student evaluations could incentivize instructors to give their pupils higher grades than they deserve in an effort to “buy” higher evaluation scores, the study says.”