Landing a job in recent days requires formal qualifications rather than personal past experience or characteristics. The leading cause to this phenomenon is the evolution of the 4.0 era, where technology is dominant in every industry, and there are both positive and negatives effects.
Formal academic training is a necessary foundation for almost any job nowadays, and university degrees act as the ticket to the workforce. In business, let’s say there is a Sales vacancy at a confectionary company. The job basically requires the employee to sell candies and other kinds of sweets, which sounds surprisingly easy and can be done with certain personal traits such as sociable, patient, understanding etc. However, personal qualities only allow minimum fulfillment of the job, not going beyond expectations. In order to do the job well, one needs thorough understanding about the target market and develop a sales strategy that fits. This needs proper research, analytical skills, and use of supporting research tools such as social media, MS Excel, or even SQL, all of which can be obtained through formal training at an academic institute. The same applies to technology field such as Computer Science, Architecture, etc. Life experience is neither sufficient for one to build a mobile app and help it grow to reach million users nor to design and construct a building.
The positive effects would include the highly skilled employees who can deliver an excellent job. This ensures the quality of the business, which, as a result, can secure and build the company’s reputation. Another positive effect is the saving of training time and resources. An employee with proper skills can start working immediately with minimal amount of instruction. For example, Home Credit develops strict employment procedures for data analysts and IT experts every year. Candidates must go through 4 rounds: 2 technical skill assessments, 1 interview with the direct supervisor and line manager, and 1 interview with the country head. Thanks to this, Home Credit has acquired many notable talents who have contributed greatly to its constant growth through years. However, the most concerned negative effect is that if disregarding one’s life experience and personal qualities, companies may hire the skilled worker with the wrong mindset that’s incompatible with the company’s culture or long-term development strategy.
Low employee retention rate follows and more resources are wasted in constant search for new candidates. Advertising industry is a great example. To win new pitches, carry out the huge amount of work in each advertising campaign, and catch up with other competitors, a lot of ad agencies want to reduce training time as much as they can, and thus, only look for candidates with outstanding academic backgrounds and pay little notice to their past experience and personal traits. Unsurprisingly, advertising companies usually have the lowest employee retention rate among all industries.