Employers Want Workers with Skills, Not Credentials

I read an interesting pair of articles in the Wall Street Journal last week. They touched upon the challenges we face with the high school to college to career pipeline.  Our work at Opportunity Education makes this topic particularly interesting to me.

The first article, “Employers Rethink the Need for College Degrees in Tight Labor Market,” discusses how employers are beginning to move away from requiring undergraduate degrees as a condition of employment, preferring instead to see specific needed skills.

The second, “The Suicide of the Liberal Arts,” makes the point that the greater focus on specific courses of study rather than the more traditional liberal arts leaves students unfit for much other than entering graduate programs.

While seemingly at odds with one another, these articles actually both make one essential point: education needs to be about developing skills, both the specific skills that employers need, and the more general skills such as clear communication and analytical reasoning that are fundamental to many types of careers today. If we’re going to win at education, our educational system needs to give students these skills.

The failure of the education system to prepare students for success in the world in which they will live shows up in different ways at the different stages.  In high school, the emphasis is often on “all students college bound” without paying any attention to the career interests of students, the cost of college, or the potential return on investment for a college degree.  By the time students get to college, many of them will major in subjects where core skills have been replaced by specialized content. So rather than learning clear thinking and communicating, students are learning academic jargon that has no applicability outside academia. Employers make the problem worse by embracing a faith in credentials without understanding what the credentials mean.  A degree tells you little about what its holder knows, what skills she has, or what he can do.

What can be done to improve this situation? Through my foundation, Opportunity Education, I have developed a better high school, one where the focus is not on merely completing courses, it’s on developing the learning and work skills students need for success. 

By giving students some choice in how they study, and in what they study, they can develop their educational experience to suit their personal goals.  To ensure that they understand their career options, I created the Opportunity Education Pathways Program, in which students have up to four years of internships while also learning about topics such as professionalism, finance, innovation, and entrepreneurship.

For those students looking to move beyond high school, I am in the process of creating a “great books” college-level program in which students can study the seminal ideas and books that have shaped the world we live in over the past 2,500 years.  Through close reading and facilitated discussion, supported by high quality video productions, students will sharpen their minds and develop skills that colleges used to value and that employers still desperately need.

This is how we fix the high school to college to career pipeline:

  • First, give every student a high school education that prepares them for the world of work and that helps them identify their best-fit path to a meaningful career. 
  • Second, for paths that lead through college, give students a new affordable option. For some this might be a short program serving as a springboard to a specific degree program or career.  For others this might mean completing a full degree comparable in quality to that of the best colleges in the world.

If we do this, students will be positioned to make meaningful contributions to our country and to their communities, while also ensuring themselves a sound financial future.

The Midwest Roundtable on Talent

I was pleased to participate recently in The Midwest Roundtable on Talent.  The event brought together business leaders and presidents from more than 60 colleges and universities to exchange ideas about how to prepare students for success in the 21st century workplace.  It’s a topic I care deeply about, and I enjoyed discussing Opportunity Education’s Quest Forward Academies and its Pathways Program with the group. 

The Quest Forward Academies are powered by Opportunity Education’s Quest Forward Learning curriculum.  It’s an approach to learning that focuses on giving students the skills to succeed in today’s world, and tomorrow’s.  The Pathways Program, which begins in 9th grade and supports students for up to 10 years, brings the importance of career readiness into focus before students have made the commitment to attend college. 

Real-life skills, career planning, financial literacy, and the important role that businesses play through internships and early jobs are things we need to be working on today if young people are going to live successful lives tomorrow.

The Hidden Opportunities of Remote Work

By Joe Ricketts

Ever since I founded my first business in the 1970s, I have liked to be in the office and see people working.  The idea that employees had to be supervised in order to be productive was branded on my brain.  So, when the pandemic arrived, and it became clear that lockdown would keep many of my employees at home, I was more than worried.  I had to take a deep breath and say to myself that if they could not be productive from home, I would have to take them off the payroll.  No one wanted that.

My employees went home and continued to work using all our modern communication methods, and they did remarkably well even though I wasn’t with them.  Our business did not slow down.  For an old guy like me who has been managing people for so long, this was an enlightening reminder of what these times ask of business leaders.

We continue to face uncertainty and accelerated change.  Even with the promise of vaccines for the COVID virus, we will have to make permanent adjustments in the way employees work, not just in terms of how they communicate but also when or if they will come into an office, the role of travel, the use of hotels, and the kinds of relationships any of us can have with our fellow workers and our clients and customers.  The natural human tendency is to see these required changes as further burdens that make success more difficult, as if COVID is a business-unfriendly government administration that burdens us with new regulations. We would do better, however, to adopt the mindset of an entrepreneur and look for opportunities.  

            When I decided to send my employees home and see what happened to our productivity, I was running an experiment.  I’d love to say that I had a special insight, that I knew in advance what the outcome would be, but the fact is that I only tried remote work because I had no other choice.  Even so, it was an experiment and a successful one.  And that’s what entrepreneurs do.  Experiment.  Entrepreneurs have an idea for a product or a method of production or distribution, but it is at best an educated guess.  They have to try it out and see what happens.  They don’t figure out the result in their minds; they let the market give them the results.

            In this moment of profound and unexpected change, we all need to be entrepreneurs in our thinking, viewing change, even unwelcome change, as a chance to experiment and succeed.  We need to look at employees at home and think, What a wonderful thing.  Look at all the time saved!  People who used to commute to offices in city centers have given up their commutes plus the time they used to spend getting ready for work.  That might be a saving in time of 25%.  They have also been freed to use their time as they think most productive.  What might they do with it?  How can their companies help them be most productive?

            The shift to remote work is giving all businesses a new opportunity to innovate.  It has never happened before, and we had better not miss it, because, in five years, I predict, the successful companies will be those who have learned to adjust all aspects of their work and policies to seize this moment.  How does a decentralized workforce create opportunities for employers to hire people they would never have considered before?  How can we align the incentives of remote workers with those of the company?   We need to rethink compensation to reward the employee who gets inspired and works for twelve hours straight or otherwise contributes to the company’s success.  We need to find new ways to manage employees and to evaluate performance – performance that produces results, not just looking busy.  

  We also need to remember that the success of a business depends on more than short-term productivity.  We need to think beyond efficiency and find new ways to support our employees’ well-being and sense of purpose.  When we were building Ameritrade, every Friday after the stock market closed, many of us went out for a drink to let off some steam and celebrate the week’s success.  We had memorable office parties.  My wife, Marlene, got inspired to bake birthday cakes for employees, and we found it meant a huge amount to people to be recognized in that way – decades later, former employees are still reminiscing about those birthday cakes. 

I don’t know how you get the remote equivalent of an office party or a chance to share a personalized birthday cake with your co-workers, but I know that remote workers still need those things.  I think employees will always need a desk in an office, even if they only work there occasionally, as a reminder that they belong somewhere, that their efforts are part of something greater than their to-do list.  We may need to give them incentives to come in at least occasionally.  And though I can’t predict the answers, I know how we will find them: the entrepreneurial mindset.  We need to run the experiments now to discover the innovations that will define the future of work.


The Coolest Drink Around

As an entrepreneur and philanthropist, my mind naturally thinks up new ideas for businesses and charitable ventures.  Sometimes, the new idea has to do with trying to tackle a serious problem.  Other times, it’s just something fun that I decide to go for.  So it was with The Ice Bar at Jackson Fork Ranch.

Made of ice and packed snow, The Ice Bar at Jackson Fork Ranch is a truly unique place to spend time after having fun with wintertime activities like fat tire biking, cross country skiing, and ice skating.  I got the idea for it after seeing an ice bar while traveling and thought it would be something interesting to bring to Little Jackson Hole, WY.

It’s a fun place to spend time and I’ve been delighted to see the local community pick up on the idea.

Congratulations Todd on Your Rite of Passage

There are certain rites of passage in life – events like Baptisms, graduations, weddings, and retirement.  These are the moments when you pass from one phase of your life to the next.  At those times, the person passing through the rite of passage might reflect a little on his life.  Others might offer him congratulations.

So I’d like to congratulate my son Todd on his rite of passage this week when The New Yorker magazine wrote a profile about him and his work for President Trump.  Todd joins other conservative leaders who The New Yorker has attacked because they promote different values than the magazine or support political candidates the magazine doesn’t like.  The list includes people like Paul Singer, Charles and David Koch, Peter Thiel, Robert Mercer, and Foster Friess. 

I’m proud for Todd to join this list of principled conservatives and hope he keeps working hard to promote economic opportunity through deregulation and lower taxes.  Congratulations Todd!