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Ernst and Young drops degree classification threshold for graduate recruitment

137 points| rcurry | 10 years ago |timeshighereducation.com | reply

128 comments

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[+] gjkood|10 years ago|reply
Kudos to E&Y for taking a radical approach to hiring.

However, as a concerned parent, I hope impressionable youngsters don't mistake this for 'Yay, I don't have to go to college to get a decent job anymore'.

The lifetime earnings for a college degree holder[1] is probably a lot more than for those without a degree.

If you can afford it, go to college. If you can help it, don't drop out. Get that degree. If possible, get a Masters degree. Those six years staying in school getting your undergraduate and graduate degrees, will make a huge difference in the rest of your life

We are not all destined to found unicorns or be an early employee in one. For the rest of us mortals, going to college will make a difference.

Even a Thiel Fellow probably needs to be admitted to a very competitive school to drop out and get the Thiel Fellowship.

[1] Forbes; http://www.forbes.com/sites/troyonink/2014/05/05/federal-res...

[+] aianus|10 years ago|reply
> The lifetime earnings for a college degree holder[1] is probably a lot more than for those without a degree.

> Even a Thiel Fellow probably needs to be admitted to a very competitive school to drop out and get the Thiel Fellowship.

You pointed out the flaw in that sort of thinking yourself. Absolutely you should strive be the type of person who can get into and graduate from an elite school. The value of then actually doing it is what's suspect.

I don't think there have been any statistically significant studies done on such people (who were accepted to elite schools and declined to go in favor of starting a company), but I would love to read them if anyone has seen one.

[+] nailer|10 years ago|reply
> Those six years staying in school getting your undergraduate and graduate degrees, will make a huge difference in the rest of your life

Conversely, six years of actual experience mean you'll be able to apply for senior jobs that pay well, and you'll have a fun, debt-free 20s.

[+] josu|10 years ago|reply
>The lifetime earnings for a college degree holder[1] is probably a lot more than for those without a degree.

The problem with these kind of studies is that they take the average, and income only has a lower bound. From my personal observation, many of my university classmates (Spain, '12) would have been better off if they had opted for a technical degree.

[+] rcurry|10 years ago|reply
Oh, I don't know - it just depends on what your kids want to do. I think it's sad that we've reached a point where you're expected to have a four year degree, and $80k of debt in order to get a job as a receptionist or a barista.
[+] mahyarm|10 years ago|reply
Degrees are the most useful for immigration purposes I've found. It lets you have an ability to work in many places in the world.

But that is bureaucratic requirements more than any specific merit about the degree, where you get your degree or how much you spend on your degree, time or money.

[+] mkaziz|10 years ago|reply
Does getting that graduate degree help? I stuck it out for the degree (Computer Science), and I don't think it helped much with my job prospects. I get paid the same as my peers who only did undergrad.
[+] ryanmarsh|10 years ago|reply
> Kudos to E&Y for taking a radical approach to hiring.

Kudos to E&Y for taking a sensible approach to hiring.

As I'm sure your aware most colleges and secondary schools share similar patterns for teaching and student evaluation. Those patterns are not optimal for all brain types. Furthermore those patterns are not optimal for all work types.

Anecdotally many of use can point to one or more unimpressive individuals holding impressive credentials of post graduate education.

Personally speaking, I'm a high school dropout. I work in a niche that did not exist during the time I would have been in college. What degree plan would have served me best? Oddly enough, a degree in philosophy. Obviously that would have been mine (and my parents) last choice.

I'm not saying college or secondary education are bad, it's just that when I look ahead for my children, it's a crap shoot. Should I pressure them to attend college? Why? Short of medicine, and certain credentialed professions what essential knowledge about their future profession will they learn in college that they could not possibly learn on their own (ab initio or ad hoc) through various other means?

[+] protomyth|10 years ago|reply
'Yay, I don't have to go to college to get a decent job anymore'

That's always been true. Vocational careers earn pretty good money (quite a lot more than a lot of degrees) and have good career prospects, particularly with parents looking down on vocational training for a career.

[+] markdown|10 years ago|reply
Interestingly, just yesterday this video blew up on Reddit:

A 34yr old man with a PhD who can't even get a job stacking shelves and who was better off 17 years ago after high school.

As a child/teen, he was told:

> The lifetime earnings for a college degree holder[1] is probably a lot more than for those without a degree.

> Those six years staying in school getting your undergraduate and graduate degrees, will make a huge difference in the rest of your life

https://www.youtube.com/watch?v=pglv6VrA8ro

[+] evanpw|10 years ago|reply
College is not a good idea for everyone. People who struggled in high school are unlikely to finish college, and most of the college premium comes from the degree itself: there's a huge gap in earnings between "some college" and "college graduate" (and less of a gap in student loan balance).

[1] http://econlog.econlib.org/archives/2014/09/what_every_high....

[+] gcb0|10 years ago|reply
E&Y handled my taxes when i moved countries. They made so many rookies mistakes on both sides i doubted they even required literacy to work there.
[+] gjkood|10 years ago|reply
My reply is not intended to insult anyone associated with the Big 4/5 firms.

In my experience, the model is to get one or two really smart people into the client and then a boatload of rookies to pump up the billing machine.

Every client is a training on the job experience for the rookies.

[+] nailer|10 years ago|reply
Needed to engage a consulting company for auditing requirement. E & Y couldn't answer their email.
[+] blazespin|10 years ago|reply
This is a very long time coming. So extremely talented individuals who had to work through university (and so grades suffered) will have an opportunity to compete on a level playing ground. TBH, this makes sense. Many of the well rounded / think for yourself / independent people I met in university were supporting themselves while in University.
[+] jsprogrammer|10 years ago|reply
Does E&Y really want well rounded / think for yourself / independent people? Or do they want people who will learn the regulations; who will apply them ruthlessly; and who are always acting to maximize the profitability of the company?
[+] Retra|10 years ago|reply
Conversely, many of the well rounded / think for yourself / independent people I met in university have no trouble getting generous scholarships.
[+] endzone|10 years ago|reply
the uk funding arrangement means that no one has to fully support themselves through university, so your point really doesn't apply here.
[+] throw_for_throw|10 years ago|reply
>Instead, the company will use numerical tests and online “strength” assessments to assess the potential of applicants.

I'm not certain that focusing on numeracy tests to assess an applicant is such a great step forward. I get the sense that this will only encourage candidates to "study for the test" and will actually produce more false positives.

[+] blazespin|10 years ago|reply
Numeracy is an important part of accounting :)
[+] xamuel|10 years ago|reply
>study for the test

Like it or not, that's what a lot of people do in university anyway. If a half-decade, super-expensive middleman can be cut, cut it.

[+] nichochar|10 years ago|reply
I think this is a good move, but I'm worried that people will understand it as "education is useless, I should go work".

The problem here is very obviously that most educational systems are completely broken. The american one maybe the most, since it's so "famous".

I come from France, I had a better education than you can get probably anywhere in the world (I went to les Mines de Paris, roughly equivalent to the top 10% of MIT), and EVERYTHING, since I was 5 years old, was free and based on merit. This leads to people with degrees actually being much more performant in the workplace. I am 100% sure this study would have opposite results in France, as it is very easy to look at what the alumni of my school go to become.

People, education is primordial, paying for education is a sin that brings all this shit out. Someone needs to fix this, and probably no one will in my lifetime in america, it is very sad

[+] pdabbadabba|10 years ago|reply
Glad to hear you're happy with your education in France. But...

First: The article is about the U.K., not the U.S., so I'm not sure why you're bemoaning the state of U.S. education here.

Second:

>I come from France, I had a better education than you can get probably anywhere in the world (I went to les Mines de Paris, roughly equivalent to the top 10% of MIT), and EVERYTHING, since I was 5 years old, was free and based on merit. This leads to people with degrees actually being much more performant in the workplace. I am 100% sure this study would have opposite results in France, as it is very easy to look at what the alumni of my school go to become.

This is not very persuasive. One could run the same line of argument about American (or Chinese, or British, etc.) universities, since in the U.S., like France and most other places, it remains the case that college graduates earn much more than their peers without college education, and even more so (sometimes dramatically) at elite universities.

But apparently this just doesn't necessarily translate into success at Ernst & Young.

[+] parennoob|10 years ago|reply
> I come from France, I had a better education than you can get probably anywhere in the world (I went to les Mines de Paris, roughly equivalent to the top 10% of MIT)

What is it about French Universities that makes them so exceptional? I ask because I've heard this "I come from a French University, and it is reaaaally good" refrain from a lot of French people – but I haven't seen that many exceptional performance amongst them. [I should say though, I have met some really great and hard-working French university graduates, so the overall level is definitely quite good.]

[+] learnstats2|10 years ago|reply
I understand it that E&Y's priorities are not with successfully educated candidates.

Who can easily get onto degree courses (but may not be successful there), and then easily be coached through online tests? One type of person: rich people with connections.

[+] jakozaur|10 years ago|reply
Great step! I wonder how it translate into action:

1. Lack of degree will not be a filter, but you need to be genius if you don't have it.

2. Lack of degree is a setback, but still can get through.

3. Just consider skills, interview/internship performance.

[+] tormeh|10 years ago|reply
The big consultancies don't really give a crap what you studied or what skills you have, they just want your intelligence and self-discipline. Now they're dropping the assumption that not having a degree means you're not smart. Nothing more, and nothing less.

(Everything I've ever heard about these consultancies suggest they are very bad places to work, if anyone's tempted)

[+] bluedino|10 years ago|reply
4. Have no degree and get paid 1/2 as much for same job
[+] rcurry|10 years ago|reply
Maggie Stilwell, EY’s managing partner for talent, said the changes would “open up opportunities for talented individuals regardless of their background and provide greater access to the profession”.
[+] gmac|10 years ago|reply
My wife's employer instituted a similar policy: instead of a qualification requirement, they now ask candidates to do a lengthy take-home exercise.

Her experience is that, if anything, it's actually damaging for accessibility, because in practice the candidates who have the confidence (and possibly outside help) to do well are pretty well exclusively the ones with traditional backgrounds, a sense of entitlement, and high grades from good institutions.

[+] markbnj|10 years ago|reply
I'm somewhat shocked. This feels sort of like the Borg saying you don't need to assimilate anymore. Just be who you are! +1 for E&Y.
[+] Kinnard|10 years ago|reply
Many, but I'd not say all, blanket degree requirements are a unfair and inefficiency-driving discriminatory practice along the lines of the criminal record check-box.

We need a ban the box campaign for academic credentials so that applicants are judged on their skill and merit and not on too often flimsy credentials.

[+] fareesh|10 years ago|reply
This is a great step. In several cases, degrees can be a good way to filter applicants, but having them as mandatory requirements in these cases can sometimes deny a potentially good candidate an opportunity. For example, I know a lot of great front-end engineers who don't know what Big O is.
[+] McP|10 years ago|reply
Good! Having done a lot of recruiting recently I've noticed no correlation between degree classification and problem solving ability. I have a 2:2 myself :)
[+] eruditely|10 years ago|reply
I don't have a degree and I'm glad to hear this, I would rather I be tested on my knowledge and get a job over people who hardly know anything.
[+] jamessb|10 years ago|reply
The title for the HN submission is currently very misleading.

HN headline: "Ernst and Young Drops Degree Requirement for Recruitment"

THE headline: "Ernst and Young drops degree classification threshold for graduate recruitment"

The meaning is very different: the first suggests you no longer need to have a degree at all; the second merely suggests you no longer need to have done well in your degree.

Also worth noting is that Ernst and Young already had a 'EY School Leaver Programme' (5 year training programme for people direct from school).

[+] NDizzle|10 years ago|reply
As someone who has earned a top performance award at a big 4 accounting firm, I think they should drop the requirement entirely.

I have an Arkansas high school education. I came to work there through an acquisition.

[+] rcurry|10 years ago|reply
Thanks for pointing this out - a friend emailed me this link with that subject line, I apologize for any confusion guys.
[+] McP|10 years ago|reply

[deleted]

[+] noja|10 years ago|reply
Good choice, but let the crash begin!
[+] catshirt|10 years ago|reply
why but? :)
[+] harigov|10 years ago|reply
I haven't gotten a clue but why do we need accounting firm in this day and age? Aren't those already automated?
[+] milhous|10 years ago|reply
Companies like them and Deloitte still offer traditional auditing and accounting services, but their cash cow is mostly in IT contracting for government and Fortune 500-type companies.
[+] gaius|10 years ago|reply
You're thinking about bookkeeping. Accounting is about advice.
[+] m3talridl3y|10 years ago|reply
Well duh. If we don't need degrees to create computer programs, then why would someone need a degree for any other job in the world, which just involve pushing buttons on software programs we create?
[+] phpnode|10 years ago|reply
I really hope this was a sarcastic comment. Personally, I prefer my doctors, lawyers and nuclear physicists to have formal qualifications.