Investigating the ways in which educational credentials influence employers’ hiring decisions
Date
2023-07
Authors
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Publisher
University of the Witwatersrand, Johannesburg
Abstract
There is a strong link between formal education and results on the labor market, like employment and earning potential, according to a wealth of research. Academic credentials are frequently seen as a doorway into mainstream economic engagement on a global scale, which justifies corporate and public investment in higher education. What is not always evident are the interpretations that companies give to educational credentials in particular settings, such as hiring decisions, and what these meanings reveal about the recruiting criteria of employers for potential employees. The purpose of this study was to comprehend the significance that employers place on qualifications and how this significance affects the hiring processes. In order to do this, the study looked at the hiring of engineers at two different occupational levels at four South African State-Owned Companies. To ascertain the meanings that employers attach to qualifications when screening CVs for engineering positions, a descriptive phenomenological technique was taken into consideration and enhanced with the use of hypothetical CVs. Three theoretical viewpoints were used as the foundation for this study in order to comprehend employer opinions of what qualifications actually mean. They were the credentialism theory, the screening and signalling theories, and the human capital theory. According to the study, ownership of a qualification gave an individual a competitive edge in the labor market and was viewed as a main selection criterion from all three theoretical viewpoints. Main findings: The selection criteria for the two engineering positions at the two distinct levels were compared in this study. First, the results imply that the recruiting standards for a Junior Manager Mechanical Engineering post and an Electrical Engineering Technician, a lesser entry-level role, differ significantly. I discovered that the primary distinction between the two was the importance of qualifications in the hiring process for lower entry-level positions. The findings indicate that at this level, employers view qualifications as the main criterion for choosing the best applicant for the position because they believe they provide a sufficient indication of the knowledge and skills needed to perform the work. According to the statistics, individuals with the most relevant credentials and those who earned high marks in their degrees and certifications were seen as having a greater understanding of the subject matter of their credentials and were therefore given preference during the hiring process. This result appears to support the human capital theory's assertion that qualifications represent knowledge and abilities because it substantially aligns with its underlying premises. Secondly, I found that, when it came to the management role, candidates' qualifications were not taken into account in isolation but rather coupled with additional credentials, such as prior work experience. In reality, I discovered that in this area, job experience was valued equally to or even more than qualifications when hiring at management levels. For instance, it seemed that companies would prefer to go with someone with work experience in some situations, such as when the minimal qualification criteria was not entirely completed. Although the focus of my study was on qualifications, some of the companies made a strong case for the value of prior job experience, sometimes at the price of qualifications. While this does not go against the principle of human capital, it does imply that job experience may be viewed as a more valuable indicator of applicable human capital than qualifications for management roles. Finally, I discovered that job experience was essential for the development of soft skills like problem solving, teamwork, communication, and leadership, among others. According to the statistics, these talents can be developed over time with the proper amount of work experience, mentoring, and coaching. Fourth, I discovered that the relationship between work experience and qualifications was complex and complementary, and that worker productivity was not a function of qualifications alone. According to study findings, companies would enrol recent graduates in WIL programs largely to supplement their education with relevant work experience, which would help them grow and maximize their productivity. Finally, I discovered that employers believed all schools were regulated and followed the same national standards of teaching and learning, thus they did not consider institutional reputation when choosing qualified applicants. This also resonates more with the human capital idea rather than the credentialism theory, which provides a social closure perspective, and assumes that the more prestigious universities are associated with better quality graduates. My interpretation of the aforementioned five key findings leads me to believe that employers primarily view qualifications as stand-ins for the actual knowledge and abilities needed to do the job. However, even when they were not just relying on qualifications, they still looked for qualities like job experience and soft skills, which are all referred to in literature as examples of human capital. These results strongly imply that the human capital theory is more important in explaining and influencing hiring decisions for engineering candidates. Human capital theory appears to have replaced qualifications as the predominate mechanism for explaining employment choices in the engineering sector, despite a few modest hints that qualifications served as a sort of screening function. In a discipline like engineering, where the body of knowledge is very closely correlated to the job that needs to be done, this makes sense.
Description
Research report submitted for the degree of Master's in education (M.Ed. in Education and Work) at the Faculty of Humanities, Wits School of Education, University of the Witwatersrand, Johannesburg. 2023.
Keywords
Educational qualifications, Credentials, Worker productivity, Hiring decisions, Human capital theory, Sorting (screening and signalling) theories, Credentialism theory, UCTD
Citation
Sekokope, Abram Sello. (2023). Investigating the ways in which educational credentials influence employers’ hiring decisions. [Master's dissertation, University of the Witwatersrand, Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/41046