Try before you buy — from universityventures.com

Excerpts:

There are two reasons why the skills gap persists in a full-employment economy. On the student or candidate side, there is “Education Friction.” Education Friction is why individuals fail to upskill themselves with the skills demanded by employers. This is a result of the time required to upskill, the cost, and – most important – the uncertainty of a positive employment outcome. The second and often overlooked contributor to the skills gap is “Hiring Friction” on the part of employers; employers are increasingly reluctant to hire candidates without exact relevant experience. The cost of a bad hire is higher than ever, as is employee churn, as is the cost of replacing terminated employees – all of which have contributed to an increase in experience requirements for positions that should be (and once were) entry level.

From time immemorial, all serious education, training, and workforce efforts to close the skills gap have started by identifying missing skills, developing curriculum, and delivering programs. These “Education Up” models are logical, but also easy. The hardest part of the skills gap is not identifying skills or skill building, but rather building the bridge to employers.

The urgent need to reduce Hiring Friction, coupled with the regulatory barrier to utilizing assessments at the top of the hiring funnel, is giving rise to new models that are the antithesis of “Education Up.” These new “Employer Down” models start with employers and the entry-level positions they need to fill, and eliminate Hiring Friction by allowing employers to try before they buy. Staffing and business services companies are hiring candidates themselves, providing Last-Mile Training, and placing newly-trained talent at the service of employers so they can try before they buy. Some Employer Down models add a new “emerging talent” product to an existing talent business (i.e., staffing or placement). Others establish outsourced apprenticeship programs to add a talent dimension to an existing business service, which can boost pricing power, increase market share, and accelerate growth. What they have in common is that candidates are hired and trained by the provider and then, while remaining employed by the provider, perform work for clients; clients convert candidates to full-time employees only when they’re good and ready. Here’s what else they have in common: scalable business models built around the provision of proven entry-level talent.

 

“Education Up” colleges and universities are ill-prepared for the coming of “Employer Down.”