Hire for Competency — Not Degrees
When you’re facing down a large pile of resumes, it may be tempting to default to candidates who went to a more prestigious college or university. While research shows that these candidates may slightly outperform their peers in some dimensions, the data also shows that they can be more expensive to hire. So how do you figure out whether the extra cost is worth it? You should consider the candidates’ potential value for your firm — but ultimately their fit for the position is the most important. To determine this, test for the technical and interpersonal competencies needed for the job. And remember that any modest advantage stemming from university rank may also be mitigated by on-the-job training. While it may be an unsatisfying answer, the best hiring practice is to make decisions on a case-by-case basis — not to uniformly overvalue university pedigree.
“Graduates of Elite Universities Get Paid More. Do They Perform Better?,” by Vasyl Taras, et al.