Let’s be honest, most CHRO groups out there are bad. They are expensive, filled with vendor pitches, and loaded with “fluff” resources that are outdated by the time they are published. That’s why I put together Future of Work Leaders. A CHRO group for people leaders who are moving beyond traditional HR to focus on the future of work and employee experience. No pitches, no selling, no fluff.
The community is focused on discussions, candid Q&A sessions, and sharing of resources and insights. Members include Lego, Novartis, PwC, Saks Global, and dozens of others. I’m just in the process of planning our annual in-person forum which will be at the end of March. if you want to learn more and request an invite go to Future of Work Leaders or email me directly Jacob[at]thefutureorganization[dot]com.
The American higher education system is staring down a fiscal and cultural apocalypse. With student debt ballooning to a staggering $1.8 to $2 trillion, the traditional pathway to the middle class has turned into a high-interest financial nightmare.
For decades, the four-year degree was the undisputed ticket to professional success. But that certainty has evaporated, leaving a wake of unreasonably high costs and diminishing returns. If your talent filters are still primarily built around legacy degree requirements, you’re hiring for a world that no longer exists.
In this episode, Eric Gertler, Executive Chairman and CEO of U.S. News & World Report, joins me to dissect a system at its breaking point. Beyond the academic debate, Eric sheds light on a high-stakes disruption of how talent is cultivated, identified, and retained.
If you’re still hiring based on a four-year pedigree alone, you’re likely paying a premium for a credential that’s losing its market relevancy by the day. Eric operates U.S. News—a 90-year-old institution—as a “90-year-old startup”. That’s the kind of agility modern HR departments must mirror to survive. Here’s what that means for CHROs.
Listen to the episode here on Apple Podcast & leave a review!
The Broken Compact: Why the Degree Proxy is Failing
The relationship between higher education and the public is fractured. Consumer trust in these institutions has plummeted from nearly 70% to the low 30s. Why? Because many universities have prioritized fundraising and real estate growth over actual student success.
For talent leaders, the “broken compact” is evidenced by two sobering facts:
- The Debt Trap: 40 million Americans have accumulated significant debt and some college credit but walked away with no degree. They are financially stranded by a system that failed to deliver.
- The Relevancy Gap: Roughly 40% of workers are currently in jobs where their undergraduate degree has no relevancy. Nearly half the degrees on your employees’ resumes are effectively decorative.
Relying on a degree as a proxy for capability is no longer a viable strategy for CHROs when nearly half the workforce isn’t even using the knowledge they paid for.
The Net Reality: Why “Gross Income” is a Lie
When universities tout that graduates earn, on average, $20,000 more per year, they’re feeding you a “gross number”. As a business leader, you know that gross revenue doesn’t matter if the margins are zero. When you factor in the crushing debt service many graduates carry, that $20k premium evaporates.
This is why the “Consumer North Star” is shifting. Families are finally looking at the net reality: graduation rates, debt manageability, and actual earning potential. For CHROs’ hiring strategy, this means the “Ivy League or bust” mentality is officially obsolete. Public universities and community colleges are the new “workhorses” of the system, delivering high-value talent without the unsustainable price tag.
Stop Paying the “Innovation Tax”
One of the greatest risks to your organization is the “Ivory Tower” lag. Gertler notes that academia is consistently a decade behind the market. For example, hospital presidents were screaming for data analysts 12 years ago, yet it took years for universities to even recognize the need, let alone build the curriculum.
When you rely solely on traditional degrees, you are effectively paying an “Innovation Tax”—hiring talent trained for a world that existed ten years ago. You can’t wait for deans to come to you; you have to take affirmative steps to shape the curriculum yourself.
This calls for CHROs to move beyond simple recruitment to providing real-world projects that help students understand the practical requirements of modern roles.
Listen to the episode here on Apple Podcast & leave a review!
AI’s Wildcard: Why Humanities Might Win
For the last two decades, STEM was the “safe” bet. But AI and humanoid robotics are changing the math. When a machine can code, calculate, and process data faster than any human, rote technical knowledge is no longer a competitive advantage; it’s a commodity.
We are moving from a world of “what to think” to “how to think.” As AI automates entry-level technical roles, the “soft” skills found in the Humanities—critical analysis, ethical judgment, and the ability to navigate complex social environments—are becoming the new “hard” skills.
If AI provides the information, your people must provide the wisdom. For CHROs, this means looking past the technical degree and identifying candidates who can think critically and solve problems in ways an algorithm can’t.
Education as a Lifelong Loop
The concept of a four-year educational “burst” providing enough fuel for a 40-year career is dead. The world moves too fast. Gertler envisions a future where universities are not one-time stops, but hubs for “lifelong learning”.
For people leaders, this is a retention goldmine. Rather than viewing education as a prerequisite for hiring, view it as a continuous loop. Partnering with institutions to keep your workforce updated is no longer a perk—it’s a survival strategy. Gertler warns that without this alignment on skills and readiness, companies might develop a “greater reliance on AI” rather than hiring students, implying a risk to the current talent pipeline.
Conclusion: Leadership at the Crossroads
We are entering an era where higher education is a game of “survival of the smartest.” While many schools will fail, Eric Gertler points to institutions like Vanderbilt, Duke, and the University of Florida as proof that adaptation is possible. These schools are succeeding because their leadership is actively shifting models to address modern disruption.
As a CHRO, you are at a similar crossroads. You can no longer rely on a university’s brand name as a proxy for competence. The burden of identifying great thinkers now falls on you. You must build the systems to find and develop the skills required for the next decade, looking past the pedigree to find the capability.
How will your organization find its next generation of leaders?
Check out my full conversation with Eric Gertler to dive deeper into the future of education and work.
Organizations around the world have lost their way. It’s time to get back to basics and focus on what really drives people and performance. This is why I’m so very excited to share that after 2 years of research and writing, my new book The 8 Laws of Employee Experience: How to Build a Future-Ready Organization is finally available. Grab a copy at 8exlaws.com
