[A]s Mr. Cappelli puts it, "back off the strict requirement that applicants need to have previously done precisely the tasks needed for the vacant job" and "see if they could do the same with some training or ramp-up time."
Managers pile up so many requirements that they make it nearly impossible to find anyone who fits.
Screening theory, on the other hand, posits that the value of higher education credentials flows primarily from their value as signals to potential employers of the abilities of the holders of such qualifications.
We find that social capital is the most important factor to determine productivity. We found mixed effects from human capital; only in one firm did human capital have a noticeable effect on productivity; tenure has no effects on productivity.
As human capital rises, growth will also be positively affected. However, we show that if screening is applied such benefits may disappear or become smaller.
Ultimately, both in-role and extra-role job performance positively influence employees' salaries and promotions.
Human capital theory proposes that formal training such as that offered by higher education institutions improves the productive capacity of individuals.
To effectively contain hiring costs, many managers and interviewers use job applicants' educational level or work experience as screening criteria (Kroch & Sjoblom, 1994; Maglen, 1990; Sturman, 2003); those who do not have the minimum required level of education or minimum years of experience are immediately removed from the applicant pool.
From the normative point of view, we show that Governments can play an important role in encouraging the acquisition of those skills that are most needed domestically.
The International Organization for Migration (IOM, 2003) recently claimed that “prospects of working abroad have increased the expected return to additional years of education, and led many people to invest in more schooling, especially in occupations in high demand overseas.”