Last week I sat down to chat with AfterCollege CEO Roberto Angulo about entry level job creation (read Part I of my interview here). This week, Roberto and I talk more about the forum they hosted in San Francisco, obstacles to meaningful entry level job growth, and more.
Tony Rosato: During the forum, were there any unexpected ideas or suggestions; something you hadn’t thought you would hear?
Roberto Angulo: Yes. The most surprising finding is that there’s a gap between the skills that people are acquiring in school and the skills required for tomorrow’s jobs. Everything I’ve read and heard up to now talked about specific industries and sectors that will be the first to create jobs. During the forum discussion we figured out that no key sector would lead in job creation but instead, it’s a matter of having the right skill sets and not necessarily education. These skills carry across all disciplines and they include having an entrepreneurial spirit, being flexible and adaptable, having good communication skills and being able to work in teams. Skills are more important than industry focus, and those who have these skills will be better able to find jobs once the economy starts improving. Dr. Phil Gardner, Director of the Collegiate Employment Research Institute at Michigan State University, was one of our forum participants and the main proponent of this idea.
TR: I can’t imagine too many people out there against entry level job creation. Still, in the current economic climate, this isn’t going to be easy. What do you view as the biggest obstacles to meaningful entry level job growth?
RA: A lot of the obstacles have to do with priorities and the lack of understanding about how neglecting Gen Y may have negative long-term effects. It’s more dramatic to see a manager with a spouse and 3 kids lose their $150k/year job vs. seeing a college student come out of school and struggle to find work. One can say that they can always go live with their parents. We are ignoring the long-term effects of neglecting today’s grads. We run the risk of creating a lost generation that will be at a disadvantage when the economy picks up and they haven’t been able to show a good use of their skills on their resume. We may also end up with a large number of over-educated individuals who went to school to get their MBA or Masters’ degrees while in reality the need may be for more practical skills that can be obtained through vocational programs or trade schools. Two of the resulting consequences could be a widening skill gap and the loss of potential income for millions of individuals.
TR: One of your recommendations is paying for internships. Unfortunately, I imagine a lot of business leaders and local government officials will say that’s simply not feasible, especially since so many organizations recently downsized and have seen their recruiting budgets slashed. What is your plan for paying for these internships and why is that such an important issue?
RA: Students who have relevant internship experience are more likely to find full-time work. The issue of unpaid internships creates an economic disadvantage for those who cannot afford to work for school credit because they require an income. Fortunately, this is a high-impact item that can take care of itself through the private sector. Last time I checked, we had over 1,100 internships posted on AfterCollege and only 5% of them were listed as unpaid. Interns are a cheap source of short-term talent for employers and they usually don’t get counted as headcount, so employers do benefit from hiring interns. Internships also provide employers with a low-risk and inexpensive way to “try before they buy”. That is, it allows employers to evaluate candidates during limited engagements and if they like their work, it’s up to them to offer full-time employment. Large employers have diversity and inclusion initiatives and they must be made aware that by offering paid internships, they are increasing the diversity of their intern pool.
Case studies and basic ROI numbers may be enough to convince employers that paid internships are the way to go as a low-risk way to get fresh talent in the door while also meeting their diversity and inclusion goals.
TR: Finally, the forum took place in February. What developments have there been since then and what are your hopes for the future?
RA: The debate about paid vs. unpaid internships is ongoing, and I know our report has been referenced in various discussions around HR circles. We’ve also shared a summary of our discussion and findings with House Speaker Nancy Pelosi’s office in San Francisco. Our forum co-host, 80 Million Strong, which is the voice of Gen Y in D.C., also shared our report with the White House. I think it’ll take time to see any real policy come out of this but we are hopeful that our recommendations are sparking more thought around this issue.
TR: Thank you Roberto! For more information on AfterCollege, visit www.aftercollege.com
