Skills-Based Hiring: Where Did It Go?

This Week in Leadership, March 25, 2024

by Theodore Kinni

If you’ve browsed job postings recently, you’ve probably seen that skills-based hiring is all the rage. Often a bachelor’s degree isn’t even required—only that you have key skills.

But only one word describes how often non-degreed applicants appear to be getting hired: rarely. A new study from the Burning Glass Institute and Harvard Business School’s Managing the Future of Work program uses employment ads to track the progress of skills-based hiring. It found that from 2014 to 2023 the number of roles for which employers dropped degree requirements increased fourfold. But when they studied a sample of 11,300 of these roles, they found that the share of workers hired without a college degree grew by only about 3.5% in 2023. Extrapolating its findings across the hiring universe, the team concludes that “for all its fanfare, the increased opportunity promised by Skills-Based Hiring has borne out in not even 1 in 700 hires last year.” Read the rest here.

Evaluating Your Major Gift Program: Three Strategic Questions for Nonprofit Leaders

Learned a lot lending an editorial hand here:

Development Guild DDI, March 25, 2024

by Suzanne Battit




When Dr. Ruth Gottesman, Ed.D. – Professor Emerita in the Department of Pediatrics at the Albert Einstein College of Medicine in New York City – announced that she was donating $1 billion to make the school tuition-free, it seemed like a bolt from the blue. But attracting major gifts — even the rare one of this size —is far more likely to be the result of a rigorous approach than a random event.

The long-term success of a nonprofit’s fundraising is almost always predicated on a strong major gift program, and the ability to identify and cultivate donors like Dr. Gottesman is a hallmark of such a program. Major donors have a strong affinity for the mission and impact of an organization and an unyielding commitment to its success. Indeed, at age 93, Dr. Gottesman – the very wealthy widow of an early business partner and long-time investor with Warren Buffett – has been affiliated with the medical school for 55 years and serves as the chairperson of its board of trustees.

While monumental gifts like Dr. Gottesman’s may be an anomaly in the world of major gifts, every nonprofit can assess their major gift program to be as strong and effective as possible. Here are three strategic questions to assess your program so you can elevate it to the next level and beyond. Read the rest here.

What People Really Think About Search Engine Ads. (You Might Be Surprised.)

Insights by Stanford Business, March 7, 2024

by Theodore Kinni


iStock/Nuthawut Somsuk

Revenues from search ads are expected to exceed $300 billion in 2024 — making search the world’s largest advertising channel online or off. The ads are essential to search companies, but their value to users, who collectively make more than 1.2 trillion queries per year on Google alone, has always been something of a mystery.

Some experts argue that search ads are intrusive and even scammy — a distraction users must tolerate in exchange for free access to search engines. Others see the ads as a convenience, enhancing the search experience by offering users additional information and easy access to products and services related to their interests. “The utility of search advertising has been a controversial question and people have written positive and negative points of view on it in the media for a long time,” says Navdeep Sahni, an associate professor of marketing at Stanford Graduate School of Business. “But it is a question that needs to be answered with data.”

Sahni now has that data. Sahni and Charles Zhang, PhD ’22, then a GSB graduate student focused on quantitative marketing, got it from real users and real ads in a large-scale field experiment on a widely used U.S. search engine. While there has been copious research on the efficacy of search advertising for ad buyers, this experiment was unique for its scale and empirical focus on the value of ads to search users.

Collected over a period of five months in 2017, the data reports on queries submitted to the search engine by nearly 3 million unique users. For two months in the middle of the experiment, half of the users saw search results that included the usual number of ads that appear among the top results and in the middle of the page, known as mainline ads. “Whenever there’s a search query,” Sahni explains, “search engines use a proprietary algorithm that scores every ad that could appear with the results. Only those ads whose quality exceeds a certain preset threshold get placed in the mainline positions.” These ads are the most visible on the page and have the most effective positioning.

During the same two-month period, the search engine tweaked its ad-scoring algorithm so that the other half of the user group saw fewer mainline ads with their results. “The experiment increased the threshold cutoff of that algorithm just enough so that 17% of the ads that would have received mainline positions got pushed to less visible positions on the side of the page,” Sahni explains. Read the rest here.

Building a vibrant news industry in the Middle East and North Africa

Learned a lot lending an editorial hand here:

PwC Strategy&/Google News Initiative, Feb. 21, 2024

by Karim Daoud, Karim Sarkis, Martin Roeske, Carla Khoury, and Mazen Sabbagh



Digitization is fueling growth for news organizations in the Middle East and North Africa (MENA) region, presenting both opportunities and challenges that must be addressed.

The news market in the region is promising. News consumption and demand are on the rise. MENA region consumers are willing to pay for the news they want, particularly trustworthy, in-depth, and specialized reporting. Additionally, there is significant room for revenue growth, especially in digital advertising and consumer revenues (digital circulation).

The growth is fueled by widespread mobile connectivity, high internet penetration, and social media usage in the MENA region, especially young consumers leading digital lifestyles. To attract and grow revenue from these tech-savvy consumers, news organizations need to transform their business models and methods of delivering content. That transformation must include creating new types of content, formats, and interfaces. Collaboration with governments in the MENA region, regulators, global tech platforms, advertisers, and academia is crucial in creating an enabling environment that supports the growth of regional news organizations. This environment can be achieved through talent development programs, targeted financial support, media literacy initiatives for consumers, and an updated regulatory framework.

Together these transformational efforts can lead to a better news consumption experience, high-performing news organizations, and an overall vibrant news ecosystem in the MENA region. Download the PDF here.

Why It’s Good for Business When Customers Share Your Values

Learned a lot lending an editorial hand here:

MIT Sloan Management Review, February 15, 2024 

by Daniel Aronson 

Carolyn Geason-Beissel/MIT SMR | Getty Images

Values matter. Too often, however, they are relegated to the realm of fables instead of finance.

Take honesty, for example. We tell our children the story of the boy who cried wolf to teach them that when someone is dishonest, others are less likely to believe them the next time. But if we look just a tiny bit below the surface, the financial cost of the boy’s dishonesty immediately comes into focus: It results in the loss of his family’s entire flock of sheep.

If we calculated the loss caused by the boy crying wolf, we undoubtedly would find that it dramatically outweighed the combined gains generated by strategies like using AI-optimized grazing patterns, feeding the sheep a high-growth diet, or using consultant-recommended wool-marketing strategies. And yet, while all those things would clearly be considered business decisions, acting on values is not. But that’s wrong.

There is a very strong business case for acting on values. A $100 billion company I worked with discovered that there was a high return on investment from acting on its values and making sure customers knew about that. In fact, the return was many times greater than the ROI from its investments in upgraded technology or marketing campaigns. Yet the importance of technology and marketing are clearly understood as key areas of the business, while values-related impacts are left off of spreadsheets and are rarely — if ever — used to determine which actions have the highest ROI. Read the rest here.

The Hidden Costs of Clicking the “Buy Now, Pay Later” Button

Insights by Stanford Business, Feb. 2, 2024

by Theodore Kinni


Cory Hall

In the past couple of years, a new payment option has become almost ubiquitous on online retailers’ checkout screens: Buy Now, Pay Later.

This fintech innovation offers consumers instant financing for large and small purchases on a transactional basis. In a typical purchase, a shopper might pay 25% down for that new sofa or this week’s groceries and pay off the remaining 75% in three equal installments — one every two weeks. If they make the payments on time via a bank account or credit card, the loan is interest-free.

Over the past decade, fintech companies such as Klarna, Affirm, and Afterpay have taken Buy Now, Pay Later from a niche alternative to a mainstream choice by signing up tens of thousands of retailers. The retailers offer BNPL as a payment option at the point of sale and pay a small merchant fee, as with credit cards.

Unlike plastic, however, BNPL does not require a rigorous credit check. That’s made it a hit with consumers, especially younger adults without well-established credit. Total loan volume among the largest BNPL providers grew from $8.3 billion in 2020 to $24.2 billion in 2021, according to the Consumer Financial Protection Bureau. During the 2023 holiday season alone, shoppers availed themselves of $16.6 billion in BNPL loans. Estimates for near-term growth range widely, though it’s been estimated that global loan volume could reach $1 trillion by 2025.

“BNPL is a pretty slick innovation. It is convenient and it’s basically free credit if you pay it off on time,” says Ed deHaan, a professor of accounting at Stanford Graduate School of Business.

However, it also has the potential for misuse and abuse. Read the rest here.