Recent years some companies when recruiting pay more attention to the diploma of candidates instead of his professional background or individual characteristics. This caused because of the rapid changes in the economy and further diversification of labor market. Such trend has a negative impact on educational institutions, as the management scheme may not address the market demand timely.
HR managers request candidates to support their applications with relevant certificate to proof their academic performance. As the market environment is rapidly changing, businesses have to respond to arising challenges as fast, as possible. Recruiting a capable candidate with necessary academic background contributes to adoptability of the company. For instance, with growing popularity of a AI models, importance of human equipped with sufficient degree to interpret the results generated by the model is increasing. As a result, employers paying more attention to diploma of candidates forcing educational institutions offer wider range of programmes.
In order to provide a response to the market needs, universities and colleges trying to launch more specific courses and it is already leading to negative consequenses. It is harder to maintain financial sustainability across the range of running programmes. For example, in a lot of educational orgranisations profit generated by business courses being redirected to fund losses of less-attractive directions of study. As a result, to overcome the negative factors and avoid crisis, major changes in educational framework should be introduced.
In conclusion, increasing need for academic qualification of employees, combined with widening list of professions demanded, puts a stress on educational institutions. To reduce negative effects, it is important to develop a new model of management in education.