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August 18, 2010

SHRM Poll: Hiring Practices and Attitudes: Traditional vs. Online Degree Credentials

Commissioned by:

Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by eLearners.com ©SHRM 2010

Definitions

All colleges and universities discussed in this survey, whether online or traditional, are assumed to be accredited institutions.

Online degrees: The majority (80% or more) of the courses to complete degree requirements are taken online.

Traditional degrees: The majority of the courses (80% or more) to complete degree requirements are taken at a brick-and-mortar campus, with face-to-face instruction in a physical classroom.

Types of accredited institutions that offer online degrees:

1) The online degree is offered by a traditional brick-and-mortar educational institution: • Public brick-and-mortar universities that also offer online education (e.g., UMass Online,

Penn State Online, Bowling Green State University, etc.)• Private, for-profit brick-and-mortar universities that also offer online education (e.g.,

University of Phoenix, Grand Canyon University, Ashford University, etc.)• Private, not-for-profit brick-and-mortar universities that also offer online education (e.g.,

Saint Leo University, Drexel University Online, Bellevue University, etc.)

2) Only an online degree is offered, no traditional brick-and-mortar educational institution exists:• 100% distance learning universities (no physical classrooms or campuses) (e.g., Walden

University, Capella University, California Coast University, etc.)

2

Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by eLearners.com ©SHRM 2010 3

Key Findings

• More than one-third of organizations (34%) reported that job candidates who have obtained their degrees online were viewed as favorably as job applicants with traditional degrees (i.e., brick-and-mortar).

• More than one-half of organizations (55%) indicated that if two job applicants with the same job experience were applying for a job, it would not make a difference whether the job candidate’s degree was obtained through an online or traditional (i.e., brick-and-mortar) degree program.

• The higher the position in the organization, the less acceptable the online degree credentials. Four out of 10 organizations (43%) indicated that an online degree credential is acceptable for a job applicant seeking an entry-level position, but only 15% of organizations indicated that an online degree is acceptable for a job applicant seeking an executive-level position.

• Only 11% of organizations stated that job candidates frequently or always identified on their resumes whether their degrees were obtained through an online degree program.

• 79% of organizations indicated that they had hired a job applicant with an online degree in the last 12 months.


How strongly do you agree or disagree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i.e., brick-and-mortar) courses and/or degree programs?

Distance learning online education (no physical classrooms or campuses) (e.g., Walden University, Capella University, California Coast University) are equally credible to online degree programs that are associated with traditional universities (n = 444)

Online degree programs are equally credible to traditional degree programs (n = 448)

Individual courses (as opposed to online degrees) taken online are equally credible to traditional university courses (n = 433)

The current economic recession has led to an increase in the number of job applicants with online university degrees (n = 430)

Job applicants with traditional degrees are preferred by my organization to applicants with online degrees, presuming work experiences are similar (n = 442)

Online degrees are viewed more favorably today than five years ago (n = 443)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13%

9%

3%

1%

4%

2%

48%

42%

24%

27%

36%

11%

32%

40%

63%

59%

45%

68%

7%

9%

10%

13%

15%

19%

Strongly disagree Disagree Agree Strongly agree


How strongly do you agree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i.e., brick-and-mortar) courses and/or degree programs?

Distance learning online education (no physical classrooms or campuses) (e.g., Walden University, Capella University, California Coast University) are equally credible to online degree programs that are associated with traditional universities*

Online degree programs are equally credible to traditional degree programs

Job applicants with traditional degrees are preferred by my organization to applicants with online degrees, presuming work experiences are similar

The current economic recession has led to an increase in the number of job applicants with online university degrees

Individual courses (as opposed to online degrees) taken online are equally credible to traditional university courses

Online degrees are viewed more favorably today than five years ago

0% 20% 40% 60% 80% 100%

39%

49%

60%

72%

73%

87%

47%

63%

59%

68%

90%

2009 2010

2010 Compared With 2009

Note: Figure represents “agree” and “strongly agree” responses. *This option was not available in 2009.


• The current economic recession has led to an increase in the number of job applicants with online university degrees (by operations): Organizations with U.S.-based operations were more likely than organizations with multinational operations to agree that the current economic recession has led to an increase in the number of job applicants with online university degrees .

• Online degree programs are equally credible to traditional degree programs (by union status): Organizations with unionized employees (53%) were more likely than non-unionized (39%) organizations to agree that online degree programs are equally credible to traditional degree programs.

6

Comparison by Organization’s Operations and Union Status

How strongly do you agree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i.e., brick-and-mortar) courses and/or degree programs?


Are job candidates who have obtained their degrees online viewed more favorably or less favorably than job applicants with traditional degrees (i.e., brick-and-mortar)?

Less favorably As favorably More favorably Not sure0%

10%

20%

30%

40%

50% 49%

34%

0%

16%

Note: n = 446. Percentages do not total 100% due to rounding.


In your experience, how often do job applicants identify on their resumes whether their degrees are obtained through an online degree program?

Never Seldom Occasionally Frequently Always0%

10%

20%

30%

40%

50%

21%

47%

22%

8%

2%

17%

45%

27%

10%

1%

2009 2010

Note: “Not sure” responses were excluded from this analysis.


Generally speaking, as an HR professional, how do you assess whether a university degree identified on a job applicant’s resume has been acquired through an online degree program?

Other

The university name is checked against a pre-established list of universities that offer online degrees

The institution is located in a different region than where the applicant resided during the period that the degree was obtained

The applicant openly identifies it as such on the resume

It cannot be determined by looking at the job applicant’s resume

Certain university names are easily identified as offering online degrees (e.g., University of Phoenix, Kaplan University, Everest University, Capella University)

0% 10% 20% 30% 40% 50% 60% 70%

6%

2%

3%

9%

15%

64%



Generally speaking, how acceptable is an online degree credential for a job applicant seeking…

An executive level position (e.g., CEO, CFO, etc.)? (n = 430)

A management-level position (e.g., director, manager, supervisor)? (n = 431)

A mid-career level position (e.g., analyst, specialist)? (n = 431)

An entry-level position (e.g., assistant, coordinator)? (n = 434)

0% 20% 40% 60% 80% 100%

42%

24%

9%

3%

28%

37%

35%

15%

15%

20%

33%

43%

15%

19%

23%

40%

Not at all acceptable

Somewhat acceptable

Acceptable

It does not make a difference whether the degree was obtained online or traditionally

Note: Percentages may not total 100% due to rounding.


If two job applicants with the same job experience were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor?

Educational credentials that include a degree from an accredited online degree program

Educational credentials that include a degree from an accredited traditional (i.e., brick-and-mortar) degree program

It does not make a difference whether the degree was obtained through an online or traditional (i.e., brick-and-mortar) degree program

0% 10% 20% 30% 40% 50% 60%

0%

46%

55%



When evaluating the educational credentials of job applicants, how favorably or unfavorably do you view the degrees obtained from each of the following types of online educational institutions viewed compared with degrees obtained through a traditional degree program?

100% distance learning university (no physical classrooms or campuses) (e.g., Walden University, Capella University, California Coast University, etc.) (n = 411)

Private, for-profit brick-and-mortar university that also offers online education (e.g., University of Phoenix, Grand Canyon University, Ashford University, etc.) (n = 412)

Private, not-for-profit brick-and-mortar university that also offers online education (e.g., Saint Leo University, DrexelUniversity Online, Bellevue University, etc.) (n = 409)

Public, brick-and-mortar university that also offers online education (e.g., UMass Online, Penn State Online, Bowling Green State University, etc.) (n = 412)

0% 20% 40% 60% 80% 100%

17%

6%

3%

2%

41%

21%

14%

7%

34%

51%

58%

57%

6%

14%

16%

17%

2%

9%

9%

18%

Very unfavorable Somewhat unfavorable Just as favorable - neither more nor less favorable

Somewhat favorable Very favorable

Note: Percentages may not total 100% due to rounding.


Applicant with an associate’s degree

It does not make a difference whether the degree was obtained online or traditionally (i.e., brick and mortar)

Applicant B: The only educational credential is a traditional degree (e.g., an associate’s degree in criminal justice from a brick-and-mortar institution)

Applicant A: The only educational credential is an online degree (e.g., online associate’s degree in criminal justice)

0% 10% 20% 30% 40% 50% 60% 70%

64%

36%

1%


If job applicants with the same job experience and same level of education were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor?


Applicant with an undergraduate degree

It does not make a difference whether the degree was obtained online or traditionally (i.e., brick-and-mortar)

Applicant B: The only educational credential is a traditional degree (e.g., a bachelor’s degree in information technology from a brick-and-mortar institution)

Applicant A: The only educational credential is an online degree (e.g., an online bachelor’s degree in information technology)

0% 10% 20% 30% 40% 50% 60%

48%

52%

0%

Note: n = 402. Percentages may not total 100% due to rounding.



Applicant with an undergraduate and a master’s degree

It does not make a difference whether the degree was obtained through an online or traditional (i.e., brick-and-mortar) degree program

Applicant D: An undergraduate degree is a traditional degree, and a master’s degree is an online degree

Applicant C: An undergraduate degree is an online degree, and a master’s degree is a traditional degree

Applicant B: Both educational credentials are traditional degrees (e.g., a bachelor’s degree in liberal arts and a master’s degree in education from a brick-and-mortar institution)

Applicant A: Both educational credentials are online degrees (e.g., an online bachelor’s degree in liberal arts and an online master’s degree in education)

0% 10% 20% 30% 40% 50%

39%

15%

5%

41%

0%



Generally speaking, how strongly do you agree or disagree with the following statements about accredited online degree programs and accredited traditional degree programs?

Strongly Disagree

Disagree Agree Strongly

Agree

Graduates of online degree programs have greater self-discipline than students who graduated from traditional degree programs (n = 281) 6% 59% 21% 14%

Graduates of traditional degree programs have greater self-discipline than students who graduated from online degree programs (n = 272) 3% 67% 24% 6%

Graduates of traditional degree programs communicate more effectively than students who graduated from online degree programs (n = 272) 2% 41% 42% 14%

Graduates of online degree programs communicate more effectively than students who graduated from traditional degree programs (n = 287) 15% 73% 8% 4%

Graduates of online degree programs have better time management skills than students who graduated from traditional degree programs (n = 269) 7% 64% 19% 10%

Graduates of traditional degree programs have better time management skills than students who graduated from online degree programs (n = 252) 4% 66% 24% 5%

Online education is easier than traditional, face-to-face education (n = 317) 12% 48% 31% 10%

Traditional, face-to-face education is easier than online education (n = 322) 13% 69% 17% 2%

Online education is lower in quality than traditional, face-to-face education (n = 312) 13% 44% 35% 9%

Traditional, face-to-face education is lower in quality than online education (n = 337) 25% 72% 2% 1%

Graduates of traditional degree programs are more motivated than students who graduated from online degree programs.(n = 273) 4% 62% 27% 7%

Graduates of online degree programs are more motivated than students who graduated from traditional degree programs (n = 272) 8% 70% 15% 7%

Even if an online degree credential is from a reputable institution with name recognition, if it was earned online, it will be considered less credible (n = 327) 11% 51% 35% 4%

Note: Percentages may not total 100% due to rounding. “Not sure” responses were excluded from this analysis.


In the last 12 months, has a job applicant with an online degree applied for a position at your organization?

Yes; 78%

No; 22%

Note: n = 254. “Not sure” responses were excluded from this analysis.


In the last 12 months, did your organization hire a job applicant with an online degree?

Yes; 79%

No; 21%

Note: n = 151. “Not sure” responses were excluded from this analysis. Only organizations where a job applicant with an online degree applied for a position in the last 12 months were included in this analysis.


Demographics: Organization Industry

IndustryManufacturing—other 14%

Health care, social assistance (e.g., nursing homes, EAP providers) 11%

Services—professional, scientific, technical, legal, engineering 11%

Educational services/education 7%

Financial services (e.g., banking) 6%

Other services (e.g., nonprofit, church/religious organizations) 5%

Government/public administration—federal, state/local, tribal 4%

Retail/wholesale trade 4%

Manufacturing—auto/auto-related 4%

19



Demographics: Organization Industry (continued)

IndustryInsurance 3%

Construction, mining, oil and gas 3%

High-tech 3%

Consulting 3%

Services—accommodation, food and drinking places 3%

Arts, entertainment, recreation 3%

Telecommunications 2%

Transportation, warehousing (e.g., distribution) 2%

Biotech 2%

Publishing, broadcasting, other media 2%

Real estate, rental, leasing 2%

Utilities 1%

Association—professional/trade 1%

Pharmaceutical 1%

Other 4%

20



Demographics: Organization Sector

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

0% 10% 20% 30% 40% 50% 60%

4%

6%

15%

25%

50%

21

Note: n = 377


Demographics: Organization Staff Size

1 to

99

emplo

yees

100

to 4

99 e

mplo

yees

500

to 2

499

emplo

yees

2500

to 2

4999

em

ploye

es

2500

0 or

mor

e em

ploye

es0%

10%

20%

30%

40%

50%

9%

29%

23%

28%

11%

22

Note: n = 249


Demographics: Other

23

Note: n = 384

U.S.-based operations 70%

Multinational operations 30%

Single-unit company: Companies in which the location and the company are one and the same.

30%

Multi-unit company: Companies that have more than one location.

70%

Multi-unit headquarters determines HR policies and practices

46%

Each work location determines HR policies and practices

5%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

49%

Is organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does organization have U.S.-based operations (business units) only or does it operate multinationally?

Note: n = 378

Note: n = 281

18% of organizations indicated that employees at their work location were unionized.

Note: n = 374


SHRM Poll: Hiring Practices and Attitudes: Traditional vs. Online Degree Credentials

• Response rate = 17%• Sample comprised of 449 randomly selected HR

professionals from SHRM’s membership• Margin of error is +/- 5%• Survey fielded July 27–August 6, 2010

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Methodology

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