 Degree inflation is a trend in which more and more jobs require a four-year college degree than did previously.
Research from Harvard Business School highlights the negative effect degree inflation has on the middle class by increasing underemployment and keeping millions of qualified, but less-credentialed people from reaching their potential. Degree inflation also hurts the employers who practice it by increasing the turnover rate, lengthening the time to hire, and increasing labor costs unnecessarily. As more companies require a four-year college degree and fewer people are able to afford one, more employees are participating in executive education. Executive Education and Disruption Theory The cost of a four-year degree continues to skyrocket. And as it does, the return on the investment weakens. At the same time a bachelor’s degree is becoming less attainable, it is also becoming less of a true indicator of what an employer needs. Disruption theory teaches students and employees using different metrics than those used by traditional universities. This new model, known as competency-based education, helps people master specific skills as they seek employment. Given the increase in tuition costs, job-oriented learners are becoming overserved, which means they are paying for more than what they need and would prefer to pay less for a class with a more targeted subject matter. Employees and other “non-traditional” students who are looking to increase their job skills are opting for executive education courses instead of classes at a four-year university. Businesses are also looking for cheaper and faster ways of teaching their employees specific skills for specific jobs. They are now enrolling their employees in alternative education courses that offer credentials other than a bachelor’s degree and allow them to sidestep traditional post-secondary degrees. Not all degrees will equip students with the skills they’ll need to be productive members of the workforce. Degree inflation indicates that many jobs which normally require a bachelor’s degree can be performed by those without one.
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 As inflation continues to rise, how will it affect communication and marketing professionals in the months ahead?
Although the pandemic triggered rising inflation, there are several persistent factors that might see inflation continue. These include labor challenges, deglobalization, transition to renewables, and declining work in cities. Inflationary markets make it harder for businesses to hit their volume targets which can lead to decisions that can hurt your company brand like raising prices followed by a fall in demand. 3 Tips On How Marketers Can Combat Inflation In order to deal with inflation strategically, marketers are going to have to be flexible and get creative when it comes to pricing, promotions, and planning targets. 1. Focus On the Overall Economy Be aware of the market your customers are operating in. Keep a close eye on inflation, GDP growth, interest rates, and the kind of disposable income others businesses are operating with. Everyone on the marketing team should be aware of these trends so they can design pricing and promotions accordingly. 2. Rethink Your Customer Your clients are now pandemic, inflation-stricken customers. You’ll want to examine how your customers are reacting to price increases, even those with roughly the same disposable income. Redefining how your customers are behaving under the current economy can help you develop strategic pricing schemes. 3. Prices Online During other periods of inflation, the digital marketplace was not as accessible as it is now so there is no precedence for how consumers will react. But now consumers are able to compare prices on goods and services at any time. Here there is the danger of raising prices too soon when your competitors don’t. Although there might be an opportunity to create increased value online. If a company decides to raise its online prices, it may be able to justify the increase by offering customizations like increased speed and convenience.  Every business has different types of leaders who motivate and challenge their employees in different ways.
Recently, a type of management style called transformational leadership has gained popularity. Transformational leaders inspire and motivate employees to create change and to have a strong sense of independence in the workplace. Many business leaders are keeping a close eye on inflation, and how this will affect hiring and retaining staff in a competitive job market. Not only will workers be looking for higher wages, but also a sense of ownership over their work and a connection to the company they work for. Because of these concerns, more business managers are adopting a transformational leadership style. Components of Effective Transformational Leadership As business leaders continue to deal with inflation and a tight labor market, relying on the transformational model can help them adapt to the situation and stay engaged with their team of employees. Some of the practices of transformational leadership include: Motivation Transformational leaders are able to share a vision of the company with their employees that encourages them to exceed expectations. Giving employees a strong sense of purpose can challenge and motivate. A good manager will be able to convey optimism and give meaning to every role in the organization. Consideration In order to provide adequate support to their employees, transformational leaders need to listen. A good manager knows that what motivates one employee might not motivate another. This enables someone to adapt their management style based on the individual. Influence By behaving in an ethical manner, a good manager can earn a certain level of respect and trust. Displaying good judgment can allow a manager to have a positive influence on the entire organization. Intellectual Stimulation Transformational leaders will challenge preconceptions and ask employees for their input. The goal is to foster a work environment where creative ideas are found through sharing different perspectives. Employees feel empowered when they can ask questions and come up with their own methods for completing tasks.  According to the Depository Trust and Clearing Corporation (DTCC), cyber threats are seen as the greatest danger to global financial markets in 2022 alongside the pandemic and geopolitical tensions.
Online customers and website operators face a list of technical and logistical problems that stretch across every industry. In 2022, increased cyber-attacks and inflation will test companies’ security protocols and their ability to adapt to an insecure financial environment. How Cybercrime Takes Advantage of Inflation As the shortage of desired products increases, due to a faltering supply chain, so too does the number of shady websites offering suspiciously low prices or offering products not available anywhere else. Companies purchasing products online and individual consumers should avoid poorly configured e-commerce platforms and be aware of third-party content. Any e-commerce platform that can be accessed by an external source should be viewed suspiciously. A lot of companies online hurriedly launched their website during the pandemic. Since a good deal of these lack the proper security or have not been maintained correctly, they are vulnerable to a significant number of cyber threats. As inflation continues to rise, more people will turn to lower-priced online products, giving cybercriminals an even greater chance to take advantage. In addition, online merchants are also facing higher costs due to inflation which might affect how much they spend on cyber security. Cyber Threat Safety Tips Before making an online purchase, be sure the merchant is legitimate.
 Being able to predict inflation rates is critical for investors and business owners. Inflation is the change in prices within a particular economy over a certain period of time. Inflation is always a concern for customers and businesses, but recently it’s been especially problematic.
To keep up with inflation, some companies have raised prices while others are exploring ways to reduce expenses while at the same time having to deal with supply chain difficulties. Instead of reacting to problems as they arise, business experts believe you should take a more proactive role in tackling inflation by using real-time data. Using Real-time Data By using real-time data, organizations can get a clear look into their supply chains, locate where they can cut costs, and make more informed decisions. Data analysis helps business owners recognize supplier advantages and disadvantages, and helps them recognize delays and other issues that could hurt production. Real-time data can help managers deal with global disruptions, like the pandemic, as well as regional, like dealing with a weather event. Reports in some business journals suggest that nearly 75% of executives are finding it difficult to implement data and analytics into their businesses. They all know how important data is to a strong business model. Data can help businesses lessen the impact of rising prices or take advantage of it through trend-tracking. Trend Tracking Trend analysis, or trend tracking, means comparing data points over a certain period of time so one can identify upward and downward trends. The more notable, the more consistent the trend allows business managers to make more informed decisions. For example, the price of beef has increased while that of plant-based burgers has decreased, leaving an opening for producers of veggie-based meat. Data can also be used to track key performance indicators (KPIs) across different industries allowing managers to examine the market more closely.  In business, design thinking is used as a step-by-step process in order to understand the customer, challenge preconceptions, and redefine problems so that new solutions may present themselves.
As the economy struggles through the pandemic, companies are having to deal with rising commodity prices, supply chain issues, and higher wages. The producer price index (PPI), which measures the prices of goods, rose 10% in the first half of 2021. Research shows that companies that do best during times of inflation boost productivity by primarily cutting costs. To find the best areas to cut back on, businesses have been using design thinking to come up with more creative ideas. Stages of Design Thinking Exploration Stage A team of people should be put together, usually no more than 10, of different backgrounds, cultures, and ages. Then a major challenge facing the company should be put forth like higher costs. They then look into what’s causing higher prices by examining suppliers, the process, and the customers. Ask yourself about your customer’s behavior. Are they buying less of your product? Are they buying a different product? Brainstorming Stage In the second phase, people come together to talk over ideas and come up with solutions. There are different methods for triggering creative ideas when tackling problems, one popular online method is called SCAMPER.
 High employee turnover rates have a negative impact on every company. For the most part, employees leave companies because they’re simply unhappy at work.
Knowing this, HR directors, as well as others in management, are constantly looking for new ways to create a positive employee experience. One way they’re trying to accomplish this is by adopting a management style called transformational leadership. What Is Transformational Leadership? Transformational leadership encourages business leaders to motivate their employees by making sure they feel they are playing a part in the future success of the company. This is done by building a strong sense of unity and company culture that offers them a meaningful role in the workplace. The transformational management style is the opposite of micromanaging. The point is to have employees feel like they are trusted to make their own decisions. This allows the work staff to come up with new and innovative ideas to solve old problems. Not only will treating employees this way inspire them to stay with the company, but also encourage them to become transformational leaders themselves. Retaining a Strong Talent Pool Business managers have a huge impact on retaining strong employees. If an unhappy worker is meeting colleagues for a drink after work, you can bet he’s talking about management. A company’s leaders need to really connect with their employees so they don’t feel enticed to work somewhere else. This is especially important now as employees move away from working in the office and choose to work remotely instead. One way managers can make sure they’re supporting employees is by using assessment tools to monitor how their leadership behaviors are promoting retention. Another method managers are using is to ask employees to describe their experiences and expectations of team leaders. This allows leaders to know where they might be lacking when it comes to leadership behavioral skills. Using transformational leadership, instilling it in your company culture is critical to building and retaining a strong talent pool.  Many large organizations in response to inflation have been cutting back on customer experience hoping to offset rising costs. Although this might seem like a prudent measure, a short-term reduction of customer experience might ultimately affect long-term revenue.
Examples of cuts to customer experience include longer wait times when seeking customer service, more self-service options instead of human support, or the fact many hotel chains no longer offer daily cleaning. 3 Reasons Businesses Shouldn’t Cut Back on Customer Experience There are always possibilities when considering how to respond to inflation. 1. The Reputation of Your Brand Is Worth More Than Short-term Savings When businesses cut back on customer service, they do so at the expense of their reputation and long-term revenue. Data suggests that consumers who have a positive experience with a company spend 140% more than those who don’t. 2. In the Era of Social Media, Customer Service Is Just As Visible As Price One reason people believe cutting back on customer experience instead of raising prices during inflation is a good measure, is that it affects the customer in a less obvious way. Wrong. In the era of social media when customer satisfaction rules all, data shows that 86% of customers will reconsider buying from a company that has negative online reviews. 2. If You Do Raise Prices, Clearly Explain Why Research shows that the two things people think about after a price increase are the size of the increase and is it fair. During the pandemic, people are experiencing widespread shortages, the prospect of inflation, and rising input costs. On the whole, when people hear that a brand’s price is increasing, it simply confirms their expectations. However, it wouldn’t hurt to write an honest and to-the-point explanation for why prices are being raised.  Business leaders know that gaining new knowledge is key for continuous growth. But given the demands on the schedule of a c-suite employee, executive education is often overlooked.
Providing executive education for c-suite employees lets them know just how valuable they are to the organization. When executives feel they have hit a dead end, and perhaps feel they want to move on, having them learn new skills can bolster their sense of carer development. In addition, when execs take part in continuous learning programs, it inspires other employees to do the same. Having c-suite employees take part in executive education not only encourages them to stay with a company but prepares others in the company to take on executive roles if and when they do leave. 3 Benefits of Executive Education Change is now the central theme facing every executive. 1. Staying Relevant Being able to face unforeseen circumstances is a crucial skill for c-suite employees, so providing them with an opportunity to keep up with new technology and changing markets can keep execs happy with their current employers while feeling they are at the top of their game. 2. Staying Competitive The business world, just like everything else has been on a path of constant change, and during the pandemic, the rate of change has only increased. As business practices become more automated and execs are forced to lead a more dispersed workforce, they’ll need to support efforts to ensure their employees stay informed about changes in the industry. This means they themselves will have to stay informed about how to solve new problems and focus on innovation. 3. Building Relationships Whether it’s with team members or stakeholders, retaining c-suite employees means executives need to build strong relationships. Participating in executive education that focuses on interpersonal skills, especially when it comes to their subordinates, helps c-suite employees feel connected to the people they’re working with, and thus the company itself.  Just as marketing a company can be the driving force behind making profits, so too can marketing a company in order to reduce labor shortages.
The most obvious way marketing companies can help reduce labor shortages is by promoting online job listings. Experienced marketing professionals can help you create job descriptions and edit recruiting materials in addition to helping you decide when and where your job listings should appear so that companies receive interest from qualified applicants. Professional Networking Expanding your company’s reach through networking is always a good idea, but even more so if you’re struggling to find labor. Just posting open positions on your human resource page, or using a single method of advertising, is not enough to fill job vacancies. Network recruiting is an ideal way to get qualified candidates to apply to your company. Using social media and your current employees’ networks can give you access to recruits who have the potential to stay at the company long-term. Marketing Your Company So People Will Want to Work There To successfully recruit new employees, companies need to be creative and let candidates know that it’s a great place to work. Improving your company’s image as an employer will increase the number of applications you receive. Organizations can use social media to promote the work culture of their company as well as advertise their company through more traditional networking activities like conventions and HR courses. The goal should be to put potential employees at the center of the hiring process in much the same way sales departments place the customer first. Marketing that resonates and influences people is often centered around a story. Crafting a good story about who your company is, what it does, and what it promises to do goes a long way in creating a work culture to which potential employees are attracted. |
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