Ivy League Universities Overrated? Challenging the Prestige Versus Performance Paradigm in Global Employment

Associate Prof. Alan Go, Strategic Advisor to Hanbridge Institute Singapore

Introduction

In a time when obtaining a higher education involves a substantial financial commitment and a crucial choice, the reputation and worth of universities worldwide are frequently examined based on the achievements of their graduates. The valuation of a university is no longer exclusively based on its longstanding prestige or academic rigour; instead, it is increasingly dependent on its ability to effectively equip students for the job market. This article explores the employment rates of graduates from universities worldwide, providing an analysis to determine if these institutions effectively fulfil their commitments of post-graduation success and stability.

Surprise: Top Universities Have Lower Graduate Employment Rates Than Less Prestige Universities.

An unexpected discovery was made when analysing the employability of graduates from different universities: the employment rate of top universities is lower than that of less prestigious universities.

According to the QS Graduate Employability Rankings 2022, which evaluated 550 universities worldwide, the Massachusetts Institute of Technology (MIT) in the USA is ranked 1st and Stanford University is ranked 2nd. This ranking is based on six indicators: Partnerships with Employers, Graduate Employment Rate, Employer-Student Connections, Alumni Outcomes, and Employer Reputation. The data from QS suggests that both MIT and Stanford University have a very high ranking in terms of graduate employability.?

Surprisingly, the Graduate Employment Rate indicator reveals that Massachusetts Institute of Technology (MIT) has a rate of 79.3%, while Stanford University in the USA has a rate of 73.4%. This places MIT at 106th and Stanford at 148th in terms of Graduate Employment Rate (QS, 2024).? Upon conducting a thorough investigation and visiting MIT's official website, a blog post on the MIT Admissions page (MIT Admissions, 2024) that presented a study of 144,000 MIT alumni residing globally. The study revealed only 49% of undergraduate students were able to secure employment immediately upon graduating.

The QS data (QS, 2024) revealed that lesser-known universities like Institut Polytechnique de Paris, MGIMO University in Russia, Universidad Católica Santa María la Antigua in Panama, Indian Institute of Technology Madras (IITM) in India, and Applied Science University Bahrain achieved a perfect score of 100% in Graduate Employment Rate.? Out of the prominent universities in the United States, the University of Chicago is the sole institution that achieved a perfect score of 100%.? On the other hand, King's College London UK achieved a score of 83.9%, while Yale University scored 86.8%, which is relatively lower compared to the top-performing universities in the QS data, specifically in terms of the Graduate Employment Rate indicator.

In Singapore, the National University of Singapore (NUS), ranked 17th in the overall QS Graduate Employability Rankings 2022 with no data stated on QS indicator of Graduate Employment Rate, has a Graduate Employment Rate of 89.93% according to data from the Ministry of Education Singapore's Graduate Survey 2022 (Ministry of Education Singapore, 2022(1)). Similarly, Nanyang Technological University (NTU), not listed in the QS data, has an average employment rate of 84.04% according to the Ministry of Education Singapore (2022(2)). Both NUS and NTU's data includes the combined average employment rate for graduates in various types of employment, including full-time, part-time, temporary, or freelance roles, as well as full-time permanent employment of at least 35 hours a week and of a non-temporary nature, including contracts of one year or more.

Are Better Universities Really Better?

There is a common belief that renowned universities such as MIT and Stanford would naturally have higher rates of graduate employment due to their esteemed reputations and high rankings in terms of employability. Nevertheless, this presumption is contradicted by the data, which indicates that these establishments actually disclose lower immediate employment results in comparison to certain less renowned universities. This paradox can be elucidated by multiple factors that may indicate a more profound and nuanced comprehension of the various aspects encompassed by the concept of "employment" in diverse educational settings.

The employment rates of prestigious institutions such as MIT and Stanford may initially appear lower after graduation due to various factors, in my view. Initially, there is a notable propensity among students from these universities to engage in additional academic pursuits, thereby decreasing the proportion of individuals who enter the workforce immediately after completing their studies. In addition, graduates from these prestigious institutions tend to be more discerning when it comes to selecting their employment options, which may result in them waiting for a longer period for the ideal opportunity, thus delaying their entry into the workforce. Another notable factor is the prevailing entrepreneurial mindset among students from these prestigious universities. They are inclined to start their own ventures, which may not be immediately considered as traditional employment, but they actively contribute to innovation and the economy.

Moreover, the industries that usually appeal to graduates from these esteemed institutions, such as technology and finance, are susceptible to economic volatility, which can influence the rates of immediate employment. The diverse nationalities of their student populations also bring in factors such as visa limitations, which impact their immediate post-graduation job prospects within specific geographical regions.

On the other hand, universities like the Institut Polytechnique de Paris or the Indian Institute of Technology Madras, which have a 100% graduate employment rate, have programmes that are highly specialised and directly relevant to the needs of industries. These universities also have strong connections with local employers and receive targeted support from the government. These factors enable a smooth transition of graduates from education to employment, possibly indicating a more straightforward approach to preparing for a career.

This analysis indicates that although prestigious universities are often associated with the prospect of great potential and a wide range of opportunities, lesser-known institutions may provide more direct and immediate routes to employment. This prompts a more extensive conversation regarding the genuine significance of employability and the function of higher education in equipping students for the worldwide job market.

What Conclusions Can We Draw from Such Publicly Available Data?

Relying exclusively on league table rankings and employment rates to assess the calibre of a university can be deceptive due to various factors, particularly when considering the wider economic circumstances and personal professional aspirations. Here is a more sophisticated approach to comprehending why these metrics may not be the most reliable indicators of a university's overall excellence or appropriateness for a student.

1.????? Thin Extent of Metrics: Rankings and employment rates usually prioritise measurable results, such as securing a job shortly after completing studies. However, these factors fail to consider the calibre of education, the cultivation of analytical reasoning, the depth of the academic milieu, or the enduring professional achievements and contentment of alumni. These factors are essential for a comprehensive educational experience but are frequently not accounted for in basic measurements.

2.????? Differences in variation based on specific fields and geographical regions: The employment rates can exhibit significant disparities based on the chosen area of study and the prevailing economic conditions, whether at a local or global level. The high employment rates of a university in a thriving sector or region do not necessarily indicate the institution's overall quality in other fields or during different economic circumstances. For example, Universities that have a strong emphasis on technology may have impressive rates of employment during a period of rapid growth in the tech industry. However, this does not necessarily mean that these schools are superior to institutions with lower employment rates in areas such as the humanities or basic sciences.

3.????? Economic concerns: Economic recessions can have a widespread impact on employment rates, regardless of the educational standards offered by institutions. Depending solely on employment rates during such periods may not only present a distorted perspective of an institution's effectiveness but also overlook the extent to which these institutions equip students with the ability to navigate and adjust to evolving markets.

4.????? Comparing Short-term and Long-term Results: Employment rates frequently indicate the immediate outcomes after graduation. They fail to provide information regarding the career advancement of graduates or their success in securing employment in their desired fields. Certain universities prioritise cultivating long-term career advancement and adaptability, which may not result in immediate job placement but offers advantages to graduates throughout their professional lives.

5.????? The appeal of a 100% employment rate: Although a university boasting a 100% employment rate may appear enticing, it is crucial to contemplate the characteristics of these employments. Do these roles have significant importance and align with students' career aspirations, or are they simply internships intended to improve statistical data? Moreover, the focus on attaining complete employment may compel universities to prioritise quantity over quality, thereby urging students to pursue any available job rather than the most suitable one.

When selecting a university, it is important to consider how well it aligns with your academic interests, career goals, and personal growth aspirations. The decision should be predicated upon a multitude of factors, encompassing faculty proficiency, research prospects, campus ambiance, and support services, rather than solely employment outcomes or general rankings.

Conclusion

In the current dynamic job market, the reputation of a university by itself does not ensure favourable employment results. The work and career landscape has undergone substantial changes, highlighting that a graduate's employability is now primarily determined by their personal endeavours, the skills they acquire, and their capacity to adapt and innovate in their chosen fields. The worth of educational credentials goes beyond the reputation of the educational institution mentioned on the diploma; it primarily lies in the competence and capabilities of the individual possessing those qualifications.

Graduates from all types of universities, regardless of their level of prestige, need to understand that their career paths are primarily influenced by how they utilise their education, apply their knowledge, and continuously develop professionally. Personal initiative, continual learning, and adaptability are of utmost importance in this context. Modern employers seek candidates who can exhibit tangible skills, innovative problem-solving capabilities, and a proactive mindset when it comes to overcoming obstacles, regardless of their alma mater.

Hence, although the selection of an educational institution is a significant choice, the dedication to personal and professional growth is even more vital. Developing a strong and versatile set of skills, actively participating in a range of hands-on experiences, and adopting a continuous learning attitude are the key factors that will truly set individuals apart in the highly competitive global job market. Essentially, the worth of an educational credential lies not only in obtaining it, but also in how proficiently the individual applies it to make meaningful contributions to their respective domains and society.

References:

Ministry of Education Singapore, 2022(1). GRADUATE EMPLOYMENT SURVEY:NUS, s.l.: Ministry of Education, Singapore.

Ministry of Education Singapore, 2022(2). GRADUATE EMPLOYMENT SURVEY: NTU, s.l.: Ministry of Education S.

MIT Admissions, 2024. Life after MIT. [Online] Available at: https://mitadmissions.org/discover/about-mit/life-after-mit/#:~:text=In%202023%2C%2049%25%20percent%20of%20undergraduates%20took%20jobs%20after%20graduation. [Accessed 4 April 2024].

QS, 2024. QS Graduate Employability Rankings 2022. [Online] Available at: https://www.topuniversities.com/employability-rankings?check_logged_in=1 [Accessed 4 April 2024].

Standford Graduate School of Education, 2023. Standford University. [Online] Available at: https://ed.stanford.edu/careers/outcomes [Accessed 4 April 2024].