Economics is still one of the most popular fields of study, although computer science, psychology, management or law are at the top of the rankings. At the same time, research shows that generation Z sees their career as a CEO – and in the here and now, not in 20 years’ time. How much, and if at all, does it pay to invest in studies?
For the past month, higher education institutions in Poland have been announcing their university recruitment results. Economics is among the most popular choices. When the results of the Warsaw University recruitment process were announced, it turned out that foreigners applying in large numbers for an index in Warsaw were most likely to register for the Finance, International Investment and Accounting faculty (215 enrolments were recorded).
The young want to reach the top quickly
“It is one of the more interesting contemporary trends that the young are now not considering which way their career should go, but how quickly they will reach the CEO position. Right now, we have at least a handful of significant companies in the world that are hiring CEOs in their 20s and – importantly – their position is in no way part of their succession plans. Reviewing the S&P 500 ranking of companies, you will notice that almost a third of newly appointed CEOs in 2022 were under 50. Where does this come from? From investing in the future. Business is changing and companies no longer need only experience or not only experience,” points out Radosław Jodko, investment expert at RRJ Group.
McKinsey research shows that generation Z is more than twice as likely to be a CEO compared to generation X (38 per cent and 18 per cent respectively).
How does this trend affect the choice of study? What competencies and skills are required?
“Traditional divisions are undoubtedly being disrupted and we are starting to define experience or education differently. Already today, when evaluating various types of investments, we increasingly assess elements of their strategy, such as the ability to navigate in a complex and changing business environment, to build a marketing or communication advantage. In individual cases, an understanding of topics such as generative artificial intelligence, which the previous generation of CEOs did not necessarily understand, is beginning to count. It looks like artificial intelligence may even more than the career expectations of the young will change the labour market in ways that we probably still find difficult to imagine. If predictions are to be believed, 14 million jobs will disappear once AI algorithms are implemented,” Jodko calculates, citing data from the World Economic Forum’s (WEF) ‘The Future of Jobs Report 2023’.
The WEF asked 803 companies with a total of more than 11.3 million employees in 27 industries and 45 economies around the world, noting in particular the projected changes in the labour market between 2023 and 2027.
“This trend, however, does not at all mean that studies do not count today. They do count – in and of themselves, perhaps even more than the social assessments suggest. In fact, the WEF report already shows a clear diagnosis – employers place a premium on creative and analytical thinking skills. I would add that those skills that boil down to correctly diagnosing problems and finding the right solutions that are appropriate not only for the industry, but also for the team the company has, are also valued. Empathy is certainly still something that is expected of leaders who manage the emotions and energy of teams. And this is exactly what studies are also useful for – to gain knowledge and the right maturity of functioning in a group. Studying is usually precisely the time when we acquire the right knowledge, face teamwork, our own limitations, discover talents in seemingly distant fields. We acquire communication skills. And let us also appreciate that this is the first place where we build our network of contacts, which often translates into later professional decisions,” points out Radosław Jodko, RRJ Group’s investment expert.
As the expert emphasises, the decision to choose the direction is crucial. OECD data shows that one in three students in Poland does not finish their studies. As many as 15 per cent of students leave university after the first year.
What is the young generation like as managers?
“As we observe young investors and young business managers, we see a new trend that they are investing in more studies with an awareness of not just building a new business and social background, but acquiring knowledge and developing skills that support their natural strengths. Increasingly, we are seeing the advantage of not only dealing with a generation that is comfortable online, but an understanding of issues such as ESG is not just about meeting legal obligations. What matters is the ability to really create and support the ideas of diversity, ecology or transparent procedures in corporate governance that make a company a well-run organisation. The new type of leaders see and are able to use the role of cultural capital, which until recently was rather an exception,” emphasises Jodko.
“It is therefore no surprise that global universities are investing in students. Princeton University in New Jersey, for example, announced not long ago that students whose parents earn less than $100,000 a year will get the university to fully cover the cost of attending one of the best schools in the world. Universities care about getting the brightest students to them because they are aware of the value this generates in the economy – ultimately also for the prestige of the university,” concludes Radosław Jodko, RRJ Group investment expert.
The results of the 2023/2024 university admissions at over 350 universities in Poland are published online between 12 July 2023 and 31 October 2023.
