Skip to main content
https://www.highperformancecpmgate.com/rgeesizw1?key=a9d7b2ab045c91688419e8e18a006621

How income share agreements will spark the rise of career accelerators

The income share agreement (ISA), a financing model where students pay for an education program with a certain percent of their income for several years after graduating, has been one of 2019’s new buzzwords among VCs and entrepreneurs in Silicon Valley. While still a nascent market that faces regulatory uncertainty in the US and abroad, ISAs are a mainstay of learn-to-code bootcamps and are being piloted at dozens of universities. This financing model is receiving attention because it directly aligns education programs with students’ career outcomes — something that could transform parts of higher education.

ISAs will transform the labor market even further though. In the next few years, use of ISAs will likely go beyond formal education programs to create a new category of career accelerators that are more like scaled talent agencies for businesspeople. Across industries and seniority levels, we will see ambitious professionals choose to pay a small percentage of their future income to partner companies that promise to accelerate their career’s rise. 

Those companies will provide ongoing hard and soft skills trainings, job scouting, guidance on picking the career track and geographic location with the most promise, prep for compensation negotiations, personal branding guidance, and other tactical support like key people to meet and which conferences or private gatherings are most important to target.

This movement will start with graduates of ISA-financed education programs but will quickly expand to other professionals. As career accelerators prove effective at enhancing participants’ career prospects, peers of those participants will fear that they are less competitive in the job market without having the advantage of a career accelerator helping them as well.

Outsourcing career guidance

The average annual operating budget for career services departments across US colleges is merely $90,000. For universities, there’s almost no support for job placement upon graduation despite the claims of universities in their marketing materials. And there’s definitely no support provided during the years after graduation.

The promise of ISAs is to incentivize higher education programs to design their curriculum with their students’ future financial success in mind. Most of the ISA initiatives active right now are either used as a replacement for private student loans at accredited universities or as the financing solution for non-accredited vocational programs (a.k.a. “bootcamps”) that don’t qualify for federal student aid. Their focus remains on curriculum though — it’s a wholly different activity to focus on guiding graduates in their careers for years afterward.

Comments

Post a Comment

Popular posts from this blog

Uber co-founder Garrett Camp steps back from board director role

Uber co-founder Garrett Camp is relinquishing his role as a board director and switching to board observer — where he says he’ll focus on product strategy for the ride hailing giant. Camp made the announcement in a short Medium post in which he writes of his decade at Uber: “I’ve learned a lot, and realized that I’m most helpful when focused on product strategy & design, and this is where I’d like to focus going forward.” “I will continue to work with Dara [Khosrowshahi, Uber CEO] and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale,” he adds. “We have a strong and diverse team in place, and I’m confident everyone will navigate well during these turbulent times.” The Canadian billionaire entrepreneur signs off by saying he’s looking forward to helping Uber “brainstorm the next big idea”. Camp hasn’t been short of ideas over his career in tech. He’s the co-founder of the web 2.0 recommendatio
Post a Comment
Read more

Drone crash near kids leads Swiss Post and Matternet to suspend autonomous deliveries

A serious crash by a delivery drone in Switzerland have grounded the fleet and put a partnership on ice. Within a stone’s throw of a school, the incident raised grim possibilities for the possibilities of catastrophic failure of payload-bearing autonomous aerial vehicles. The drones were operated by Matternet as part of a partnership with the Swiss Post (i.e. the postal service), which was using the craft to dispatch lab samples from one medical center for priority cases. As far as potential applications of drone delivery, it’s a home run — but twice now the craft have crashed, first with a soft landing and the second time a very hard one. The first incident, in January, was the result of a GPS hardware error; the drone entered a planned failback state and deployed its emergency parachute, falling slowly to the ground. Measures were taken to improve the GPS systems. The second failure in May, however, led to the drone attempting to deploy its parachute again, only to sever the line
Post a Comment
Read more

ProtonMail logged IP address of French activist after order by Swiss authorities

ProtonMail , a hosted email service with a focus on end-to-end encrypted communications, has been facing criticism after a police report showed that French authorities managed to obtain the IP address of a French activist who was using the online service. The company has communicated widely about the incident, stating that it doesn’t log IP addresses by default and it only complies with local regulation — in that case Swiss law. While ProtonMail didn’t cooperate with French authorities, French police sent a request to Swiss police via Europol to force the company to obtain the IP address of one of its users. For the past year, a group of people have taken over a handful of commercial premises and apartments near Place Sainte Marthe in Paris. They want to fight against gentrification, real estate speculation, Airbnb and high-end restaurants. While it started as a local conflict, it quickly became a symbolic campaign. They attracted newspaper headlines when they started occupying prem
Post a Comment
Read more