Former Clinton Administration
economist Mike Rosenbaum couldn't give his secret away; there is
no correlation between having a college degree and being a good software engineer.
Despite all the data he had gathered to create an algorithm he was sure
worked, IT managers said trusting software to make such hiring decisions
-- abandoning the “credentialism” typical at large companies -- was a
bridge too far.
Now those managers pay him to cross that bridge;
Mr. Rosenbaum pivoted. He now uses the software to hire engineers at [his own company] Pegged [Software], and then outsources their services to other companies. In a way,
the markup those clients pay for the coders’ labor is the price for not
changing their minds about how to select the best candidates.
Somewhere,
Gary Becker smiles.
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