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The Big Reason Why You Should Hire Highly Educated Employees

They are more likely to detect patterns and speak up if something seems amiss.


When you’re looking to hire, you’re thinking about cultural fit and whether a candidate has not only the qualifications to fulfill your company’s needs now, but also the potential to take on more responsibility in the future.


Despite the debate around whether leaders need college degrees, a recent study out of the University of Georgia found that the educational background of non-executive hires can make a big difference in the long term success of your business -- and keep you out of trouble with the law.

Researchers found that when it comes to handling sensitive financial data, employees who have the most extensive educational backgrounds are best at forecasting trends and dealing with legal matters.

Related: Education vs. Experience: Which One Is More Important?

"We find that when companies are located in a place where the workforce is highly educated, they produce better accounting information," said study co-author John Campbell, an associate professor of accounting in UGA's Terry College of Business, in a summary of the findings. "The employees don't have to be experts in accounting, but if they see something that doesn't look right, they're more likely to say something about it and tell their superiors about it."

As your business expands, you need to be on top of your books, and non-executive employees often are the first line of defense for finding errors in your accounting. Building off that observation, the researchers also identified a correlation between educated populations and fewer instances of misconduct in both business and politics.

"There's a study in political science showing that states that have more educated voter bases have less corruption in their political systems, and we wanted to see if that analogy held in business," Campbell said. "One of the reasons for that might be whistleblowers. In both instances, the better-educated the population is, the more likely there will be a whistleblower if something bad is going on."

Nina Zipkin

Written By

Entrepreneur Staff

Nina Zipkin is a staff writer at She frequently covers leadership, media, tech, startups, culture and workplace trends.