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Starbucks Pays Your Tuition, Why Narcissists Get the Job & Other News You Can't Miss Today

TUITION ON ME – Soon it won't be just customers cramming for finals late at night in a Starbucks. After gun culture, gay rights or Washington gridlock, CEO Howard Schulz is taking on the issue of student debt and low college completion rates. Starbucks will pay tuition for its employees seeking to complete a Bachelor's degree from Arizona State University's online program, the company announced last night in a blog post. Starbucks says 70 percent of its workforce are students or aspiring students and notes that tuition has increased 80% in the past decade, "twice the inflation rate of gas, housing and healthcare." The company will pay full tuition for juniors and seniors and partial scholarships and financial aid for freshmen and sophomores who enroll in ASU's online programs across the US. All employees in company-operated stores working more than 20 hours a week are eligible and do not need to commit to staying on with Starbucks or study in fields aligned with the company needs.

The benefits to Starbucks' employer brand and employee retention rates, and even to its consumer brand, are obvious. As for ASU, it expects 15,000 to 20,000 new students and has added 50 teachers and counselors to receive them, the Wall Street Journal reports. A debate will surely ensue on the value of an online degree as opposed to in-class experience, but that stigma is quickly becoming a thing of the past. Let's not be cynical: this seems just pretty good news for 135,000 U.S. Starbucks employees. CEOs out there, pay attention.

GAS ON YOU – Ukraine says Russia has turned off its gas supply after a payment deadline passed and no deal was reached in overnight negotiations. Gas sold to Western Europe transits through Ukraine and that supply is not affected, Russian energy giant Gazprom says. There is no immediate danger to the continent's energy supply, but it could affect the buildup of gas stocks for the winter should the crisis last. Natural gas prices have gone up in Europe – they were particularly low until now thanks to a mild winter – over fears of a third "gas war" in 8 years between the two countries. Each have prompted cries over Europe's urgent need to secure its energy independence from Russia, as will a new summit next week – at current rates, the EU estimates 80% of its energy will be dependent on foreign supply by 2035.

MIRROR MIRROR – Forget everything Mom told you about being humble and succeeding with modesty: the job usually goes to the one who brags loudest, says a new study by the University of British Columbia. When faced with two applicants with equal experience and qualifications, the interviewer will usually pick the more narcissistic of the two, found UBC psychology professor Del Paulhus. The interview room is one place where usual social rules don't apply, he says: what is a turn-off in normal conversation becomes a sign of confidence and competence in a job interview. Paulhus found this had negative consequences for candidates from cultures where modesty is at a premium (East Asia), at least when they interview in North America. It doesn't seem far-fetched to extend that conclusion to women, who as little girls were often told "not to brag." Oh well, I'm still on team humility, as long as it isn't self-deprecation. As is Influencer Bernard Marr.

IF YOU READ JUST TWO STORIES – Lots of chatter about Tim Cook today with a New York Times profile of the elusive Apple CEO and an interesting blog post. Both depict Cook as the operations man who excels where Steve Jobs lacked and now seeks to outsource the creative spark to replace Jobs', which he simply can't mimic. In the New York Times, Matt Richtel and Brian X. Chen write:

Mr. Cook is amassing a creative brain trust, according to Bono, the lead singer of the band U2, who befriended Mr. Jobs and worked closely with him and Apple’s team on developing a U2-branded iPod, as well as on charitable work in Africa. Mr. Cook is not saying “I’m here to replace him,” said Bono, who is a managing director and co-founder of the venture capital firm Elevation Partners. “He’s saying, ‘I’ll try to replace him with five people.’ It explains the acquisition of Beats.” (Read the full profile.)

Daring Fireball's John Gruber echoes:

When Cook succeeded Jobs, the question we all asked was more or less binary: Would Apple decline without Steve Jobs? What seems to have gone largely unconsidered is whether Apple would thrive with Cook at the helm, achieving things the company wasn’t able to do under the leadership of the autocratic and mercurial Jobs.

Jobs was a great CEO for leading Apple to become big. But Cook is a great CEO for leading Apple now that it is big, to allow the company to take advantage of its size and success. Matt Drance said it, and so will I:What we saw last week at WWDC 2014 would not have happened under Steve Jobs.

This is not to say Apple is better off without Steve Jobs. But I do think it’s becoming clear that the company, today, might be better off with Tim Cook as CEO. If Jobs were still with us, his ideal role today might be that of an éminence grise, muse and partner to Jony Ive in the design of new products, and of course public presenter extraordinaire. Chairman of the board, with Cook as CEO, running the company much as he actually is today. (Read the full essay.)

Will you take advantage of Starbucks' tuition plan? Has your modesty hurt you in job interviews? If you have insider knowledge of these or other topics in the news today, write your own post explaining what's happening. Share the URL here in the comments mentioning me or tweet @LinkedInPulse. (Want to write, but don't yet have access? Leave your info here.)

Photo: Fran Simo/Flickr

Tuition Cuts?

There continues to be much talk about tuition cuts.

In a recent report on the state of legal education, Moody's, the credit rating service, noted in passing that tuition cuts are not necessarily an effective tactic for improving enrollment. The rationale is important for people to understand. (Although the Moody's report concerned law schools, most of what was said extends to other types of schools as well.)

Tuition cuts might not be all that they appear to be. The reason is virtually all institutions of higher education already discount tuition to a great extent. Almost all of them also are tuition dependent: Their operating budget comes from what students pay them.

That is the case for the highly-regarded and the not so reputable. Public institutions and those that value public service typically return a significant amount of their tuition revenue to their students in the form of need-based financial aid. Other schools that wish to recruit highly-credentialed students award scholarships on the basis of those metrics. Some of the moneys for these purposes may come from endowments, but much of it comes from what students themselves are putting into the coffers.

Whether it is meant to help many students by offering the opportunity for higher education or buy a few of them by rewarding earlier academic records, the budgetary consequence is the same. As with most other ventures, there is a difference between gross and net.

So a tuition cut may well leave many, perhaps most, individuals worse off as compared to the baseline. Here are the consequences of a cut to tuition.

Assume before it publicizes a cut, a school has a program oriented toward need-based grants. It may be giving as many as three-quarters of its students such packages. Only a quarter of them are paying the full sticker price. Three-quarters pay less; the one-quarter make that possible.

Now after a cut, that school has two choices. (We can put to the side the equivalent of money falling from the sky: alternate revenue sources. They exist, but they usually are an order of magnitude less than what would be needed to offset significant tuition decreases.)

The first option is a real cut. The school could reduce expenditures in a manner commensurate to its loss of total tuition coming in. To be pointed about what that means: Since human resources are the bulk of the budget, such a real cut means faculty, staff, or both, would have to be paid less or be laid off. Savings from the non-personnel share of the budget are not likely to be sufficient to make ends meet.

The second option is the illusion of a "cut." The school could reduce what insiders call the "discount rate" to exactly the amount that makes up for the tuition drop. Again to be pointed about what that means: Given that most students previously received generous grants, most of them end up actually paying more. The students who were not receiving grants prior are the only ones who in fact benefit.

To illustrate it with numbers, consider the simplest possible example. Suppose Acme Law School had two students (in this hypothetical, each of them stands in for hundreds who are treated identically); and a "rack rate" of $50,000 per year. Alpha, who is impoverished, receives a $10,000 grant; Bravo, who is well-to-do, receives no grant.

The real cost of attendance for a year (not including living expenses) is as follows. Alpha expends $40,000 ($50,000 tuition less a grant); Bravo, $50,000 (the stated tuition with no break).

Imagine then Acme Law School announces a tuition cut of 10 percent or $5,000. Its new, much-praised "flat rate" is $45,000.

But the leaders of Acme Law School do not wish to affect its programs. That frames their intentions in the most positive terms. They need to maintain the same overall revenue the school was receiving from Alpha and Bravo notwithstanding the cut, which is $90,000 (the $40,000 from the former plus the $50,000 from the latter).

Accordingly, to achieve their goals, they direct that the financial aid program be zeroed out. Alpha and Bravo each pay $45,000. The school receives $90,000 as it always has. Transaction costs are lowered as a side benefit.

Look at what has happened to Alpha and Bravo. They have switched places. Alpha pays more than before, $45,000 instead of $40,000; Bravo pays less, $45,000 instead of $50,000. Alpha has a subsidy taken away; Bravo benefits.

Note too this is not ideological. If you object to Alpha receiving need-based financial aid to begin with, change the example to a credentials-based scholarship. So in this variation, Alpha, who has scored at the top of the range on standardized tests and been valedictorian from her undergraduate alma mater, would have been offered a $10,000 scholarship. That is eliminated with the tuition cut.

Thus, at a school that has announced a tuition cut, there must be, sooner or later, an announcement of the real cut that matches it. Absent that, the inference that can be made is that only the illusion of a cut has been presented. It is marketing, puffery, call it what you will.

The same can be said of flat-rate tuition programs more generally. It's no different than flat-rate taxation proposals. The resulting flat-rate may or may not be a better deal than varying rates, depending on a student's individual situation.

All of the above is exacerbated by the lower levels of enrollment at law schools. A school trying to balance its budget, as all of them need to do, can compensate for lower enrollment with higher tuition, or vice versa. But simultaneous downward trends on enrollment and tuition cannot be sustained without even greater real cuts to spending, financial aid, or both.

Whatever people think about the cost of higher education, it is important to understand the choices that decision makers face. Much of what looks like reform may be symbolic.

PS I agree with the comments. The high cost of higher education is its major problem. My point is some remedies are real; others are panaceas. A reduction in revenue (whether by cutting enrollment or tuition) must be matched by a reduction in expenditures (and most spending is payroll); otherwise, it isn't meaningful.

Photo: snvv / Shutterstock

Doing the Math on Adjunct Pay

Today, a national walkout is scheduled for adjunct professors across our country as an outcry to reform adjunct professor wages ensues. A recent Washington Post blog, comments on the issues at hand regarding the wage debate ensuing on our campuses across the country.

As an adjunct professor, the subject is not only near and dear to my heart but also a subject matter that I can speak from with over 20 years of experience. Teaching is not a profession that one delves into because they want to make money. Trust me, it’s not. It is a profession or rather a calling for many to impart their knowledge and experiences in their fields of expertise with those students who want to gain greater understanding of that field or for some students because the curriculum says it’s required.

Here, this debate makes it clear; we have a difference in perspectives. It is easy to say what another’s perceived value is when looking from the outside in but is a totally different story when you are on the inside. How many of you know what it truly takes to carry the distinction of adjunct faculty? For those of us that do, we understand the VALUE that is being provided day after day, semester after semester, graduating class after graduating class. The value goes beyond the student, beyond the reputation that the university gains from having seasoned adjunct faculty teaching their students, it is a value that ultimately our communities gain in having well-trained, competent members of our society continue to share, expand and create services utilizing those nuggets of wisdom that those experts have shared with them.

Speaking from experience, I have had the honor to teach at places where the pay has been as low as $2,500 (and those numbers are recent) to as much as close to $5,000 per class. Now to many, these numbers may seem like excellent money and don’t get me wrong for many individuals this amount of money is nothing to look the other way. However, if you are to do a break-down of the monies being paid out to adjuncts, the numbers don’t begin to add up as nicely as they first appear. So let’s take for example, a course for $2,500. This money is paid out for 16 week courses, each course, in this example, was 3 hours per week of face time with the students in class, add an additional 2 to 3 hours of additional work required to prepare for the class brings us to at least 5-6 hours. This would be average. Then, take into account weeks where you are grading exams, reading and grading essays and papers, for 25 students (on the low end), the amount of time doubles if not triples.

I always tell my students, life is about math. So, let’s do the math.

$2,500.00/16 weeks= 156.25 per week $156.25/6 hours= $26.04 vs.$156.25/12 hours= $13.02

and so on and so forth.

And for those that want a per student rate at $13.02, it actually works out to $4.52 a student.

Yet, we charge the student optimal rates for their education under the guise that it is worth every single penny because they are gaining VALUE and many universities now proudly display the ROI (return on investment) for their students. That one particular class say at a low $1,500 has brought into the university $37,500. Yet, the person imparting the VALUE got paid $2,500. I won’t even go into the type of behaviors some faculty have to endure from their students; that’s a whole different conversation.

Now, even for the “better” paying institutions, the numbers are still pretty abysmal. Why? Well, it’s all about the numbers. Personally, I have taught classes where the average student body was 50 (some climbed as high as 75). I won’t bore you with the numbers. But try them out and you will see. (Per student, rates are .50!) Yes, .50! It’s not a typo.

In the 20 years I have taught the pay has only gone up about $1500.00 per class or $50 a year. We must ask ourselves, why is it that we devalue those that are so crucial to our societies well-being? This is a discussion that needs to occur. We need to talk about VALUE and we need to negotiate. Life is all about negotiation. Our institutes of higher learning need to compensate those adequately for their service and value.

Now, don’t get me wrong, I LOVE what I do! To be able to see those future leaders eyes light up when they understand a concept is AMAZING, to get those e-mails where the students tell you that you have shaped and changed their lives and the lives of others because you shared your knowledge and expertise is priceless. But it still boils down to VALUE. Adjuncts provide a priceless value to the students, universities and community that they and these future students/leaders will serve. Why not pay them for the value they deserve?

How Starbucks is Modernizing the Free Tuition Benefit for the 21st Century Worker

The announcement coming from Starbucks today that it will pay for an online degree from Arizona State University for thousands of its workers has the chance to shift the conversation around a college education as an employee benefit much like the company did with health insurance for part-timers in the last decade.

Many employers have long helped pay the tuition bills for their workers, but in recent years companies have become stingier about the benefit. Some employers are requiring workers to pay back the benefit if they bolt for another job after they graduate. Some have tightened up on the types of classes and degrees they will pay for. And even as tuition rates have risen, nearly all have declined to sweeten the maximum benefit, instead sticking with what the federal government allows them to deduct annually from taxes (up to $5,250 per employee from their revenue), an amount that has not changed in nearly three decades.

Most companies have designed their tuition benefits for a 20th Century workforce.

That’s why the announcement from Starbucks is significant. Its tuition plan is open to any U.S. employee as long as they work 20 hours a week and can gain admission to Arizona State. For those with two years of college, Starbucks will pay full tuition. For those with fewer credits, it will pay some of the cost, with university and government aid picking up the rest for many students. (In the interest of full disclosure, I'm employed part-time income at Arizona State as a professor of practice).

Most companies have designed their tuition benefits for a 20th Century workforce. The Starbucks plans designs the benefit in a way that is consistent with how the economy works in the 21st Century in four important ways:

It doesn’t hold employees hostage.

Americans switch jobs, on average, every four years. Most employees never tap tuition benefits because they’re not around long enough in a job to complete a credential or they don’t want to pay back the benefit if they leave within a specified time period. Because the Starbucks benefit allows an employee to be a full-time student, its workers can complete a degree quickly.

We all benefit from an educated society.

Some might question why a Starbucks barista needs a college degree. By giving this benefit without strings attached, Starbucks is saying that its baristas don't need to keep filling orders for tall cappuccinos once they have a degree. They are free to move on. Starbucks CEO, Howard Schultz, realizes an educated society benefits all, even if he is training his employees to launch new careers and go work somewhere else.

We allow employees to take their retirement accounts with them, so why not their education. Schultz told the Chronicle of Higher Education that his plan demonstrates "the role and responsibility of a public company" at a time when education matters and "so many people are being left behind."

Completing a degree matters.

One in five Americans between the ages of 25 and 64 attended college but never earned a credential. That’s because some 400,000 students drop out of college every year. The economic and social benefits of a college education go to those who actually complete a degree, not just have some college. Schultz recognizes that difference by completely subsidizing the credential for those at least halfway toward a bachelor’s degree.

Employees are time-pressed, and often location bound.

Fully online education is not for everyone. Research has shown that it's often best for students who are highly skilled and motivated, not for struggling students. So benefits like this that only offer online courses don't help all employees and it would be better if Starbucks workers had some choice of institutions beyond Arizona State. Still, given the hours of most Starbucks employees, partnering with an online provider makes sense since students are limited as to where and when they can go to schools. But even employees outside of retail are time-pressed and location bound. Often, fully online courses are their only choice.

The Starbucks plan has some shortcomings (need to enroll full-time, only online, only at Arizona State), but its basic design is one that recognizes the needs of the 21st Century employee. Other companies should take notice and update their policies for today's workforce.

Jeffrey Selingo is author of College (Un)Bound: The Future of Higher Education and What It Means for Students, and of the forthcoming e-book, MOOC U, an inside look at the world of massive open online courses, due out this spring from Simon & Schuster. He is a contributing editor at The Chronicle of Higher Education and a professor of practice at Arizona State University.

Follow him here by clicking the FOLLOW button above, on Twitter @jselingo, and sign up for free newsletters about the future of higher education atjeffselingo.com.

Photo: Jason Empey/Flickr

Best Gaming Laptop - What to Look For?

As avid gamers, we are constantly looking for the best gaming laptop. We are constantly searching for the best gaming laptop that will satisfy our gaming needs and have a fantastic gaming experience possible. In a bid to save money, the cheapest one may not perform as expected. On the other hand, the most expensive may not be the best. Most gamers would want a high performance machine that is not expensive. So what constitutes as a best laptop? It is not the price for sure!

A good laptop for gaming should have a better specification and CPU memory than normal laptops as it is designed specifically for high resolution graphics and pictures. These types of laptops are not difficult to find. They can be found in retail stores. If you want better and cheaper deals, they can be found online. Online stores will deliver the goods right to your doorstep.

The best gaming laptop prices can range from $700 - $1500. It may cost more if you go to a retail store. If you are on a budget, a $700 gaming laptop may be good enough to satisfy your gaming needs. If you are not worried about your budget and have more cash to spend, you would want to spend more for the best performing machine you can find.

As you know, 3D games require a much higher resolution laptop than 2D games. High resolution laptop for 3D games has a more powerful CPU that runs fast and better graphic card. If you want to buy this type of laptop, there are 2 types of graphic cards you want to know, namely ATI and Nvidia. Choose the laptop that will fit your need. The more powerful the machine is, the more you will have to pay.

The best gaming laptop brands are MSI, ASUS, Alienware and Toshiba Qosmio. Depending on what you are looking for, be sure to look at the capacity of the computer. There are also big or small screens, AMD or Intel CPUs for you to choose.

Gamers, nothing can compare to a wonderful gaming experience. Therefore, choose thebest gaming laptop that you will enjoy for years to come.