Search Captions & Ask AI

Understanding the Future of Work, Labor Trends, and Organizational Change

August 04, 2025 / 30:51

This episode features Peter Cappelli discussing his journey in higher education and labor economics, the impact of the pandemic on the workforce, and the importance of management in organizations.

Cappelli shares his personal experiences, including his struggles with attention deficit disorder and chronic fatigue syndrome, which shaped his career path. He reflects on how his father's death influenced his ambition to become a lawyer and how he eventually became a professor.

The conversation covers the evolution of labor economics, the decline of unions, and the challenges of remote work. Cappelli emphasizes the need for organizations to adapt to uncertainty and rethink their management strategies in the face of changing work environments.

He also discusses the universal themes in workplace dynamics across different cultures and the importance of investing in management and employee training. Cappelli's insights highlight the need for higher education institutions to adapt to current labor market realities.

In closing, he advises listeners to assess workplace culture and seek environments that value employees as assets rather than liabilities.

TL;DR

Peter Cappelli discusses his career in labor economics, the impact of remote work, and the importance of effective management in organizations.

Episode

30:51
00:00:06
Dean James: Peter, thanks for joining us.
00:00:08
Peter: Thank you for have me. - Glad that you're here.
00:00:10
I'd like to start with an origin story of
00:00:13
sorts. So if you were to think back across the span of your
00:00:17
life, what are two or three instances or moments or
00:00:20
experiences that really propelled you for
00:00:23
a career in higher education
00:00:25
and a career in labor economics, more specifically?
00:00:28
Getting to college was a transformative time for most
00:00:33
everybody. I have pretty big case of attention deficit
00:00:36
disorder, which was not treated. Of course, they didn't even know
00:00:39
what it was, right? But when I got to college, I realized if I
00:00:42
could lock myself in the library and study, then I could focus
00:00:48
and get things done. And I went from being a not particularly
00:00:53
distinguished high school student to a distinguished
00:00:55
college student. So that was certainly one of them. I would
00:01:00
say, as with many of our colleagues here, we didn't
00:01:03
necessarily set out to be faculty members, you know. And a
00:01:07
large number of us intended to be lawyers. At least when I was in
00:01:11
college, if you were good in science, you wanted to be a
00:01:13
doctor, if you were good and everything else, you want to be
00:01:16
a lawyer. And my father was a lawyer. And so that sort of made
00:01:20
sense. But my father died when I was in college, so that kind of
00:01:25
derailed that ambition a little bit. So maybe that was the other
00:01:28
one. But even then, I was in graduate school, I went to
00:01:31
Oxford, with the idea of just goofing around for a while
00:01:34
and coming back here, and I discovered you couldn't do that.
00:01:37
You had to enter a degree program. So I did that, and I
00:01:40
was not quite done. So I got a postdoc at MIT, and then I kind
00:01:45
of woke up, and I was a professor. You know, was already
00:01:48
down the pike a little bit, without so much a conscious
00:01:51
choice early on, saying this is what I was going to do. You
00:01:54
know, I didn't know an awful lot about careers, right? I didn't
00:01:57
know what business careers were like. I didn't know what
00:02:00
consulting jobs were like, nor did anybody else. At Oxford, I
00:02:05
went to see the careers people at one point, and they said, "You
00:02:08
have the rest of your life to worry about your career. Don't
00:02:12
worry about it now." So very different advice, right, than
00:02:15
when we got here.
00:02:16
Very different advice. So how did you come to learn about
00:02:22
the field that you chose to study and pursue?
00:02:24
Well, as an undergraduate, I was around a lot of these topics. I
00:02:29
was interested in the issue of how we regulate economic forces.
00:02:35
So I was interested in a lot of the legislative efforts to try
00:02:40
to constrain, guide, harness economic forces, and
00:02:45
particularly not crush people in the process. So I was interested
00:02:49
in those general questions. And then that takes you, you know,
00:02:53
into these topics. And also in England, labor economics looked
00:02:57
a little different. It wasn't dominated by large data sets
00:03:01
and, you know, econometrics, it was much more go get data and
00:03:05
look at it. So it looks more like what we do here, maybe,
00:03:09
than what you would see in an economics department.
00:03:12
So you were in graduate school in the late '70s. It was the time
00:03:17
period where labor unions were starting to be a bit on the
00:03:20
decline, and there was an emergence in the management
00:03:24
literature on different theories of management. So how did that,
00:03:28
or did that shift in how we thought about labor and the
00:03:32
workforce influence your own work?
00:03:35
Yeah. Well, career changes, right? Because I wrote my thesis
00:03:40
about inflation. And as soon as I finished it, inflation kind of
00:03:44
disappeared. So that topic was gone. And then, you know, when I
00:03:48
came to the Wharton School, there were still seven people
00:03:51
here who studied unions, right? And it used to be that, if you
00:03:55
looked in corporations, the executive vice president was
00:04:00
industrial relations. Human resources reported to the
00:04:04
industrial relations people. And part of my early career, when I
00:04:10
came back to the US, was studying what caused these
00:04:13
unions to collapse. And it wasn't just economic, global
00:04:18
economic pressures, it was a sort of concerted effort by
00:04:21
employers who had sort of decided that the old bargain
00:04:26
that you just should accept unions and strikes and, you
00:04:30
know, not try to fight them— they didn't buy that any longer.
00:04:34
So it was a shift in values, I think, that led companies to take
00:04:40
off the gloves, as it were, and started to take the unions
00:04:45
apart, you know. So that started in 1981, which was— with the
00:04:49
recession. That was, you know, at the time, the worst recession
00:04:52
since the Great Depression. And that was part of it, was
00:04:56
dismantling unions. Part of what happened then is, "Okay. What do
00:04:59
we got now?" Well, because part of dismantling unions was also
00:05:03
inside the great corporations restructuring themselves down to
00:05:08
shrink. And a lot of it was the belief that they were bloated,
00:05:13
and they probably were, having grown up in a period of
00:05:17
regulation, stable markets, lots of planning. And that all
00:05:21
kind of went out the window. So that was probably me talking
00:05:26
about that issue of what happens when we got rid of lifetime
00:05:30
employment. That was my work in the 1990s, trying to think about
00:05:37
that. And at the time, you know, a lot of people didn't believe
00:05:40
it had changed, because we had had that for 45 years or so, 50
00:05:45
years, that stable model of big corporations. And just hard
00:05:51
to believe that it disappeared that quickly.
00:05:53
But in fact, it did.
00:05:55
So speaking of change, and in some cases, transformational
00:05:59
change pretty rapidly, is the way in which the workforce has
00:06:03
changed as a result of, for example, the pandemic. Remote
00:06:07
work, which wasn't something we were talking about 10 years ago,
00:06:10
we are now trying to actively navigate. So as you think about
00:06:13
some of these big contextual variables that are now
00:06:17
influencing the workplace, what is your advice to organizations
00:06:22
and to leaders about how we should be thinking about and
00:06:25
preparing— advice to a Dean or faculty— how we should be
00:06:28
preparing the workforce of the future, given the shifts that
00:06:31
we're seeing? - Well,
00:06:32
you know— and you see this, I'm sure, in practice. But also in
00:06:37
university. We have a really hard time with uncertainty, and
00:06:42
we would love, love, love to be able to plan. And to plan, you
00:06:47
really need certainty of some kind, you know. And I think the
00:06:51
advice is, we have to get more comfortable with uncertainty.
00:06:56
And that planning when you have uncertainty is dangerous, right?
00:07:01
You— assuming you're going in this direction, you start making
00:07:04
investments in that direction, and then you discover that, if
00:07:08
you're wrong, you would have been better off just waiting
00:07:11
right? And I think with with AI in particular, we're absolutely
00:07:16
in that right now. The assumptions we made about what
00:07:20
was going to happen have been proving wrong, wrong and wrong.
00:07:26
Like driverless trucks, right? So by 2019, they were supposed to
00:07:31
take over. Every consulting firm had made that story. They've all
00:07:35
taken those reports down off their websites now. They just
00:07:38
bury them someplace. But they all believed it, right? And I
00:07:41
think it happens because we really, really want to know
00:07:45
what the answer is. And people are willing to tell you, but
00:07:49
they don't know, right? So I think the problem for us, we see
00:07:52
this in executive and some of our colleagues here have been
00:07:56
trying to persuade employers to think about this for maybe 10
00:07:59
years or so. How do you deal with uncertainty? You don't have
00:08:03
to ignore it, but you don't have to just make a guess either,
00:08:07
right? So I think that's our problem, right?
00:08:10
And would you say it's the same kind of perspective when you
00:08:14
think about remote work and how we should be thinking about the
00:08:19
management of a workforce, whether it's in person, whether
00:08:23
it's in a hybrid environment, and the way in which technology
00:08:26
has influenced how people can engage with the workplace?
00:08:30
Yeah. I think employers are— you know, are really in the driver's
00:08:33
seat on this, right? There's no country in the developed world
00:08:37
where employers have more ability to control things in the
00:08:40
US, right? And they're making the calls. I think what concerns
00:08:44
me is they're not making sensible calls on this. They're
00:08:49
not thinking through what will work for us as an employer. And
00:08:54
I think the problem is in lots of places, they're just assuming
00:09:00
that having people work remotely will be just like if they were
00:09:05
in the office, right? And it's not. I think one of the
00:09:07
things that we didn't understand before the pandemic, and before
00:09:12
remote work, is how things actually got done in offices,
00:09:17
and how much of it was relational based. Right? That you
00:09:21
need something done, you call this person that you know over
00:09:24
here. And some of the research that we did, and some of the
00:09:28
studies of hybrid workplaces, discovered that, you know,
00:09:32
that's still what they try to do. If we need something from
00:09:36
that team over there, we say, who in our team knows anybody
00:09:39
over there? But the problem is with remote work continuing in
00:09:44
some places, average job tenure is four years. We have cohorts
00:09:49
of employees in these companies who really don't know anybody
00:09:52
there, because they were never face to face. And so we're kind
00:09:56
of running down the stock of relational capital we've got.
00:10:00
And, you know, employers have to think about,
00:10:02
how do we rebuild this so that people will figure out how to
00:10:09
get things done? You could do it. Some of the companies like
00:10:12
GitHub, you know, and the virtual companies, all virtual,
00:10:16
they figured out ways to do it. But they've got rule books that are
00:10:18
like this thick, you know, telling you, "Here's how you have
00:10:22
to describe what you're doing and keep a record of it so
00:10:25
everybody can see it on a common document." And I don't think most
00:10:30
employers are willing to go to that much effort. So the choice
00:10:35
is, you know, work is not getting done as well as it could
00:10:41
be, and there's now a fair amount of sophisticated research
00:10:43
showing problems with this. Productivity, innovation
00:10:46
problems. And the question is, okay, employers, you're in
00:10:49
charge. What are you going to do? Right now? You've been just
00:10:52
assuming it's all working. It's not.
00:10:54
So you've had the opportunity to work around the world both as a
00:10:59
scholar, as a consultant, as an author. What— have you
00:11:03
identified— are there any sort of universal truths or themes
00:11:07
that you have found either about companies and organizations or
00:11:11
about employees, regardless of region or geographical—
00:11:16
Yeah. Well, I think, you know, human needs don't differ all
00:11:20
that much around the world. And we like to think they do. We,
00:11:25
you know, like to think these national differences and culture
00:11:28
are overwhelming. But, you know, human needs don't differ all
00:11:32
that much. I'd say what's really different is how employers deal
00:11:37
with them or don't deal with them. And that stems from how
00:11:42
much power the workers have. A lot of that is political power,
00:11:44
right? So if you're in a country that has a Labor Party and the
00:11:50
labor has a strong political role, then employers take labor
00:11:55
issues and managing people much more seriously, right? And if
00:11:58
you don't, they don't think to go in that direction, you know.
00:12:04
And despite, for example, in the US, the sort of 30-year run of
00:12:08
research all saying this, showing that this really matters
00:12:11
and pays off, it doesn't always align with people's guts who are
00:12:16
in power. And so they go with their gut, you know. So I'd say
00:12:20
that's the big difference, is people's motivations, needs and
00:12:24
things don't differ that much. What does differ across
00:12:27
countries is how seriously the employers are willing to deal
00:12:31
with those as a way of trying to be more effective.
00:12:35
So as you think about a lifespan of work and investigation into
00:12:41
organizations and employees, is there one thing that you have
00:12:46
seen time and time again that companies just get wrong?
00:12:49
Yeah, I think in US companies anyway, I think now, anyway— so in
00:12:54
the last 15 years— they are just underinvesting. You know, not
00:13:00
just in employees and training and development, but they're
00:13:03
underinvesting in management. And we're seeing this right now
00:13:07
almost, as we speak, companies trying to take layers
00:13:10
of management out. Sounds like a reasonable thing, except what
00:13:14
you're doing then is you're really expanding the spans of
00:13:18
control. So one supervisor has 20 people, right? And you just
00:13:22
don't— can't keep track of what's going on with those
00:13:24
people, even in their work. You know, how are they doing in
00:13:27
their jobs? And we're trying to make the supervisors individual
00:13:30
contributors as well as supervising all these people,
00:13:33
right? So I think we are systematically, particularly in
00:13:38
public companies, under- investing. Training is largely
00:13:41
disappearing, you know. So a third of US managers say they
00:13:44
never had any training in management before becoming a
00:13:47
manager. So I think that's the big thing, which we're seeing
00:13:50
systematically in the US. You know, a lot of ideas from the US
00:13:55
translate around the world, maybe through multinational
00:13:58
companies. But you're starting to see some other countries— UK,
00:14:02
the Commonwealth countries, especially— following the US
00:14:05
path on some of these things, which is not always great. But
00:14:09
not all countries are. Like India, for example, never copy
00:14:11
the US. They were closer to copying Japan than the US. And
00:14:16
it's a country that takes managing people very seriously.
00:14:20
And they've got enormous challenges, right? They don't
00:14:23
have education systems that are near at the scale that they
00:14:26
need. They have diversity issues that absolutely swamp what we
00:14:30
see here. Religion, caste, you know, nationality, language. And
00:14:35
so they have to take them seriously.
00:14:37
So I'm curious about this notion of management and the under-
00:14:42
investment of management. So Wharton, obviously, is a premier
00:14:45
business school where we teach management. Are we teaching it
00:14:50
the right way? Are there things that we should be including in
00:14:53
our syllabi and in the curricula that we are not including, or
00:14:56
things that are outdated that we're doing?
00:14:58
What would your advice be?
00:15:00
Yeah. So funny story about this. We have a case that we
00:15:03
teach on purpose every year. We've been teaching it for a
00:15:07
long time. And it's a case about an investment bank and about the
00:15:10
associates. Junior people in investment banks, you know. And
00:15:14
they're often in bullpens in the middle of the— you know, the
00:15:17
building, and the managers are around the outside with window
00:15:20
suites. And the people in the middle get these tasks sort of
00:15:23
dropped on them at the last minute. They don't know what's going on.
00:15:25
They're working crazy hours.
00:15:27
And then we ask people in the room,
00:15:29
you know, "Does this look like what you've been doing?" And they say,
00:15:31
"Yeah, yeah, yeah." And then we tell them the case was written
00:15:35
in 1973. Right? So we've had generations of managers go
00:15:40
through, right, and they go off to Wall Street. They know this is
00:15:43
crazy, and yet, for some reason, it persists. And I think part of
00:15:48
the problem, which we don't quite understand, I think
00:15:52
sometimes, is how much our students, when they come to us,
00:15:58
have already got very strong ideas about things. And there
00:16:03
are things they pay attention to and things that they don't. And
00:16:07
they pick those up from what's going on in the business
00:16:09
community around them by the time they— when they get here,
00:16:13
right? And it's hard to get them off of those things, right? So
00:16:17
that's— I don't think we're teaching the wrong things. I
00:16:19
don't think that's right. Getting their attention is
00:16:21
another problem.
00:16:22
Well, increasingly now with— I mean, we are officially in the
00:16:26
age of having a digital native generation entering the
00:16:30
workforce. And the ability to maintain focus and attention
00:16:36
is a whole other— whole other issue. So you have spent a
00:16:40
number of years also focused on women and women's issues in the
00:16:46
workplace. What can you share with us about what drove
00:16:49
that interest for you?
00:16:51
Well, I think I wrote about a lot of groups that were sort of
00:16:57
disadvantaged in the workplace a little bit. Maybe before we get
00:17:01
to the women, one that I think I really had some influence —
00:17:06
it turned out, in a small way that's really mattered was the world of
00:17:10
people with disabilities. And with the Office of Disability
00:17:14
Employment in the Department of Labor. And they were persuaded
00:17:18
that the problem they had with employers was not being able to
00:17:22
show the ROI on hiring disabled workers. And I pointed out to
00:17:29
the people, you know, in the department and elsewhere, you
00:17:32
know, think about the struggles that women had getting into the
00:17:36
workforce and then getting up into leadership positions. Do
00:17:40
you think any of that had to do with ROI problems? You think the
00:17:43
problem was they couldn't show an ROI as to why you should hire
00:17:46
minorities? "No, no, it wasn't any of that." Well, so why do you
00:17:49
think that's what's going on here? The problem with
00:17:52
disability is that people are uncomfortable around those who
00:17:58
have disabilities, because they feel if this happened to me, I
00:18:01
would feel terrible, if I lost a limb. And they assume the people
00:18:05
they're talking to who have disabilities feel like that. And
00:18:10
they don't, right? Somebody who's lost a limb lost it 20 years
00:18:13
ago, right? They're over it. They're dealing with it. They're
00:18:16
fine, right? So don't assume that, you know, they're
00:18:20
miserable, right, because of that. That that's the problem.
00:18:23
It wasn't— nothing to do with ROI, right? I think with
00:18:27
respect to women, I think, you know, it's similar kinds of
00:18:31
issues. Had nothing to do with ROI, right? It just had to do
00:18:34
with discrimination in various kinds of forms. One of the
00:18:38
things that we were showing, actually was about some
00:18:41
of the progress that women have made in the managerial and
00:18:44
executive ranks, right? And there were at least some moments
00:18:47
where employers were giving women a push to try to advance
00:18:52
them faster than you might otherwise expect, right? So that
00:18:55
was kind of encouraging, and it does show that you could make it
00:18:59
happen faster if you wanted, right? Wasn't really pipeline
00:19:02
problems or other things, right?
00:19:04
So I want to ask a more personal question, because I think your
00:19:09
previous answer surfaced this. Early in your career, you were
00:19:14
diagnosed with chronic fatigue syndrome. So I don't know if
00:19:16
that's considered a disability of sorts, but it's certainly
00:19:19
something that you needed to navigate as a professional,
00:19:22
and I'm wondering how you did that, and what influence that
00:19:30
may have had in your thinking about some of the research that
00:19:33
you've pursued in this regard.
00:19:35
Yeah, you know, it's a quirky illness, and some people get
00:19:39
over it reasonably quickly. For me, it was 20 years, which was
00:19:43
not fun. You know, Somerset Maugham, the novelist, began
00:19:47
his career as a doctor. And he said, observing patients, that
00:19:52
there was really no benefit to being sick, you didn't get
00:19:55
stronger. Suffering didn't make you better. You know, it was
00:19:58
really nothing useful to it. I think, in terms of what I
00:20:03
learned was things that everybody who's successful
00:20:07
knows, you know. And that is, if you actually take time
00:20:11
off to get better, you will pay a price for that, right? You'll
00:20:16
pay a price in opportunities that you're going to be passed
00:20:19
over because of that. And—
00:20:22
Are you saying that as a perception or as a reality?
00:20:24
No that's the reality, I think, right?
00:20:26
And so I can think about my own
00:20:28
experience here, for example, when I sort of first had this,
00:20:32
and I had the opportunity to work for the Secretary of Labor,
00:20:35
because she was a WEMBA student, Ann McLaughlin, then. And then
00:20:40
that's gonna be in addition to all your other work. You're
00:20:42
gonna do that or not? Well, I did it, and because I did that,
00:20:46
then I got this opportunity to run a research center for the
00:20:49
Department of Education, which we did with my colleague Bob
00:20:51
Zemsky here for 10 years. And because I did that, I got the
00:20:55
opportunity to be the senior advisor to the Crown Prince of
00:20:59
Bahrain. And, you know, these things all— if you miss them at
00:21:02
the beginning of your career, you know, they don't necessarily
00:21:06
come back. I think it probably cost me a lot in terms of how
00:21:11
long it took to get over this thing, you know. So you pay,
00:21:15
unfortunately, you do pay a price for these things, right?
00:21:18
But it is, unfortunately, a really difficult Faustian
00:21:23
choice, you know, to make. I think I was fortunate in many
00:21:28
ways. I didn't pay a career price much for this, really. But
00:21:33
you know, you learn how to fake it, right? You learn how to
00:21:38
cut out of the reception part of programs. You learn to come in
00:21:44
the night before so you can get more sleep. You know, you learn
00:21:48
to go lay down between classes. And, you know, you find ways to
00:21:51
fake it, which are their own skill. And I think that is kind
00:21:56
of how I got through it. I don't know that it had a profound
00:22:01
effect on thinking about, you know, these other research
00:22:05
topics. I think I am more motivated, maybe, by— than many
00:22:09
people— by things that irritate me. You know, many people say
00:22:13
they're motivated by things they love, but there are many things
00:22:18
that I've written really because I found them irritating. You
00:22:22
know, like a book about older workers was, you know, there's
00:22:25
enormous discrimination against older workers based on
00:22:29
assumptions about them, all of which are wrong. You know, like
00:22:34
their job performance is worse. It's actually better.
00:22:37
Absenteeism is actually better, turnover is actually lower.
00:22:41
There's all kinds of myths, right? So I think I've been
00:22:44
motivated more by those things that, you know, I just think
00:22:48
were wrong and irritating. And I wanted to say it. You know. I
00:22:52
don't know if you give this advice to people too, but I tell
00:22:55
them, if they're interested in an academic career, do you feel
00:22:59
that there's something you want to say and do you feel better once
00:23:03
you have said it? If you think that the goal here is to say it,
00:23:08
and then people— your phone will ring and stuff, you know?
00:23:12
Doesn't happen. - Very, very, very—
00:23:14
Very rarely. So it ought to feel good to you
00:23:17
to say it. And if it doesn't,
00:23:19
you're probably in the wrong line of work.
00:23:20
So let's talk about your time at Wharton. - Okay.
00:23:23
You've been here for how long?
00:23:24
40 years. - 40 years.
00:23:26
I told that to my undergraduate class, and
00:23:28
they just started applauding. Like, you know, "Look, he's still
00:23:31
standing. Isn't that cute? He can move and everything," you
00:23:35
know. Yeah. So. Yeah, 40 years.
00:23:37
So you have seen a lot of things at this institution and just in
00:23:42
in the world. How have our students changed over those
00:23:46
40 years?
00:23:48
I mean, mainly, I would say, in good ways. Their academic
00:23:51
abilities are better. One of the things that was quite clear is
00:23:55
their writing got better. Their ability to write was much
00:23:59
better. I think there was kind of a— you know, the thing about
00:24:03
students is that they are on the crest of whatever wave is
00:24:09
happening in society, particularly with employers,
00:24:11
right? So employers want to change direction. Easiest to do
00:24:15
it by who you hire, right? And the job market is tight. You
00:24:19
notice it most if you're at the entry level. The job market goes
00:24:24
soft, you notice it most if you're trying to leave. So they
00:24:28
get yanked around by the market and society more than people who
00:24:32
are in their midlife, right? So I think in terms of the
00:24:37
students, they haven't changed that much. The 1980s, the
00:24:42
students were a little difficult, because it was the
00:24:44
peak of the finance wave, and it was just heady, you know? They
00:24:48
were able to make so much money so quickly. And— unprecedented,
00:24:53
right? And that just completely captured them. And they were not
00:24:59
happy to be doing anything that wasn't showing them how to make
00:25:02
money right now, and I'd like to get out of here, you know, and
00:25:04
start cashing in, right? But I'd say after that, they
00:25:08
haven't changed that much. But the world around them changes,
00:25:13
and as a result, you know, whenever the labor market gets
00:25:16
tight, we hear employers complaining that our students,
00:25:20
you know, are difficult and they have unrealistic expectations,
00:25:24
you know. And it happens, you know, every 10 years or so.
00:25:27
They don't change.
00:25:29
I want to bring this to a close shortly, but I have two more
00:25:32
questions, one of which is, higher education is going
00:25:35
through a very tumultuous period right now. And so as an
00:25:40
organizational scholar, as someone who understands labor
00:25:45
and labor markets and employee dynamics and all of those
00:25:49
issues, how should we be thinking about the management of
00:25:53
change through this period of tumult? And what advice,
00:25:57
what counsel would you have for leaders of
00:25:59
higher education institutions?
00:26:00
Yeah. So, I think three points. One is just to remember that
00:26:04
higher education in the US is largely a public university
00:26:08
story, right? 80, 85% of students go to school in public
00:26:12
universities. And the big thing that has changed there is that
00:26:17
it used to be— so, I began my career at University of Illinois.
00:26:21
Wasn't there long, but a couple years. And Illinois largely loved
00:26:25
the University of Illinois, and the view among people there was,
00:26:29
if your kid got in there, your career was set. And I think what
00:26:35
has happened in the last two generations or so is, we've so
00:26:39
expanded higher education, and when you add an extra college
00:26:43
graduate, you don't add an extra college job, right? And we've
00:26:47
tended to add more capacity, frankly, at the lower end of the
00:26:53
distribution, in the sense of schools that have fewer
00:26:55
resources, students who are not able to have residential
00:26:59
experiences. It's just a different experience. And
00:27:03
families discovered that their kids were graduating and could
00:27:05
not get a college job, the kind that was going to give you a
00:27:10
career. And that led to considerable dissatisfaction
00:27:15
with the whole college experience, right, and the whole
00:27:18
concern about whether it will pay off for people or not. So I
00:27:22
think that's the big political change. I think the second issue
00:27:28
is about management, something that you obviously see. So we
00:27:32
used to run an executive ed program here for higher
00:27:35
education. We had 100 colleges and universities go through it.
00:27:41
And early on, they didn't understand that there were
00:27:44
markets they were competing in with each other, but they got
00:27:46
that pretty soon. The second thing they didn't understand was
00:27:50
strategy. That you can't all, as a university, be Harvard or Penn.
00:27:54
You can't all, as a college, be Amherst or Swarthmore, right?
00:27:58
There were niches. You had to figure out your strategies. They
00:28:00
kind of got that. What they never quite got their hands
00:28:03
around was that management mattered. You know? That
00:28:07
understanding how to manage change mattered, understanding
00:28:11
how to deal with uncertainty really matters. And we're still
00:28:15
struggling with that, right? And if you look at— as one of my
00:28:18
colleagues in education said, if you really want to be a
00:28:20
university president, be a classicist and take one course
00:28:23
in accounting. The path is set for you, right? But they're
00:28:27
suspicious— the rest of higher ed is suspicious of business schools
00:28:31
and management, right? So it doesn't get up there. I think
00:28:34
the third point, where we're in this year, in the last year or
00:28:37
so, is that, you know, we have to recognize that we have groups
00:28:42
that really don't like us for reasons which might not be good.
00:28:47
And traditionally, we have laid back, you know, and just let
00:28:50
things pass. But if you let your opponents define you, then you
00:28:56
really have a problem. And I think that's what's happening
00:28:59
now. We were visiting a company, a colleague and I here, we were
00:29:04
doing some research at. And one of the guys there, who was a very
00:29:07
conservative guy, at the end of our program, said, you know,
00:29:09
"Gee, you guys really surprised me. You're not weird." And I
00:29:13
said, "What do you mean?" "You know, all politically correct
00:29:17
and all this sort of stuff." So, "What do you think goes on at
00:29:21
universities? You know, like our campus, 3000 faculty, half of
00:29:25
them are in medical school. What do you think they're studying
00:29:27
there? They're trying to save your life, you know." And I think
00:29:31
we've allowed them to define us. And we can't do that, you know.
00:29:36
We have to define ourselves to this broader community. We can't
00:29:40
take it for granted anymore.
00:29:41
Thank you for sharing that. Last question. Given all that you've
00:29:46
learned in your career, what would be your biggest piece of
00:29:49
advice for someone entering the workforce today?
00:29:52
I think it ties back to things we were talking about earlier,
00:29:55
and that is, you can tell pretty quickly from an employer whether
00:29:59
they think that their employees are an asset or a
00:30:03
liability, right? And you probably are not going to have a
00:30:08
good time for long in a place where they see employees as a
00:30:11
liability, right? So you know, if you pass through those
00:30:15
places, that's fine. You're probably not going to stay long
00:30:18
and be happy, but you could figure that out pretty easily
00:30:22
these days as to how they're going to manage and treat you,
00:30:25
right? And you want to be in a place where they
00:30:27
think you matter.
00:30:28
So assessing culture and the
00:30:30
fit of the culture with your own values.
00:30:32
Yeah. And you can see that by how they treat people and what
00:30:37
their priorities are. Pretty easy to tell.
00:30:40
Peter, thank you so much.
00:30:41
Well, thank you. This was fun.
00:30:43
- Likewise.

Badges

This episode stands out for the following:

  • 60
    Best performance

Episode Highlights

  • Transformative College Experience
    Peter reflects on how college changed his academic trajectory despite his struggles with attention deficit disorder.
    “I went from being a not particularly distinguished high school student to a distinguished college student.”
    @ 00m 48s
    August 04, 2025
  • Navigating Uncertainty in the Workplace
    Peter emphasizes the importance of adapting to uncertainty rather than relying on rigid planning.
    “We have to get more comfortable with uncertainty.”
    @ 06m 56s
    August 04, 2025
  • The Power of Employers
    Peter discusses how employers have significant control over workforce dynamics and management decisions.
    “Employers are really in the driver's seat on this.”
    @ 08m 33s
    August 04, 2025
  • Universal Human Needs
    Peter shares insights on how human needs are consistent globally, despite cultural differences.
    “Human needs don’t differ all that much around the world.”
    @ 11m 20s
    August 04, 2025
  • Coping with Chronic Fatigue Syndrome
    Peter opens up about his experience with chronic fatigue syndrome and its impact on his career.
    “You learn how to fake it.”
    @ 21m 38s
    August 04, 2025
  • Motivation from Irritation
    Many people are motivated by love, but some find drive in irritation.
    “I’ve been motivated more by those things that... were wrong and irritating.”
    @ 22m 44s
    August 04, 2025
  • 40 Years at Wharton
    Reflecting on four decades at Wharton, the speaker shares insights on student changes.
    “Their academic abilities are better.”
    @ 23m 51s
    August 04, 2025
  • Advice for New Graduates
    Understanding workplace culture is crucial for job satisfaction.
    “You can tell pretty quickly from an employer whether they see employees as an asset or a liability.”
    @ 29m 52s
    August 04, 2025

Episode Quotes

  • We have to get more comfortable with uncertainty.
    Understanding the Future of Work, Labor Trends, and Organizational Change
  • Human needs don’t differ all that much around the world.
    Understanding the Future of Work, Labor Trends, and Organizational Change
  • You learn how to fake it.
    Understanding the Future of Work, Labor Trends, and Organizational Change
  • You ought to feel good to say it.
    Understanding the Future of Work, Labor Trends, and Organizational Change
  • You want to be in a place where they think you matter.
    Understanding the Future of Work, Labor Trends, and Organizational Change

Key Moments

  • Transformative College Experience00:48
  • Navigating Uncertainty06:56
  • Employer Control08:33
  • Universal Human Needs11:20
  • Chronic Fatigue Journey21:38
  • Motivation Insights22:44
  • Wharton Reflections23:51
  • Workplace Culture29:52

Words per Minute Over Time

Vibes Breakdown

Related Episodes

Why Supporting Employees Holistically Boosts Productivity
May 27, 2025
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
15:41
Why Supporting Employees Holistically Boosts Productivity
Why Hiring Has Slowed Without Mass Layoffs
February 18, 2026
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
10:17
Why Hiring Has Slowed Without Mass Layoffs
Improving Accessibility in the Workplace and in Outer Space — Leading Diversity at Work Series
May 17, 2023
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
38:59
Improving Accessibility in the Workplace and in Outer Space — Leading Diversity at Work Series
Does College Pay Off?
August 20, 2024
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
12:47
Does College Pay Off?
What I've Learned: Prof. Anita Summers Discusses Wharton Career with Dean Erika James
August 07, 2023
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
40:19
What I've Learned: Prof. Anita Summers Discusses Wharton Career with Dean Erika James
2025 Workplace Trends to Watch: How Work Is Changing
December 31, 2024
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
16:51
2025 Workplace Trends to Watch: How Work Is Changing
What I've Learned: Wharton Professor Mike Useem Discusses Leadership with Dean Erika James
January 22, 2024
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
23:01
What I've Learned: Wharton Professor Mike Useem Discusses Leadership with Dean Erika James
The Job Market Outlook for New Graduates in 2025
May 16, 2025
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
06:44
The Job Market Outlook for New Graduates in 2025
What I've Learned: Prof. Jeremy Siegel Talks Markets & Path to Wharton with Dean Erika James
August 09, 2023
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
34:42
What I've Learned: Prof. Jeremy Siegel Talks Markets & Path to Wharton with Dean Erika James
Making a Living and a Difference in the Second Half of Life
June 05, 2013
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
22:17
Making a Living and a Difference in the Second Half of Life
A New Way to Think About Startup Innovation
October 03, 2014
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
17:38
A New Way to Think About Startup Innovation
Jennifer Tejada CEO of PagerDuty on Leadership, AI, and Digital Transformation
March 21, 2025
Captions not detected. You can watch the video, but not search it. If you think this is an error, contact support.
34:00
Jennifer Tejada CEO of PagerDuty on Leadership, AI, and Digital Transformation