08832323.2013.852076

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

The Relationship of HR Professionals' Online
Experiences With Perceptions of Organizational
Hiring and Promotion of Online Graduates
Gundars Egons Kaupins, James Edward Wanek & Malcolm Paulin Coco
To cite this article: Gundars Egons Kaupins, James Edward Wanek & Malcolm Paulin Coco
(2014) The Relationship of HR Professionals' Online Experiences With Perceptions of
Organizational Hiring and Promotion of Online Graduates, Journal of Education for Business,
89:5, 222-229, DOI: 10.1080/08832323.2013.852076
To link to this article: http://dx.doi.org/10.1080/08832323.2013.852076

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Date: 11 January 2016, At: 20:41

JOURNAL OF EDUCATION FOR BUSINESS, 89: 222–229, 2014
Copyright Ó Taylor & Francis Group, LLC
ISSN: 0883-2323 print / 1940-3356 online
DOI: 10.1080/08832323.2013.852076

The Relationship of HR Professionals’ Online
Experiences With Perceptions of Organizational
Hiring and Promotion of Online Graduates
Gundars Egons Kaupins and James Edward Wanek
Downloaded by [Universitas Maritim Raja Ali Haji] at 20:41 11 January 2016


Boise State University, Boise, Idaho, USA

Malcolm Paulin Coco
Abilene Christian University, Abilene, Texas, USA

Based on a survey of 264 human resources professionals from 10 Society for Human
Resource Management chapters in Texas, the authors investigated how human resources
professionals accept online degrees compared to degrees based on face-to-face coursework
for hiring and promotion purposes. If respondents were satisfied with their own online course
experiences, they were most likely to view their organization as treating an online bachelor’s
or master’s degree as equivalent to a traditional degree for hiring or promotion purposes.
Having had online courses in the past or having completed an online degree had no similar
and significant association with perceptions of online program equivalency.
Keywords: hiring, online education, promotions, quality, traditional education

The employability and promotion of individuals who graduate from online degree programs are a major employer
concern. Though employers appreciate the flexible scheduling and reduced travel expense of online degree programs
(Gagne & Shepherd, 2001), some employer criticisms
include social isolation risk, academic dishonesty, information overload, and poor instructional quality (Sapp &
Simon, 2005; Waschull, 2011). Some academician

criticisms involve the social isolation risk, increased potential for academic dishonesty, potential for information overload, limited computer access in some areas, inadequate
computer equipment (Sapp & Simon, 2005; Waschull,
2001), use of false identities, loss of anonymity, and loss of
confidentiality in online learning (Agger-Gupta, 2010).
While there is considerable survey data on employer hiring acceptability of individuals who take online classes or
graduate from online degree programs (e.g., Adams,
DeFleur, & Heald, 2007; Bailey & Flegle, 2012; Guendoo,
2008; Hartman, 2007; Means, Toyama, Murphy, Bakia, &
Jones, 2010; Society for Human Resource Management,
2010), there is scant research on the promotability of such
Correspondence should be addressed to Gundars Egons Kaupins, Boise
State University, 313 Department of Management, 1910 University Drive,
Boise, ID 83725, USA. E-mail: gkaupins@boisestate.edu

individuals. Survey data on employer hiring acceptability
mostly focuses on whether employers would hire someone
from an online program and shares some reasons why.
Research on employer and organizational characteristics
affecting perceptions of online student hiring and promotion acceptability is lacking.


PURPOSE
Just like prior research, in this study we ask, do employers
view online programs as equivalent to face-to-face programs in terms of hiring? But unlike prior research, we ask,
do employers view online programs as equivalent to faceto-face programs in terms of promotion decisions? In the
present study we also build on these hiring and promotion
results by examining key demographic and organizational
factors that may affect employer perceptions associated
with online programs.
LITERATURE REVIEW
Online degrees have increasingly gained employer acceptance. A survey of Chief Learning Officers and Directors of

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ONLINE DEGREE ACCEPTANCE

Human Resources found that more than 62% had a favorable attitude toward online instruction and view online
learning as the same or greater than regular classroom
instruction (Hartman, 2007). Interviews with Wisconsin
hiring managers found that half believed online master of
business administration (MBA) degrees were as valuable as

campus-based MBA degrees (Bailey & Flegle, 2012).
Guendoo (2008) found that community college administrators were more willing to hire individuals who received
their doctoral degrees online than administrators from traditional four-year degree universities.
The Society for Human Resource Management (SHRM)
surveyed 449 human resources professionals and found that
if job applicants had identical job experiences and education, 39% responded that there was no difference between
an online or traditional degree. About 41% responded with
a preference for individuals who took both a bachelor’s and
a master’s at a traditional program (SHRM, 2010). An earlier SHRM (2009) survey of 570 human resources managers found that 47% either agreed or strongly agreed that
online university programs are equally credible to traditional degree programs.
A one-on-one comparison between traditional and online
preferences yields different results. In a national survey of
159 health care administrators, 95% of respondents would
hire someone from a traditional degree program rather than
an online program when given the choice (Adams et al.,
2007). In a study of 270 small and medium-size companies,
96% of managers said they would select traditional job candidates over those with online degrees and 75% would
select traditional over those with hybrid degrees (Adams &
DeFleur, 2006).
A survey of certified public accounting recruiters did not

perceive a difference between a candidate who received an
online master of accounting degree versus a traditional
accounting degree (Metrejean & Noland, 2011). In contrast,
Kohlmeyer, Seese, and Sincich (2011) found that there was
a strong preference among recruiters to hire students who
completed face-to-face programs. Reasons for the bias
against online programs include the lack of interpersonal
experiences, weak reputation and quality of online programs, professors did not know their online students, lack
of rigor, and lack of familiarity with online instruction.
Familiarity bias is the theory that alternatives that are
more familiar are perceived to be better than those that are
not. Prior research in finance has shown a strong familiarity
bias for local and known investments and stocks (Fox &
Levav, 2000; Huberman, 2001). Such bias often leads to
unwise investment decisions (BizEd, 2012). Prior research
in marketing has shown a mixed message for familiarity
bias. Prior positive experiences can narrow preferences for
certain types of brands (Krug & Weaver, 2005; Tam,
2008), housing (Seiler, Traub, & Harrison, 2008), online
companies (Kyun, 2005), and research journals (Levin &

Kratochwill, 1976). However, negative experiences can be

223

devastating due to the need for actual performance (Brooks
& Highhouse, 2006; Diss, 2007; Higgins, Echterhoff, Crespillo, & Kopietz, 2007). In the context of the present
research, Kohlmeyer et al. (2011) suggested that the lack of
familiarity with online instruction was associated with a
lower impression of online accountancy programs compared to traditional programs.
In general, the literature shows that online degrees are
showing increasing acceptability in terms of hiring. However, they are not as acceptable yet as traditional degree
programs.

HYPOTHESES
The literature is missing several dimensions of acceptability. While there is considerable literature comparing online
to traditional graduates concerning hiring, there is scant
research on promotions of graduates of online programs
compared to graduates of traditional programs.
The literature is also missing more detailed analysis of
respondent characteristics. For example, the comprehensive

SHRM (2009, 2010) surveys reported basic online education opinions of human resources managers but did not go
into any depth concerning the demographic characteristics
of the human resources managers and the effects these
demographic characteristics have on the results. Sample
demographic characteristics include whether respondents
have taken online courses, have graduated from the online
courses, and were satisfied with the online courses.
The literature concerning familiarity bias suggests that
familiarity with an experience, particularly with a positive
one, would lead to higher future opinions of that experience. Kohlmeyer et al. (2011) suggested that the lack of
online familiarity with online accountancy programs was
associated with lower impressions of online accountancy
programs. We extend the familiarity bias to individuals
who have prior experience with online classes, have personal satisfaction with them, or have graduated from online
programs. Their familiarity bias may positively affect how
they view their organization’s impression of online classes
relative to traditional classes. In that light, we created six
hypotheses that link some type of online experience with
perceptions of organizational hiring and promotions:
Hypothesis 1 (H1): Prior Experience: A person’s prior

experience with an online degree program would be
associated with the person perceiving his or her organization to treat an online degree as equivalent to a traditional college or university program when making (a) a
hiring decision or (b) a promotion decision.
H2: Personal Satisfaction: A person’s satisfaction with
online degree classes would be associated with perceiving his or her organization to treat an online degree

224

G. E. KAUPINS ET AL.

as being equivalent to a traditional college or university degree program when making (a) a hiring decision
or (b) a promotion decision.

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H3: Graduation: A person’s graduation from an online
degree program would be associated with perceiving
his or her organization to treat an online degree as
being equivalent to a traditional college or university
program when making (a) a hiring decision or (b) a

promotion decision.
These hypotheses are important to help expand the
research concerning online education because it shows
what effect prior experience with online education has on
perceptions of organization policies associated with online
programs. It also shows how online education is perceived
in the context of hiring and promotion decisions.

METHODOLOGY
Data Collection
Human resources managers, specialists, consultants, and
other human resources professionals were the target sample. These professionals tend to have significant knowledge
of organizational policies associated with hiring and promotions (Dessler, 2014).
To obtain the target sample, one coauthor, Malcolm
Paulin Coco, attended 10 SHRM monthly meetings and
asked attendees to complete a two-page questionnaire covering the key issues associated with the hypotheses. At
these meetings, 264 respondents completed the survey
between February and April of 2012.
Questionnaires were distributed in San Antonio, Grand
Prairie, Fort Worth, Lubbock, Brownwood, New Braunfels,

Abilene, Wichita Falls, Amarillo, and Stephenville, Texas.
The chapters were from large cities such as San Antonio (population 1,327,407) and Fort Worth (1,197,816), and smaller
towns such as Brownwood (19,288) and Stephenville (17,123;
Texas State Library and Archives Commission, 2010).
Sample
As shown in Table 1, most respondents are human resources managers and are involved in hiring. About two thirds
work in companies that have 500 or fewer employees.
Almost half are with companies that are in multiple
locations.
Variables
In the questionnaire, one key dependent variable was measured as a dummy where it was coded 1 for responses in
which online bachelor degrees are treated as equivalent to a
similar degree from a traditional college or university and 0

TABLE 1
Demographic Characteristics
Demographic
Have taken courses online
Yes
No
No response
Satisfied with online classes compared to traditional
classes
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
No response/have not taken online classes
Have completed an online degree
Yes
No
No response
Make hiring decisions for your organization
Yes
No
No response
Number of employees at your business location
1–100 employees
101–500 employees
501–1000 employees
1001–2000 employees
2001C employees
No response
Approximate business structure
Single location
Multiple locations
Division of a national entity
Other
Job title
Human resources manager/director/vice president
Human resources specialist
Other
SHRM chapter location
San Antonio
Grand Prairie
Fort Worth
Lubbock
Brownwood
New Braunfels
Abilene
Wichita Falls
Amarillo
Stephenville

%

n

46.2
53.8

121
141
2

39.7
38.8
15.7
5.8
0.0

48
47
19
7
0
143

5.4
93.6

14
248
2

71.9
28.1

187
73
4

30.4
36.9
11.1
9.6
11.9

79
96
29
25
31
4

35.5
46.2
17.9
1.1

93
121
47
3

46.3
21.5
30.6

125
58
81

19.3
7.2
15.2
9.8
3.0
5.7
12.5
12.1
10.2
4.9

51
19
40
26
8
15
33
32
27
13

Note: SHRM D Society for Human Resource Management.

otherwise. Another dependent variable was coded 1 for
responses in which online master’s degrees are treated as
equivalent to a similar degree from a traditional college or
university and 0 otherwise. A final dependent variable was
coded 1 for responses in which promoting individuals with
online degrees are treated as equivalent to a similar degree
from a traditional college or university and 0 otherwise.
Also in the questionnaire, three key independent variables
were as follows:

ONLINE DEGREE ACCEPTANCE

1. Have you taken any online courses? Yes (coded as 1)
or no (coded as 0).
2. If you said yes to the previous question, how satisfied
were you with your online classes compared to traditional classes? Very satisfied (coded as 5), satisfied
(4), neither satisfied nor dissatisfied (3), dissatisfied
(2), or very dissatisfied (1).
3. Have you completed an online degree? Yes (coded
as 1) or no (coded as 0).

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RESULTS
Results from Table 2 show that about 51% of respondents
believe that when making a hiring decision that requires a
degree, their organization treats an online bachelor’s degree
as equivalent to a similar degree from a traditional college
or university. About 15% stated it has a lesser value and
about 28% provided a conditional response of acceptability
dependent upon the job opening. The results for the hiring
decisions related to the online master’s degree appeared
similar to the results for the online bachelor’s degree
involving whether the master’s degree was equivalent or of
lesser value to a traditional program and whether a master’s
degree was acceptable dependent on the job opening.
When making promotion decisions, about 69% of
respondents believe that their organization treats an online
degree as equivalent to a similar degree from a traditional

225

college or university. Only about 11% viewed the online
degree of lesser value.
When making a one-on-one contrast between online
degrees and traditional college programs, the results show
major differences in perceptions. When asked if an online
degree would be considered equivalent to a face-to-face
degree from a traditional college or university, only about
13% of respondents agreed that there would be equivalence if
the online degree were earned less than three years ago. The
percentage jumps to about 53% if there is significant work
experience, 33% if there are hard-to-find skills, and 42% if
there are other relevant licenses or professional credentials.
Table 3 shows correlation results between key questions
in the survey from Table 2 and various demographic questions from Table 1. The most significant results were the
strong positive association between respondent satisfaction
with online classes they have taken and their perception of
how their organization views an online degree as equivalent
to traditional degrees. The correlations were significant
(p < .01) for bachelor’s degree hiring decisions (r D .363)
and master’s degree hiring decisions (r D .344). In Table 4,
the correlation between respondent satisfaction with online
classes they have taken and their perception of how their
organization makes promotion decisions (r D .282) also
was significant (p < .01).
The prior experience hypotheses (1a and 1b) were not
supported. A person’s prior experience with an online
degree program was not associated with the person

TABLE 2
Use of College Degrees in Hiring and Promotion Decisions
Question
When making a hiring decision that requires a degree, my organization treats an online bachelor’s degree. . .
as equivalent to a similar degree from a traditional college or university
as of lesser value than a similar degree from a traditional college or university
as acceptable but it depends on the job opening
as insufficient to meet hiring standards
don’t know/no response
When making a hiring decision that requires a degree, my organization treats an online master’s degree. . .
as equivalent to a similar degree from a traditional college or university
as acceptable but it depends on the job opening
as of lesser value than a similar degree from a traditional college or university
as equivalent but only if the person’s undergraduate degree is from a traditional college or university
as insufficient to meet promotion qualifications
don’t know/no response
When making a promotion decision that requires a degree, my organization treats an online degree. . .
as equivalent to a similar degree from a traditional college or university
as of lesser value than a similar degree from a traditional college or university
as insufficient to meet promotion qualifications
don’t know/no response
In my organization, an online degree would be considered equivalent to a degree from a traditional college or
university if the candidate. . .
earned the online degree less than three years ago
has significant work experience
has hard-to-find skills
has other relevant licenses or professional credentials (e.g., PHR, CPA)
Note: Percentages are based on 264 sample size; multiple responses are possible.

%

n

50.8
15.1
28.0
1.5
10.2

134
40
74
4
27

50.4
23.5
15.5
4.2
0.8
12.1

133
62
41
11
2
32

69.3
11.3
1.1
15.5

183
30
3
41

12.9
52.7
32.9
42.4

34
139
87
112

226

G. E. KAUPINS ET AL.
TABLE 3
Correlation Results for Hiring Decisions

Hiring
decision

Have you taken
any online
courses?

Are you satisfied
with online
classes?

Do you make
hiring decisions
for your org.?

Have you
completed an
online degree?

Work in
single
location?

Work in
multiple
locations?

Number of
people at
your location?

Are you an
HR manager
or director?

When making a hiring decision that requires a degree, my organization treats an online bachelor’s degree as. . . to a similar degree from a traditional
college or university.
Equivalent
Lesser
Acceptable

¡.095
¡.072
.042

.363**
¡.225**
¡.217**

.097
¡.054
¡.073

.042
.003
.197**

.042
¡.050
.000

¡.002
.013
¡.027

.019
¡.087
¡.002

¡.040
.015
.214**

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When making a hiring decision that requires a degree, my organization treats an online master’s degree as. . . to a similar degree from a traditional college
or university.
Equivalent
Lesser
Acceptable

¡.091
¡.062
.015

.344**
¡.334**
¡.014

.099
¡.056
¡.052

.074
.058
.143*

¡.044
¡.011
¡.030

.017
.044
.070

¡.097
¡.049
¡.051

.018
.092
.123*

*p < .05. **p < .01.

perceiving his or her organization to treat an online degree
as equivalent to a traditional college or university program
when making a hiring or promotion decision. Table 3
shows no significant correlations between having taken an
online course and any hiring decision variables for bachelor’s degrees or master’s degrees. Table 4 shows no significant correlations between having taken an online course
and the two promotion decision variables.
The personal satisfaction hypotheses (2a and 2b) were
supported for hiring and promotions. In other words, a person’s satisfaction with online degree classes was associated
with perceiving his or her organization to treat an online
degree as being equivalent to a traditional college or university degree program when making a hiring and promotion
decision. Table 3 shows significant correlations (p

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