The value of college grade point averages as a tool to predict career success has been called into question in recent years, with critics saying grade inflation and a lack of relevance to on-the-job skills minimize their usefulness to hiring managers.

Some have gone so far as to suggest college grades have become so meaningless they should be dropped entirely. But a new study from the University of Iowa Tippie College of Business challenges these suggestions by showing that, in general, the better people perform in school, the better they tend to perform at work.

“We found that grades are useful and we shouldn’t abolish them,” said Chad Van Iddekinge, professor of management and entrepreneurship and study co-author. “Even the weakest evidence shows a positive correlation between school and job success.”

The conclusion is based on a meta-analysis of 114 studies going back to the 1970s that looked at GPA and other indicators of academic performance, such as class rank. They correlated those factors with future job performance and job retention, two important outcomes that employers often use when they assess job applicants.

The study found that an applicant’s overall GPA was moderately effective as a predictor of career success. However, it found stronger evidence for grades in courses that align with what students do on the job after graduation, such as practicum and major-specific courses. They might not have received an A+ in philosophy as a freshman, but did well consistently in their major coursework as an upperclassmen, for example. 

Van Iddekinge said this is likely because those courses are more closely aligned with what students will do on the job after graduation. It could also be because students are more interested in classes that more closely align with their career path, which leads to better grades and, later, better job performance.

The study also found grades were good predictors of performance during employee training, whereas they did not predict turnover in most cases.

The researchers also found that grades from students’ transcripts tended to correlate more strongly with job performance than did self-reported grades. Based on this result, Van Iddekinge said employers should try to gather applicants’ grade information directly from the institution and not rely on the grades applicants report on resumes or applications.  

Van Iddekinge said that overall, the findings suggest that organizations should not disregard grades entirely when making hiring decisions. Instead, they should be smarter about what grades they consider and where they get that information from. 

The study, “Making the grade? A meta-analysis of academic performance as a predictor of work performance and turnover,” is forthcoming in the Journal of Applied Psychology. 

Media contact: Tom Snee, 319-384-0010 (o); 310-541-8434 (c); tom-snee@uiowa.edu