When talent identification and organisation are based on credentials such as these you create bad incentives. Talent is misallocated as they first need to prove their ‘ability’ to the market, overlooked because we lack the tools to identify different types of talent and poorly organised because we fail to recognise our own shortcomings in the use of these tools. Taking it a step further, when you have a meritocracy based on credentials such as these you arguably end up with more inequality. A Quora answer I found a few weeks ago perfectly sums this up.