Recruiting Trends 2015-2016

Maintaining Warp SpeedPhil GardnerCollegiate Employment Research Institute at MSUFall, 2015

Thank you!

Special Thanks also to:

• 3 Seven Partners

Recruiting Trends 2015-16Released as a series of short briefs ( 3

to 10 pages). Seven are currently available for download at www.ceri.msu.edu with 2 more to be released within next three weeks.

2014-2015

2011 2012 2013 2014 2015 20160%2%4%6%8%

10%12%14%16%18%

YOY Increase in BA Hires

College Labor Market: Remains Good to Very GoodIndustrial Sector: steady at Very Good97% Expect to hire at least one new graduate50% Expect to increase hiring over last year24% Have definite hiring targets as of September

What Is Driving College Hiring?The usual suspects:Growth:

68%

GROWTH• Europe and China –

in the dumps• Trade sucks• Positive earning:

OOPS – WalMart & Friends

• FEDS • BUT a More

confident consumer• Revised

employment # -- not as bad

TURNOVER• Highest level of

concern since 2007

• 56% indicated turnover primary driver (up 11 percentage points)

• Poised to leave indices – remain high

• Job satisfaction: fewer people love their jobs

31%Coming to a sector near you!Finance & InsurancePB&SSGovernmentEducationTransportation

National Perspective

Hiring Targets: 2015-2016

Number of Employers

Average Number of New

Hires per Organization

Change from 2013-14 (%)

Associates 613 18.1 23Bachelors 1,637 52.0 15MBA 492 9.6 16MS/MA 656 18.0 10PhD 206 6.9 4Professional 146 9.5 23Total 1,719 67.0 15

Associate’s Degrees

• Still humming along• Soft – in applied manufacturing area

• Starting Salaries • Regional Impact

• Caution on interpreting data

Bachelor’s Degrees

• COMPETITIVE – say no more• Led by Computer Science & Business• Engineering – soft (think OIL)• Skills and Competencies – A NECESSITY• Work Attitudes and Behaviors: CRITICAL• Not a free pass

MBA & Masters Degrees

• MBAs• Another solid year• Financial services bounced up but still weak in

historical comparison

• Masters • Accounting shows their muscle• Health professionals• Niche versus general growth

Organizational Size

• All size categories – strong outlook • Very Small (<100) – very active BA >30%• Very Large (>10,000) – BA 16%• MBA – strong across the all groups,

especially >10,000

Economic (Industrial) Sectors

• Oil is a downer• Any thing related to oil is down ~ 50%

• Manufacturing Soft• Export oriented – basic metals, fabricated

metals

• Whiz Kids!• Computer Services• Insurance• Automotive & Aerospace• Education & Health Care

Texas Perspective

Texas Outlook (all employers)

• 423 full-time recruiters/HR responded• 34%: <500• 23%: >10,000• Main sectors: PBSS – 22%; Educational

Services – 13%; Finance & Man. – 8%; Construction – 7%; Gov’t – 6%

• 94% -- hired a new graduate last year (99% will again this year); 98% intend to hire this year

Texas (all employers)

• HiringAverage Number Expected to Hire

Percentage change from last year

Associates 41.1 17Bachelors 128.3 16MBA 12.6 14MA/MS 38.4 12PhD 9.5 7Professional 9.2 27Total 160.4 15

Texas Outlook (Texas only)

• 311 full-time recruiters/HR responded (33% definite plans)

• 50%: <500• 12%: >10,000• Main sectors: PBSS – 20%; Educational

Services – 17%; Non-prof – 10%; Construction – 7%; Gov’t – 10%

• 91% -- hired a new graduate last year (98% will again this year); 97% intend to hire this year

Texas (only)

• HiringAverage Number Expected to Hire

Percentage change from last year

Associates 27.1 7Bachelors 51.3 10MBA 9.1 34MA/MS 12.3 -11PhD 3.3 -38Professional 3.5 24Total 64.9 6

Starting Salary Offers

• 53% increased salaries in 2007• 39% will increase salaries this year• Average increase 4.7%• Bonuses: 7% • Performance Bonuses: 22%• Wage pressure: none to speak of

BUT several high salary offers reported

Multiple Dimensions of Recruiting

Internships: Numbers Increase

• 79% of organizations with internship/co-op will hire

• 35% will provide more opportunities than last year

• Paid internships 71%

• Hourly salaries stay about the same

Recruiting Strategies Toolbox

• Most used tools• Posting – focus on this later

• Action Tools• Internships & Co-ops• Career Fairs• Employee Referrals

• All the rest

Career Fairs: Still Here and Going Nowhere

• Why?• Brand recognition• Identify talent pool

• Going?• Nowhere

• But?• More effective organization/connect to the right

students

Entrepreneurialism & Cultural Capital

• Entrepreneurial minded• Need experience outside classroom• Dealing with failure is critical• Need mentors – employees• Sponsor innovation & design competitions

• Cultural Capital• Value candidates work effectively – different

cultures• Value awareness of global challenges • Communicate to various cultures – hard to find• Foreign language competencies – hard to find

Need Creativity

• Key Competencies• Passion• Initiative• Teamwork• Learning• Vision

Benchmarking Recruiting Programs

• Professional hires result of on-campus recruiting: 39%

• Acceptance rate of full-time offers: 68%• New hires former interns: 31%• Salary Compensation

Rating: 3• Reneging: 4.6%• Intern Acceptance: 77%• Intern Conversion: 45%

Short-term Outlook

• Chaotic & competitive• SV short game (Silicon Valley and

diversity)• Driving toward the edge: Don’t forget the

business cycle• Retirements: while phasing into numbers

increasing to estimated 10,000 a day• Sustaining Growth YOY: need a jolt

Quiz: Fun with Dates!

• 2020• What % of workforce will those born 1980 to now comprise?

• 2025• What % of workforce will those born 1980 to now comprise?

• 2013• What % of managerial hires where 35 and under this year?

• 2055• What will the composition of the workforce look like (ethnic)?

• 2050• What will be the average age in US? Bonus – how does that compare

to the rest of the world?

Mid to Long Term

• Job destruction coming NOW• Cognitive (AI) software

• Internet of Things• Uber & Airbnb & Task Rabbit• Affects wages and just about everything else• Think systems

• Rethink – job posting systems• Robo recruiting• Organizational Fit

The following slides are being used with permission of Knack

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