SHRM Survey Findings: The Hiring of 2012 University/College Undergraduates and Postgraduates July 12, 2012

Key Findings Have organizations hired any 2012 university/college undergraduates and/or postgraduates as full-time, part-time and/or temporary/contract employees? Almost one-half (47%) of organizations have hired one or more 2012 undergraduate job seekers to begin working before or after graduation. This percentage has increased compared with 2011 (41%) and 2010 (30%). Nearly one-third (31%) of organizations have hired one or more 2012 postgraduate job seekers to begin working before or after graduation, also an increase from 26% in 2011 and 20% in 2010. What are the most common job categories filled by 2012 university/college undergraduates and/or postgraduates? Nearly two-thirds (64%) of the positions filled by 2012 undergraduates were full-time positions, less than one-quarter (19%) were temporary or contract positions, and 15% were part-time positions. Eighty-three percent of 2012 postgraduates were hired to fill full-time positions, 7% were temporary/contract positions and another 7% were part-time positions. Do organizations that have not yet hired 2012 university/college graduates plan to do so later in the year? More than one-half (53%) of organizations that have not hired any 2012 undergraduates or postgraduates as full-time, part-time or temporary/contract employees have no plans to hire 2012 graduates this year.

Key Findings What are the main reasons that organizations have not yet hired or do not plan to hire 2012 university/college graduates? Three-quarters (75%) of organizations indicate that there are no current openings for 2012 graduates. Some organizations also say that 2012 graduates may be underqualified (18%) or overqualified (17%) for available positions. Compared with the recruitment of 2011 university/college undergraduates and postgraduates, are organizations finding it more difficult to recruit 2012 graduates? Most organizations have experienced about the same level of difficulty recruiting undergraduates (68%) and postgraduates (62%) in 2012 and 2011. Less than one-quarter of organizations reported increased difficulty recruiting undergraduates (14%) and postgraduates (19%) in 2012 compared with a year ago. What basic skills/knowledge and applied skills are 2012 university/college undergraduate job seekers lacking? Common basic skills and basic knowledge 2012 undergraduates lack are writing in English (45%), mathematics (17%) and speaking the English language (12%). Organizations report that common applied skills 2012 undergraduates are lacking are written communication skills (41%), critical thinking/problem-solving skills (38%), oral communication (30%) and lifelong learning/self-direction skills (28%).

Has your organization hired any 2012 university/college undergraduates or postgraduates as full-time, part-time or temporary/contract employees?

Has your organization hired any 2012 university/college undergraduates or postgraduates as full-time, part-time or temporary/contract employees? Comparisons by organization staff size Organizations with 100 or more employees are more likely than organizations with less than 100 employees to have hired 2012 undergraduates. 100 to 499 employees (41%) 500 to 2,499 employees (49%) 2,500 to 24,999 employees (62%) 25,000 or more employees (65%) > 1 to 99 employees (21%) Organizations with 2,500 or more employees are more likely than organizations with less than 100 employees to have hired 2012 postgraduates. 2,500 to 24,999 employees (38%) 25,000 or more employees (44%)  1 to 99 employees (13%) Note: Only statistically significant differences are shown.

Has your organization hired any 2012 university/college undergraduates or postgraduates as full-time, part-time or temporary/contract employees? Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to have hired 2012 undergraduates . Publicly owned for-profit organizations (56%) > Privately owned for-profit organizations (34%) Nonprofit organizations are more likely than privately owned for-profit organizations to have hired 2012 postgraduates. Nonprofit organizations (39%) Privately owned for-profit organizations (18%) Note: Only statistically significant differences are shown.

Does your organization plan to hire one or more 2012 university/ college undergraduates or postgraduates as full-time, part-time or temporary/contract employees in 2012? Note: n = 165. Only respondents whose organizations have not yet hired one or more 2012 university/college undergraduates or postgraduates as full-time, part-time or temporary/contract employees were asked this question. Respondents who answered “don’t know” were excluded from this analysis.

What are the reasons your organization has not hired and does not have plans to hire 2012 university/college undergraduates or postgraduates this year?

In which job category did your organization hire most of the 2012 university/college undergraduates or postgraduates? (n = 140) (n = 83)

For the 2012 university/college undergraduates or postgraduates your organization has hired or made job offers to, has the total compensation (salary and benefits) offered been about the same as offers made in the last three years? (n = 138)

Compared with similar new hires three years ago, are the 2012 university/ college undergraduates or postgraduates that your organization has hired or made job offers to more satisfied with the total compensation offered? (n = 123)

Compared with the recruitment of 2011 university/college graduates, is your organization experiencing the same level of difficulty recruiting 2012 university/college undergraduates or postgraduates? (n = 75)

Has it been easy or difficult for your organization to recruit 2012 university/college undergraduates or postgraduates for the job categories below? Very difficult Somewhat difficult Somewhat easy Scientists (n = 39) 31% 36% 3% High-skilled technical professionals (n = 64) 20% 45% 23% 11% Engineers (n = 55) 16% 35% 40% 9% Managers and executives (n = 69) 15% 49% 28% Skilled trades (n = 54) 26% 50% 13% Sales representatives (n = 49) 8% 30% Drivers (n = 45) 7% 33% Production operators (n = 45) 22% 47% 24% HR professionals (n = 69) 6% 29% Hourly laborers (n = 64) 5% 38% Accounting and finance professionals (n = 75) 32% 53% Customer service representatives (n = 77) 18% 57% Administrative support staff (n = 86) 2% 19% 42% 37% Note: Only respondents whose organizations have hired one or more 2012 university/college undergraduates or postgraduates as full-time, part-time or temporary/contract employees were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages may not equal 100% due to rounding.

Do you think that 2012 university/college undergraduate and postgraduate job seekers have an advantage in the job market compared with other job seekers?

Why do you think 2012 university/college undergraduate and postgraduate job seekers have more of an advantage in the job market when compared with other job seekers? Response Undergraduates (n = 75) Postgraduates (n = 76) They are more likely to be tech-savvy. 64% 54% They have better opportunities for networking through university careers programs and official graduate recruiting channels. 43% The economic climate has made it easy to hire graduates from top colleges/universities. 40% 33% They are less likely to be overqualified for the jobs for which they apply. 35% 26% They are more likely to accept lower pay. They are seeking entry-level positions, and my organization is hiring for these positions. 29% 11% Other 8% Note: Only respondents who indicated that 2012 university/college undergraduates and postgraduates have an advantage in the job market when compared with other job seekers were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

Why do you think 2012 university/college undergraduate and postgraduate job seekers have less of an advantage in the job market when compared with other job seekers? Response Undergraduates (n = 102) Postgraduates (n = 67) They are more likely to be underqualified for the jobs for which they apply. 64% 40% They are seeking entry-level positions, and my organization is not hiring for these positions. 41% 28% There are limited resources for organizations to train recent college graduates. 31% 37% They have fewer networking opportunities. 14% 12% The economic climate has increased the competition for jobs among 2012 graduate job seekers. 13% 55% Other 1% 9% Note: Only respondents who indicated that 2012 university/college undergraduates and postgraduates have less of an advantage in the job market when compared with other job seekers were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

In general, what basic skills/knowledge do you believe 2012 university/college undergraduate job seekers are lacking, if any? Note: n = 138. Only respondents whose organizations have hired one or more 2012 university/college undergraduates as full-time, part-time or temporary/contract employees were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

In general, what applied skills do you believe 2012 university/college undergraduate job seekers are lacking, if any?

Demographics: Organization Industry Percentage Manufacturing 22% Professional, scientific and technical services 16% Finance and insurance 15% Health care and social assistance Educational services 8% Government agencies Retail trade 7% Transportation and warehousing Accommodation and food services 4% Administrative and support and waste management and remediation services Note: n = 338. Percentages do not equal 100% due to multiple response options.

Demographics: Organization Industry (continued) Percentage Construction 3% Repair and maintenance Wholesale trade Agriculture, forestry, fishing and hunting 2% Arts, entertainment and recreation Information Religious, grant-making, civic, professional and similar organizations Mining 1% Real estate and rental and leasing Other 7% Note: n = 338. Percentages do not equal 100% due to multiple response options.

Demographics: Organization Sector

Demographics: Organization Staff Size

Demographics: Other Does your organization have U.S.-based operations (business units) only or does it operate multinationally? U.S.-based operations only 70% Multinational operations 30% n = 339 Is your organization a single-unit or a multi-unit organization? Multi-unit organization: An organization that has more than one location 70% Single-unit organization: An organization in which the location and the organization are one and the same 30% n = 339 For multi-unit organizations, are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Multi-unit headquarters determines HR policies and practices 52% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 45% Each work location determines HR policies and practices 3% n = 244 What is the HR department/function for which you responded throughout this survey? Corporate (companywide) 66% Facility/location 21% Business unit/division 14% Note: n = 243. Percentages do not equal 100% due to rounding.

SHRM Survey Findings: The Hiring of 2012 University/College Undergraduates and Postgraduates Methodology Response rate = 10% Sample composed of 378 randomly selected HR professionals from SHRM’s membership. Margin of error +/- 5% Survey fielded May 1-9, 2012 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leader: Rob Boyd, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, SHRM Survey Research Center Copy editor: Katya Scanlan, SHRM Knowledge Integration