Recruiting Trends Maintaining Warp Speed Phil Gardner Collegiate Employment Research Institute at MSU Fall, 2015

Thank you!

Special Thanks also to: 3 Seven Partners Recruiting Trends Released as a series of short briefs ( 3 to 10 pages). Seven are currently available for download at with 2 more to be released within next three weeks.

College Labor Market: Remains Good to Very Good Industrial Sector: steady at Very Good 97% Expect to hire at least one new graduate 50% Expect to increase hiring over last year 24% 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 % 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 & Insurance PB&SS Government Education Transportation

National Perspective

Hiring Targets: Number of Employers Average Number of New Hires per Organization Change from (%) Associates Bachelors 1, MBA MS/MA PhD Professional Total 1,

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 ( 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) Hiring Average Number Expected to Hire Percentage change from last year Associates Bachelors MBA MA/MS PhD9.57 Professional9.227 Total

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) Hiring Average Number Expected to Hire Percentage change from last year Associates27.17 Bachelors MBA9.134 MA/MS PhD Professional3.524 Total64.96

Starting Salary Offers 53% increased salaries in % 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

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