SHRM Survey Findings: Hiring 2013 College Graduates June 11, 2013

Definitions For this survey, “2013 college graduates” refers to both 2013 college undergraduates, those with a four-year degree (e.g., B.S., B.A. degree) and 2013 college postgraduates (e.g., M.S., M.A., MBA, doctoral degree). 2

Key Findings Have organizations hired 2013 college graduates as full-time, part-time or temporary/contract employees? More than one-half (58%) of organizations said they have not hired any 2013 college graduates, whereas 25% have hired 2013 college graduates to begin working after graduation, and 16% hired 2013 college graduates to begin working before graduation. For what job categories are organizations hiring 2013 college graduates? Nearly two-thirds (71%) of the positions filled by 2013 college graduates were full-time positions, while less than one-quarter were temporary/contract (13%) and part-time (11%). Are organizations offering more total compensation (salary and benefits) to 2013 college graduates compared with college graduates in previous years? Compensation offered to 2013 college graduates was “about the same” (70%) compared to the college graduates in the last 3 years. Nearly a quarter (24%) of organizations offered “more total compensation,” and few organizations (6%) offered less to 2013 college graduates compared to the previous 3 years. What are some of the common reasons organizations have not yet hired and do not plan to hire 2013 college graduates? The most common reason is because there are “no current openings for recent graduates” (68%). Other reasons include “underqualified for open positions” (20%) and “too early to hire for 2013” (14%). 3

Key Findings (continued) Do organizations believe 2013 college graduate job seekers have more or less of an advantage in the job market when compared with other job seekers? About one-half (51%) believe 2013 college graduates have about the same advantages and disadvantages when compared with other job seekers. About one-quarter believe 2013 college graduates have more of an advantage (26%), and nearly the same percentage (24%) believe they have less of an advantage. What job categories have been “very difficult” to fill with 2013 college graduates? Of those organizations that have hired or plan to hire 2013 college graduates, approximately one-quarter indicated that it has been “very difficult” to fill job categories such as engineering (27%); high-skilled technical, such as technicians and programmers (27%); scientists (26%); skilled trades, such as electricians, carpenters, machinists, mechanics, welders, plumbers (26%); and managers and executives (25%). What job categories have been “very easy” to fill with 2013 college graduates? Organizations have indicated having an “easy time” filling job categories such as customer service representatives (31%), hourly laborers (29%), administrative support staff (26%) and drivers (24%). What skills do organizations believe 2013 college graduates are lacking? Nearly one-half (49%) of organizations believe 2013 college graduates are lacking the knowledge/basic skill of writing in English (grammar, spelling, etc.), and 18% believe they are lacking in mathematics (computation). 4

What do these findings mean for the HR profession? 2013 college graduate job seekers could be entering a stronger job market compared with college graduates who entered the job market immediately after the start of the recession. With the economic climate continuing to improve, 2013 college graduates can be optimistic about finding a job after graduation. According to the SHRM Jobs Outlook Survey, in the second quarter of 2013, 44% of HR professionals said their organizations would conduct hiring, up from 35% in the second quarter of 2012. To read more about this survey go to http://www.shrm.org/Research/MonthlyEmploymentIndices/lmo/Pages/default.aspx. With several job positions available, some organizations may be hesitant when hiring 2013 college graduates because of potential deficiencies. Organizations believe new college graduates are lacking some skills that experienced job seekers may have. Some common applied skills include professionalism/work ethic, business acumen, written communication, relationship building and leadership. With the improvement of the economy and new college graduates entering the workforce, organizations may experience a lack of obtaining qualified candidates for certain job categories. Organizations may have a difficult time finding skilled candidates for skilled positions in engineering; technical positions, such as technicians and programmers; scientists; and skilled trades, such as electricians, carpenters, machinists, mechanics, welders and plumbers. 5

Has your organization hired any 2013 college graduates as full-time, part-time, or temporary/contract employees? 6

Of the 2013 college graduates hired, in which job category were most of these positions filled? Note: n = 175. Only respondents whose organizations have hired 2013 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to rounding. 7

In general, for the 2013 college graduates your organization has made offers to, has the total compensation (salary and benefits) offered been more, less or about the same as offers made to comparable graduates during the last 3 years? Note: n = 160. Only respondents whose organizations have hired 2013 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” and “ not applicable” were excluded from this analysis. 8

In your professional opinion, have the 2013 college graduates your organization made offers to been more satisfied, less satisfied or similarly satisfied with the total compensation (salary and benefits) than comparable graduates receiving offers during the last 3 years? Note: n = 143. Only respondents whose organizations have hired 2013 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” and “ not applicable” were excluded from this analysis. 9

This year, does your organization plan to hire any 2013 college graduates as full-time, part-time, or temporary/contract employees? Note: n = 138. Only respondents whose organizations have not hired 2013 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” and “ not applicable” were excluded from this analysis. 10

What are the reasons your organization has not yet hired and does not have plans to hire 2013 college graduates? Organization has not hired and does not plan to hire because… Percentage There are no current openings for recent graduates. 68% Recent graduates are underqualified for open positions. 20% It is too early to hire for 2013. 14% Recent graduates are overqualified for open positions. 11% The organization has a hiring freeze in place. 8% The organization was unable to successfully recruit 2013 college graduates. 2% It is too late to hire for 2013. 0% Other Note: n = 166. Only respondents whose organizations have not hired and do not plan hire 2013 college graduates were asked this question. Percentages do not equal 100% due to multiple response options. 11

Compared with the recruitment of 2012 college graduates, is your organization experiencing more difficulty, less difficulty or about the same degree of difficulty recruiting 2013 college graduates? Note: n = 196. Only respondents whose organizations have hired or plan to hire 2013 college graduates were asked this question. Respondents who answered “don’t know” and “not applicable” were excluded from this analysis. 12

In your professional opinion, do you think that 2013 college graduate job seekers have more of an advantage, less of an advantage or about the same advantages/disadvantages in the job market when compared with other job seekers? Note: n = 233. Only respondents whose organizations have hired or plan to hire 2013 college graduates were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to rounding. 13

Why do you think 2013 college graduate job seekers have less of an advantage in the job market when compared to other job seekers? Less of an advantage because… Percentage The economic climate has increased the competition for jobs overall. 62% They are more likely to be underqualified for the jobs for which they apply. 53% There are limited resources for organizations to train recent college graduates. 25% They are seeking entry-level positions, and my organization is not hiring for these positions. 22% They have fewer networking opportunities. 16% Other 9% Note: n = 55. Only respondents whose organizations have hired or plan to hire 2013 college graduates and think they have less of an advantage in the job market compared to other job seekers were asked this question. Percentages do not equal 100% due to multiple response options. 14

Why do you think 2013 college graduate job seekers have more of an advantage in the job market when compared to other job seekers? More of an advantage because… Percentage They are seeking entry-level positions, and that is what my organization is hiring for. 54% They are more likely to be tech savvy. 49% They have better opportunities for networking through college careers programs and official graduate recruiting channels. 36% The economic climate has made it easy to hire graduates from top colleges. They are less likely to be overqualified for the jobs for which they apply. 20% They are more likely to accept lower pay. 15% Other. 7% Note: n = 59. Only respondents whose organizations have hired or plan to hire 2013 college graduates and think they have more of an advantage in the job market compared to other job seekers were asked this question. Percentages do not equal 100% due to multiple response options. 15

Of the categories listed below, how easy or how difficult has it been to fill the following job categories with 2013 college graduates? Job category Very easy Somewhat easy Somewhat difficult Very difficult Engineers (n = 90) 9% 32% 27% High-skilled technical, such as technicians and programmers (n = 116) 3% 41% Scientists (n = 38) 5% 37% 26% Skilled trades, such as electricians, carpenters, machinists, mechanics, welders, plumbers (n = 82) 4% 38% Managers and executives (n = 114) 45% 25% Drivers (n = 58) 24% 16% 14% Production operators (n = 57) 19% 12% Hourly laborers (n = 101) 29% 23% 11% HR professionals (n = 105) 31% Accounting and finance professionals (n = 128) 8% 44% 10% Sales representatives (n = 76) 18% 22% Administrative support staff (n = 148) Customer service representatives (n = 113) 1% Note: Only respondents whose organizations have hired or plan to hire 2013 college graduates were asked this question. Respondents who answered “don’t know/not applicable” were excluded from this analysis. Percentages do not equal 100% due to rounding. Data sorted by “very difficult” column. 16

In general, what knowledge/basic skills do you believe 2013 college graduate job seekers are lacking, if any? Knowledge/basic skill Percentage Writing in English (grammar, spelling, etc.) 49% Mathematics (computation) 18% English language (spoken) 13% Reading comprehension (in English) 10% Foreign languages 9% History/geography 6% Government/economics 5% Science Humanities/arts 3% Other 4% Note: n = 231. Only respondents whose organizations have hired or plan to hire 2013 college graduates 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. 17

In general, what applied skills do you believe 2013 college graduate job seekers are lacking, if any? Applied skill Percentages Professionalism/work ethic 50% Business acumen 44% Written communications 35% Relationship building/soft skills 33% Leadership 32% Initiative 29% Critical thinking/problem solving Coaching skills 28% Oral communication 23% Flexibility/openness to new experience 21% Lifelong learning/self-direction Note: n = 231. Only respondents whose organizations have hired or plan to hire 2013 college graduates 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. 18

In general, what applied skills do you believe 2013 college graduate job seekers are lacking, if any? (continued) Applied skill Percentages Cultural sensitivity 16% Data interpretation/analytical Skills 11% Teamwork/collaboration Technical knowledge 10% Ethics/social responsibility Creativity/innovation 7% Diversity 5% Information technology application Other 3% Note: n = 231. Only respondents whose organizations have hired or plan to hire 2013 college graduates 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. 19

Demographics 20

Demographics: Organization Staff Size Note: n = 417. Percentages do not equal 100% due to rounding. 21

Demographics: Organization Sector 22

Demographics: Organization Industry Percentage Manufacturing 19% Professional, scientific and technical services 16% Health care and social assistance 14% Finance and insurance 12% Educational services 9% Construction 5% Public administration 4% Retail trade Transportation and warehousing Administrative and support and waste management and remediation services 3% Utilities Note: n = 435. Percentages do not total 100% due to multiple responses. 23

Demographics: Organization Industry (continued) Percentage Accommodation and food services 3% Information Real estate and rental and leasing Wholesale trade Arts, entertainment, and recreation 2% Religious, grantmaking, civic, professional and similar organizations Repair and maintenance Management of companies and enterprises 1% Mining, quarrying, and oil and gas extraction Agriculture, forestry, fishing and hunting Other 8% Note: n = 435. Percentages do not total 100% due to multiple responses. 24

Demographics: Other Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? Is your organization a single-unit organization or a multi-unit organization? Single-unit organization: An organization in which the location and the organization are one and the same 28% Multi-unit organization: An organization that has more than one location 72% U.S.-based operations only 72% Multinational operations 28% n = 433 n = 432 For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? What is the HR department/function for which you responded throughout this survey? Multi-unit headquarters determines HR policies and practices 49% Each work location determines HR policies and practices 4% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 47% Corporate (companywide) 66% Business unit/division 18% Facility/location 16% n = 315 n = 315 25

SHRM Survey Findings: Hiring 2013 College Graduates Survey Methodology Response rate = 11% 468 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey. Margin of error +/-4% Survey fielded March 14-26, 2013 26 26

SHRM Survey Findings: Hiring 2013 College Graduates About SHRM Research For more survey/poll findings, visit www.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research Project leader: Rob Boyd, researcher, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research 27