Job Outlook 2010 NOVEMBER Research

Transcription

1 Research Job Outlook 2010 NOVEMBER 2009 National Association of Colleges and Employers 62 Highland Avenue Bethlehem, PA / FAX: 610/ Copyright November 2009 by the National Association of Colleges and Employers

2 Research Job Outlook 2010 Table of contents ABOUT THE SURVEY...5 COLLEGE HIRING CONTINUES ITS DECLINE, SLIDES 7 PERCENT...6 Figure 1: Employers hiring projections (Fall 2002 to Fall 2010) Figure 2: Employers hiring projections Figure 3: Employers reassess their hiring needs Job Market Gets Fair Rating From Employers Figure 4: Employers overall job market ratings Spring 2010 On-Campus Recruiting Figure 5: Employers intentions for on-campus recruiting during spring, by percent of respondents ANALYSIS BY INDUSTRY...9 Figure 6: Total change in hiring, by industry Figure 7: Spring 2010 recruiting plans, by industry Figure 8: Employers job market ratings, specific to their industries Figure 9: Employers with plans to increase starting salaries to bachelor s degree graduates, by industry ANALYSIS BY REGION...11 Northeast Figure 10: Spring recruiting plans Northeast Figure 11: Top five undergraduate majors Northeast Midwest Figure 12: Spring recruiting plans Midwest Figure 13: Top five undergraduate majors Midwest Southeast Figure 14: Spring recruiting plans Southeast Figure 15: Top five undergraduate majors Southeast West Figure 16: Spring recruiting plans West Figure 17: Top five undergraduate majors West Job Market: Employer Perspectives Copyright 2009 by the National Association of Colleges and Employers (NACE). No part of this publication may be used, adapted, or reproduced in any manner whatsoever without the written permission of NACE. Electronic reproduction is prohibited. NACE college and employer members have the permission of NACE, copyright holder, to download and photocopy this report for internal purposes only. Photocopies must include this copyright notice. Those who do not hold NACE membership or who wish to use this report for other purposes should contact Claudia Allen, callen@naceweb.org, 800/ , ext /National Association of Colleges and Employers

3 Job Outlook 2010 Research WHO S IN DEMAND?...15 Figure 18: Top degrees in demand (bachelor s degree level) Figure 19: Top degrees in demand (master s degree level) Figure 20: Top degrees in demand (doctorate degree level) Figure 21: Who s hiring (bachelor s degree level), by industry Figure 22: Who s hiring (bachelor s degree level), by region Poor Outlook for International Students Figure 23: International hiring plans, Figure 24: International hiring plans, by industry Figure 25: International hiring plans, by region Associate Degree Hiring At Five-Year Low Figure 26: Associate degree hiring, Figure 27: Associate degree hiring, by industry Figure 28: Associate degree hiring, by region HOW EMPLOYERS VIEW CANDIDATES...21 Figure 29: Employers that screen candidates by GPA, by percent of respondents Figure 30: Employers that screen candidates by GPA, by industry And the job goes to Figure 31: Employers rate the influence of attributes when deciding on two equally qualified candidates Experience Rocks! Figure 32: Employers hiring preferences relative to experience, by percent of respondents Figure 33: Employers preference for work experience, by percent of respondents Key Skills and Qualities for Candidates Figure 34: Employers rate the importance of candidate skills/qualities Figure 35: Employers rank the top five candidate skills/qualities Where Candidates Fall Short Figure 36: Skills lacking in new college graduates COMPENSATION...25 Few Offer Salary Increases for Graduates Figure 37: Employers with plans to increase starting salaries to bachelor s degree graduates Signing Bonuses Figure 38: Employers offering signing bonuses Figure 39: Percent of employers offering signing bonuses to graduates, by industry Figure 40: Percent of employers offering signing bonuses to graduates, by region Figure 41: Average signing bonuses by major (bachelor s degree) Figure 42: Average signing bonuses by major (master s degree) National Association of Colleges and Employers/3

4 Research Job Outlook 2010 SOCIAL NETWORKING IN COLLEGE RECRUITING...29 Figure 43: Employers plans for using social networking web sites as a part of their recruiting of graduates, by percent of respondents Manner of Use for Social Networking Web Sites Figure 44: Manner in which employers will use social networking web sites Figure 45: Social networking sites to be used in recruiting Figure 46: Employers plans for Twitter SURVEY RESPONDENTS...31 Figure 47: Respondents by industry Figure 48: Respondents by size of department/business unit Survey Respondents 4/National Association of Colleges and Employers

5 Job Outlook 2010 Research about THE JOB OUTLOOK 2010 SURVEY The Job Outlook survey is a forecast of hiring intentions of employers as they relate to new college graduates. Each year, the National Association of Colleges and Employers (NACE) surveys its employer members about their hiring plans and other employment-related issues in order to project the market for new college graduates for the current class and to assess a variety of conditions that may influence that market. To date, two sections of the Job Outlook 2010 survey have been conducted. The first part, the Job Outlook 2010 Fall Preview, was conducted July 13 through August 14, 2009, and was sent to 940 NACE employer members. Responses were received from 219 members, a 23.3 percent response rate. Results were released to members via NACE s Spotlight Online newsletter on September 16, Members can access the complete Fall Preview report on NACEWeb. From mid-august through October 9, 2009, NACE collected data for the second part of the Job Outlook 2010 survey. A total of 201 surveys were returned a 21.4 percent response rate. This report focuses largely on the results of that survey. Of those responding, 29.4 percent of respondents were from the West, 26.9 percent were from the Midwest, 26.4 percent were from the Northeast, and 17.4 percent were from the Southeast. For a list of respondents by industry and size, and a partial list of organizations that supplied data for this report, see page 31. Totals throughout the report may not equal 100 percent due to rounding. NACE expects to provide a formal update of job market information once more in the academic year: The Job Outlook 2010 Spring Update (data collected in March) will give NACE members a final update on hiring for graduates. Results will be available in early April. In addition, NACE plans to conduct quick polls to provide more frequent snapshots of the job market for new college graduates throughout Results of these polls will be available through NACE s web site, and newsletter, Spotlight Online. RESEARCH: Director of Strategic & Foundation Research: Edwin Koc Employment Information Manager: Andrea Koncz National Association of Colleges and Employers/5

6 Research Job Outlook 2010 College Hiring CONTINUES ITS DECLINE, SLIDES 7 percent Until recently, new college graduates enjoyed job markets that gave them the advantage: Employers competed with each other to hire the best candidates. With the Class of 2008, the job market began to flatten out. In fact, the Class of 2008 was the last class to truly see a positive job outlook, with employers first projecting a 16 percent increase in college hires and then, later, just an 8 percent increase. The Class of 2009 enjoyed no such positive outlook. While employers initially projected maintaining their college hiring at 2008 levels, that quickly changed as the economy nose dived in October In the end, employers reported that their college hiring fell off 22 percent. For the Class of 2010, hiring continues to slide: Employers expect to hire about 7 percent fewer graduates during than they did in (See Figure 1.) Also shifting in the negative direction is the percentage of employers who expect to increase hiring, while a greater percentage of employers expect to decrease hiring. (See Figure 2.) The group of employers who plan to maintain hiring remains relatively consistent. 6/National Association of Colleges and Employers

7 Job Outlook 2010 Research Last fall, when the Job Outlook 2009 survey was conducted, the economy was beginning its downward trend. At that time, as is illustrated in Figure 3, the largest group of employers were reassessing their college hiring needs on a monthly basis, but nearly as many reviewed their college hiring once a year. That s changed: Among employers responding to the current survey, the largest group (50 percent) are reviewing their college hiring needs on a quarterly basis, and more than one-quarter review monthly. Less than 10 percent now say they review on an yearly basis. (See Figure 3.) Job Market Gets Fair Rating From Employers Not surprisingly, employers gave lukewarm ratings to the overall job market for Class of 2010 new college graduates, with more than two out of three respondents rating the overall job market as just fair ; in comparison, last year at this time, just over one-quarter gave the job market such a rating. (See Figure 4.) National Association of Colleges and Employers/7

8 Research Job Outlook 2010 In addition, the percentage of employers giving a rating of poor has grown tremendously over last year. Whereas less than 1 percent rated the job market for the Class of 2009 as poor, nearly 16 percent characterize the job market for the Class of 2010 as poor. Spring 2010 On-Campus Recruiting In examining employers plans for spring on-campus recruiting over the past several years, it is evident that the year 2010 will be different: Employers appear to be very cautious in their early plans for spring 2010 on-campus recruiting. (See Figure 5.) Less than one-third of employers have firm plans in place for on-campus recruiting during spring 2010, and, compared to last year at this time, more employers are hedging their bets with tentative plans for spring recruiting. Worst of all, the percentage of employers that are not hiring and will not be on campus for spring recruiting is at its highest level since the Job Outlook 2005 report, when NACE began collecting this information. Figure 5: Employers intentions for on-campus recruiting during spring, by percent of respondents Plans Spring 2010 Spring 2009 Spring 2008 Spring 2007 Spring 2006 Firm plans in place 29.9% 52.0% 48.5% 55.7% 53.7% Tentative plans in place 28.4% 21.8% 20.2% 15.5% 22.8% All recruiting in Fall 19.4% 15.1% 15.4% 14.9% 12.6% Unsure 15.9% 8.4% 14.7% 12.4% 9.8% Not hiring 6.5% 2.7% 1.1% 1.5% 1.2% 8/National Association of Colleges and Employers

9 Job Outlook 2010 Research ANALYSIS BY INDUSTRY Results of the NACE Job Outlook 2010 Fall Preview survey showed that only three industries expect to increase hiring for college graduates. Employers in the construction, trade, and government industries plan to hire slightly more new college graduates in than they did in (See Figure 6.) Figure 6: Total change in hiring, by industry Industry Number of 2009 Actual Hires Number of 2010 Projected Hires Percent Change Number of Respondents Construction % 12 Manufacturing 4,813 4, % 74 Distribution/Transportation/Utilities 1, % 14 Trade 8,698 9, % 12 Finance 2,209 2, % 23 Business Services 1,367 1, % 27 Professional Services 3,075 2, % 28 Government 2,108 2, % 13 These employers also report fairly solid plans for spring 2010 recruiting. In fact, although the number of respondents in the government category is limited, all report firm or tentative plans for spring 2010 recruiting, indicating that government employers may be one of the best bets for Class of 2010 graduates. (See Figure 7.) In terms of spring recruiting plans, employers in the trade industry follow government employers, with nearly 80 percent reporting firm or tentative plans to recruit. Half of construction employers have firm or tentative recruiting plans for spring 2010, but nearly 17 percent are not hiring any Class of 2010 grads. Figure 7: Spring 2010 on-campus recruiting plans, by industry Industry Firm Plans in Place Tentative Plans All Recruiting in Fall 2009 Not Hiring Unsure Number of Respondents Construction 25.0% 25.0% 25.0% 16.7% 8.3% 12 Manufacturing 27.1% 20.0% 25.7% 7.1% 20.0% 70 Transportation/ Utilities/Distribution 28.6% 35.7% 7.1% 14.3% 14.3% 14 Trade 50.0% 27.8% 0.0% 11.1% 11.1% 18 Finance 16.7% 33.3% 33.3% 8.3% 8.3% 24 Business Services 25.9% 33.3% 14.8% 0.0% 25.9% 27 Professional Orgs. 38.5% 30.8% 15.4% 0.0% 15.4% 26 Government 44.4% 55.6% 0.0% 0.0% 0.0% 9 National Association of Colleges and Employers/9

10 Research Job Outlook 2010 In terms of their view of the job market, only government employers characterize it as good. (See Figure 8). Nearly all other employer types gave average ratings of fair or just above fair to their specific industries. ( A word about the just above fair ratings: Trade, finance, and business services employers fall into the just above fair category, but this rating reflects an averaging out of excellent ratings given by a few respondents with poor ratings given by a few other respondents.) Figure 8: Employers job market ratings, specific to their industries Industry Average Rating* Number of Respondents Government Trade Finance Business Services Manufacturing Professional Organizations Construction Transportation/Utilities/Distribution *(5-point scale, where 1=poor; 2=fair; 3=good; 4=very good; 5=excellent) As far as plans for salary increases to graduates, the government once again tops the list. More than half of this small group of respondents have plans to increase starting salaries to bachelor s degree graduates. (See Figure 9.) Figure 9: Employers with plans to increase starting salaries to bachelor s degree graduates, by industry Industry Number of Respondents With Plans to Increase Bachelor s Salaries Number of Total Industry Respondents Percent of Total Industry Respondents Government % Construction % Transportation/Utilities/ Distribution % Manufacturing % Trade % Finance % Professional Organizations % Business Services % 10/National Association of Colleges and Employers

11 Job Outlook 2010 Research analysis BY REGION Northeast Results from the Job Outlook 2010 Fall Preview survey showed that employers in the Northeast expect to increase their new college hiring in by 5.6 percent over In addition, in comparison to the other three regions, the Northeast boasts the highest percentage of respondents with firm plans for spring 2010 recruiting 35.8 percent. (See Figure 10.) Just over one-quarter of employers in the Northeast are planning to increase starting salaries to bachelor s degree graduates. The average planned increase for these employers is 4.3 percent; however, this includes one employer who is planning an exceptionally large increase of 25 percent. Without that response, the average falls at just 2.7 percent, which is much closer to the median and mode for this group both 2 percent. Figure 11: Top five undergraduate majors Northeast Major % of Northeast Employers Who Will Hire % of Total Employers Who Will Hire Accounting 49% 46% Finance 45% 48% Business Administration/Mgmt. 38% 42% Economics 38% 26% Mechanical Engineering 36% 45% National Association of Colleges and Employers/11

12 Research Job Outlook 2010 Midwest As a group, employers in the Midwest plan to hire 3.2 percent fewer graduates in , though that planned cut is relatively small. On the positive side, more than half of the respondents from this region have firm or tentative plans for spring 2010 on-campus recruiting. By region, employers in Midwest are least likely to increase starting salary offers to bachelor s degree graduates. Just over 16 percent said they plan to raise salaries; however, among those increasing salaries, the increase is a healthy 4.1 percent, with both the median and mode falling just below that average at 4 percent. Figure 13: Top five undergraduate majors Midwest Major % of Midwest Employers Who Will Hire % of Total Employers Who Will Hire Finance 56% 48% Accounting 54% 46% Business Administration/Mgmt. 50% 42% Mechanical Engineering 43% 45% Computer Science 39% 38% 12/National Association of Colleges and Employers

13 Job Outlook 2010 Research Southeast Like their counterparts in the Midwest, employers In the Southeast plan to cut back on college hiring in , but their decrease is much deeper: On average, employers in this region expect to trim college hiring by 9.9 percent. In addition, the spring recruiting outlook for these employers reflects uncertainty, with more than 40 percent saying they are tentative or unsure about their plans. Just over one-quarter of responding employers in the Southeast region have plans to increase starting salaries to bachelor s degree graduates. The average increase planned for this group is 2.4 percent, but nearly half of the respondents are planning an increase of just 2 percent. Figure 15: Top five undergraduate majors Southeast Major % of Southeast Employers Who Will Hire % of Total Employers Who Will Hire Electrical Engineering 46% 39% Mechanical Engineering 46% 45% Computer Engineering 43% 30% Computer Science 43% 38% Finance 43% 48% National Association of Colleges and Employers/13

14 Research Job Outlook 2010 West By region, the outlook is worst in the West, where employers expect to cut college hiring by approximately 37 percent. A comparison of Western respondents recruiting plans for spring 2010 to their spring 2009 provides more evidence of the downward shift. Less than one-quarter of respondents in this region have firm plans for on-campus recruiting in spring 2010, compared to almost 58 percent who had firm plans at the same time last year. The bright side may be that of all four regions, the West has the smallest percentage of employers who are not hiring at all and will not be on campus in spring 2010 for recruiting. Although the West has the bleakest hiring outlook of the regions, it also has the largest percentage of employers planning to increase starting salaries: Nearly 29 percent of Western respondents expect to increase their salaries; the average increase is 3.9 percent, while the median and mode are 3 percent. More than one-third of Western employers who plan to increase bachelor s degree starting salaries plan to raise them by 3 percent. Figure 17: Top five undergraduate majors West Major % of Western Employers Who Will Hire % of Total Employers Who Will Hire Mechanical Engineering 54% 45% Finance 47% 48% Electrical Engineering 46% 39% Accounting 44% 46% Business Administration/Mgmt. 44% 42% 14/National Association of Colleges and Employers

15 Job Outlook 2010 Research who S IN DEMAND Business majors top the list of degrees in demand at the bachelor s level this year, but the engineering and technical majors also continue to dominate the list. For the first time, finance majors are most in demand at the bachelor s level, while M.B.A. degrees remain the most in demand majors at the master s degree level. (See Figures 18 and 19.) Driving the high demand for finance majors this year may be the hiring projections for employers in the financial industry, particularly in the Northeast. This distinct group of respondents plans to hire 6.2 percent more new college graduates for the Class of At the doctorate level, engineering and computer science degrees are the most sought-after majors, as was the case last year. (See Figure 20.) Figure 18: Top degrees in demand (bachelor s degree level) Major Number of Respondents Who Will Hire % of Total Respondents Who Will Hire Finance % Accounting % Mechanical Engineering % Business Administration/Mgmt % Electrical Engineering % Computer Science % Information Sciences & Systems % Marketing/Marketing Mgmt % Computer Engineering % Chemical Engineering % Management Information Systems % Figure 19: Top degrees in demand (master s degree level) Major Number of Respondents Hiring Master s Degree Candidates Who Will Hire % of Respondents Hiring Master s Degree Candidates Who Will Hire M.B.A % Mechanical Engineering % Electrical Engineering % Computer Science % Accounting % National Association of Colleges and Employers/15

16 Research Job Outlook 2010 Figure 20: Top degrees in demand (doctorate degree level) Major Number of Respondents Hiring Doctoral Degree Candidates Who Will Hire % of Respondents Hiring Doctoral Degree Candidates Who Will Hire Electrical Engineering % Mechanical Engineering % Computer Science % Computer Engineering % Chemical Engineering % Driving interest in the five majors that are most in demand are employers in the government and finance industries. (See Figure 21.) By region, Midwestern employers have the most interest in the top business degrees, while Western employers are most interested in the top engineering degrees. (See Figure 22.) Figure 21: Who s hiring (bachelor s degree level), by industry Major Most Interested Industries Percentage of Respondents Finance Finance 88% Trade 67% Government 56% Accounting Government 78% Finance 71% Transportation/Utilities/Distribution 57% Mechanical Engineering Manufacturing 70% Professional Organizations 62% Transportation/Utilities/Distribution 57% Business Administration/Mgmt. Finance 67% Trade 56% Manufacturing 50% Electrical Engineering Government 67% Transportation/Utilities/Distribution 64% Professional Organizations 58% 16/National Association of Colleges and Employers

17 Job Outlook 2010 Research Figure 22: Who s hiring (bachelor s degree level), by region Major Most Interested Regions Percentage of Respondents Finance Midwest 56% West 48% Northeast 45% Southeast 43% Accounting Midwest 54% Northeast 49% West 44% Southeast 34% Mechanical Engineering West 54% Southeast 46% Midwest 43% Northeast 36% Business Administration/Mgmt. Midwest 50% West 44% Northeast 38% Southeast 34% Electrical Engineering West 46% Southeast 46% Northeast 34% Midwest 33% Poor Outlook for International Students While hiring is down for all new college graduates, the hiring picture for international students is especially poor. Just 19 percent of responding employers expect to hire international students from the Class of 2010 the lowest level in the past five years. (See Figure 23.) National Association of Colleges and Employers/17

18 Research Job Outlook 2010 Best bets for international students are employers in the business services industry. These employers expressed the greatest amount of interest in international students a somewhat surprising turn of events when compared to last year, when manufacturers held the greatest hope for international students. In fact, last year at this time, nearly one-third of manufacturers said they would hire international students; currently, just 19 percent have such intentions. (See Figure 24.) Figure 24: International hiring plans, by industry Industry Percent of Respondents Who Will Hire Business Services 42.3% Professional Organizations 23.1% Government 22.2% Manufacturing 19.1% Construction 8.3% Finance 8.3% Transportation/Utilities/Distribution 7.7% Trade 5.6% 18/National Association of Colleges and Employers

19 Job Outlook 2010 Research Not surprisingly, the international students most likely to spark interest among employers are those in the engineering and computer science fields. International student hiring is down in all regions, but has taken the biggest hit in the Northeast. The Northeast held the greatest promise for international students just a year ago, when 35 percent of employers there expected to hire these students. Currently, just 19 percent have such plans. (See Figure 25.) Associate Degree Hiring At Five-Year Low The outlook for associate degree graduates is also at its lowest level of the past five years. Just under 19 percent of responding employers plan to hire associate degree graduates from the Class of (See Figure 26.) National Association of Colleges and Employers/19

20 Research Job Outlook 2010 Employers in the trade industry, e.g. retail and wholesale employers, appear to be the best bets for associate degree graduates, with nearly 40 percent having plans to hire them. Close behind are employers in the transportation/utilities/distribution industry, also with nearly 40 percent of respondents who plan to hire associate degree grads. (See Figure 27.) Associate degree hiring by region has also shifted gears for , with the Western region having the largest percentage of respondents planning to hire these graduates. As shown in Figure 28, one-third of responding Midwestern employers had planned to hire associate degree students last year, but for the Class of 2010, they are least likely to do so. Associate degree graduates who are most likely to see interest from employers are those in business, engineering technology, and computer information technology (specifically CAD). Figure 27: Associate degree hiring, by industry Industry Percent of Respondents Who Will Hire Trade 38.9% Transportation/Utilities/Distribution 38.5% Government 37.5% Construction 25.0% Professional Organizations 25.0% Finance 12.5% Manufacturing 11.9% Business Services 4.0% 20/National Association of Colleges and Employers

21 Job Outlook 2010 Research how employers VIEW CANDIDATES Figure 30: Employers that screen candidates by GPA, by industry Industry Percent of Respondents GPA Cutoff (reported mode) Professional Organizations 84.0% 3.0 Manufacturing 81.2% 3.0 Government 71.4% 2.5 Transportation/Utilities/Distribution 71.4% 2.8 Finance 70.8% 3.0 Business Services 65.4% 3.0 Trade 61.1% 3.0 Construction 58.3% 3.0 What are employers looking for in candidates? Given the state of the job market, it s not surprising that employers have raised the bar in terms of their expectations. For example, there is increased emphasis on GPA, with more employers screening candidates on GPA than has been the case over the past five years. (See Figure 29.) Currently, nearly three out of four say they screen on GPA. Approximately 95 percent of those who use GPA reported their cutoff, and 63 percent cited 3.0 as their cutoff the same cutoff point since 2003 when NACE first collected the information. By industry, professional organizations and manufacturing firms are most likely to screen candidates by GPA. In addition, except for government and transportation/utilities employers which report slightly lower cutoffs, the GPA cutoffs reported for each industry fall at 3.0 across the board. (See Figure 30.) And the Job Goes to In such a competitive job market for students, it is clearly important for graduates to have a desirable GPA. A high GPA, however, may just be the first step in being considered for a new position. National Association of Colleges and Employers/21

22 Research Job Outlook 2010 How do employers choose between equally qualified candidates, especially with fewer jobs to fill? Based on the attributes listed in Figure 31, it appears that a student s leadership experience has a slight edge over other factors, although, obviously, a student s major is key for positions that require a specific skill/knowledge set. Figure 31: Employers rate the influence of attributes when deciding on two equally qualified candidates Has held leadership position 4.0 Major 3.9 High GPA (3.0 or above) 3.6 Has been involved in extracurricular activities (clubs, sports, student government, etc.) 3.6 School attended 3.0 Has done volunteer work 3.0 Respondents were invited to add to the list of attributes likely to influence them to hire one candidate over another, and more than one-quarter did so. In examining the other write-in attributes, it is evident that employers see a tremendous value in the experience that a candidate possesses. For example, a total of 25 respondents indicated that a candidate s previous internship experience would influence their hiring decision, and when calculating the corresponding rating, the average was a whopping 4.96 an attribute of extreme influence. Experience Rocks! Not only do employers prefer candidates with experience, but they also prefer candidates with relevant work experience. (See Figure 32.) When asked about the preferred source of that experience, more than half cited internships and coops. (See Figure 33.) Figure 32: Employers hiring preferences relative to experience, by percent of respondents Hiring preference I prefer to hire candidates with relevant work experience 76.6% 76.3% 76.2% I prefer to hire candidates with any type of work experience (doesn t matter if it s relevant or not, just some type of experience) Work experience typically doesn t factor into my decision when hiring a new college graduate 15.9% 18.9% 18.2% 2.5% 2.6% 4.8% Other 5.0%* 2.2% 0.7% * The 5 percent of employers who indicated other hiring preferences further defined the specific type of relevant work experiences that they prefer. In general, these respondents cited internships or co-ops as their preferred type of relevant work experience. It s important to stress that employers preference for relevant work experience appears to be independent of the state of the job market. In 2008, with nearly half of employers rating the job market as very good, and overall hiring was up, nearly an identical percentage of respondents still preferred to hire candidates with relevant work experience. 22/National Association of Colleges and Employers

23 Job Outlook 2010 Research Key Skills and Qualities for Candidates Year after year, regardless of the job market s condition, employers have the same wish list for candidates skills and qualities, with communications skills consistently topping the list. (See Figure 34.) Figure 34: Employers rate the importance of candidate skills/qualities Communication skills 4.7 Strong work ethic 4.6 Initiative 4.5 Interpersonal skills (relates well to others) 4.5 Problem-solving skills 4.5 Teamwork skills (works well with others) 4.5 Analytical skills 4.4 Flexibility/adaptability 4.3 Computer skills 4.2 Detail-oriented 4.1 Leadership skills 4.1 Technical skills 4.1 Organizational skills 4.0 Self-confidence 3.9 Tactfulness 3.8 Friendly/outgoing personality 3.7 Creativity 3.6 Strategic planning skills 3.3 Entrepreneurial skills/risk-taker 3.2 Sense of humor 3.0 (5-point scale, where 1=not important; 2=not very important; 3=somewhat important; 4=very important; and 5=extremely important) In this year s survey, employers were also asked to rank order the top five candidate skills/qualities that they would like new college graduates to possess. (See Figure 35.) Communication skills was topped both lists ratings and rankings. However, the two lists did differ. For example, a strong work ethic at 4.6, was rated more highly than teamwork (4.5), analytical (4.4), and technical skills (4.1), but fell below all three on the rankings. This suggests only that employers seek well-rounded candidates who have a number of skills and qualities. Figure 35: Employers rank the top five candidate skills/qualities 1 Communication skills 2 Analytical skills 3 Teamwork skills (works well with others) 4 Technical skills 5 Strong work ethic National Association of Colleges and Employers/23

24 Research Job Outlook 2010 Where Candidates Fall Short Employers were asked which skills and qualities they find new college graduates to be lacking. Unfortunately, the skill and quality that they rate the highest and rank as most important is the same quality that they think is most lacking communication skills. (See Figure 36.) Almost half of responding employers think that new college graduates lack both verbal and written communication skills. In addition, more than one-third of employers cited flexibility/adaptability and tactfulness as in short supply among candidates. Figure 36: Skills Lacking in new college graduates Skill/Quality Percent of Respondents Who Said Skill/Quality Is Lacking Communication Skills 49.7% Flexibility/adaptability 37.0% Tactfulness 35.8% Initiative 28.9% Teamwork skills 27.2% Organizational 22.5% Strong work ethic 20.8% Self-confidence 17.3% Problem-solving skills 15.6% Detail-oriented 14.5% Sense of humor 12.7% Leadership skills 11.6% Analytical skills 11.0% Entrepreneurial skills/risk-taker 11.0% Creativity 9.2% Technical skills 8.7% Strategic-planning skills 4.0% Friendly/outgoing personality 2.9% Computer skills 2.3% 24/National Association of Colleges and Employers

25 Job Outlook 2010 Research COMPENSATION Few Offer Salary Increases for Graduates Although some aspects of college hiring remain unchanged regardless of whether hiring is up or down such as employers focus on relevant work experience in candidates while others are greatly affected by the state of the job market. Salaries fall into the latter group: Currently, less than 30 percent of employers plan to increase starting salaries to bachelor s degree graduates. In comparison, in the recent past, 70 to 80 percent of respondents raised salaries; even last year, when hiring fell off, nearly 60 percent of employers reported plans to increase salaries. (See Figure 37.) Among employers who expect to increase salaries, the average increase to bachelor s degree graduates is 3.8 percent, but that number is likely skewed by a few respondents significantly ratcheting up their offers (one, for example, anticipates a 25 percent increase). In fact, nearly one-third of those who will raise salaries are planning a 2 percent increase. More to the point, the bulk of employers won t be raising salaries. (Moreover, as the Class of 2009 learned, even when employers intend to raise salaries, that can change: According to NACE s Fall 2009 Salary Survey, the Class of 2009 ended the year with an overall average starting salary offer that was 1.2 percent lower than the average offer to the Class of 2008 despite the fact that nearly 60 percent of employers anticipated raising salaries an average of 3.6 percent.) For those earning master s degrees, the salary news is even more grim. Currently, less than one-quarter of respondents plan to raise starting salaries to Class of 2010 master s degree graduates; in comparison, last year nearly 90 percent reported such plans. Among those planning increases, the average increase is 3.9 percent, but the mode is 2 percent, with one-third of respondents citing that as their planned increase. National Association of Colleges and Employers/25

26 Research Job Outlook 2010 Signing Bonuses Not surprisingly, the number of employers planning to offer signing bonuses to Class of 2010 grads has dropped this year: Less than 41 percent have plans to do so. In fact, in comparison to the previous four years, the percentage of employers with plans to offer signing bonuses to new graduates is at its lowest level. (See Figure 38.) Of the employers with plans to offer signing bonuses to Class of 2010 graduates, nearly 58 percent plan to offer them only to selected graduates, and not all graduates. As was the case last year, employers in the manufacturing industry are most likely to offer signing bonuses to graduates. Nearly 55 percent of responding manufacturing employers have plans to offer them compared to just 22 percent of responding government employers, who are least likely to do so. (See Figure 39.) Figure 39: Percent of employers offering signing bonuses to graduates, by industry* Industry Percent Offering Signing Bonuses Number of Respondents Manufacturing 54.4% 68 Business Services 40.7% 27 Trade 38.9% 18 Finance 34.8% 23 Construction 33.3% 12 Transportation/Utilities/Distribution 30.8% 13 Professional Organizations 28.0% 25 Government 22.2% 9 *only categories with five or more respondents are included. 26/National Association of Colleges and Employers

27 Job Outlook 2010 Research Employers were asked not only about their plans for the Class of 2010, but also were asked to provide data on the signing bonuses they actually gave to the Class of Interestingly, although 58.4 percent of employers had planned to give bonuses to Class of 2009 grads, just 52.8 percent did so. This a first from 2006, when NACE began tracking this information, up until now, the percent of employers actually giving signing bonuses has always outweighed the percent who intended to do so and suggests that the Class of 2010 may fare worse with signing bonuses than projections indicate. Employers in the West are most likely to offer signing bonuses to the Class of 2010, with almost 48 percent of respondents having plans to do so. On the other hand, employers in the Southeast continue to have the smallest group of respondents with plans to offer signing bonuses to new graduates. (See Figure 40.) Regardless of the region, less than one in two employers have plans to offer signing bonuses to graduates. Among those who plan to offer bonuses to all graduates, just 30 respondents provided information about the amount of the average bonuses. Among these respondents, the overall average bonus to a bachelor s degree graduate is $4,411 up from an average of $3,934 last year. However, the median bonus amount falls at just $3,000. Figure 40: Percent of employers offering signing bonuses to graduates, by region Region Percent Offering Signing Bonuses in Percent Who Planned to Offer Signing Bonuses in Northeast 38% 61% Midwest 37% 65% Southeast 34% 47% West 48% 56% National Association of Colleges and Employers/27

28 Research Job Outlook 2010 Data on average signing bonuses by major are extremely limited this year, but are provided in Figure 41 (for bachelor s degree graduates) and Figure 42 (for master s degree graduates). (Please note: It is important to keep in mind, that the limited number of respondents providing actual dollar amounts may be representative of those organizations that have the ability to offer large signing bonus amounts. Those employers that offer less substantial bonuses may not be fully represented in the group of respondents.) Figure 41: Average signing bonuses by major bachelor s degree* Major Average Bonus (projected) Number of Respondents Average Bonus (projected) Number of Respondents Computer Engineering $6,500 5 * * Computer Science $5,056 9 $2, Mechanical Engineering $4,688 8 $3,250 8 Accounting $4, $2,813 8 Finance $4, * * Electrical Engineering $4,167 9 $3, Engineering not specified $3,165 7 * * *where 5 or more data points were provided Figure 42: Average signing bonuses by major Master s degree* Major Average Bonus (projected) Number of Respondents MBA $8,333 6 Electrical Engineering $5,200 5 *where 5 or more data points were provided 28/National Association of Colleges and Employers

29 Job Outlook 2010 Research social networking IN COLLEGE RECRUITING The popularity of social networking web sites appears to be growing among employers. When employers were last polled about their use of social networking sites (in fall 2007), more than 65 percent of responding employers said they had no plans to use social networking sites as part of their recruiting efforts; another 18 percent were unsure if they would use them. In contrast, only about one-third of current respondents reject the idea of using these sites in recruiting, and 14 percent are unsure, while the remainder will either increase, continue, or explore using social networking sites. (See Figure 43.) Employers in finance (63 percent) and trade (61 percent) are most likely to incorporate social networking into their recruiting mix, while construction and government employers are least likely. Nearly 60 percent of construction employers and 45 percent of government employers reported no plans to use social networking sites for recruiting. Manner of Use for Social Networking Sites Among those with definite plans to use social networking sites, most will use them for their primary purpose networking. More than three-quarters expect to use the sites to network with potential candidates, while nearly 60 percent see them as an advertising option. (See Figure 44.) Figure 43: Employers plans for using social networking web sites as a part of their recruiting of graduates, by percent of respondents Plans for Using Social Networking Web Sites Percent of Respondents We expect to increase our use of social networking web sites 22.9% We will continue to use social networking web sites at the same level 24.4% We will drop the use of social networking web sites 1.5% We have never and will not use social networking web sites 32.3% Unsure 13.9% Other 5.0% Figure 44: Manner in which employers will use social networking web sites Manner of Use Percent of Respondents With Definite Plans to Use Social Networking Web Sites Advertise 59.6% Check profiles of potential hires 23.6% Network with possible job candidates 77.5% Other 18.9% * Other responses ranged from branding to posting jobs to communicating events. A few indicated they would set up fan pages for candidates interested in learning about their organizations. National Association of Colleges and Employers/29

30 Research Job Outlook 2010 Among those reporting a preference, most cited LinkedIn and Facebook as the sites they would use. (See Figure 45.) While the bulk of respondents don t plan to use Twitter, more than 14 percent expect to use it to communicate with students. (See Figure 46.) Figure 45: Social networking sites to be used in recruiting Site Name Percent of Respondents Who Will Use 1 LinkedIn 82.7% Facebook 73.6% Other sites 18.2% MySpace 1.8% 1 Percent of respondents is based upon only those employers who indicated that they will use social networking web sites for recruiting graduates. These figures do NOT represent percent of TOTAL respondents. Figure 46: Employers plans for Twitter Plans Yes, we will use Twitter to communicate directly with students No, we will not use Twitter to communicate directly with students Percent of Respondents 14.2% 61.6% Unsure 20.5% Other 3.7% 30/National Association of Colleges and Employers

31 Job Outlook 2010 Research Survey respondents Figure 47: Respondents by industry Industry Number of Respondents Percent of Total Respondents Mining 1 0.5% Construction % Manufacturing % Transportation/Utilities/Distribution % Trade % Finance % Business Services % Professional Organizations % Government 9 4.5% Figure 48: Respondents by size of department/business unit Number of Employees Percent of Total Respondents Fewer than % 500 1, % 1,001 2, % 2,501 5, % 5,001 10, % More than 10, % National Association of Colleges and Employers/31

32 Research Job Outlook 2010 SURVEY respondents Below is a list of the organizations that responded to the Job Outlook 2010 survey. (Please note: Although 201 organizations responded, the list below includes 153, as 48 organizations preferred not to be listed.) AAI Corporation Abbott Laboratories Activision, Inc. Agilent Technologies, Inc. AIG Albemarle Corporation Amazon.com American Axle & Manufacturing, Inc. American Electric Power Ameriprise Financial Analog Devices, Inc. Aon Corporation Armstrong World Industries Arup & Partners BASF Corporation Bell Helicopter Textron Inc. Blackbaud, Inc. Blue Shield of California BOK Financial Corporation Briggs & Stratton Corporation Brocade Communication Systems, Inc. Buck Consultants Cameron Cameron Carico International CH2M HILL Chevron Corporation Cisco Systems, Inc. comscore, Inc. ConAgra Foods, Inc. Consolidated Graphics Cray Inc. Cree, Inc. Cummins Inc. Daiichi Sankyo, Inc. DCP Midstream Partners, LP Dell Inc. Det Norske Veritas Dewberry Dick s Sporting Goods Discover Financial Services E. & J. Gallo Winery Eastman Chemical Company Edwards Lifesciences El Paso Corporation Emerson Process Management - Fisher Controls Division Entergy Services, Inc. EPCO, Inc. Equifax Inc. Ernst & Young LLP Federal Energy Regulatory Commission FINRA First Investors Corporation Flatiron Construction Corp. Fluor Corporation FMC Technologies, Inc. Ford Motor Company Foster Wheeler Inc. Gannett Co., Inc. GAP Inc. General Electric Company General Mills Inc. Genworth Financial Global Tax Management, Inc. Great Lakes Dredge & Dock Company Hannaford Bros. Co. HEI Hotels & Resorts Herbert, Rowland & Grubic, Inc. Hitachi Consulting Honda R&D Americas, Inc. Hormel Foods Corporation IBM Corporation IMS Health INEOS 32/National Association of Colleges and Employers

33 Job Outlook 2010 Research Jacobs Technology Inc. Johnson Lambert & Co. LLP Kennedy & Coe LLC KeyBank L-3 Communications Integrated Systems Lennox International Inc. Liberty Mutual Insurance Company Life Technologies Inc. - Life Technologies Linde Link-Belt Construction Equipment Co. Lowe s Companies, Inc. Lutron Electronics Co. Inc. LyondellBasell Industries M&T Bank Corporation Macy s, Inc. Mars Snackfood US Mattress Firm Meijer, Inc. Mercer Messer Construction Co. Milliken & Company Murphy Oil USA, Inc. National Instruments Naval Acquisition Career Center Newell Rubbermaid Newmont Mining Corporation Norfolk Southern Corp. Northrop Grumman Corporation Opnet Technologies Inc. Oregon Department of Transportation Owens Corning Panda Restaurant Group, Inc. Parsons PepsiCo, Inc. PrimeSource Building Products, Inc. Procter & Gamble Co. Prudential PSEG QORE Questar Corporation Raymond James Financial Services, Inc. Raytheon Company Rogers Corporation Rolls-Royce Corporation Roux Associates, Inc. Schlumberger Scholle Corporation Simpson Gumpertz & Heger Inc. STV Incorporated SWIFT Symantec Corporation Syracuse Research Corp. TAC Americas Tennessee Valley Authority Teradata Corporation Tesoro Companies, Inc. The Douglas Stewart Company, Inc. The Ryland Group, Inc. The Schwan Food Company The Shaw Group Inc. The Timken Company Thomson Grass Valley Tindall Corporation Total Quality Logistics, Inc. Toys R Us, Inc. Turner Construction Company Tyson Foods, Inc. U.S. Comptroller of the Currency U.S. Patent & Trademark Office Union Bank of California UnitedHealth Group Valassis Communications, Inc. Volvo Financial Services W.W. Grainger, Inc. Waste Management, Inc. Whirlpool Corporation Wiss, Janney, Elstner Associates, Inc. Woolpert LLP ZS Associates National Association of Colleges and Employers/33

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