The Universum Graduate Survey 2006

r The Universum Graduate Survey 2006 German Edition University Report Universität Passau

The Universum Graduate Survey 2006 German Edition University Report Universität Passau

2006 Universum Communications Sweden AB. All rights reserved. Reproduction of all or parts of the information contained in this report is forbidden without the expressed permission of Universum Communications Sweden AB. Due to the nature of any statistical survey, where large amounts of material are gathered, processed, and analyzed, errors may occur. Universum Communications Sweden AB will not bear the responsibility for any costs, losses, or damages incurred due to any such errors. Universum Communications Sweden AB Karlavägen 108 P.O. Box 7053 SE-103 86 Stockholm Telephone +46 (0) 8 5620 27 00 Fax: +46 (0) 8 5620 20 70 E-mail: info@universumeurope.com http://www.universumeurope.com

TABLE OF CONTENTS 4 2006 UNIVERSUM GRADUATE SURVEY TABLE OF CONTENTS Build an Employer Brand 5 Employer Branding The Universum Way 6 Definitions of Key Terms 8 Methodology 9 Definition of the Target Group 10 Student Profile 11 Key Segment: High Achievers 13 Key Segment: Internationalists 14 Key Segment: Specialists 15 Key Segment: Potential Managers 16 Key Segment: Socially Responsible 17 Gender and Age 18 Area of Study - Business 19 Area of Study Engineering 20 Academic Performance and Type of Degree 21 Additional Academic Degree 22 Language Skills 23 Experience/Qualifications 24 Personal Characteristics 25 Preferred Industry 26 Career Goals 27 Expected Compensation 28 Trainee Programme 29 University Satisfaction 30 Market Position 32 Ideal Employer Rankings - Top 50 Business 35 Ideal Employer Rankings - Top 50 Engineering & Science 36 Ideal Employer Ranking, High Achievers - Business 37 Ideal Employer Ranking, High Achievers - Engineering & Science 38 Ideal Employer Ranking, First Choice - Business 39 Ideal Employer Ranking, First Choice - Engineering & Science 40 Potential Applicants Ranking - Business 41 Potential Applicants Ranking - Engineering & Science 42 Ideal Employer Rankings - Universität Passau 43 Potential Applicants Ranking - Universität Passau 44 Employer Image 45 Attractive Employer Qualities 48 Important Decision Factors 49 Compensation Package 50 Employer s Perceived Characteristics 51 Employer s Perceived Offerings 52 Apply to the Ideal Employer 53 Communication 54 Preferred Sources of Information 56 Actual Sources of Information 57 Actual vs. Preferred Sources of Information - Universität Passau 58 Actual vs. Preferred Sources of Information - 59 Participating educational institutions 60 Appendix 61 Overall Survey Results 62

INTRODUCTION 5 2006 UNIVERSUM GRADUATE SURVEY BUILD AN EMPLOYER BRAND What attracts young talents today? Which channels do students use when searching for information about future employers? Which are the most attractive industries among students? In order to answer these questions, research on the employer market is the first crucial step in the logical chain of employer branding. The Universum Graduate Survey is an annual report which will help employers understand how to attract new competence to their organisation and how to communicate with these students. All companies have an Employer Brand, whether they like it or not. What is communicated by the company affects the general perception among future employees. Universum Communications The Employer Branding Specialist Universum is a global leader in the field of employer branding with operations in Europe, US, Asia and Africa. We help our clients to reach one goal: To have a strong appeal on their current and future ideal employees. To this aim we provide our clients with services in the field of Research, Strategy and Communications. Our unique competence is based on the extensive global surveys on the talent market covering more than 150 000 respondents from 27 countries annually. We produce more than 25 employer branding publications in Europe, US and Africa, which gives us outstanding communications skills in this field. Our clients include the majority of the Fortune 100 top companies. Universum specializes in helping you to hone your recruitment and retention strategies. Utilizing our years of experience as an unparalleled liaison between companies and students, we assist many of the world's top corporations with improving their success in attracting, recruiting and retaining top talent. Our knowledge of the competence supply chain is unmatched. We offer customized consulting services tailored to our clients' specific needs. A common mistake that people make when formulating and expressing an Employer Brand is that they oversell. It is a mistake to create expectations without the ability to deliver them. (Jens Jenssen, Vice President of HR, Statoil)

INTRODUCTION 6 2006 UNIVERSUM GRADUATE SURVEY EMPLOYER BRANDING THE UNIVERSUM WAY Employer branding is a logical process through which companies reach one main goal: To have a strong appeal on their current and future ideal employees. It is an ongoing process separate from short term recruitment needs or activities. It is a strategic process crucial for financial success in competitive markets. Employer branding success depends on co-operation of HR, Marketing and Communications functions in every company. For better or for worse, you already have an Employer Brand (David Lee, consultant and founder of HumanNature@Work) All communications and information from your company influence how your current and future employees perceive you. Do you know how your Brand is perceived today? Do you know how you want it to be perceived? Who is your ideal employee? Marketing the company as an employer How does an employer market itself as an employer? Employer branding includes all communication in attracting, recruiting, developing and retaining ideal employees. Systematic employer branding emphasizes the unique advantages of the workplace and those aspects of the company and its culture that the target groups appreciate. Structured employer branding also ensures a coherent message and a correct picture of what it is like to work for the company. Employer branding starts with the business strategy The starting point for employer branding is the company business strategy. The business strategy defines the business goals and how you will try to reach those goals. This in turn defines the resources the organisation needs to execute its business strategy. The employees and their competencies are the most important resources for the majority of companies and organisations of today. The business strategy determines what kind of employees and competencies the company needs at present and in the future. And this is where employer branding comes into the picture. Once the employer knows what kind of employees they need, they have to develop according to the needs and start marketing the company as an employer. Attracting and retaining the right talent Employer branding implies different challenges for different companies. It is a common misconception that the main objective in employer branding is to be well known on the labour market. Naturally, it is important that people know the organisation, but not necessarily everyone. The objective is to attract and retain the target groups; the individuals the company needs to execute its business goals. It may however be a waste of resources to market the company to everyone. The target groups include current employees as well as future potential employees. The objective is to find the right talents people that fit your organisation, its values and work ethics. It is very likely that these people will thrive, will be loyal and will excel at their work. And it is therefore likely that they will make the business goals come true.

INTRODUCTION 7 2006 UNIVERSUM GRADUATE SURVEY Employer Branding Model The concept of employer branding is being recognised by a rapidly growing number of leading companies and organisations as part of their main strategic challenges. We work with our partners by assisting them in understanding the full process of employer branding as presented in our model below. Our model is based on more than 15 years experience of working with internationally leading companies in the fields of understanding and communicating with ideal employees. The purpose of the model is to allow companies to structure their EB activities in order to ensure success. Universum s Employer Branding Model The report you are holding in your hands is one of the tools to be used in the first phase of the process, in research. It will help you understand how your company, your industry and your recruitment competitors are perceived by young graduates and potential employees. You will learn how employer branding influences student s opinions and ideas, and what it takes to attract tomorrow s leaders. By directly reaching your ideal employees you shorten the recruitment process and save costs. We trust you will find this report an invaluable tool in strengthening your Employer Brand. Universum Communications hope you will find this report interesting and inspirational!

DEFINITIONS OF KEY TERMS 8 2006 UNIVERSUM GRADUATE SURVEY DEFINITIONS OF KEY TERMS Ranking Lists For each company, students are asked to indicate whether they are familiar with the company and whether they would consider working there. Respondents are also provided with space to write in companies for which they would consider working if they do not find them on the list. After going through the list and marking an alternative for each company, respondents are asked to select up to five ideal employers for which they would ideally like to work. The familiar company ranking list; the companies are ranked according to the percentages of respondents who are familiar with the company. The considered employer ranking list; the companies are ranked according to the percentages of respondents who are familiar with the company and would consider working for them. The ideal employer ranking list; the companies are ranked according to the percentages of respondents who select them as one of their ideal employers (respondents may choose up to five). The first choice ranking list is based upon the ideal ranking, but only lists the first hand choice among the students five ideal employers. The potential applicants ranking list; the companies are ranked according to the percentages of respondents who select the company as one of their ideal employers and have, or will, apply to this company in the future. (Please note that pushed companies, (companies that respondents have frequently written in), are included on all ranking lists, and are marked with an asterisk.) Employers Ideal Employer A company (either selected from the questionnaire s company list or written in by respondents) for which students report that they would most like to work. Considered Employer A company (either selected from the questionnaire s company list or written in by respondents) for which students report that they would consider working. Familiar Company A company (either selected from the questionnaire s company list or written in by respondents) whose products or services the respondents report that they are familiar with. Reports Ideal Company Report If at least 30 students choose the company as an ideal employer, the report data is based on these responses. Considered Company Report If less than 30 respondents have selected the company as an ideal employer, the data is based on those students who report that they would consider working for the company. Recruitment competitor data is based on the students choosing them as ideal employers. Communication Insight Report This is a separate report focusing on information and communication regarding employer branding. Additional Reports The product portfolio consists of several reports. In addition to the standard company report, we produce a wide range of standard and semi-standard reports such as gender, competitor, area of study, university, industry report. It is also possible to produce special target reports based on a companies own definition of their most-wanted-students.

METHODOLOGY 9 2006 UNIVERSUM COMMUNICATIONS METHODOLOGY The Universum Graduate Survey questionnaire is built through accumulated knowledge and experience from previous surveys, and also through input from students and academic research. Our aim is to keep previous years questions to detect changes over time, and also add new questions that reflect current issues and trends. The Universum Graduate Survey was comprised mainly of closed-ended questions. An extensive list of responses to each question was offered, including the option Other with space for students to write in their own responses. The company list was constructed from information derived from discussions with clients and participating educational institutions, as well as from objective criteria such as the company s market share and industry. The top 60 ideal employers from the previous year s survey were automatically included, as were those companies most frequently written in by respondents in previous years ( pushed companies ). Before and during the field period, all educational institutions included in the survey are being contacted. The Career Services Departments at these educational institutions is the main contact for Universum Communications. Distribution of the questionnaires was handled primarily by Universum's partner educational institutions. In some cases the questionnaires were distributed on campus by Universum employees. Respondents to Universum's surveys are anonymous, no personal records are kept. Responses are treated as an aggregate; no individual responses are studied. Number of respondents: 11607, of these 6284 are business students and 4704 are engineering students Number of educational institutions: 57 Field period: 28 November 2005-17 April 2006

DEFINITION OF THE TARGET GROUP 10 2006 UNIVERSUM GRADUATE SURVEY DEFINITION OF THE TARGET GROUP The results in this report are based on the groups and the number of respondents shown below. 11607 Main Group Number of respondents: 84 Base for the group: Universität Passau Comparison Group Number of respondents: 11607 Base for the group: All students in the survey

STUDENT PROFILE 11 2006 UNIVERSUM GRADUATE SURVEY STUDENT PROFILE People are not your most important asset. The right people are (Good to great, Jim Collins, Random House Business Books, London UK, 2001) Defining the profile of the company s ideal employees is often the first step in successful employer branding. However, many companies neglect the fact that defining and getting to know the target group is just as important in employer branding as in consumer or business-to-business branding. Is there any company who would market a product without knowing who is supposed to buy it? It is important that the employer evaluate the jobs the company offers the same way they view their products or services. What does the company sell and to whom does it sell? The answer is that the employer is selling careers to their ideal employees, i.e. the students they want to attract, recruit and retain. If an employer is clear about their target groups, the process of identifying their needs and preferences will be significantly easier.

STUDENT PROFILE 12 2006 UNIVERSUM GRADUATE SURVEY Reasons for Defining Target Groups The main reason for defining target group(s) is that it will increase the efficiency of a company s employer branding efforts. First and foremost, in order to attract the ideal employees of the company, the employer must communicate with them in a way that appeals to them. Moreover to communicate the right values and choosing the right communication channels the target group must be identified and understood. Without knowing who to communicate with the employer will most likely end up wasting money. Secondly, receiving inquiries and applications from students with profiles not relevant to the needs of the employer will add costs from screening and other administrative activities. Furthermore, the company risks recruiting people who are not the right fit. Keep in mind that the company s actual target group(s) might differ from the students they are currently attracting, i.e. their attracted students. Defining the target groups This chapter will guide you through the different variables characterizing the company s targeted or attracted students. Moreover, it will show what characteristics employers may include in their definition of their ideal employees. There are two basic aspects that need to be considered when defining the target groups: Demographical factors: Gender, university, field and area of study etc. Personality factors: Academic performance, personality, experience, career goals etc. The combination of demographical and personality factors will form the profile of the students within the target groups. For instance, target schools might be an important aspect of the target group, e.g. due to that some schools offer areas of study which other schools do not have in their academic programs. Another potential situation is an unbalanced work force in terms of the ratio between men and women, hence one factor defining the target group might be gender. To exemplify, Universum has developed and pre-defined five different key segments that have proven to be relevant to companies in most industries: High Achievers Top performing students with a high level of drive - Students with an excellent academic record (grade 8 10 on a 1 10 scale) and at least two extra scholar qualifying experiences, such as internships, engagement in a student union/association or studies abroad. Internationalists Students with international experience and perspective - Students who speak at least one foreign language very good or fluently and who own a minimum of two international experiences, e.g. exchange studies in another country or an internship abroad. Specialists Students with an interest in technology and leading edge services - Students who have the desire to become a specialist. In addition they want to develop new products. Innovation and exciting products or services are important decision factors when they choose employer. Potential Managers Students who have a desire to become managers - Students who score high manage projects and reach managerial level. Potential managers find managerial responsibility a very attractive employer offering. They also believe they have leadership qualities. Socially responsible Students with a social responsibility perspective on their career - Students who aspire to contributing to society by working for an employer committed to high ethical standards. Many of the socially responsible students are attracted to non profit organizations. If your company wants to explore one or more of these target groups in detail it is possible to order target reports based on the groups above. Please note that the groups are not based on statistical analysis method, but rather our experience of what constitutes these often requested target groups. Furthermore; the segments are not mutually exclusive.

STUDENT PROFILE 13 2006 UNIVERSUM GRADUATE SURVEY Key Segment: High Achievers Below, a ranking of the companies that attracts the largest share of High Achievers among the students that have selected them as an ideal employer is presented. This key target group ( High Achievers ) consists of top performing students with a high level of drive. Ranking Percent Bain & Company 1 50% Booz Allen Hamilton 2 41% A.T. Kearney 3 38% KfW Bankengruppe 4 38% BCG (The Boston Consulting Group) 5 37% Horváth & Partners Management Consultants 6 36% Mercer Management Consulting 7 35% Roland Berger 8 33% BearingPoint 9 33% AstraZeneca 10 33% UBS 11 32% Goldman Sachs 12 32% McKinsey & Company 13 31% Credit Suisse 14 30% Capgemini 15 30% JPMorgan 16 30% Accenture 17 29% ABB 18 28% RAG 19 28% Puma* 20 28%

STUDENT PROFILE 14 2006 UNIVERSUM GRADUATE SURVEY Key Segment: Internationalists Below, a ranking of the companies that attracts the largest share of Internationalists among the students that have selected them as an ideal employer is presented. This key target group ( Internationalists ) consists of students with international experience and perspective. Ranking Percent Booz Allen Hamilton 1 33% Capgemini 2 29% Bain & Company 3 29% Citigroup 4 29% JPMorgan 5 27% AstraZeneca 6 26% Goldman Sachs 7 25% BCG (The Boston Consulting Group) 8 25% Credit Suisse 9 25% Kühne + Nagel 10 25% Danone 11 24% UBS 12 24% A.T. Kearney 13 24% Mercer Management Consulting 14 24% ING-DiBa 15 24% Nestlé 16 23% KfW Bankengruppe 17 23% Roland Berger 18 22% Beiersdorf 19 22% Henkel 20 21%

STUDENT PROFILE 15 2006 UNIVERSUM GRADUATE SURVEY Key Segment: Specialists Below, a ranking of the companies that attracts the largest share of Specialists among the students that have selected them as an ideal employer is presented. This key target group ( Specialists ) consists of students with an interest in technology and leading edge services. Ranking Percent Kühne + Nagel 1 35% AMD Saxony 2 20% Infineon Technologies 3 18% IBM 4 18% SAP 5 18% B. Braun Melsungen AG 6 18% Hewlett-Packard 7 17% Vodafone 8 17% DLR (Deutsches Zentrum für Luft- und Raumfahrt) 9 17% Salzgitter AG 10 17% Bosch 11 16% Brose 12 16% Accenture 13 16% Fraunhofer-Gesellschaft 14 16% Microsoft 15 15% Bahlsen 16 15% ING-DiBa 16 15% EADS 18 15% Voith 19 15% BASF AG 20 15%

STUDENT PROFILE 16 2006 UNIVERSUM GRADUATE SURVEY Key Segment: Potential Managers Below, a ranking of the companies that attracts the largest share of Potential Managers among the students that have selected them as an ideal employer is presented. This key target group ( Potential Managers ) consists of students who have a desire to become managers. Ranking Percent Roland Berger 1 35% McKinsey & Company 2 34% Siemens Management Consulting (SMC) 3 32% BCG (The Boston Consulting Group) 4 32% Bain & Company 5 32% A.T. Kearney 6 31% AXA Konzern 7 30% JPMorgan 8 30% Goldman Sachs 9 29% Horváth & Partners Management Consultants 10 28% Dräger 11 27% UBS 12 27% BearingPoint 13 27% Continental 14 27% Accenture 15 27% Porsche 16 27% Mercer Management Consulting 17 27% Deutsche Börse 18 26% Citigroup 19 26% Credit Suisse 20 26%

STUDENT PROFILE 17 2006 UNIVERSUM GRADUATE SURVEY Key Segment: Socially Responsible Below, a ranking of the companies which attracts the largest share of Socially Responsible among the students that have selected them as an ideal employer is being shown. This key target group ( Socially Responsible ) consists of students with a social responsibility perspective on their career. Ranking Percent Bahlsen 1 40% Rewe Handelsgruppe 1 40% Auswärtiges Amt 3 38% Deutsche Bahn 4 38% TÜV SÜD Gruppe 5 36% KfW Bankengruppe 6 36% Salzgitter AG 7 35% Deutsche Bundesbank 8 35% GfK 9 35% European Central Bank (EZB) 10 35% Fraunhofer-Gesellschaft 11 34% JENOPTIK 12 34% Horváth & Partners Management Consultants 13 34% Brose 14 33% TÜV Rheinland Group 15 32% AXA Konzern 16 32% Voith 16 32% Bertelsmann 18 31% AstraZeneca 19 30% EnBW Energie Baden-Württemberg 20 30%

STUDENT PROFILE 18 2006 UNIVERSUM GRADUATE SURVEY Gender and Age Gender Universität Passau 31% 69% 41% 59% Female Male Age 18-19 1% 20-21 7% 9% 22-23 22% 22% 24-25 23% 28% 26-27 20% 25% 28-29 11% 14% 30-31 4% 6% 32-33 1% 3% 34 or older 1% 3% Universität Passau

STUDENT PROFILE 19 2006 UNIVERSUM GRADUATE SURVEY Area of Study - Business What is your major(s)/main area(s) of study? (Please select the one alternative that best describes your specialisation.) Business Administration 40% 53% International Business 11% 29% Management 16% 24% Human Resources Management 10% 18% Accounting/Auditing/Taxation 12% 13% Economics 12% 15% Finance 12% 13% Information Management 8% 12% Logistics 7% 12% Communication studies 6% 5% Entrepreneurship 2% 6% Marketing 6% 20% Other Business 6% 10% Public Administration 1% Sales 2% Universität Passau

STUDENT PROFILE 20 2006 UNIVERSUM GRADUATE SURVEY Area of Study Engineering What is your major(s)/main area(s) of study? (Please select the one alternative that best describes your specialisation.) Computer Science/Information Technology 22% 100% Electrical/Electronic Engineering 3% 11% Mathematics/Physics 2% 11% Telecommunications 2% 2% Aeronautics/Aerospace Engineering 2% Architecture 2% Biological Engineering/Biological Technology 3% Biology 6% Chemical Engineering 2% Chemistry 4% Civil Engineering 4% Environmental Science/Environmental Technology 4% Geography 1% Industrial Engineering and Management 9% Machine/Mechanical Engineering 18% Universität Passau

STUDENT PROFILE 21 2006 UNIVERSUM GRADUATE SURVEY Academic Performance and Type of Degree Please grade your academic results on a scale from 1-10, where 10 represents excellent results, 5 stands for average and 1 means passing. 25% 24% 24% 20% 15% 15% 14% 13% 13% 11% 6% 2% 1% 2% 1% 1% 3% 4% 1% 4% 1 2 3 4 5 6 7 8 9 10 Universität Passau Please note that students rated their grades themselves. What degree/which degrees are you currently pursuing? Bachelor 6% 8% 84% Diplom 79% 10% Master 13% Universität Passau

STUDENT PROFILE 22 2006 UNIVERSUM GRADUATE SURVEY Additional Academic Degree Do you study/have you studied another discipline at bachelor s degree level or equivalent? Universität Passau 90% 10% 90% 10% No Yes

STUDENT PROFILE 23 2006 UNIVERSUM GRADUATE SURVEY Language Skills Beside your mother tongue, do you also speak any other languages? Universität Passau 80% 20% 77% 23% Yes No How well do you speak these langages? English 94% 97% Spanish 8% 14% French 12% 14% German 6% 12% Italian 2% 2% Universität Passau This chart shows the percentages of respondents speaking these languages very good or fluent.

STUDENT PROFILE 24 2006 UNIVERSUM GRADUATE SURVEY Experience/Qualifications Which of the following experiences/qualifications do you have? (Please choose as many as are applicable.) Internship, in my home country, related to my main field of study (at least for 2 months) 58% 66% University studies abroad (at least 1 semester) 28% 34% Engagement in student union/association parallel to my studies (at least 1 semester) 33% 32% Part time job, in my home country, parallel to my studies and related to my main field of study (at least for 2 months) 33% 43% Engagement in non student association/organisation parallel to studies 26% 30% Internship, abroad, related to my main field of study (at least for 2 months) 24% 26% Managing/managed own company 8% 21% Full time job, in my home country, related to my main field of study (at least for 2 months) 13% 15% Other 11% 9% Apprenticeship 10% 22% Full time job, abroad, related to my main field of study (at least for 2 months) 4% 3% Part time job, abroad, parallel to my studies and related to my main field of study (at least for 2 months) 1% 4% Universität Passau

STUDENT PROFILE 25 2006 UNIVERSUM GRADUATE SURVEY Personal Characteristics Which three personal characteristics apply to you the most? (Please choose a maximum of three alternatives.) Analytical 27% 35% Responsible 30% 35% Team player 25% 23% Curious 17% 24% Flexible 24% 25% Social 18% 24% Ambitious 20% 28% Accurate 13% 18% Creative 18% 17% Goal oriented 18% 20% Leadership qualities 14% 14% Efficient 13% 12% Entrepreneurial 5% 8% Handle stress well 8% 12% Hard working 8% 15% Verbal 8% 10% Enthusiastic 4% 7% Other 1% Universität Passau

STUDENT PROFILE 26 2006 UNIVERSUM GRADUATE SURVEY Preferred Industry In which industries would you ideally like to work? (Please choose a maximum of three alternatives.) Computer software 8% 51% Academic research 17% 25% Internet/e-commerce 5% 24% IT consulting/data services 7% 20% Automotive 18% 18% Aerospace 13% 13% Government/public service 13% 11% Telecommunications 5% 12% Management consulting 10% 19% Media/public relations/information 8% 13% Airline/travel 7% 8% Biotechnology 7% 5% Education/teaching 7% 8% Private/commercial banking 7% 8% Consumer electronics 2% 6% Universität Passau The chart shows top 15 of 35 response alternatives to this question.

STUDENT PROFILE 27 2006 UNIVERSUM GRADUATE SURVEY Career Goals What career goals do you hope to attain within three years of graduating? (Please choose a maximum of three alternatives.) Balance personal life and career 44% 56% Work with increasingly challenging tasks 46% 48% Build a sound financial base 40% 45% Work internationally 35% 38% Reach a managerial level 24% 25% Manage projects 23% 25% Become a specialist 16% 21% Develop new products 12% 19% Contribute to society 8% 15% Influence corporate strategies 4% 13% Start a business 4% 5% Other 1% 1% Rotate jobs within company 3% Universität Passau

STUDENT PROFILE 28 2006 UNIVERSUM GRADUATE SURVEY Expected Compensation What annual base salary do you expect at your first job after graduation? <20000 2% 5% 20000-24999 4% 8% 25000-29999 2% 2% 30000-34999 10% 13% 35000-39999 20% 23% 40000-44999 21% 31% 45000-49999 15% 13% 50000-54999 6% 7% 55000-59999 1% 2% >59999 5% 9% Universität Passau Respondents wrote in their salary expectations, which were subsequently divided into categories. Results are shown in Euro.

STUDENT PROFILE 29 2006 UNIVERSUM GRADUATE SURVEY Trainee Programme Would you like to attend a company trainee programme? Universität Passau 34% 16% 51% 44% 14% 42% Yes No I don't know

STUDENT PROFILE 30 2006 UNIVERSUM GRADUATE SURVEY University Satisfaction How satisfied are you with your university? Satisfied 54% 68% Very satisfied 23% 29% Neither satisfied nor dissatisfied 8% 12% Dissatisfied 1% 5% Very dissatisfied 1% Universität Passau

STUDENT PROFILE 31 2006 UNIVERSUM GRADUATE SURVEY University Satisfaction What are you most satisfied with at your university? (Please choose a maximum of three alternatives.) The quality of the educations 42% 49% The teachers 44% 43% The environment of the university 24% 39% The reputation of the university 33% 37% The possibility to study abroad 23% 33% The access to service facilities 29% 31% The student life 21% 23% The choice of courses 8% 25% Access to boarding/apartments 5% 4% The university's contacts with the business community 5% 18% The administration of the university 2% 3% Other 2% Universität Passau

MARKET POSITION 32 2006 UNIVERSUM GRADUATE SURVEY MARKET POSITION I think the first step in achieving an effective Employer Brand is to have a clear business strategy and implement it effectively. You need to be very clear about where you need to be (Annette K. Nimzik, Manager HR Development Group, RWE) An important step in building a strong Employer Brand is to understand the position on the talent market. Getting to know your own and the recruitment competitors status on the market sets the basic conditions and starting point for the entire branding process. It is often hard to evaluate one s own position as an actor in the employer market. A way to reach a wider understanding in this area is to use different kinds of positioning measurements. In this report employer awareness, interest and priority is being presented.

MARKET POSITION 33 2006 UNIVERSUM GRADUATE SURVEY The Employer Ranking as a Strategic Tool The first measurement is used for evaluation of a company s familiarity on the talent market, i.e. the employer brand awareness. In this case being familiar means that the students have heard of the company and its specific products and/or services. Based on the number of students that are familiar (i.e. the respondent ticks in if he/she is not familiar with a specific employer) with a certain employer the familiarity position can be pinpointed for each company/organisation. By sorting the companies on the received percentages a familiar ranking list is presented (this ranking list is only presented in the appendix of this report). In this way each employer gets a chance to see how well known (or unknown) they are on the employer market. The familiar ranking list provides direct input to the need for media campaigns and likewise, to better establish the company in the minds of the students. Once knowing the familiarity on an overarching level, another interesting measurement is to see if the students would consider working for the specific employer? The students that already have said they are familiar with a company also tell if they are interested in working for that employer in the future. In this way the employers can get a good view of the attractiveness among students. From the number of companies the students would consider working for; five future ideal employers are picked out. By making an ideal ranking list, the employers can see their positions among the other most popular companies. Position diagram The market position determines the communication strategy. One strategy is to focus on a quite narrow student group via targeted communication like tailored campaigns and relationship marketing (i.e. getting a strong ideal employer position). Another way is to combine a quite wide communication approach and try to get stronger both as a considered and ideal employer. Condsidered % Follower Market Leader New Entry Niche Employer Ideal % Fig: An upward position to the right is often the ideal situation with high percentages of students both choosing the employer as an interesting company, as well as an ideal employer. But employers sometimes choose to focus on a small segment and become a niche-player. Follower An employer which can be regarded as potential threat to the market leader. New Entries A weak position on the talent market with an employer brand that needs to be strengthened. Niche employer Not that well-known employer, but regarded as a top of the line employer within a narrow and defined target group. Market leader - An overall strong employer brand that appeals to most students.

MARKET POSITION 34 2006 UNIVERSUM GRADUATE SURVEY The position measurements described above all show to what extent the students know about a certain employer and how attractive they think the company is. A different way to measure the position is the potential applicants ranking, i.e. measuring the students intention to really apply for a job. If a student picks a company as a favourite among five ideal employers, it does not necessarily mean that he/she will apply for a position with that employer. The potential applicants ranking reveals the position for each employer based on whether the attracted students also have applied or will apply to them. In this way the employers can get even more in-depth knowledge of their market position. While having a great position on the ideal ranking among broad target groups is good for the image in general, the apply ranking on the other hand should mainly be high among the targeted students. How to use position measurements Different position measurements help providing employers with useful information in several key areas in the employer branding process. Below are a couple examples of the useful areas of these evaluation tools. Benchmarking This kind of information gives immediate feedback on the relative market position in comparison to their recruitment competitors on the market. Through knowledge of the competitors position in relation to the own situation, each employer is able to make clear benchmarks against not only companies within the same industry, but also against successful companies in other attractive industries. Students do not necessarily choose industry before choosing their ideal employers. By studying the recruitment competitors ranking the company gets valuable insight in what companies it competes against in the war for talent. Combining knowledge of the market position and studies of the perceived image of each competitor, provides a very powerful tool when it comes to the strategic employer branding decisions of their own company. Defines the start of the communication process The current position defines the framework of the employer communication plan. It gives information on which competitors are strong and which are not. Furthermore, it tells which of the recruitment competitors have been most successful and provides information on the distance between them. Tracking success The ranking of the employers offer the necessary means to monitor changes over time and to set goals for the future. Benchmarking against the recruitment competitors and aiming for better positions on the market also often help raise motivation within the entire company. Today many employers use the position measurement as one important evaluation tool in the overall scorecard of the company. Together with typical financial keys and softer measures such as employee satisfaction indexes, the employer position is regarded as an equal important key indicator of a company s success. Target group position All the described areas and measurements relates to the overall market position, which indeed provides an important strategic knowledge. That information is based on the attractiveness on the market, and the explicit view of the attracted students. An equally important perspective is the opinions and perceptions of the ideal employees, i.e. the students a company wants to attract, recruit and retain. By defining the own target student, the market position within a specific narrow target group can be provided. For example, the market position can be showed among female high achieving students at certain schools. The immediate use of defining the target group in this way can be shown using the potential applicants ranking. With such an approach it will clearly show how likely it is that the most wanted student profile will apply to a specific employer (more in depth questions will also reveal why or why not). For more details regarding the method connected to the ranking lists, please see the Method chapter.

MARKET POSITION 35 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Rankings - Top 50 Business Below is the ranking list of companies that students perceive as ideal employers. This list shows the Top-50 highest-ranked employers among students during 2006, compared with last year s ranking. Company/Org. Ranking 2006 Ranking 2005 Company/Org. Ranking 2006 Ranking 2005 BMW Group 1 1 Siemens Management Consulting (SMC) 26 - Porsche 2 2 KPMG 27 36 Auswärtiges Amt 3 5 Sony 28 34 Lufthansa 4 6 Bain & Company 29 17 McKinsey & Company 5 3 Nestlé 30 33 adidas 6 7 Bosch 31 16 Audi 7 8 SAP 32 28 BCG (The Boston Consulting Group) 8 10 JPMorgan 33 43 DaimlerChrysler 9 4 Beiersdorf 34 20 Siemens 10 9 Deutsche Bundesbank 35 32 L'Oréal 11 12 EADS 36 25 IKEA 12 11 Tchibo 37 127 Procter & Gamble 13 23 Unilever 38 30 European Central Bank (EZB) 14 15 IBM 39 37 Bertelsmann 15 13 GfK 40 148 Deutsche Bank 16 14 Nokia 41 56 TUI (World of TUI) 17 29 Microsoft 42 47 Fraunhofer-Gesellschaft 18 42 Fraport 43 41 Goldman Sachs 19 35 Allianz 44 31 Coca Cola Erfrischungsgetränke AG 20 24 Kraft Foods 45 49 PricewaterhouseCoopers 21 21 Credit Suisse 46 60 Axel Springer Verlag 22 40 Peek & Cloppenburg 47 - Ernst & Young 23 22 UBS 48 68 Volkswagen 24 26 E.ON 49 69 Roland Berger 25 27 KfW Bankengruppe 50 129 The complete ranking list can be found in the appendix, at the end of the report.

MARKET POSITION 36 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Rankings - Top 50 Engineering & Science Below is the ranking list of companies that students perceive as ideal employers. This list shows the Top-50 highest-ranked employers among students during 2006, compared with last year s ranking. Company/Org. Ranking 2006 Ranking 2005 Company/Org. Ranking 2006 Ranking 2005 Fraunhofer-Gesellschaft 1 4 Nokia 26 21 BMW Group 2 1 Hewlett-Packard 27 27 Porsche 3 7 IKEA 28 45 Siemens 4 2 Novartis 29 47 Audi 5 6 adidas 30 29 DLR (Deutsches Zentrum für Luft- und Raumfahrt) 6 98 Philips 31 35 IBM 7 9 RWE 32 38 EADS 8 8 Hochtief 33 30 Bosch 9 5 Carl Zeiss 34 26 DaimlerChrysler 10 3 MTU Friedrichshafen 35 - Lufthansa 11 10 BCG (The Boston Consulting Group) 36 59 Auswärtiges Amt 12 14 Beiersdorf 37 41 Bayer 13 13 Shell 38 69 Volkswagen 14 12 Deutsche Bahn 39 32 BASF AG 15 18 ZF Friedrichshafen 40 34 Microsoft 16 22 ABB 41 36 ThyssenKrupp 17 31 JENOPTIK 42 - Infineon Technologies 18 17 EnBW Energie Baden-Württemberg 43 - Sony 19 20 Dräger 44 - SAP 20 42 Fraport 45 63 MAN 21 39 Nestlé 46 64 Roche 22 33 Linde 47 84 AMD Saxony 23 16 Boehringer Ingelheim 48 - E.ON 24 28 Siemens Management Consulting (SMC) 49 - McKinsey & Company 25 37 Coca Cola Erfrischungsgetränke AG 50 53 The complete ranking list can be found in the appendix, at the end of the report.

MARKET POSITION 37 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Ranking, High Achievers - Business Below is the ranking list of which companies high-performing students perceive as ideal employers (for more information on the definition High Achievers, see section Student Profile. Ranking Percent Ideal ranking BMW Group 1 19,77% 1 Auswärtiges Amt 2 19,14% 3 McKinsey & Company 3 17,95% 5 Porsche 4 17,03% 2 BCG (The Boston Consulting Group) 5 16,89% 8 Lufthansa 6 13,79% 4 adidas 7 11,68% 6 Audi 8 10,84% 7 Siemens 9 9,22% 10 DaimlerChrysler 10 9,01% 9 Bertelsmann 11 8,80% 15 Bain & Company 12 8,09% 29 IKEA 12 8,09% 12 Fraunhofer-Gesellschaft 14 7,81% 18 European Central Bank (EZB) 15 7,74% 14 Roland Berger 16 7,32% 25 Deutsche Bank 17 7,11% 16 Goldman Sachs 17 7,11% 19 Procter & Gamble 19 6,90% 13 L'Oréal 20 6,33% 11

MARKET POSITION 38 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Ranking, High Achievers - Engineering & Science Below is the ranking list of which companies high-performing students perceive as ideal employers (for more information on the definition High Achievers, see section Student Profile. Ranking Percent Ideal ranking Fraunhofer-Gesellschaft 1 26,79% 1 BMW Group 2 25,26% 2 Porsche 3 23,72% 3 Siemens 4 21,43% 4 Audi 5 17,86% 5 EADS 6 16,71% 8 DLR (Deutsches Zentrum für Luft- und Raumfahrt) 7 16,45% 6 Bosch 8 16,20% 9 DaimlerChrysler 9 15,18% 10 IBM 10 12,12% 7 Auswärtiges Amt 11 10,84% 12 Lufthansa 12 8,80% 11 McKinsey & Company 13 7,27% 25 BCG (The Boston Consulting Group) 14 6,38% 36 Volkswagen 14 6,38% 14 SAP 16 5,99% 20 BASF AG 17 5,61% 15 Microsoft 17 5,61% 16 ThyssenKrupp 19 5,36% 17 Infineon Technologies 20 5,23% 18

MARKET POSITION 39 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Ranking, First Choice - Business This table shows the companies that the students most frequently selected as their first choice ideal employer. In the questionnaire, the students are asked to rank their top 5 ideal employers. Ranking Percent Ideal ranking Auswärtiges Amt 1 13,08% 3 adidas 2 11,68% 6 Audi 3 9,33% 7 BMW Group 4 6,59% 1 BCG (The Boston Consulting Group) 5 5,10% 8 Bain & Company 6 3,22% 29 Axel Springer Verlag 7 3,18% 22 Allianz 8 2,41% 44 Accenture 9 1,99% 61 Bertelsmann 10 1,95% 15 Deutsche Bank 11 1,84% 16 DaimlerChrysler 12 1,74% 9 Beiersdorf 13 1,61% 34 BASF AG 14 1,49% 58 Bosch 15 1,33% 31 Coca Cola Erfrischungsgetränke AG 16 1,30% 20 A.T. Kearney 17 1,18% 83 Aldi Süd 18 1,17% 77 McKinsey & Company 19 1,10% 5 Bahlsen 20 1,03% 68

MARKET POSITION 40 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Ranking, First Choice - Engineering & Science This table shows the companies that the students most frequently selected as their first choice ideal employer. In the questionnaire, the students are asked to rank their top 5 ideal employers. Ranking Percent Ideal ranking Audi 1 14,89% 5 BMW Group 2 9,31% 2 Auswärtiges Amt 3 7,17% 12 BASF AG 4 4,98% 15 DLR (Deutsches Zentrum für Luft- und Raumfahrt) 5 4,75% 6 Bosch 6 4,61% 9 AMD Saxony 7 4,06% 23 Bayer 8 3,49% 13 adidas 9 3,30% 30 Fraunhofer-Gesellschaft 10 3,12% 1 ABB 11 2,81% 41 DaimlerChrysler 12 2,03% 10 EADS 13 1,75% 8 BCG (The Boston Consulting Group) 14 1,52% 36 Accenture 15 1,29% 75 Carl Zeiss 16 1,14% 34 E.ON 17 1,13% 24 Adam Opel 18 1,06% 80 Siemens 19 1,06% 4 Porsche 20 0,96% 3

MARKET POSITION 41 2006 UNIVERSUM GRADUATE SURVEY Potential Applicants Ranking - Business The table below lists ideal employers which have the best ratio of students who also have, or will, apply to these companies. Ranking Percent Ideal ranking BMW Group 1 16,91% 1 Porsche 2 14,00% 2 Lufthansa 3 11,73% 4 McKinsey & Company 4 10,49% 5 BCG (The Boston Consulting Group) 5 10,33% 8 Audi 6 9,91% 7 DaimlerChrysler 7 8,77% 9 Auswärtiges Amt 8 7,60% 3 Siemens 9 7,55% 10 adidas 10 7,46% 6 L'Oréal 11 6,28% 11 Deutsche Bank 12 5,78% 16 Procter & Gamble 13 5,68% 13 PricewaterhouseCoopers 14 5,68% 21 Bertelsmann 15 5,12% 15 Goldman Sachs 16 5,08% 19 Roland Berger 17 4,99% 25 Bain & Company 18 4,94% 29 IKEA 19 4,92% 12 Bosch 20 4,43% 31

MARKET POSITION 42 2006 UNIVERSUM GRADUATE SURVEY Potential Applicants Ranking - Engineering & Science The table below lists ideal employers which have the best ratio of students who also have, or will, apply to these companies. Ranking Percent Ideal ranking BMW Group 1 20,29% 2 Siemens 2 19,76% 4 Porsche 3 16,32% 3 Audi 4 15,52% 5 Bosch 5 12,30% 9 Fraunhofer-Gesellschaft 6 12,30% 1 EADS 7 11,92% 8 DaimlerChrysler 8 10,70% 10 Lufthansa 9 8,19% 11 DLR (Deutsches Zentrum für Luft- und Raumfahrt) 10 7,85% 6 IBM 11 7,12% 7 Bayer 12 5,60% 13 ThyssenKrupp 13 5,48% 17 Volkswagen 14 5,48% 14 BASF AG 15 5,16% 15 MAN 16 4,65% 21 Microsoft 17 3,98% 16 SAP 18 3,81% 20 E.ON 19 3,29% 24 RWE 20 3,21% 32

MARKET POSITION 43 2006 UNIVERSUM GRADUATE SURVEY Ideal Employer Rankings - Universität Passau Below is the ranking list of companies that students perceive as ideal employers. This list shows the Top-20 highest-ranked employers among students during 2006, compared with last year s ranking. Ranking Percent BMW Group 1 43% IBM 2 32% Siemens 3 30% Fraunhofer-Gesellschaft 4 27% Microsoft 5 24% Audi 6 21% DLR (Deutsches Zentrum für Luft- und Raumfahrt) 7 18% SAP 7 18% Auswärtiges Amt 9 15% Sony 9 15% Infineon Technologies 11 14% Porsche 11 14% EADS 13 12% Nokia 13 12% Lufthansa 15 11% DaimlerChrysler 16 10% Accenture 17 8% Hewlett-Packard 17 8% AMD Saxony 19 7% adidas 20 6%

MARKET POSITION 44 2006 UNIVERSUM GRADUATE SURVEY Potential Applicants Ranking - Universität Passau The table below lists ideal employers which have the best ratio of students who also have, or will, apply to these companies. Ranking Percent BMW Group 1 35% Microsoft 2 20% Siemens 3 19% IBM 4 15% Audi 5 13% Fraunhofer-Gesellschaft 5 13% SAP 5 13% Auswärtiges Amt 8 11% DLR (Deutsches Zentrum für Luft- und Raumfahrt) 9 9% Accenture 10 7% Lufthansa 10 7% Nokia 10 7% Porsche 10 7% Bosch 14 6% DaimlerChrysler 14 6% EADS 14 6% Infineon Technologies 14 6% adidas 18 4% AMD Saxony 18 4% BCG (The Boston Consulting Group) 18 4%

EMPLOYER IMAGE 45 2006 UNIVERSUM GRADUATE SURVEY EMPLOYER IMAGE Two things that will not bring success are thinking only about the employer branding strategy in the short-term and making the image different to the company s established corporate image. An Employer Brand has to be clear, unique and special, but above all, it has to be true. (Lars Gejrot, Head of Human Resources, IKEA) An Employer Brand consists of values, associations and offerings that characterize the perceptions of the company as an employer. As in consumer branding, the characteristics forming the brand image can be influenced through communication with the target groups, in this case the students you want to attract, recruit and retain. The foundation of the communication content is the Employer Value Proposition (EVP), i.e. the core of a company s offerings to their target groups. The following chapter will give you an understanding of the students preferences and the company s current employer image. Combined with the information from previous chapters, these factors will help employers develop an EVP that leads to controlled, clear and consistent communication.

EMPLOYER IMAGE 46 2006 UNIVERSUM GRADUATE SURVEY The Basic Contents of the Employer Value Proposition The starting point of defining the employer core values is to identify the potential ideal employees, i.e. the target groups. What types of potential employees does the company want to attract, recruit and retain? Once deciding on the target group, the employer must find out what values and factors triggers and attracts this group. What should an ideal employer offer and be associated with in order to be the employer of choice for this specific target group? A sound and logical start is to make sure the company fulfils the basic needs (i.e. the hygiene factors) of the targeted student group. This research should focus on what is regarded as attractive and important on an overarching level, when choosing a future ideal employer. It is also possible to go more in-depth into related areas like preferred compensation package etc. Finding out what factors are considered necessary, the basic foundation of the EVP is stated. Exploring those aspects is necessary in order to keep up with and benchmark against other recruitment competitors on the market. But this is not enough to generate a great core value message. These factors/values must be defined, but they do not help in differentiating the employer in comparison to competitors! To find the employer strengths The next crucial step in helping the employer finding differentiating values is to point out their own important strengths. By comparing the important aspects (most attractive offers and associations, i.e. image factors) stated by the target group, with the perceived image of the own company, strengths and weaknesses can be addressed. In other words, by visualizing to what extent the students expectations and the company image matches ( synchronization of image ), values and characteristics that should be improved and emphasized can be pinpointed. Showing the unique aspects of the employer Once the strengths are visualized it is time to pick out the factors/values that are both attractive and differentiating compared to the surrounding competitive environment. The defined core values should then be matched with the business strategy and other values and visions. One way to make the matching process work in an often diverse and multicultural business environment is to think global and act local, i.e. to define an overarching EVP and then slightly adapt that core message to the different local markets, without loosing the core values.