the cacee campus hire salary survey 2007introduction researching the campus hire market welcome to...

The CACEE Campus Hire Salary Survey 2007

All information contained in this report is believed to be correct and unbiased, but the publisher does not accept responsibility for any loss arising from decisions made upon this information.

© High Fliers Research Limited and the Canadian Association of Career Educators and Employers 2007. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher.

Survey produced for CACEE by:

High Fliers Research LtdT: +44-20-7428-9000E: [email protected]: www.highfliers.co.uk

Canadian Association of Career Educators and EmployersT: 416-929-5156E: [email protected]: www.cacee.com

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Executive Summary 5

1. Introduction 7

Researching the Graduate Market

Survey Methodology

Participating Employers

2. New Graduate Positions 9

Profiling New Graduate Positions in 2007

Changes in New Graduate Positions in 2008

Shortfalls in Graduate Recruitment

Sources of New Graduate Hires

3. Graduate Starting Salaries 21

Profiling Graduate Starting Salaries in 2007

Premiums and Bonuses

Changes in New Graduate Salaries and the Outlook for 2009

4. Co-operative Education and Internship Hires 29

Previous Experience

Summer Hires

Co-op or interns

5. Summary 37

Summary Tables

Contents


The Canadian Association of Career Educators and Employers

The Canadian Association of Career Educators and Employers (CACEE) is a national non-profit partnership of employer recruiters and career services professionals. Our mission is to provide authoritative information, advice, professional development opportunities and other services to employers, career services professionals, and students.

CACEE’s purpose is to help career service professionals and employers have access to strong professional networks and professional development opportunities. CACEE knows how to provide this support to our members, and relies on their ongoing input to improve and strengthen the association. Member feedback leads the work of CACEE’s committees and board as well as the specific goals of each CACEE staff member.


Executive Summary

About the SurveyThe CACEE Campus Hire Salary Survey 2007 is based on research conducted for CACEE by High Fliers Research with 58 graduate employers during August 2007. The survey is produced to provide CACEE members with the very latest market information on:

Salary levels for new graduates starting work in 2007

Number of positions for graduates commencing work in 2007

Co-op and internship positions in 2007

New Graduate PositionsThe survey shows that the number of graduate vacancies on offer from employers is decreasing slightly:

Graduate positions are set to decrease by 5.6% in 2008, compared to the numbers recruited in 2007.

The number of positions has remained the same in most industries.

The accounting and professional services firms are the largest recruiters – just over one fifth of all 2007 positions – and are set for a modest increase for 2008 start dates.

Other major recruiters in 2007 are financial services or banking (with a small increase for 2008) and oil or gas extraction (reducing graduate numbers for 2008).

By job function, the most positions in 2007 are in operations or management with nearly one quarter of total positions available in this career area.

The median number of new graduate positions in 2007 is 21.

Two-thirds of organizations plan to keep their 2008 numbers the same as the previous year.

Graduate Starting SalariesThe survey shows that starting salaries are remaining static:

90 per cent of employers do not expect to change their starting salary for 2008 compared to last year.

The median graduate starting salary is $45,000.

The highest starting salaries in 2007 are for positions in capital markets or investment banking, oil or gas extraction, financial services or banking.

The highest median starting salary, by region is $49,200 for Québec.

By business function or job area, the highest median starting salaries are in research and development, capital markets or investment banking, software engineering, and chemical engineering.

The highest premiums are paid for those with an MBA.

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While only 18 per cent of employers offer a starting work bonus, the median bonus on offer in 2007 is $5,000.

The median relocation allowance for 2007 is $2,300.

Just over half of employers expect a ‘cost of living’ increase for 2008 salaries.

Co-operative Education and InternshipsThe survey shows that candidates with previous experience are very popular with most employers:

90% of new graduate hires in the oil or gas extraction industry had prior experience with the organization.

IT hardware or software and consumer goods industries are the least likely to recruit new graduate hires with previous experience in the organization.

Half of new graduate hires in Québec had prior experience with their employer.

One sixth of summer hire positions are available in the financial services or banking industry.

The Northwest territories had the highest median number of summer hires with 25.

Nearly one third of co-op or internship positions were available in 2007 within the financial services or banking industry.

The highest median number of co-ops or internships was 25 in Ontario.

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Chapter 1

Introduction

Researching the Campus Hire MarketWelcome to the CACEE Campus Hire Salary Survey 2007, the definitive study of employers and their graduate hires and salaries. The survey is the main source of information about new graduate salaries and number of positions available. It provides up-to-the-minute insights into the latest graduate market conditions, along with benchmarking of recruitment practices.

This report examines the number of new graduate hires, as well as the salaries, bonuses and premiums offered by recruiters. It also explores the number of co-operative education and internship hires, and the expected levels of recruitment for the coming years.

The CACEE Campus Hire Salary Survey 2007 is carried out on behalf of CACEE by the specialist student and graduate research company, High Fliers Research. High Fliers Research also produces employer surveys in Australia, New Zealand, South Africa and the United Kingdom.

Survey MethodologyResearch for The CACEE Campus Hire Salary Survey 2007 took place in July and August 2007, using an online questionnaire accessed via the CACEE website. The questionnaire contained 15 questions about new graduate hires and salaries, and co-operative and internship positions.

Questions were specifically designed so that the survey results can be analysed by employers’ industries or business sectors, location, and by the career area or business function into which their graduates are recruited.

Participating Employers

High Fliers Research contacted employers to participate in The CACEE Campus Hire Salary Survey 2007. The online questionnaire was live for five weeks during July and August 2007.

A total of 58 employers completed the questionnaire, those organizations who allowed their name to be displayed include:

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AccentureBDO Dunwoody LLPBerris ManganCameco CorporationCanadian Pacific Canadian Tire Corporation Ltd.Celestica Inc.CIBCCPP Investment BoardDeloitteDevon CanadaDiavik Diamond Mines Inc.EnCana CorporationEnterprise Rent-A-CarFuller Landau Capital Corporationn Inc.GE CanadaGM of Canada Ltd.Gordon Food ServiceGrant Thornton LLPHalliburtonHydro One Networks Inc.Imperial Oil LimitedImperial Tobacco LimitéeMerck FrosstMerrill LynchMosaic Sales SolutionsNaylor-McLeod Group LimitedNOVA ChemicalsNuance CommunicationsOntario Power GenerationOntario Public ServicePetro-CanadaPMC-SierraPotashCorpProcter & Gamble Inc.RBC Financial GroupResearch in Motion LimitedRowan Williams Davies & Irwin Inc.RSM Richter LLPSAP CanadaSaskatchewan Tourism Education CouncilSiemensTalisman Energy Inc.TD Canada TrustThe Southwestern CompanyUrban Systems LtdYellow Pages Group

IntroductionThe CACEE Campus Hire Salary Survey 2007 examined the graduate hires that employers have been recruiting for during the current year, compared to the year ahead. Employers were asked to state the number of positions they were recruiting for in 2007, typically for start dates in early 2008. Organizations were also asked to provide the number of graduates who were actually hired this year (as part of the 2006 recruitment season to start work in 2007).

Employers were asked to report on the total number of positions, as well as detailing them by location and job function. This allows vacancies to be analysed both by geographical region and business function for which this recruitment takes place. Analysis of this kind is particularly important for the Canadian marketplace as many employers recruit for specific regions and want to understand the trends in these local markets.

Results by job function are primarily used by organizations who recruit new graduates into a wide range of business functions and career areas, irrespective of the organization’s main role. For example, engineering companies who recruit engineering and science graduates will also hire graduates for IT, marketing, HR and finance positions.

Throughout this chapter, the results refer to graduate positions in 2007 which relates to candidates recruited during 2006 to start work in 2007. As particularly high or low numbers of positions can distort averages, the survey uses median values for national figures and total positions to compare across sectors.


Chapter 2

New Graduate Positions

Key FindingsThe survey shows that the number of graduate vacancies on offer from employers is decreasing slightly:

Graduate positions are set to decrease by 5.6% in 2008, compared to the numbers recruited in 2007.

The number of positions has remained the same in most industries.

The accounting and professional services firms are the largest recruiters – just over one fifth of all 2007 positions – and are set for a modest increase for 2008 start dates.

Other major recruiters in 2007 are financial services or banking (with a small increase for 2008) and oil or gas extraction (reducing graduate numbers for 2008).

By job function, the most positions in 2007 are in operations or management with nearly one quarter of total positions available in this career area.

The median number of new graduate positions in 2007 is 21.

Two-thirds or organizations plan to keep their 2008 numbers the same as the previous year.

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Source - High Fliers Research

Chart 2.1 Graduate positions in 2007

�-10 vacancies �%

51-100 vacancies 12%

No vacancies 0%

1-5 vacancies 21%

11-20 vacancies 1�%

21-30 vacancies 1�%

More than 100 vacancies 12%

Percentage of graduate employers

0 10 20 30 40 50

31-50 vacancies �%

Median - 21 vacancies

Profiling New Graduate Positions in 2007Graduate positions in the CACEE Campus Hire Salary Survey 2007 are measured by the type of organization - the primary business sector or industry that the organization belongs to, by the job function or type of work they relate to, and the region or territory within Canada that the position is based in.

The organizations who are recruiting more than 100 graduates in 2007 come from six separate industry groups. This suggests that the largest recruiters are not bound by one particular industry, rather there are several large organizations across the country who are all recruiting sizeable numbers of graduates.

The median number of vacancies recorded by employers participating in the 2007 research is 21 (see Chart 2.1).

Nearly two thirds of new positions recorded in the CACEE Campus Hire Salary Survey 2007 were based in Ontario (see Chart 2.2). Alberta and Québec account for more than one fifth of places between them while six per cent of positions were to be filled in British Columbia.

Newfoundland and Labrador, the Northwest Territories, Nunavat, Prince Edward Island and the Yukon had very small numbers of new positions available for gradautes.



Chart 2.2 Graduate positions by region 2007

British Columbia

Québec �%

Manitoba

Saskatchewan

New Brunswick

Nunavat

Northwest Territories

Ontario �5%

Newfoundland & Labrador

Nova Scotia

Alberta 13%

Prince Edward Island


�0�040200 100

Yukon

�%

3%

1%

1%

1%

<1%

<1%

<1%

<1%

<1%



Chart 2.3 Graduate positions by industry 2007

Consumer goods 3.�%

Financial services or banking 11.0%

Mining 0.2%

Retail 1.�%


20151050 25

Accounting or professional services

21.1%

Oil or gas extraction 5.4%

Capital markets or investment banking

1.4%

IT hardware or software 1.2%

Engineering or industrial 0.�%

Educational services 0.1%

Profiling New Graduate Positions in 2007 (cont.)Over a fifth of all positions reported amongst survey participants were at accountancy and professional services firms (see Chart 2.3). The next largest recruiters were financial services or banking and oil or gas extraction. Some of the lowest numbers were recorded in educational services, mining and engineering or industrial sectors. The positions available in these sectors equates to just under one per cent of the total positions on offer. Not all industries are represented here as there are many organizations that do not fit into a common industry group, or who could be identifiable by reporting their results separately.

Graduate positions in 2007 were dominated by operations or management and accountancy or professional services firms (see Chart 2.4). Over two-fifths of positions were available within these areas. Nursing, financial services and consulting all have sizeable numbers of positions to fill when compared to retail management, civil engineering and mining engineering, which have a combined total of less than one per cent. Several positions do not easily fit into one of the 25 categories provided in the survey and consist of ‘other’ functions such as surveyors, geology, and landscape architecture.



Chart 2.4 Graduate positions by business function or career area in 2007

Financial services �.�%

Nursing 7.�%


3.0%

Consulting (IT or management) 4.3%

Mechanical engineering 2.7%

Accountancy or professional services

1�.7%


20151050 25

Operations or management 24.3%

Marketing 2.1%

Customer services 2.0%

Sales 1.5%

Chemical engineering 1.2%

Electrical engineering 1.1%

Logistics 1.0%

IT or IS 0.�%

Administrative or support services

0.�%

Human resources 0.5%

Software engineering 0.5%

Project management 0.5%

Risk management 0.4%

Research and development 0.3%

Mining engineering 0.3%

Civil engineering 0.3%

Retail management 0.2%


Changes in New Graduate Positions in 200�The number of graduate positions is set to decrease slightly for 2008. The overall number of positions recorded in the survey suggests a reduction in positions by 5.6 per cent. Nearly two-thirds of survey participants recorded no change in positions compared to 2007 (see Chart 2.5).

Only four per cent of organizations expect to be recruiting more than ten extra graduates for 2008 compared to this year. All these organizations come from separate industry areas and are not necessarily the largest companies in their sectors.

Nearly one quarter of survey participants recorded a reduction in their graduate positions for 2008. These organizations come from eight separate business areas suggesting the reduction in positions is a response to individual demand, rather than an industry-wide issue.

With a slight reduction in the overall number of graduate positions, it is not surprising to see so many regions and territories remaining static between 2007 and 2008. Nine of the thirteen regions of Canada reported no change in the number of positions, or because they had such small numbers to begin with any change that was recorded would be misleading to the results.

Ontario, which had the highest number of graduate positions in 2007, sees the largest decrease – more than seven per cent reduction in the number of positions available for graduates in 2008 (see Chart 2.6). Alberta, Saskatchewan and Québec also see modest decreases when compared to 2007.

1-10 fewer vacancies 12%

No change in vacancies �5%

1-10 extra vacancies �%


Chart 2.5 How employers’ graduate vacancy levels will change for 200�


0 20 40 �0 �0 100

11-25 fewer vacancies 5%

More than 25 fewer vacancies 5%

More than 25 extra vacancies 2%

11-25 extra vacancies 2%



Chart 2.6 Change in new graduate positions by region for 200�

Prince Edward Island NO CHANGE

AlbertaDOWN 3.7%

Nova Scotia NO CHANGE

Newfoundland & Labrador NO CHANGE

OntarioDOWN 7.�%

Northwest Territories NO CHANGE

Nunavat NO CHANGE

New Brunswick NO CHANGE

Yukon NO CHANGE

SaskatchewanDOWN 3.3%

Manitoba NO CHANGE

British Columbia NO CHANGE

Percentage change

1050510 15

QuébecDOWN 1.0%

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Chart 2.7 Change in new graduates positions by industry for 200�

Retail UP 42.2%

Mining NO CHANGE

Engineering or industrial NO CHANGE

IT hardware or software NO CHANGE


NO CHANGE

Accounting or professional services

UP 15.2%

Percentage change

403020100 50-10-20

Oil or gas extractionDOWN �.5%

Financial services or banking UP 1.2%

Consumer goodsDOWN 14.4%

Changes in New Graduate Positions in 200� (cont.)The decrease in overall positions is reflected in decreases or unchanged numbers in most industries or business sectors (see Chart 2.7). Retail companies reported the biggest increase, with a rise of 42 per cent for graduates recruited into 2008 start dates. However, positions in the retail sector remain small so even slight changes can have a marked impact on overall percentages. Accounting or professional services firms experienced healthy increases, looking to take on at least 15 per cent more graduates. The consumer goods industry is expecting to recruit one sixth fewer graduates than this year, while the oil and gas arena expects numbers to drop by nearly ten per cent.

Most business functions have seen a decrease or no change in vacancies (see Chart 2.8). Retail management, logistics, and risk management roles have the largest increases from the previous year, with each function reporting a rise in vacancies of at least 30 per cent. Seven business functions expect to remain static from 2007 to 2008. Six job functions or career areas are set to reduce the number of positions in 2008, however it should be noted that many of these functions have a very small number of positions available so a small alteration in numbers can lead to dramatic percentage differences.

Chart 2.8 Change in new graduate positions by business function or career area

Civil engineering NO CHANGE

Chemical engineering NO CHANGE

IT or IS NO CHANGE

SalesDOWN 57.5%

Risk management UP 30.0%

Purchasing NO CHANGE

Project management NO CHANGE

Retail management UP �0.0%

Research & development NO CHANGE

Software engineering NO CHANGE

Logistics UP 3�.5%

Percentage change

�0300-30-�0 �0



UP 14.1%

Administrative support or management

UP 4.�%

Customer service UP 3.7%

Electrical, electronic or computer engineering UP 3.4%

Mechanical or industrial engineering

UP 2.7%

Consulting UP 1.7%

MarketingDOWN 1.�%

Financial services or bankingDOWN 2.7%


DOWN 3.�%

Human resourcesDOWN 7.1%

Mining engineeringDOWN 14.3%



Page 1�

Sources of New Graduate HiresSurvey participants for the CACEE Campus Hire Salary Survey 2007 were asked where their graduate hires were sourced from. This information is then analysed by region or territory to determine how each area differs across Canada.

All regions recruited the majority of their new graduates from the undergraduate level (see Table 2.9). Those in Saskatchewan were the most likely to source new graduates from the undergraduate population with 70 per cent of positions being filled by this group. Organizations in Newfoundland and Labrador, British Columbia and Manitoba were the most likely to fill their positions from outside the undergraduate pool.

Manitoba had the highest levels of new recruits from the college level, with 42 per cent of new graduate positions being filled by this group of candidates. Québec and Ontario are the least likely to source people from the college level as only one fifth of positions were offered to this population. Québec recruited 17 per cent of it’s new positions from the postgraduate population, with Ontario and Newfoundland and Labrador having similarly high numbers coming from this area. There were four regions which had so few positions available that reporting on where they sourced the candidates from would have been misleading.

Alberta

British Columbia

Manitoba

New Brunswick

Newfoundland & Labrador

Northwest Territories

Nova Scotia

Nunavat

Ontario

Prince Edward Island

Québec

Saskatchewan

Yukon

-

1%

-

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-

-

-

-

-

-

-

-

-

27%

32%

42%

37%

33%

-

30%

-

21%

-

20%

30%

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Table 2.9 Source of new graduates by region

69%

57%

58%

60%

54%

-

65%

-

64%

-

63%

70%

-

4%

10%

-

3%

13%

-

5%

-

15%

-

17%

-

-

OtherCollege Undergraduate Postgraduate

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Industry competition ��%

Starting salaries not competitive 50%

Location of roles not attractive 0%

Applicants lacked correct skills �0%

Budget or staff shortages 40%

Applicants lacked correct degree 0%

Change in business requirements 57%


Chart 2.10 Reasons for Shortfalls in Graduate Recruitment in 2007

Percentage of graduate employers with recruitment shortfalls

�0�040200 100

Applicants lacked experience 50%

Shortfalls in Graduate RecruitmentSurvey participants were asked about shortfalls they may have experienced while recruiting graduates to fill their positions. Nearly nine out of ten organizations surveyed confirmed they had filled all their positions for 2007. In total, less than two per cent of the vacancies on offer in 2007 had not been filled by the time the survey took place in August.

The largest shortfalls were experienced in operations or management, sales and mechanical or industrial engineering. There were no shortfalls reported for actuarial work, civil engineering or human resources.

Survey participants were asked what the reasons were for any shortfalls they experienced. The primary drivers were industry competition, lack of applicants with the right skills and a change in business requirements (see Chart 2.10).

While two thirds of organizations who had not filled all their vacancies reported that industry competition was a key reason for not attracting enough successful candidates, none felt that applicants lacked the correct degree or that it was the location of the roles which meant the search for applicants was still continuing.

Half of the organizations reporting shortfalls recorded that applicants lacked the required experience or that their starting salaries were not competitive enough.


Outlook for 200�All survey participants were asked about the 2008 graduate recruitment round, and the vacancy levels they are aiming to fill for 2009.

The results are quite positive, with many employers expecting to have more positions available in 2009 compared to the previous year (see Chart 2.11).

Four per cent of organizations expect to have many more positions on offer in 2009 compared to 2008. More than a third feel there will be a few more positions available with similar numbers expecting their recruitment figures to remain static moving into 2009.

No organization is expecting to reduce the number of positions they have on offer but there was one quarter of survey participants who are unsure what the future would hold at the time the survey took place in August 2007.


Chart 2.11 Changes in graduate positions for 200�


�0�040200 100

Many more positions compared to 200�

3�%A few more positions compared to 200�

3�%Similar number of positions compared to 200�

0%A few less positions compared to 200�

25%Don’t know

0%Many fewer positions compared to 200�

4%


IntroductionThis chapter of The CACEE Campus Hire Salary Survey 2007 looks at the starting salaries offered to new graduates beginning work in 2007. Participating employers were asked to give their likely starting salaries (exclusive of benefits) that will be paid to graduates recruited in 2006 to start work in 2007.

Employers were asked to give details of variations paid to their graduates in different parts of their organization. Therefore, the information can be analysed by business function or career area that graduates are employed in, as well as the employer’s primary business sector or industry.

The survey uses ‘median’ salary levels as particularly high or low salaries distort an average starting salary. Throughout this chapter, the median value is calculated by taking the ‘mid-point’ salary for all the actual vacancies on offer, rather than that of each organization’s starting salaries. For example, to determine the median salary for seven different employers, who are offering 25 positions between them, the median salary is calculated as the 13th highest salary (the mid-point) from the 25 individual positions, rather than the 4th highest salary from the seven employers starting salaries.

All the results in this chapter refer to the starting salaries that are to be paid in 2007 – that is for those graduates who were recruited in 2006 to start work the following year. Any additional premiums that graduates receive are detailed separately, along with an account of any relocation allowance or bonuses that employers may provide.

Chapter 3

Graduate Starting Salaries

Key FindingsThe survey shows that starting salaries are remaining static:

90 per cent of employers do not expect to change their starting salary for 2008 compared to last year.

The median graduate starting salary is $45,000.

The highest starting salaries in 2007 are for positions in capital markets or investment banking, oil or gas extraction, financial services or banking.

The highest median starting salary, by region is $49,200 for Québec.

By business function or job area, the highest median starting salaries are in research and development, capital markets or investment banking, software engineering, and chemical engineering.

The highest premiums are paid for those with an MBA.

While only 18 per cent of employers offer a starting work bonus, the median bonus on offer in 2007 is $5,000.

The median relocation allowance for 2007 is $2,300.

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The CACEE Campus Hire Salary Survey 2007The CACEE Campus Hire Salary Survey 2007

Profiling Graduate Starting Salaries in 2007Salaries on offer to new graduates in 2007 vary considerably from organization to organization (see Chart 3.1). Just over a third of all positions on offer are for $40,000 or less. A third of new graduates can expect starting salaries from $40,001 - $50,000 for 2007. There are an impressive five per cent of positions which see graduates earning more than $60,000 for their first role.

By taking an average starting salary for each employer, the survey is able to provide an overview of the graduate marketplace. Seven organizations have an average salary on offer which is less than $35,000. This same group of employers also account for nearly six per cent of the positions on offer. Two organizations, from different industries have average starting salaries on offer in excess of $80,000. Half of all employers surveyed are offering average graduate starting salaries of $40,001 - $55,000. This same group of employers accounts for just over half of all new graduate positions on offer.

By geography there are significant differences in median starting salaries for new graduates starting in 2007 (see Chart 3.2). Québec, which accounts for nine per cent of the positions on offer, recorded the highest median starting salary of $49,200. New graduates employed in Manitoba, Nova Scotia, British Columbia, Saskatchewan and New Brunswick can expect salaries of $35,000. The number of positions on offer in Newfoundland and Labrador, Northwest territories, Nunavat, Prince Edward Island and the Yukon were too small to provide meaningful results.

$30,001 - $35,000 27%

$55,001 - $�0,000 10%

$30,000 or less 3%

$40,001 - $45,000 1�%

$45,001 - $50,000 1�%

$�0,001 - $�5,000 4%

$50,001 - $55,000 17%

Chart 3.1 Graduate starting salaries at Canadian employers in 2007

Median - $45,000


403020100 50

More than $�5,000 1%

$35,001 - $40,000 4%



Chart 3.2 Median graduate starting salaries by region 2007

British Columbia $35,000

Québec $4�,200

Manitoba $35,000

Saskatchewan $35,000

New Brunswick $35,000

Nunavat N/A

Northwest Territories N/A

Ontario $45,000

Newfoundland & Labrador N/A

Nova Scotia $35,000

Alberta $42,000

Prince Edward Island N/A

Median starting salary

$�0,000$45,000$30,000$15,0000 $75,000

Yukon N/A



Chart 3.3 Median graduate starting salaries by industry 2007

Chemicals or pharmaceuticals $43,400

Engineering or industrial $41,�00

Retail $30,000

Financial services or banking $55,000


$�5,000

Consumer goods $50,000


$45,000

Oil or gas extraction $5�,�00

Educational services $27,500


$�0,000$45,000$30,000$15,0000 $75,000

Mining $51,300

IT hardware or software $53,000

Profiling Graduate Starting Salaries by Industry and Job FunctionThe industry groups which have the highest median starting salary include capital markets or in-vestment banking, oil or gas extraction and financial services or banking – each of these industries have median starting salaries of $55,000 or more (see Chart 3.3).

The education and retail industries recorded the lowest median starting salaries – new graduates can expect to start on $30,000 or less.

Research and development, capital markets or investment banking, software engineering and chemical engineering command the highest median starting salaries, as each of these job func-tions has a median starting salary of $59,000 or more (see Chart 3.4).

Those starting in an operations or management or retail management position can expect one of the lowest starting salaries on offer – new graduates in these roles are being offered $35,000 or less. These positions account for nearly one quarter of places on offer in 2007.


Chart 3.4 Median graduate starting salaries by business function or career area in 2007

Human resources $42,000

Mechanical or industrial engineering

$5�,000

Administrative support or management

$40,000

Mining engineering $5�,000


$�0,000

Chemical engineering $5�,000

Customer service $40,000

Civil engineering $4�,000

Consulting $51,000

Accounting $45,000

Electrical, electronic or computer engineering

$55,000


$�0,000$45,000$30,000$15,0000 $75,000

Nursing $4�,000

Software engineering $5�,000

Financial services or banking $50,000

IT or IS $57,500

Logistics $45,000


Research and development $�4,000

Marketing $54,300

Operations or management $35,000

Project management $4�,000

Sales $45,000

Retail management $30,000

Risk management $55,000


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Premiums and BonusesVery few organizations pay a premium for postgraduate degrees, specific experience or specific degrees. Candidates with an MBA can expect the highest addition to their starting salary, with a median premium of nearly $10,000 (see Chart 3.5).

Other qualifications such as a postgraduate degree or a double degree provide premiums of $3,000 or more. No survey participant recorded offering a premium specifically for PhD degrees.

In a similar fashion to the wide variety of starting salaries, there is a wide range of bonuses on offer in 2007. However, relatively few employers are offering additional work bonuses. The survey found that just 18 per cent of recruiters are offering any form of bonus in 2007.

Bonuses include cash lump-sums, golden hellos, sign-on bonuses, and wardrobe allowances. Of those that provide a starting bonus, the median amount is $5,000 (see Chart 3.6). There were only two organizations who confirmed they pay a starting bonus of more than $10,000.

Typically the starting bonus is paid to candidates as soon as a graduate starts work while 12 per cent of organizations only pay it on completion of a probation period.

Nearly one quarter of employers provide a relocation allowance to new graduates. The amount of allowance is generally quite small, with the median being $2,300 (see Chart 3.7). Only three organizations recorded offering relocation allowances in excess of $5,000.

The relocation allowance is provided by 77 per cent of organizations once the graduate starts. Half of organizations provide it as a lump sum instead of tying it in with the salary.

Completed internal co-op or internship

$2,�00

Double degree $3,000

MBA $�,500

Specific degree or diploma $1,700

PhD $0

Postgraduate $4,000

Chart 3.5 Premiums paid by employers in 2007

Median premium paid

$5,0000 $10,000

Honours degree or diploma $2,500



Chart 3.6 Bonuses paid in 2007

Median - $5,000

Percentage of graduate employers providing relocation allowance

�0�040200 100

Median - $2,300

Chart 3.7 Relocation allowance paid in 2007

Percentage of graduate employers providing additional bonuses

�0�040200 100



RELOCATION ALLOWANCE

In addition to salary 50%

Repayable loan 0%

Payment is a lump sum 50%

When graduate starts 77%

On completion of probation 0%

When offer is accepted 23%

TYPE OF PAYMENT

BONUS

In addition to salary 30%

Repayable loan 0%

Payment is a lump sum 70%

When graduate starts ��%

On completion of probation 12%

When offer is accepted 0%

TYPE OF PAYMENT


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Changes in New Graduate Salaries & the Outlook for 200�Survey participants were asked about their 2007 starting salaries and the salaries they expect to provide in 2008. The results are quite flat, with 90 per cent of graduate recruiters not changing salaries for 2008 (see Chart 3.8).

2009 looks brighter as more than half of employers expect to increase their starting salaries by then (see Chart 3.9). Nearly half are planning a ‘cost of living’ rise. One in ten organizations are not planning to change their starting salaries moving into 2009. However more than a third or survey participants are unsure what their salaries will be in 2009.


Chart 3.9 Changes in starting salaries for 200�


�0�040200 100

0%A reduction from 200� salaries

35%Don’t know

10%No change from 200� salaries

44%A ‘cost of living’ rise in salaries

12%A rise above the ‘cost of living’

No change in salary levels �0%

A reduction in salaries

Up to a 2.5% rise in salaries 0%

Up to a 5% rise in salaries

More than 5% rise in salaries


Chart 3.8 How employers’ new graduate salaries will change for 200�


0 20 40 �0 �0 100

�%

2%

2%

�


IntroductionThis section of the CACEE Campus Hire Survey 2007 looks at students’ experiences prior to joining an employer as a graduate hire.

One area of previous experience which is reviewed in the survey is summer hires. These candidates are typically hired between the penultimate and final year for any length of time from weeks to months. Survey participants were asked how many summer hires they recruit each year and any particular challenges they are currently facing.

Organizations were questioned about co-op hires and interns, particularly around the number of positions available and whether or not they had filled all these positions by the time the survey took place.

The co-operative programme typically alternates between periods of academic study and practical work experience in an area of business which is directly appropriate to the students field of study. Most internships on offer at present are typically between 12 and 16 months in duration and form part of post-secondary study for many students.

Employers were asked to record how many of their 2007 graduate hires had worked in their organization prior to joining as a graduate hire in order to gain an understanding of how new graduates are sourced and which regions place greater emphasis on summer hires and co-op or internships.

Chapter 4

Co-operative Education and Internship Hires

Key FindingsThe survey shows that candidates with previous experience are very popular with most employers:

90% of new graduate hires in the oil or gas extraction industry had prior experience with the organization.

IT hardware or software and consumer goods industries are the least likely to recruit new graduate hires with previous experience in the organization.

Half of new graduate hires in Québec had prior experience with their employer.

One sixth of summer hire positions are available in the financial services or banking industry.

The Northwest territories had the highest median number of summer hires with 25.

Nearly one third of co-op or internship positions were available in 2007 within the financial services or banking industry.

The highest median number of co-ops or internships was 25 in Ontario.

•

•

•

•

•

•

•


Previous ExperienceSurvey participants were asked what percentage of their 2007 graduate hires had previous work experience within the organization. Most graduate hires who had previous experience were employed as a co-op or intern.

The vast majority of graduate hires who are recruited in the oil or gas extraction industry have had previous experience with their employer (see Chart 4.1). Those in the utilities and accountancy or professional services industries also see a high level of previous experience, with both sectors stating at least half of their graduate hires had worked in their organization prior to joining on a full-time basis.

Most organizations in the IT hardware or software, consumer goods and pharmaceutical or chemicals industries do not recruit many graduate hires with prior experience of the company. Less than one in ten graduate hires in the IT hardware or software sector have worked for the organization either as a co-op or intern.


Chart 4.1 2007 graduate hires with previous experience of the organization

Other 25%

Engineering or industrial 40%

Pharmaceutical or chemicals 2�%

Financial services or banking 45%

Utilities 5�%


33%

Consumer goods 15%


50%

Oil or gas extraction �0%


�0�040200 100

IT hardware or software �%

Manufacturing 37%



Chart 4.2 2007 graduate hires with previous experience of the organization

Prince Edward Island Minimal

Alberta 33%

Nova Scotia 11%

Newfoundland & Labrador 22%

Ontario 40%

Northwest Territories Minimal

Nunavat Minimal

New Brunswick 11%

Saskatchewan 34%

Manitoba 35%

Québec 50%

British Columbia 3�%

Yukon Minimal


�0�040200 100

Previous experience (cont.)The regions which are most likely to have graduate hires with previous experience in the organization are Québec and Ontario – with at least 40 per cent of graduate hires having worked in the company prior to joining full-time (see Chart 4.2). More than a third of graduate hires have some form of previous experience in Saskatchewan, Manitoba and British Columbia.

Those in New Brunswick or Nova Scotia are unlikely to have had previous experience with an organization before joining as a graduate hire. Due to the limited number of graduate positions available in the Yukon, Nunavat, Northwest Territories or Prince Edward Island, it is not possible to provide meaningful results about graduate hires with previous experience in these regions.


Summer HiresThe research results show that the financial services or banking industry has the largest number of summer hire positions available in 2007 – 16 per cent of all summer hire positions recorded in the survey belong to this sector (see Chart 4.3).

Both the manufacturing and retail industries have large proportions of the summer positions while they are least likely to be found in Engineering or industrial, automotive manufacturing or the media. Those companies who could be recognised if reported separately, or those which do not fit into one of the other industry areas have been grouped into the ‘other’ category.

The highest median number of summer hires can be found in the Northwest Territories and Ontario – both of which have median positions of more than 15 (see Chart 4.4). Those with the least number of hires include New Brunswick, Nova Scotia and Newfoundland & Labrador.

Those organizations who had not filled all their summer hire positions for 2007 stated that the main reasons for the shortfall were industry competition, budget or staff shortages and non-competitive starting salaries (see Chart 4.5).


Chart 4.3 Summer hires by industry for 2007

Retail �%

Utilities 7%

Financial services or banking 1�%

Other 2�%


�%

Automotive manufacturing 2%

Consumer goods 7%


4%

Oil or gas extraction 5%

Median summer hires by industry

20151050 25

Mining 3%

IT hardware or software 3%

Manufacturing �%

Media or information 2%

Engineering or industrial 1%



Chart 4.4 Summer hires by region 2007

Alberta �

Nova Scotia 2

Newfoundland & Labrador 3

Ontario 17

Northwest Territories 25

New Brunswick 1

Saskatchewan �

Manitoba 4

Québec 7

British Columbia 5

Median summer hires by region

20151050 25

Industry competition 75%

Starting salaries not competitive �7%


Applicants lacked correct skills 50%

Budget or staff shortages �7%


Change in business requirements 40%


Chart 4.5 Reasons for shortfalls in summer hires in 2007

Percentage of graduate employers with summer hire shortfalls

�0�040200 100

Applicants lacked experience 33%


Chart 4.6 Co-ops or interns by industry for 2007

Mining

Engineering or industrial

Oil or gas extraction 21%

Financial services or banking 30%

Pharmaceutical or chemical

Retail �%

Automotive manufacturing

Utilities 20%


Manufacturing 4%

Median co-op or interns by industry

403020100 50

Other 7%

IT hardware or software


3%

3%

2%

1%

1%

1%

Co-op or InternsThis year’s survey shows that the financial services or banking industry has the largest number of co-op or intern positions in 2007 – nearly a third of all the positions recorded in the survey belong to this sector (see Chart 4.6).

Oil or gas extraction and utilities have the next largest proportions of the co-op or intern positions while they are least likely to be found in accountancy or professional services, mining and engineering or industrial sectors. Companies which do not fit into one of the other industry areas have been grouped into the ‘other’ category.

The highest median number of co-op or internships can be found in Ontario and Nunavat – both of which have median positions of 10 or more (see Chart 4.7). Those with the least number of summer hires include Saskatchewan, Nova Scotia and Newfoundland & Labrador.

Most companies who had not filled all their co-op and intern positions stated that the main reasons were industry competition, lack of experienced applicants and budget or staff shortages (see Chart 4.8).

Industry competition ��%

Starting salaries not competitive 43%


Applicants lacked correct skills 43%

Budget or staff shortages 55%


Change in business requirements 2�%


Chart 4.8 Reasons for shortfalls in co-ops or internships in 2007

Percentage of graduate employers with co-op or intern shortfalls

�0�040200 100

Applicants lacked experience 5�%



Chart 4.7 Co-ops or interns by region 2007

Alberta 5

Nova Scotia 3

Newfoundland & Labrador 3

Ontario 25

Nunavat 10

New Brunswick 4

Saskatchewan 2

Québec �

British Columbia �

Median co-op or interns by region

20151050 25


Page 3�

Outlook for co-op and internships in 200�While most survey participants expect similar numbers of co-ops and interns for 2008, they were also asked about the number of co-op or intern positions they expect to have for 2009.

The results are very positive, with most employers expecting to have at least the same, if not more, positions available in 2009 compared to the previous year (see Chart 4.9). More than a quarter of survey participants expect a few more positions compared to 2008 while six per cent are planning many more positions.

For many organizations, the number of positions was not determined by the time the survey took place – one third of organizations do not know what their levels will be like for 2009.


Chart 4.9 Changes in co-op or internships for 200�


�0�040200 100

Many more positions compared to 200�

27%A few more positions compared to 200�

31%Similar number of positions compared to 200�

2%A few less positions compared to 200�

33%Don’t know

0%Many fewer positions compared to 200�

�%


Chapter 5

Summary

A view across countriesA comparison of data across countries is possible thanks to similar work with employers in South Africa (South African Graduate Recruiters Association), Australia (The Australian Association of Graduate Employers), the UK (The Association of Graduate Recruiters) and the USA (The National Association of Colleges and Employers).

Further informationAdditional information for each of these organizations can be found at:

South African Graduate Recruiters Association (SAGRA) www.sagra.org.za

The Australian Association of Graduate Employers (AAGE) www.aage.com.au

The Association of Graduate Recruiters (AGR) www.agr.co.uk

The National Association of Colleges and Employers (NACE) www.naceweb.org

–

67%

Varies

Up to 7.5%

Up 17.4%

92%

28

80%

£23,136

Up 2.9%

Up 16.7%

91%

21

84%

$45,700

Up 6.3%

Up 13.9%

86 - 90%

33

85%

R82,500

-

Up 4.3%

95%

Applications per vacancy

Average acceptance rate

Average salary

Change in salary

Change in vacancies

Retention after 1 year

�

Chart 7.1 Summary of percentage of total positions, median salaries, and changes

Accountancy or professional services 1�.7% p 14.1% $45,000Administrative or support services 0.�% p 4.�% $40,000Capital markets or investment banking 3.0% q 3.�% $�0,000Chemical engineering 1.2% tu No change $5�,000Civil engineering 0.3% tu No change $4�,000Consulting 4.3% p 1.7% $51,000Customer services 2.0% p 3.7% $40,000 Electrical engineering 1.1% p 3.4% $55,000Financial services or banking �.�% q 2.7% $50,000 Human resources 0.5% q 7.1% $42,000IT or IS 0.�% tu No change $57,500Logistics 1.0% p 3�.5% $45,000Marketing 2.1% q 1.�% $54,300Mechanical engineering 2.7% p 2.7% $5�,000Mining engineering 0.3% q 14.3% $5�,000Project management 0.5% tu No change $4�,000Research and development 0.3% tu No change $�4,000Retail management 0.2% p �0.0% $30,000Risk management 0.4% p 30.0% $55,000Sales 1.5% q 57.5% $45,000Software engineering 0.5% tu No change $5�,000

FUNCTION OR CAREER AREA

% change for 2008

median salary 2007

change for 2008

% of total positions

POSITIONS SALARY

Accounting or professional services firm 21.1% p 15.2% $45,000Capital markets or investment banking 1.4% tu No change $�5,000Consumer goods 3.�% q 14.4% $50,000Engineering or industrial 0.�% tu No change $41,�00Financial services or banking 11.0% p 1.2% $55,000IT hardware or software 1.2% tu No change $53,000Mining organization 0.2% tu No change $51,300Oil or gas extraction 5.4% q �.5% $5�,�00Retail 1.�% p 42.2% $30,000

TYPE OF ORGANIZATION% change for 2008

median salary 2007

change for 2008


POSITIONS SALARY


Alberta 13% q 3.7% $42,000British Columbia �% tu No change $35,000Manitoba 1% tu No change $35,000New Brunswick 1% tu No change $35,000Nova Scotia 1% tu No change $35,000Ontario �5% q 7.�% $45,000Québec �% q 1.0% $4�,200Saskatchewan 3% q 3.3% $25,000

REGION% change for 2008

median salary 2007

change for 2008


POSITIONS SALARY

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