the hiring of 2015 college graduates

SHRM Survey Findings: The Hiring of 2015 College Graduates

April 16, 2015

Definitions

The Hiring of 2015 College Graduates ©SHRM 2015 2

Introduction

The 2015 Hiring College Graduates Survey was administered by the Society for Human Resource Management (SHRM) to identify the prevalence of organizations hiring new college graduates in 2015. Among other topics, the survey also assessed reasons for not hiring new graduates, compensation offered to new graduates and recruitment methods used. When possible, 2015 data are compared with 2013 data.

DefinitionFor this survey, “2015 college graduates” refer to students earning an undergraduate degree (i.e., a four-year degree) or a graduate degree (e.g., M.S., M.A., MBA, doctoral degree) in 2015.

Key Findings

Have organizations hired 2015 college graduates as full-time, part-time or temporary/contract employees? One-fifth of respondents (20%) indicated their organizations hired 2015 college graduates to begin working after graduation, and 15% indicated they hired 2015 college graduates to begin working before graduation; almost two-thirds (65%) had not hired any 2015 college graduates yet. In comparison, more than two-fifths (41%) of respondents indicated hiring graduates in 2013, whereas more than half (58%) had not hired graduates that year. Additionally, larger organizations (i.e., those with 500 or more employees) were more likely to have hired 2015 college graduates to begin working after graduation than smaller organizations (i.e., those with less than 500 employees).

For what job categories are organizations hiring 2015 college graduates? More than two-thirds (69%) of the positions filled by 2015 college graduates were full-time positions; less than one-quarter were temporary/contract (11%) and part-time (17%).

On average, in 2015 compared with 2014, has the total compensation package (salary plus benefits) offered to 2015 college graduates been more, about the same or less? About four-fifths (81%) of respondents indicated the compensation package offered to 2015 college graduates was “about the same” compared to 2014. In contrast, 18% of organizations offered higher total compensation to 2015 college graduates; very few (less than 1%) offered lower total compensation to 2015 college graduates.

This year, does your organization plan to hire any 2015 college graduates as full-time, part-time or temporary/contract employees? Over two-thirds (71%) of organizations that had not yet hired 2015 college graduates planned to do so, an increase from just over one-half (53%) in 2013.

3The Hiring of 2015 College Graduates ©SHRM 2015

Key Findings (continued)

What job factors are top priorities for 2015 college graduates? More than one-half of HR professionals indicated that compensation/pay and career advancement opportunities were the top priorities for 2015 college graduates (both 59%). Other priorities included opportunities for training and development (50%), meaningful work (44%), overall organizational culture (35%), and flexibility to balance work and life issues (34%).

What are the reasons organizations have not yet hired and do not plan to hire 2015 college graduates? The most common reason cited by HR professionals for not planning to hire 2015 college graduates is due to “no current openings for recent graduates” being available (69%); other reasons include “too early to hire for 2015” (24%) and graduates being “underqualified for open positions” (15%).

Which recruitment methods were most effective in generating viable job candidates among 2015 college graduates? According to organizations that have actively recruited 2015 college graduates, the most effective recruitment methods included collaborating with colleges and universities (68%), employee referrals (31%), the organization’s corporate career website (25%), and social networking websites (23%). Of respondents who indicated they used social networking websites to actively recruit 2015 college graduates, the vast majority reported they used LinkedIn (91%); about one-half reported they used Facebook (48%) or a professional or association social networking site (46%).


Key Findings (continued)

What skills do organizations believe 2015 college graduates are lacking? The most common skills (both knowledge/basic and applied skills) organizations believe 2015 college graduates are lacking are professionalism/work ethic (43%), writing in English (e.g., grammar, spelling) (29%), relationship building/soft skills (29%), business acumen (28%), written communications (26%) and critical thinking/problem-solving (26%).

Do organizations have talent development strategies or training programs set in place that target recent graduates or other employees with limited work experience? Almost one-half of organizations have talent development strategies or training programs for recent graduates or other employees with limited work experience (46%).


What Do These Findings Mean for the HR Profession?

The job market has improved overall, and hiring processes should become more streamlined and accessible as a result. Hiring has improved across virtually all sectors of the U.S. economy. In the early years of the post-recession recovery, many companies may not have focused recruiting efforts on college graduates due to a lack of openings and limited turnover within their organizations. With a healthier labor force and opportunities increasing, young job seekers are also seeking opportunities on social media outlets and are frequently using smartphones to apply for open positions. HR professionals should explore the use of social media for recruiting as well as technological improvements that simplify the hiring process.

When recruiting college graduates, consider flexible work and development opportunities. Research has shown that Millennials and other younger members of the workforce place a high value on flexible work schedules, corporate culture and opportunities to grow within an organization. With limited wage growth in most job sectors, HR professionals should consider promoting their organizations’ benefits packages and development opportunities as a means of recruiting top talent among college graduates.

If it remains difficult to recruit college graduates, consider formal development programs and partnerships with colleges and universities. Many HR professionals have experienced difficulty recruiting college graduates for high-tech, scientific and skilled labor positions. Closer connections with trade schools and standard four-year higher education institutions, perhaps through cooperative curriculum development to meet the needs of the local private sector, can foster success in recruiting college graduates.


Has your organization hired any 2015 college graduates as full-time, part-time or temporary/contract employees?

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The Hiring of 2015 College Graduates

The Hiring of 2015 College Graduates ©SHRM 2015

Note: n = 403. Respondents who answered “don’t know” were excluded from this analysis. Percentages may not total 100% due to rounding.

No, we have not hired any 2015 graduates

Yes, to begin working after graduation

Yes, to begin working before graduation

58%

25%

16%

65%

20%

15%

2015 (n=403)

2013 (n=429)

The Hiring of 2015 College Graduates


Comparisons by Organization Sector• Publicly owned for-profit organizations were more likely than nonprofit and government

organizations to have hired 2015 college graduates to begin working after graduation.

Comparisons by organization sector

Publicly owned for-profit (39%) >Nonprofit (11%)

Government (13%)

Comparisons by organization staff size

500 to 2,499 employees (30%) > 1 to 99 employees (5%)

2,500 to 24,999 (39%) >1 to 99 employees (5%)

100 to 499 employees (15%)

Comparisons by Organization Staff Size• Organizations with 500 to 2,499 employees were more likely than organizations with 1 to 99

employees to have hired 2015 college graduates to begin working after graduation; organizations with 2,500 to 24,999 employees were more likely than organizations with 1 to 99 or 100 to 499 employees to have hired 2015 college graduates to begin working after graduation.

Note: Only statistically significant differences are shown (p < .05).

Roughly equal for each category

Part-time

Temporary/contract

Full-time

6%

11%

13%

71%

3%

17%

11%

69%

2015 (n = 131)

Note: n = 131. Only respondents whose organizations have hired 2015 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages may not total 100% due to rounding. 9

2015 College Graduates Hired by Job Category


More than last year

About the same as last year

Fewer than last year

12%

64%

24%

Note: n = 403. Respondents who answered “don’t know” were excluded from this analysis.

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Change in the Number of Entry-Level Positions Available for College Graduates in 2015 Compared with 2014


Change in the Compensation Package (Salary Plus Benefits) Offered to College Graduates in 2015 Compared with 2014

Larger

About the same

Smaller

18%

81%

1%

Note: n = 134. Only respondents whose organizations have hired 2015 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” were excluded from this analysis.



Note: n = 187. Only respondents whose organizations have not hired 2015 college graduates to begin working before or after graduation were asked this question. Respondents who answered “don’t know” were excluded from this analysis.

Organizations That Plan to Hire 2015 College Graduates

No

Yes

47%

53%

29%

71%

2015 (n = 187)

2013 (n = 138)

Comparisons by Organization Staff Size


1 to 99 employees (44%) <100 to 499 employees (72%)

500 to 2,499 employees (82%)2,500 to 24,999 employees (89%)

• Organizations with 1 to 99 employees were less likely than organizations with 100 to 499 employees, 500 to 2,499 employees, and 2,500 to 24,999 employees to plan to hire 2015 college graduates.

Organizations That Plan to Hire 2015 College Graduates



Reasons Organizations Have Not Hired and Do Not Plan to Hire 2015 College Graduates

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2015(n = 163)

2013 (n =166)

There are no current openings for recent graduates 69% 68%

It is too early to hire for 2015 24% 14%

Graduates are underqualified for open positions 15% 10%

Graduates are overqualified for open positions 8% 11%

The organization has a hiring freeze in place 7% 8%

The organization is unable to successfully recruit 2015 college graduates

2% 2%

It is too late to hire for 2015 0% 0%

Other 10% 8%


Note: n = 166. Only respondents whose organizations have not hired and do not plan to hire 2015 college graduates were asked this question. Percentages do not total 100% due to multiple response options.

Organizations That Have Actively Recruited 2015 College Graduates

Yes, 47% No; 53%

15 The Hiring of 2015 College Graduates ©SHRM 2015


Organizations That Have Actively Recruited 2015 College Graduates




100 to 499 employees (43%)500 to 2,499 employees (57%)

2,500 to 24,999 employees (74%) > 1 to 99 employees (22%)

2,500 to 24,999 employees (74%) > 100 to 499 employees (43%)

Comparisons by Organization Staff Size• Organizations with 100 to 499, 500 to 2,499, and 2,500 to 24,999 employees were more likely than

organizations with 1 to 99 employees to have hired 2015 college graduates to begin working after graduation; organizations with 2,500 to 24,499 employees were also more likely than organizations with 100 to 499 employees to have hired 2015 college graduates to begin working after graduation.

Comparisons by Organization Sector• Publicly owned for-profit organizations were more likely than privately owned for-profit

and government organizations to have actively recruited 2015 college graduates.

Comparisons by organization sector

Publicly owned for-profit (67%) >Privately owned for-profit (45%)

Government (40%)

More difficult

About the same

Less difficult

14%

82%

4%



Difficulty Experienced in Recruiting 2015 College Graduates Compared with 2014

Job CategoryVery Easy

Somewhat Easy

Somewhat

Difficult

Very Difficult

Scientists (n = 39) 10% 13% 41% 36%

Skilled trades, such as electricians, carpenters, machinists, mechanics, welders and plumbers (n = 105)

3% 20% 48% 30%

Engineers (n = 114) 5% 20% 45% 30%

High-skilled technical, such as technicians and programmers (n = 164)

4% 24% 43% 29%

Managers and executives (n = 149) 3% 22% 50% 24%

Hourly laborers (n = 146) 27% 36% 18% 18%

Drivers (n = 70) 21% 37% 23% 19%

Production operators (n = 82) 16% 32% 35% 17%

Sales representatives (n = 99) 7% 44% 32% 16%

Accounting and finance professionals (n = 188) 12% 43% 36% 10%

HR professionals (n = 137) 6% 49% 37% 8%

Administrative support staff (n = 207) 22% 53% 21% 4%

Customer service representatives (n = 148) 22% 45% 29% 4%

Degree of Difficulty Filling Specific Types of Positions with 2015 College Graduates


Note: Respondents who answered “don’t know/not applicable” were excluded from this analysis. Percentages may not total 100% due to rounding. Data sorted by “very difficult” column.

Methods Used to Recruit 2015 College Graduates

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Recruitment Methods Used Percentage

Collaborating with colleges and universities 89%

Organization’s corporate career web page 60%

Employee referrals 54%

Social networking websites 52%

Mobile technology (e.g., mobile apps, mobile-optimized career sites, targeted advertisements)

23%

Print-media advertising 18%

Recruitment agency 11%

Other 12%


Note: n = 190. Only respondents whose organizations have actively recruited 2015 college graduates were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not total 100% due to multiple response options.

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Most Effective Recruitment Methods Percentage

Collaborating with colleges and universities 68%

Employee referrals 31%

Organization’s corporate career web page 25%

Social networking websites 23%

Print-media advertising 6%

Mobile technology (e.g., mobile apps, mobile-optimized career sites, targeted advertisements)

5%

Recruitment agency 5%

Other 6%


Note: n = 190. Only respondents whose organizations have actively recruited 2015 college graduates were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not total 100% due to multiple response options.

Most Effective Methods to Recruit 2015 College Graduates

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Social Networking Websites Used Percentage

LinkedIn 91%

Facebook 48%

Professional or association social networking site 46%

Twitter 24%

Google+ 6%

YouTube 3%

Foursquare 2%

Pinterest 2%

Other 6%


Note: n = 90. Only respondents whose organizations have used social networking websites to actively recruit 2015 college graduates were asked this question. Percentages do not total 100% due to multiple response options.

Social Networking Websites Used to Recruit 2015 College Graduates

Top Priorities for 2015 College Graduates

Note: n = 135. Only respondents whose organizations have hired 2015 college graduates to begin working before or after graduation were asked this question. Respondents who answered “Not sure” were excluded from this analysis. Percentages do not total 100% due to multiple response options.

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Top Priorities for Prospective Hires Percentage

Compensation/pay 59%

Career advancement opportunities 59%

Opportunities for training and development 50%

Meaningful work 44%

Overall organizational culture 35%

Flexibility to balance work and life issues 34%

Challenging work 30%

Benefits packages 24%

Location 23%

Job security 15%

Organizational leadership 5%

Other 1%


Knowledge/Basic Skills 2015 College Graduate Jobs Seekers Are Lacking

Knowledge/Basic Skill Percentage

Writing in English (e.g., grammar, spelling) 29%

Reading comprehension (in English) 11%

English language (spoken) 9%

Mathematics (computation) 8%

Foreign languages 6%

Government/economics 4%

Science 4%

History/geography 3%

Humanities/arts 2%

Other 10%

Not applicable—not lacking any knowledge/basic skills 28%


Note: n = 395. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not total 100% due to multiple response options.

Applied Skill Percentage

Professionalism/work ethic 43%

Relationship building/soft skills 29%

Business acumen 28%

Written communications 26%

Critical thinking/problem-solving 26%

Leadership 18%

Lifelong learning/self-direction 16%

Teamwork/collaboration 12%

Coaching skills 9%

Flexibility/openness to new experience 9%



Applied Skills 2015 College Graduate Job Seekers Are Lacking

Applied Skill Percentage

Ethics/social responsibility 9%

Data interpretation/analytical skills 9%

Cultural sensitivity 8%

Creativity/innovation 4%

Diversity 4%

Agility 3%

Information technology application 2%

Other 2%

Not lacking any applied skills 6%



Applied Skills 2015 College Graduate Job Seekers Are Lacking (continued)

Does your organization have talent development strategies or training programs set in place that target recent graduates and/or other employees with limited work experience?

Yes, 46% No; 54%



Talent Development Strategies or Training Programs Targeting Employees with Limited Work Experience


2,500 to 24,999 employees (61%) >1 to 99 employees (34%)

100 to 499 employees (38%)

Comparisons by Organization Staff Size• Organizations with 2,500 to 24,999 employees were more likely than organizations

with 1 to 99 employees or 100 to 499 employees to have talent development strategies or training programs set in place that target recent graduates and/or other employees with limited work experience.

Talent Development Strategies or Training Programs Targeting Employees with Limited Work Experience



Demographics

Demographics: Organization Staff Size

1 to 99

100 to 499

500 to 2,499

2,500 to 24,999

25,000+

24%

30%

21%

20%

5%


n = 373

Demographics: Organization Sector

Privately owned for-profit

Nonprofit

Publicly owned for-profit

Government agency

51%

20%

16%

13%


n = 374

Demographics: Organization Industry

Industry Percentage

Manufacturing 19%

Health care and social assistance 19%

Professional, scientific and technical services 16%

Government agencies 12%

Educational services 10%

Finance and insurance 8%

Construction 6%

Administrative and support and waste management and remediation services

4%

Accommodation and food services 4%

Transportation and warehousing 4%

Real estate and rental and leasing 4%Note: n = 381. Percentages do not total 100% due to multiple responses.


Demographics: Organization Industry (continued)

Industry Percentage

Wholesale trade 4%

Repair and maintenance 4%

Utilities 4%

Information 3%

Retail trade 3%

Arts, entertainment and recreation 3%

Agriculture, forestry, fishing and hunting 2%

Religious, grant-making, civic, professional and similar organizations 2%

Mining, quarrying, and oil and gas extraction 2%

Personal and laundry services 1%

Other 10%

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Note: n = 381. Percentages do not total 100% due to multiple responses.


U.S.-based operations only 73%

Multinational operations 27%

Single-unit organization: An organization in which the location and the organization are one and the same.

34%

Multi-unit organization: An organization that has more than one location. 66%

Multi-unit headquarters determines HR policies and practices. 48%

Each work location determines HR policies and practices. 5%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices.

47%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

n = 388

n = 386

n = 260

Corporate (companywide) 68%

Business unit/division 20%

Facility/location 13%

n =261. Percentages may not total 100% due to rounding.

What is the HR department/function for which you responded throughout this survey?

Demographics: Other


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• Response rate = 12%• 452 HR professionals from a randomly selected sample of SHRM’s

membership participated in this survey• Margin of error +/-5%• Survey fielded March 5-24, 2015

SHRM Survey Findings: The Hiring of 2015 College Graduates

Survey Methodology

34

Project leader: Jeanessa Gantt, SHRM Research

Project contributors: Evren Esen, SHRM-SCP, director, Survey Programs, SHRM ResearchKaren Wessels, researcher, SHRM ResearchJennifer Schramm, SHRM-SCP, manager, Workforce Trends and Forecasting, SHRM Research


Additional SHRM Resources


• Recent survey/poll findings: shrm.org/surveys

• For more information about SHRM’s Research Services: Customized Research Services: shrm.org/CustomizedResearch Engagement Survey Service: shrm.org/PeopleInSight Customized Benchmarking Service: shrm.org/Benchmarks

• Follow us on Twitter @SHRM_Research

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://www.shrm.org/PeopleInSight

http://www.shrm.org/Benchmarks

http://twitter.com/SHRM_Research

http://twitter.com/SHRM_Research

About SHRM

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Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.


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