Recruiting: Settling Accounts for

2016 and Looking Ahead to 2017

Maintaining Warp Speed

Phil Gardner

Collegiate Employment Research Institute at MSU

Summer, 2016

A Brief Review

Quick Review of Recent History

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 2016

YOY Increase in BA Hires

The ½ & ½ Glass

• Falling

– Global Angst

– Trade

– Commodities – OIL!

– Financial Institutions

– Politics

– Too Big to Fail

– Immigration

– FEAR

• Rising

– Job Growth

– Consumer Confidence

– Wages

– Fed. Interest Rates

– AND

What Is Driving College Hiring?

The usual

suspects:

Growth:

68%

TURNOVER• Highest level of

concern since 2007

• 56% indicated

turnover primary

driver (up 11

percentage points)

• Poised to leave

indices – remain

high – Dec # very

high

• Job satisfaction:

fewer people love

their jobs

31%Coming to a sector near you!

Finance & Insurance

PB&SS

Government

Education

Transportation

Cause to Celebrate

College Labor Market: Remains Good to Very

Good

Industrial Sector: steady at Very Good

97% Expect to hire at least one new graduate

50% Expect to increase hiring over last year

24% Have definite hiring targets as of September

National Perspective

Hiring Targets: 2015-2016

Number of Employers

Average Number of New

Hires per Organization

Change from 2013-14 (%)

Associates 613 18.1 23

Bachelors 1,637 52.0 15

MBA 492 9.6 16

MS/MA 656 18.0 10

PhD 206 6.9 4

Professional 146 9.5 23

Total 1,719 67.0 15

Bachelor’s Degrees

• COMPETITIVE – say no more

• Led by Computer Science & Business

• Engineering – soft (think OIL)

• Skills and Competencies – A NECESSITY

• Work Attitudes and Behaviors: CRITICAL

• Not a free pass

MBA & Masters Degrees

• MBAs

• Another solid year

• Financial services bounced up but still weak in

historical comparison

• Masters

• Accounting shows their muscle

• Health professionals

• Niche versus general growth

Organizational Size

• All size categories – strong outlook

• Very Small (<100) – very active BA >30%

• Very Large (>10,000) – BA 16%

• MBA – strong across the all groups, especially

>10,000

• Research Note

• High variance of employers hiring year to year

Economic (Industrial) Sectors

• Oil is a downer

• Any thing related to oil is down ~ 50% (and getting

worse)

• Manufacturing Soft

• Export oriented – basic metals, fabricated metals

• Whiz Kids!

• Computer Services

• Insurance

• Automotive & Aerospace

• Education & Health Care

Starting Salary Offers

• 53% increased salaries in 2007

• 39% will increase salaries this year

• Average increase 4.7%

• Bonuses: 7%

• Performance Bonuses: 22%

• Wage pressure: none to speak of BUT

several high salary offers reported

Courting Interns

• 79% of organizations

with internship/co-op

will hire

• 35% will provide

more opportunities

than last year

• Paid internships 71%

• Hourly salaries stay

about the same

Trouble in Internship Paradise1. What’s in a Name: let’s throw in the kitchen sink

• Chasing skills – but its more than that

2. Principles to stand whether credit or not

• Foundation

• Rigor

• Relevant

• Financial Investment

• Strategic Alignment

• Organizing

• Accountability

• Career Exploration

• Professional Development

• Credentials

3. Better do the research – mostly guessing

Benchmarking Recruiting Activities

Recruiting Strategies Toolbox

• Most used tools

• Posting – focus on this later

• Action Tools

• Internships & Co-ops

• Career Fairs

• Employee Referrals

• All the rest

Career Fairs: Still Here and Going Nowhere

• Why?

• Brand recognition

• Identify talent pool

• Going?

• Nowhere

• But?

• More effective organization/connect to the right

students

Benchmarking Recruiting Programs

• Professional hires result of on-campus

recruiting: 39%

• Acceptance rate of full-time offers: 68%

• New hires former interns: 31%

• Salary Compensation

Rating: 3

• Reneging: 4.6%

• Intern Acceptance: 77%

• Intern Conversion: 45%

Looking Ahead to Fall

The Road Ahead: Short-term Outlook

• Chaotic & competitive

• SV short game (Silicon Valley and diversity)

• Driving toward the edge: Don’t forget the

business cycle

• Retirements: while phasing into numbers

increasing to estimated 10,000 a day

• Sustaining Growth YOY: need a jolt

Looking Further Ahead

Quiz: Fun with Dates!

• 2020

• What % of workforce will those born 1980 to now comprise?

• 2025

• What % of workforce will those born 1980 to now comprise?

• 2013

• What % of managerial hires where 35 and under this year?

• 2055

• What will the composition of the workforce look like (ethnic)?

• 2050

• What will be the average age in US? Bonus – how does that compare to the

rest of the world?

Revisiting the Glass: Mid to Long Term

• Over supply issues – lets be honest

• Road trip to Switzerland

• Job destruction coming NOW

• Cognitive (AI) software

• Robotics

• “Change the technology and you change the task,

and you change the nature of the worker – in fact you

change the entire population of people who can

operate a system.”

• David Mindell, MIT Our Robots, Our Selves

For the Glass to Rise

1. New opportunities – enlarge the glass

2. Need for interpersonal competencies will only increase

3. Value based recruiting – will become the norm

• Grit

• Curiosity

• Integrity

• Respect

• Love of Challenge

• Collaborative

• Courage

• Maturity (emotional intelligence)

Questions and Discussion