2018 College Graduates are Entering the Market – Know Your Data - American Society of Employers - Heather Nezich

2018 College Graduates are Entering the Market – Know Your Data

Employers say they are planning to hire more recent college graduates this year than they have in more than a decade, according to new CareerBuilder research. 80% percent of employers say they plan to hire college graduates this year, up from 74% last year and 58% in 2008. Those who are not hiring college grads say it's because their organization isn't expanding headcount this year (57%) or they need more experienced workers (26%).  How does this compare with ASE’s 2018 Starting Salaries for Co-op Students and Recent College Graduates Survey which is exclusively Michigan data?

In the ASE 2018 Starting Salaries for Co-op Students and Recent College Graduates Survey, nearly three out of four (73%) respondents say their company has hired, or plans to hire, a recent college graduate in 2018.  While the percentage of companies hiring a recent college graduate is similar to last year, less organizations are increasing their efforts to do so in Michigan.  23% of the companies have increased their hiring efforts this year compared to last year, a decrease of 9% from 2017.

Class of 2018 Starting Salaries 
According to the CareerBuilder survey nearly half (47%) plan to offer recent graduates higher pay than last year, and a third of employers will be paying a starting salary of $50,000 or more. 45% anticipate no change in salary compared to last year and 8 percent plan to decrease.

The ASE survey revealed that the highest starting salaries in Michigan will go to:

·       Mechanical Engineering – $65,160

·       Electrical Engineering - $58,865

·       Finance - $52,686

·       Computer Science - $52,513

·       Accounting - $51,733

·       Business Administration - $50,965

·       HR/Labor Relations - $49,809

College graduates may not feel they can negotiate salary, but that thinking may mean they are leaving money on the table. 74% percent of employers say they are willing to negotiate salary offers when extending a job offer to a recent college graduate, according to the CareerBuilder survey.

Lack of Experience and High Expectations May Cost College Graduates Opportunities
The CareerBuilder survey stated that while the majority of employers say academic institutions are adequately preparing students for roles needed in their organization (82%), that doesn't necessarily mean graduates have the job-seeking skills needed to land the job.  Employers said that over the past year, more than half of recent college graduates:

·        Didn't send a thank you note: 37%

·        Didn't know anything about the company: 35%

·        Didn't submit a cover letter: 31%

·        Didn't ask any questions in the interview: 29%

·        Didn't have professional references: 26%

·        Had poor grammar on their resume: 26%

·        Had unprofessional pictures on their social media profiles: 21%

·        Checked their mobile phone during the interview: 19%

 

The ASE survey revealed the top three shortcomings of recent college graduates to be:

1.     Adaptation to work environment: 57%

2.     Career expectations: 56%

3.     Compensation expectations: 49%

 

 

What Exactly Are Employers Looking For? 
According to the ASE survey, based on hiring activity in Michigan, the top three most popular non-technical Bachelor-degree disciplines hired in the past year were: 1) Business Administration; 2) Accounting; 3) tied between Finance and HR/Labor Relations.  The top three most popular technical Bachelor-degree disciplines hired in the past year were: 1) Mechanical Engineering; 2) Electrical Engineering; 3) Computer Science.  This Michigan specific data is similar to CareerBuilder’s national survey results which show business, engineering, and computer science as the top three in-demand majors.

The top three knowledge/skill factors organizations consider when making hiring decisions in Michigan, in order, are: 1) related coursework; 2) computer skills; 3) degree level. 

With the demand for talent continually growing fiercer, it’s important to make competitive offers to recent graduates entering the market.  Now is a good time to review current data if you are planning to hire new grads.

 

Additional ASE Resources

2018 Starting Salaries for Co-op Students and Recent College Graduates Survey - To obtain a copy of the 2018 Starting Salaries for Co-op Students and Recent College Graduates Survey, contact Kevin Marrs, Vice President at ASE, 248-223-8025 or [email protected]. The survey is free for ASE members and $525 for non-members.


Sources: ASE 2018 Starting Salaries for Co-op Students and Recent College Graduates Survey, CareerBuilder.com

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