Recruiting Trends 2008-2009 - Executive Summary:

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The college labor market hangs on a steep precipice. With employment opportunities down 8% from last year, the college market is only avoiding further collapse through the efforts of three groups of employers, according to the information provided by over 900 employers to Michigan State University’s 2008-2009 Recruiting Trends survey. Two groups of large employers, those engaged in global talent wars or those pressed to sustain their workforce continuity pending boomer retirements, have pared out the fluff in their hiring targets to aggressively pursue members of this year’s graduating class. The third group propping up hiring are fast-growth small companies who remain committed to growth, despite continuing struggles in the economy.

Despite turbulent headwinds blustering in the fall of 2007, employers counted up impressive hiring numbers during the 2007 - 2008 academic year. With a demographic profile tilted in favor of young college workers, a down-turn in the economy was only expected to mute hiring expectations for the foreseeable future. Instead, the economy completely derailed. No sector illustrates this more than retail. During the hiring surge between 2004 and 2008, retail led the way, averaging more than 70 hires per company. Today, they are in retreat, hiring only 14 individuals per company.

Employers remain active on campus but have shifted their focus from on-campus recruiting to career fairs and to the expansion of their internship and co-op programs. They are doing more direct one-stop activities to brand their companies and engage students. This shift is driven by cost considerations and a sense of urgency to complete hiring as quickly as possible. Companies are using internship programs to create a pool of talent that may be converted into full-time hires when conditions improve.

Students—freshmen through seniors—cannot be complacent during this time. Not only are employment opportunities shrinking, but the competition is fierce because of the availability of experienced labor. Employers do not appear to be favoring low-cost new graduates over experienced hires, preferring instead the right mix of talent to stem any loss of organizational knowledge due to retirements or economic disruption.

Fewer opportunities will be available to students in the spring. For those students who have not initiated their job search or even framed their employment expectations, a call to urgency is warranted. In light of the employment dynamics now in play, students need to be:

FOCUSED
DIRECTED
CONNECTED

Employers are turning to professional web-based networking groups and college faculty to identify the talent they seek. Building and maintaining professional networking relationships are even more critical than ever before for success in hiring and retention. College students should be working now with their institution’s career services staff to help facilitate networking options.

Starting salaries will change little from last year as 66% of respondents expect to hold salaries steady. Only 32% of employers will increase salaries, generally at an average of 4%. More employers are turning to a performance bonus at the end of the first year rather than providing a signing bonus prior to entering the company.

Students will have to be patient and persistent to find success in this market. Small employers who are not as visible on campus and whose opportunities do not materialize synchronously with the academic year remain an important source for employment. To land a job, students will have to work hard and remain steadfast through this bad year.

Feel free contact us with any questions regarding this report. Media requests can be made either to MSU's Public Relations staff or contact Jennifer Leedy at leedyj@msu.edu.

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MSU news story

Publication Prepared by:

Philip D. Gardner, Ph.D.
Research Director, CERI

Collegiate Employment Research Institute
113 Student Services Building
Michigan State University
East Lansing, MI 48824
(517) 355-2211