Dr. Philip GardnerCollegiate Employment Research Instituteceri.msu.edu

Today’s Agenda

• Overview of the College Labor Market– Snapshot of past three years– Focus on this year

• The transition into the workplace– All about skills

• The gatekeeper: internships• Workforce readiness project for the BV

A REVIEW OF YEARS PASTIt’s was a very good year – except still not enough jobs

Highlights from 2010-2011

• Strong group of outliers: big & small

• No tail: clustered around no change

• All majors in play

• Tech fields slow; marketing & sales

• West lagged behind

Highlights from 2011-2012

• Broad and deep

• All Majors: major influence

• Sectors: Government down and manufacturing sliding

• Size: David and Goliath

SETTING THE STAGE FOR 2012-2013

Macro & Micro Events

• Big Events– European slide– China: internal adjustments– Energy: US back in the game– Inflation

• Fiscal Cliff• Micro events– Jobs– Consumers– Supply: too many

THE YEAR 2012-2013

Sitting On the Fence

• Winners– Hospitals– Health care– Construction: Home– Construction:

Infrastructure– Alternative energy

• Losers– Big Banks– Coal– Big Energy– Defense contractors– Luxury Goods Retailers– Casinos

Obstacles in Reaching Hiring Targets

– Budgets and staffs– No short term plans &

lack of support from the top– Competition– Students • You have met Emmie!

– Career Services

N-S-E-W

• Direction hiring is expected to take– Big shift from last year– Employer outlook continues to improve– My grass is greener than your grass!– Only 24% with definite plans (last year 42%)– 45% will increase the number of Bachelor

hires this year – stays about the same

Hiring Targets: 2012-2013

Projections for 2012 -2013

DegreeNumber Of Employers Reporting

Average Number Of

Hires(2012)

Average Number Of

Hires (2013)

Change Year Over Year

(%)

Associate’s 667 7.6 10.2 31

Bachelor’s 1,931 22.2 23.3 5

MBA 517 5.8 5.1 -6

MS/MA 716 10.3 10.2 -1

Ph.D. 238 4.6 5.0 8

Professional 168 15.5 14.7 -4

Total Hires 2,057 33.4 34.4 3

Good News: In Certain Places

• Organizational Size– Thanks for the little guy– Middle holds– Large companies sitting on the fence

• Economic Sector– Leading the charge: Oil, Financial Services,

Wholesale, Construction, Retail, Transportation– Falling behind: Utilities, Ag (short-term),

Information Services, Manufacturing, Health

Majors

• Soft: – Engineering: electronics, fabricated metals,

military segments– Accounting: CPA firms decrease – Computer Science: market reality

• Strong: Finance, Marketing, Supply Chain, HR, Adv-PR-Communication (sales)

• Keeps rockin’: All majors

24%

17%

7%6%8%

11%

26%Education & Health ServicesLeisure & HospitalityFinancial ServicesRetail & WholesaleConstructionOtherProfessional & Business Services

Mark Zandi’s Job Growth Projections

Starting Salaries• What’s not in your wallet?– Not much: 75% not increasing

salary– 5% indicated they are offering

signing bonuses– Nearly 20% have some type of

performance bonus– Slight rise in commission based

salaries– Health care coverage in lieu of $$$$

Key Recruiting Strategies

• Internships• Career Fairs– Mostly for finding interns

• Alumni from target schools (Bronco network)

• Social media

Internships

• Primary purpose– Full-time employment

• Golden Goose still laying eggs– 65% seeking internships– 17% seeking co-ops– 33% offering summer positions with pay

• Unpaid situation– Many with unpaid are motivated to help

profession or social responsibility

Handling the skills shortage

• Training• Technology (the next tragedy)• Recruiting (the new time dimension)

Critical Issues

• Faculty• Skills• Attitudes and Behaviors

Employers’ Takes on Academia

Academic professors do not understand the critical business skills needed and provide poor

counseling/advice to students.

…many new grads are having difficulty articulating the relevance of their study to the job they have

applied to.

Employers’ Takes on the Skills Gap

We need people who know how to use Excel and other professional programs,

write professional documents, communicate in a professional manner,

and have a basic knowledge of how a professional organization acts

Employers’ Takes on Attitude

There is an overinflated sense of self and abilities…

College students have an attitude of entitlement that they are owed a job, and it should be at a specific dollar

amount, even though they do not have a basis for that dollar amount.

Many candidates don’t project that they are interested, optimistic, and want to help the company succeed.

[We have] retention issues because candidates resign due to business challenges being more than they expected or

are willing to try to accomplish.

The Transition 1950 to 1989

• No experience necessary• Tenure in 1st position: 4

to 5 years• Companies did most of

the training• 65% of college hires with

Fortune 500• Legacy system for

recruiting and accountability

The Transition Since Early 1990s• Experienced required• Tenure in first position 12 to

24 months• Most organizations provide

little or no training• Skills & expectations have

soared (employers)• 35% to 40% of college grads

hired by Fortune 500• Still rely on legacy practices

and accountability measures

Benchmark: 12 Essentials

• Developing professional competencies

• Communicating effectively

• Solving Problems• Balancing Work and life• Embracing Change• Working Effectively in a

Team

Working in a Diverse Environment

Managing time and priorities

Navigating across boundaries

Acquiring knowledgeThinking CriticallyPerforming with

integritywww.careernetwork.msu.edu

(click on resource guides)

The Higher Standards

◦ Initiative: The Holy Grail◦ Build and sustain professional relationships◦ Analyze, evaluate and interpret data ◦ Engage in continuous learning ◦ Communicate through persuasion and justification ◦ Plan and manage a project ◦ Create new knowledge◦ Seek global understanding◦ Mentor and develop others◦ Build a team

Paper is available at www.ceri.msu.edu (check under paper archives)

Case study: Boise – Top Skill Cluster

• Able to perform with integrity• Able to solve problems• Able to manage time and priorities• Able to take the initiative• Able to analyze, evaluate, and interpret

information• Able to contribute to a team• Able to effectively communicate orally• Able to build and sustain working professional

relationships

Case study: Boise – 2nd Cluster

• Able to embrace change.• Able to acquire knowledge• Able to manage and synthesize different sources

of information.• Able to effectively communicate through writing• Able to create original ideas and innovations (be

innovative).• Able to plan and manage a project• Able to develop further professional

competencies.

Case study: Boise – Top A&B

• Takes responsibility and is accountable for work and behavior (accountable)

• Demonstrates a strong work ethic (work ethic)

• Displays sound judgment and controls feelings/emotions in work situations (maturity)

Case Study: Attitudes & Behaviors II

• Works with limited direction (self-directed)• Cooperates with co-workers in a respectful,

sincere manner (humility)• Conveys passion for work and career

(passion)• Functions effectively in an ever changing

environment (adaptable)• Completes assignments and other

commitments punctually (punctual)

WORKFORCE READINESS PROJECT

Phase II & III

• Phase II: BSU Alumni– Career Progress– Skills & Competencies for Success– Preparedness

• Phase III: BSU Current Students– Career Aspirations– Employer Expectations: Skills & Competencies

Preliminary Results: Phase II• Top Skills: 1st Position

– Able to manage time and priorities

– Able to perform with integrity.

– Able to effectively communicate orally

– Able to solve problems.– Able to think critically.– Able to acquire knowledge– Able to take the initiative– Able to analyze, evaluate,

and interpret information

• Top Skills: Current Position– Able to manage time and

priorities– Able to take the initiative– Able to effectively

communicate orally– Able to solve problems– Able to think critically– Able to acquire knowledge– Able to perform with

integrity– Able to analyze, evaluate,

and interpret information

QUESTIONS & THOUGHTSTime to share

ceri.msu.edu