Employers Hedge on 2008 Entry-Level Hiring, But Grads Are Upbeat

by John Rossheim

Monster Senior Contributing Writer

As new college graduates enter the job market this year, they do so with a positive attitude shared in part by their prospective employers. That’s the bottom line of the MonsterTRAK 2008 Entry-Level Job Survey, an Internet poll of MonsterTRAK member companies and more than 3,600 students and alumni.

Whatever their hopes for this year’s crop of the best and brightest young people, employers are hiring more cautiously than they were in 2007. Some 59 percent of responding companies expect to welcome 2008 graduates this spring or summer; that’s down 17 percent compared to 2007, probably due to economic uncertainties. Another 29 percent of firms were unsure as of the February survey whether they would hire freshly minted grads, nearly double the proportion of undecided employers a year earlier.

Still, many employers are bullish. Of companies that plan to bring on new grads, 85 percent said they would hire as many or more as they did in 2007. In lean economic times, recent graduates, who enter at the bottom of the pay scale, represent good value for companies in many industries.

Graduates Are Confident in Their Prospects

For their part, graduates are confident of their value in the labor market of 2008. Nearly three-quarters of grads responding to the MonsterTRAK survey expect to receive two or more offers upon graduation.

The Class of 2008 is concerned more with long-term growth than their first year’s earnings, the survey says. New graduates ranked career growth opportunities (81 percent) and personally fulfilling work (79 percent) as very important, while only 57 percent said that salary is very important. Those perspectives align with the views of employers, who during an economic slowdown are likely to emphasize the future over the present when it comes to compensation.

Saddled with Debt, Many Students Are Returning Home to Live

The MonsterTRAK survey reports that one-third of students owe more than $5,000 on credit cards, and even greater amounts in the form of student loans. So “it’s no surprise that a growing number of young professionals are living at home longer than they anticipated,” says Mark Charnock, vice president and general manager of MonsterTRAK. In fact, while only 22 percent of 2007 grads expected to move back in with their families for more than six months, 43 percent are still living there.

For Employers, Personal Characteristics Trump Work Experience

While nearly half of students believe that work experience is the most important screening factor for employers, only 21 percent of companies agree with that prioritization, the survey says. “While experience and academic achievement are important, a candidate’s personality can be a far more powerful factor,” says Charnock.

“One of three employers reported that the most common interview blunder made by entry-level candidates is not doing their homework,” Charnock says. “Human resource executives use interviews to look beyond a resume – they want to know why an applicant should become part of their organizations.” Young people demonstrating a work ethic, eagerness to learn, flexibility and genuine interest in an employer’s industry will have a leg up.

Job Seekers Are Posting Profiles, and Employers Are Checking Them Out

Online networking continues to grow in importance as candidates and employers look for each other on the Web. Nearly three-quarters of 2007 graduates have created online profiles of themselves, up from 59 percent for 2006 grads. And in 2008, some 26 percent of employers check candidates’ profiles, up from 19 percent the previous year. The watch word for grads seeking their first professional position: Wherever you post information about yourself online, assume that employers will see it.

Finally, 2008’s graduates are much more likely to think in the long-term than their prospective employers give them credit for. While 61 percent of grads say medical and dental insurance benefits are important factors in a job opportunity, only 37 percent of employers believe their youngest candidates see it that way. Similarly, while 44 percent of the Class of 2008 considers a 401(k) important, only 23 percent of companies think candidates are concerned with retirement planning. Wise entry-level candidates looking at a specific offer will take into account the growing value of these benefits as components of their total compensation.

© 2008 MonsterTRAK