Every spring, the talent acquisition software company iCIMS surveys college graduates in the US to gauge their expectations and ambitions as they prepare to enter the workforce. This year’s survey, which SHRM’s Roy Maurer flagged earlier this week, finds that this year’s graduating class is expecting higher starting salaries than their peers in recent years: On average, they expect to earn $54,010 in their first job, slightly more than the class of 2017 and almost $8,000 more than the class of 2016. Last year’s graduates were a bit unrealistic in their pay expectations, despite a tight labor market, with recruiters reporting starting salaries well below grads’ aspirations.
This year, Maurer notes, employers’ pursestrings are looking a little looser:
“This year’s graduates are confident in their ability to find the job they want after graduation, and a well-paying one at that,” said Susan Vitale, chief marketing officer at iCIMS. … The data revealed that recruiters estimate they will pay entry-level employees $56,532 on average this year—a substantial jump of more than $10,000 since last year, when the estimate was $45,361 on average. “For employers, even with an abundance of educated candidates, nearly 80 percent of recruiters are finding filling entry-level positions more challenging than they did three years ago,” Vitale said. “In response, recruiters have upped their game by offering better salaries and benefits, increasing training and development, and enhancing their employee referral programs.”
Maurer also highlights another survey from Yello, which found that a majority of graduates were putting priority on career advancement in their first job searches. Nearly half of respondents to the Yello survey said they were planning to stay with their first employer for more than three years, in another point of evidence against the myth of the millennial job hopper (though these graduates might properly be classified as members of Generation Z). These findings, Yello CEO and co-founder Jason Weingarten told Maurer, suggest that recruiters should be focusing their value propositions for graduates on opportunities for long-term growth and development. Some employers are already responding to the demand these surveys show for higher salaries and clear career paths, such as Morgan Stanley, which recently raised starting pay and accelerated the promotion path for its junior investment bankers.
In its annual survey on office romance, conducted in the lead-up to Valentine’s Day, CareerBuilder finds this year that the number of US employees saying they have dated a co-worker at a ten-year low of 36 percent, down from 41 percent last year and 40 percent in 2008:
Thirty-seven percent of men say they have dated a coworker compared to 35 percent of women, while one in five male workers (20 percent) say they have dated someone at work two or more times in their career, compared to just 15 percent of their female colleagues. …
Of those who have dated at work, more than a quarter of women (27 percent) say they have dated someone who was their boss compared to just 16 percent of men. Additionally, 30 percent of these workers say they have dated someone who was at a higher level in the organization than they were. Thirty-five percent of female coworkers reported dating someone at a higher level in the company than them, compared to 25 percent of their male coworkers.
The shift from a ten-year high in last year’s survey to a ten-year low this year may be related to the unprecedented attention finally being given to sexual harassment and misconduct in the workplace after countless women opened up about their experiences as part of the #MeToo movement over the past six months. Wider awareness of these problems and an increased focus on preventing harassment and punishing perpetrators have reportedly led to anxieties among men in the workplace about the propriety of their interactions with female colleagues, which would tend to result in fewer workplace romances being initiated.
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Two studies released this week show that US employers have more robust hiring plans this year compared to last year. CareerBuilder’s annual forecast, a survey of over 800 hiring managers and HR professionals, found that 44 percent of companies are hiring for full-time roles in 2018, up four percent from 2017. Additionally, Roy Maurer of SHRM notes that the ManpowerGroup’s latest employment forecast has the strongest Q1 hiring outlook since 2001.
The CareerBuilder survey found that employers in the western states (49 percent) and the northeast corridor (47 percent) are the most likely to be hiring at the moment, while also outlining some key trends that appear likely to shape talent acquisition in the new year. One of those trends is the movement to get in early with talent, as 64 percent of companies that are hiring will be looking to add recent college graduates to their ranks. Almost a quarter of them will be looking internationally to fill positions, although this strategy may be complicated by the Trump administration’s efforts to tighten immigration controls and reduce the use of skilled worker visas like the H-1B. Perhaps most notably, 30 percent of companies say they plan on increasing compensation for new employees by five percent or more and 36 percent intend to do so for current staff.
The survey also pointed to challenges employers are having in filling openings, with 58 percent reporting that they’ve had jobs open for longer than 12 weeks and 66 percent saying they plan on hiring candidates who do not have all of the skills they need and filling any gaps through training.
A new survey from CareerBuilder points to a mismatch between candidates and employers in salary negotiations—namely, that candidates often don’t think there is one:
[The survey] found that the majority of workers (56 percent) do not negotiate for better pay when they are offered a job. Those who avoid it say they don’t attempt it because they don’t feel comfortable asking for more money (51 percent), they are afraid the employer will decide not to hire them (47 percent), or they don’t want to appear greedy (36 percent).
While most job candidates avoid negotiating, the majority of employers are expecting a counteroffer. Fifty-three percent of employers say they are willing to negotiate salaries on initial job offers for entry-level workers, and 52 percent say when they first extend a job offer to an employee, they typically offer a lower salary than they’re willing to pay so there is room to negotiate. But how much money is being left on the table? More than a quarter of employers who offer a lower salary (26 percent) say their initial offer is $5,000 or more less than what they’re willing to offer.
The survey, conducted earlier this year by Harris Poll among 2,300 employers and 3,400 full-time employees, also dug up some demographic data to inform the debate over the role of the “negotiation gap” in gender and other pay gaps. It found that employees over 35 were slightly more likely to negotiate (45 percent) than the younger crowd (42 percent), and that 47 percent of men negotiated as opposed to 42 percent of women. These differences are meaningful, but CareerBuilder’s broader takeaway is that regardless of their demographics, a slight majority of candidates are just not negotiating at all. The exception is in sectors like IT, sales, and financial services, where over 50 percent of employees said they negotiated their salaries.
A new survey from CareerBuilder claims that a 55-percent majority of US employees feel that they have just a job, not a career, and that 38 percent of these workers are likely to change jobs in the second half of 2017:
Almost three in 10 workers (28 percent) tolerate or hate their job. Of those who tolerate or hate their job, some of the top reasons for staying in a current position are the need to pay the bills (74 percent), its proximity to home (41 percent), needing the insurance (35 percent), it pays well (30 percent), or the job market is too tough (27 percent).
This survey picks up on something that we at CEB (now Gartner) have seen in our latest Global Talent Monitor data: Most US employees across a number of industries cite their future career opportunities as a leading reason for leaving their organization. Given this fact, it is easy to assume that this is a reflection that there is simply a lack of career opportunities available to employees, leading to disengagement and attrition. However, our data shows that this is not the case. We find that 12 percent of US employees we surveyed were actively dissatisfied with future career opportunities at their organizations and only 31 percent reported they were satisfied. The remaining 58 percent are somewhere in the middle—that is, neither satisfied nor dissatisfied, but rather neutral or ambivalent.
This finding suggests that while future career opportunities are a key part of employees seeking a new job, the claim that lack of future career opportunities is driving attrition at organizations is overstated. When we look at how an employee’s satisfaction with future career opportunities at their current organization affected their engagement levels, we do not see nearly as strong as a connection as CareerBuilder reports in their survey.
Although unemployment is low, jobs are plentiful, and by most accounts the US economy is in good health, CareerBuilder’s latest survey of the financial state of the US workforce paints a more troubling picture, finding that 78 percent of Americans are living paycheck-to-paycheck at least some of the time—that’s up from 75 percent in last year’s survey. Some of the more detailed findings include:
Thirty-eight percent of respondents said they live paycheck-to-paycheck sometimes, but 17 percent said they usually do and 23 percent said they always do.
- Women are more likely to live paycheck-to-paycheck (81 percent) than men (75 percent).
- One quarter of workers have been unable to make ends meet every month in the last year, and 20 percent said they had missed payment on some of their bills.
- Seventy-one percent said they were in debt, up from 68 percent last year, and more than half of those in debt believe they will never get out of it.
- Thirty-eight percent do not participate in a 401(k) plan, IRA, or other retirement plan, and 26 percent said they had not set aside any savings each month in the last year.
- Most workers (81 percent) had worked a minimum-wage job at some point, and 71 percent of them said they had not been able to make ends meet during that time.
And while low-income workers are relatively more likely to live paycheck-to-paycheck, they are by no means the only ones doing so, CareerBuilder notes—meaning even employers of well-compensated professionals should not ignore the financial wellness concerns of their employees:
This year’s crop of college graduates, some of the first recognized members of Generation Z to enter the workforce, are doing so at an opportune moment. In the US, the college wage premium has never been higher, meaning these grads stand to earn much more than their peers without degrees. The graduate hiring market is also robust, with CareerBuilder reporting last month that 74 percent of employers plan to hire recent college graduates this year, the best outlook since 2007 and seven percentage points above last year’s figure. In terms of pay, CareerBuilder found that half of employers plan to pay graduates higher salaries this year than last, and 39 percent will pay starting salaries of $50,000 or more a year, up from 27 percent last year.
However, the job search site also found that “some employers are concerned that new college grads may not be ready for the workforce”:
Seventeen percent do not feel academic institutions are adequately preparing students for roles needed within their organizations, a decrease from 24 percent last year. When asked where academic institutions fall short, these employers cited the following concerns:
- Too much emphasis on book learning instead of real-world learning: 44 percent
- I need workers with a blend of technical skills and those skills gained from liberal arts: 38 percent
- Entry-level roles within my organization are more complex today: 23 percent
- Technology is changing too quickly for an academic environment to keep up: 17 percent
- Not enough focus on internships: 17 percent
- Not enough students are graduating with the degrees my company needs: 12 percent
Meanwhile, Fast Company’s Lydia Dishman flags another new survey from iCIMS, which finds that graduates have high expectations for their job prospects, but even in today’s employee-driven labor market, these expectations may be a bit unrealistic: