June 15, 2009

SHRM Poll: The Hiring of 2009 Graduates During the Economic Downturn

©SHRM 2009 SHRM Poll June 15, 2009 2

In the last three months, did the number of employees at your organization increase, decrease or remain the same?

Increased

21%

Remained

the same 36%

Decreased

43%

Differences by organization-staff-size:•Small-staff-sized (30%) organizations were more likely to report an increase in their staff size compared with large-staff-sized (15%)

organizations.Differences by organization sector:

•Publicly owned for-profit organizations (63%) were more likely to report staff reductions in the last three months compared with privately owned for-profit organizations (40%), nonprofit organizations (28%) or government agencies (33%).

Differences by organization location:•Multinational organizations (54%) were more likely to report decreases in the number of employees compared with U.S.-based organizations (36%).

N = 427

Note: This analysis excludes respondents who answered “not sure”. Respondents answered this question based on the “last three months,” which refers to the time period between April 2009 and June 2009. Small-staff-sized organizations = 1-99 employees, medium-staff-sized = 100-499 employees, large-staff-sized = 500 or more employees.

©SHRM 2009 SHRM Poll June 15, 2009 3

Companies that increased staffing level between April and June 2009

Hired postgraduates

Hired undergraduates

0% 5% 10% 15% 20% 25% 30% 35% 40%

22%

39%

N = 91

Note: This analysis includes only respondents whose companies increased their staffing level in the last three months. Respondents answered this question based on the “last three months,” which refers to the time period between April 2009 and June 2009. This analysis excludes respondents who answered that they will hire in the next three months.

©SHRM 2009 SHRM Poll June 15, 2009 4

In the last three months, has your organization hired one or more 2009 university/college graduates?

Yes0%

10%

20%

30%

40%

50%

60%

42% 43%

52%

43%39%

2004 2006 2007 2008 2009

2009 Undergraduates (e.g., B.S., B.A. degrees)

Note: In 2009 , an additional option “Will hire in next three months” was included. This analysis excludes respondents who answered that they will hire in the next three months. Respondents answered this question based on the “last three months,” which refers to the time period between April 2009 and June 2009.

•Hiring of undergraduates has dipped slightly in 2009 compared with previous years.

©SHRM 2009 SHRM Poll June 15, 2009 5

In the last three months, has your organization hired one or more 2009 university/college graduates?

Yes0%

5%

10%

15%

20%

25%

30%

35%

40%

29%

24%

38%

28%

22%

2004 2006 2007 2008 2009

2009 Postgraduates (e.g., M.S., M.A., M.B.A., doctoral degrees)

Page 3

•Hiring of postgraduates has dipped slightly in 2009 compared with previous years.

Note: In 2009 , an additional option “Will hire in next three months” was included. This analysis excludes respondents who answered that they will hire in the next three months. Respondents answered this question based on the “last three months,” which refers to the time period between April 2009 and June 2009.

©SHRM 2009 SHRM Poll June 15, 2009 6

Compared with graduates from previous years, are the 2009 university/college graduates that your organization has hired (or made offers to) satisfied with the salary offered?

Much more satisfied More satisfied About the same Less satisfied0%

10%

20%

30%

40%

50%

60%

70%

3%

36%

58%

3%

Note: Only respondents who se organizations have hired 2009 under graduates and/or postgraduates were included in this analysis.

©SHRM 2009 SHRM Poll June 15, 2009 7

If your organization has not hired 2009 university/college graduates, why not?

Other

Too early to hire university graduates

University graduates overqualified for open position

Difficulty finding quailified university graduate candidates

Hiring freeze due to economic down-turn

No current openings (i.e., at that ex-perience level)

0% 10% 20% 30% 40% 50% 60% 70% 80%

2%

10%

14%

12%

3%

74%

0%

2%

5%

10%

15%

68%

2008 (n=242) 2009 (n=56)

Note: Multiple response options were allowed, therefore percentages do not total 100%.

•Most companies indicated that they have not hired 2009 graduates because they do not have current openings. This may mean that these companies are less likely have entry-level positions in general for recent graduates, which may or may not be due to the recession.

©SHRM 2009 SHRM Poll June 15, 2009 8

To what extent will your company target new 2009 university/college graduates once the economy turns around and hiring resumes?

Large extent; 5%

Some

extent; 20%

Small extent; 49%

Will

not

hire; 26%

Differences by organization staff size:•Compared with large companies (16%), small (37%) and medium (29%) companies will be less likely to hire 2009 graduates once the economy turns around.

n = 406

Note: Small-staff-sized organizations = 1-99 employees, medium-staff-sized = 100-499 employees, large-staff-sized = 500 or more employees

©SHRM 2009 SHRM Poll June 15, 2009 9

Companies plan to hire graduates once the economy improves

39% of these companies have more 500 employees

47% of are privately owned for-profit companies

65% of these companies have U.S. based business operations

0% 10% 20% 30% 40% 50% 60% 70%

•Nearly three quarters of companies plan to target 2009 university/college graduates once the economy turns around and hiring resumes.

Note: Excludes companies who do not plan to target 2009 college/university graduates.

©SHRM 2009 SHRM Poll June 15, 2009 10

Given the current economic climate, are 2009 university/college graduate job seekers in a more or less advantageous position compared with other types of job seekers?

More advantageous

About the same

Less advantageous

0% 10% 20% 30% 40% 50% 60% 70%

7%

27%

66%

n = 373

•According to HR professionals, recent graduates are in a less advantageous position than other types of job seekers because they have less experience (see slide 9). The 7% of respondents who indicated recent graduates were more advantageous said that what makes them desirable is that recent graduates are willing to accept low pay and they have better networking opportunities than other types of job seekers.

©SHRM 2009 SHRM Poll June 15, 2009 11

Why are 2009 graduate job seekers in a disadvantageous position?

Over qualified for job applied

Entry level positions

Economic climate

Fewer networking opportunities

Limited training resources

Less experience

0% 10% 20% 30% 40% 50% 60% 70% 80%

6%

12%

12%

19%

33%

77%

n = 237

Note: Multiple response options were allowed, therefore percentages do not total 100%. Analysis only includes respondents who indicated that 2009 university/college graduate job seekers are in a disadvantageous position.

•2009 university/college graduates are disadvantaged in the current job market because they have less experience and because companies have less resources to train them.

©SHRM 2009 SHRM Poll June 15, 2009 12

Smal

l (1

- 99

emplo

yees

)

Med

ium

(100

- 49

9 em

ploye

es)

Large

(500

or m

ore e

mplo

yees

)0%

10%

20%

30%

40%

30%

36% 34%

n = 386

Organization Staff Size

©SHRM 2009 SHRM Poll June 15, 2009 13

Organization Sector

Government sector

Nonprofit organization

Publicly owned for profit

Privately owned for profit

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11%

17%

23%

49%

n = 399

©SHRM 2009 SHRM Poll June 15, 2009 14

U.S.-Based vs. Multinational Operations

Multinational operations

35%US-based operations

65%

n = 397

©SHRM 2009 SHRM Poll June 15, 2009 15

SHRM Poll: The Hiring of 2009 Graduates During the Economic Downturn

• Response rate = 16%• Sample comprised of 450 randomly selected

HR professionals from SHRM’s membership.• Margin of error = +/- 5%.• Survey fielded the week of June 15, 2009.

Methodology