Recruitment

To Attract Talent, You've Gotta Give 'Em All

Study finds students positioning themselves as picky buyers in today's tight labor market.

by Louisa Wah

Two annual studies conducted by Universum, the American Graduate Survey and European Graduate Survey, send a loud message to employers who want to attract the best and brightest: You've got to give them all they demand, and nothing less.

Universum, a Stockholm, Sweden-based competence relations firm, surveyed 1,945 first- and second-year MBA students in 23 U.S. business schools and 5,105 business, engineering and science students in 65 European universities and technology schools separately. The study found that students are positioning themselves as picky buyers in today's tight labor market, demanding everything from a challenging and lucrative career to a balanced lifestyle.

There are some differences, however, in what American students and their European counterparts expect from a first employer. U.S. respondents cited competitive compensation, inspiring colleagues and a variety of assignments as the top characteristics of their employer of choice. For the European students, the most attractive characteristics are international career opportunities and inspiring colleagues.

Both European and American students show a strong interest in an international career. However, Europeans are more likely to find such opportunities attractive in a first employer (28 percent vs. 20 percent).

Most students are willing to relocate, and more are expecting to do so early on in their careers. As many as 75 percent of European graduates would like to work abroad within the next five years, whereas 22 percent of U.S. students said that an assignment in a foreign country would motivate them to stay longer with their first employer.

The graduates' anticipated tenure with their first employers has important implications for HR management. In Europe, more students (35 percent) expect to work for their first employers for two to three years than for any other length of time. In the United States, 50 percent anticipate working for their first employers for three to five years.

Russell Schmieder, analyst at Universum, says companies traditionally base their returns on investment in a new employee on a five- to seven-year range, which begs the question: "Should companies shift their focus in terms of developing a new hire so that they can realize their investment sooner?"

A case in point: While companies normally offer international career opportunities to employees who have been on the job for a few years, by that time young professionals may well be committed to building a family instead. "Flexibility is the key issue here," he says.