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The latest news, trends and information to help you with your recruiting efforts.

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Posted November 19, 2019 by

Why are so many parents obsessed with getting their kids into ‘elite’ schools?

Parents and students are obsessed with getting into the “best” college or university largely for status reasons but also for rational, economic reasons. Somehow, if your kid gets into an elite university, that makes you a better parent in the eyes of some, but that’s truly unfortunate has allowed the banks and higher education industries to redistribute to themselves and their shareholders enormous amounts of wealth from the middle class. 

However, there are good, rational, economic reasons to enroll in and graduate from an elite college: your chances are higher of landing a well-paying job with a well known and respected employer. Most of the best known and respected employers recruit the bulk of their professional, entry-level talent from colleges and universities and for decades they’ve done so largely by sending recruiters and hiring managers to interview on college campuses.

Fortunately, an increasing minority of employers are looking at their outcomes data — which employees are the most productive — and are finding that there is a weak and sometimes negative correlation between the perceived quality of the school and productivity of the employee. That is leading these employees to become school agnostic, meaning that they are being more inclusive in their hiring by reducing or eliminating their on-campus hiring efforts in favor of hiring through job boards and other Internet sites. 

Posted November 05, 2019 by

Do this year’s college grads face the likelihood of crippling debt and delinquent repayments?

The student debt that Millennials and now Gen Z have and are incurring is crippling and, long-term, could financially devastate an entire generation. Those who went to college in the 1980s or earlier simply can’t relate as the cost to attend college then could be covered by working part-time as a waiter or bartender and any debt they graduated with could be repaid within a handful of years working at a job that paid well but not even great.

Today’s students are often attending schools that charge $25,000 or more per year plus another $15,000 in related costs such as traveling to and from school each semester, rent, food, and books. A four-year degree, therefore, often costs $160,000. Part-time jobs typically pay about $10 per hour. At 20-hours a week, that’s $41,600 over four years, so about $120,000 needs to be financed. Student loans often carry interest rates of eight percent or more, so over 20-years the average student is going to see about half of their gross wages disappear to repay the principal plus interest on their student debt.

The end results is that the average graduate of a four-year college or university is effectively being asked to live on about $25,000 per year. If they run into any unexpected, significant expenses like the need to replace a car or have surgery, then there is a very real possibility of them falling into delinquency. Many of the student loans then charge huge penalties, including significantly higher interest rates. So if you miss a payment one or two times, your already exorbitant interest rate of eight can easily escalate to 16 percent and then 24 percent. Before you know it, you’re paying 24 percent interest on a six-figure loan that is non-dischargeable in bankruptcy. If that’s not a recipe for financial disaster, I don’t know what is.

Posted October 24, 2019 by

Chipotle now covering 100% of tuition costs, even for part-time employees

It isn’t hard to admit: I’ve been a fan of Chipotle’s food since it opened a restaurant near my home about a decade ago.

If you’ve never been, think Subway but for burritos, tacos, and tortilla-less meals served in a bowl. Think concrete floors and lots of stainless steel. Think freshly cooked, savory meats. Think fresh, yummy guacamole. But I digress into a hunger causing diatribe.

Working in a restaurant — any restaurant — is not for the faint of heart. The work is usually fast-paced, customers can be jerks, and the hours often very early or very late. But it is good, honest, hard work. Every minute of every day your work is appreciated by customers who want a little treat, either in the sense of rewarding themselves or rewarding their taste buds. Or both.

Keeping workers happy and retaining them is an incredible challenge for almost all restaurants, especially those whose pay is at the lower end of the scale, which includes almost all fast-food restaurants. Let’s face it, you’re not going to get rich working in a fast-food restaurant, but you’ll earn your pay, you won’t get bored, and you’ll almost certainly make some great friends amongst your co-workers.

But now there’s another benefit to working at a fast-food restaurant. To be clear, not just any fast-food restaurant. Just Chipotle. At least for now. Chipotle, consistent with its mission to Cultivate a Better World, just announced an incredible tuition reimbursement program. Together with Guild Education, Chipotle will cover 100 percent of college tuition costs for all eligible employees, including hourly (crew) members. When I read that, I skeptically thought, “Yeah, but who will be eligible?” I’m often wrong, and this was one of the many times when I was very happy to be wrong.

The news here isn’t that Chipotle has a tuition reimbursement program. Yawn. Lots of employers, including College Recruiter, do. And the news isn’t even that the program covers 100 percent of the tuition costs. That’s a higher bar than most but, at best, evolutionary and not revolutionary. The news here is that to be eligible you need only have worked at Chipotle for four months (120-days, to be exact) AND work at least 15 hours a week. That’s right. Those working only 15-hours a week will get 100 percent of their college education paid for by Chipotle. That’s revolutionary. Kind of like their one-pound, barbacoa, burritos. But I digress again.

There are some limitations, but they’re VERY reasonable. Only certain degrees qualify, but there are 75 of them and range from high school diplomas to bachelor’s degrees in business or technology. The courses are online, but include VERY well respected schools like Denver University. Not satisfied with their schools? No problem. Chipotle will continue to offer its tuition reimbursement program, which allows eligible employees to be reimbursed for tuition up to $5,250 a year at the school of their choice. That’s not going to come close to covering the full cost of a typical, elite, four-year university, but it could easily cover a third or even a half at many state colleges and perhaps all of the costs of a community college. Or, slap that baby together with a nice scholarship or two and now you’re back into the free zone. Where you can enjoy a pork carnitas taco. With green chili. Mmmm.

College Recruiter, we believe that every student and recent graduate deserves a great career. That guiding principle leads us to push some employers to treat their employees better, sometimes by paying them better, sometimes by creating better working conditions, and sometimes by helping those employees achieve their life goals. With this new program, Chipotle is setting a new bar for other employers and, I hope, many others will follow their lead. Kudos, Chipotle.

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Posted October 11, 2019 by

Why employers should offer 529 college savings and tuition reimbursement plans

The cost of higher education is exponentially higher for the Millennials who recently graduated and Gen Zers who are currently enrolled in one-, two-, and four-year colleges and universities. A Baby Boomer may have paid $10,000 for tuition, room, and board in the 1960s. By the 1980s, the same would have cost a Gen Xer about $50,000. Today, the same will cost a Gen Zer $250,000. A very small percentage of students don’t face that kind of sticker shock as they’re extremely affluent and pay for that out-of-pocket, perhaps with savings, or they’re amongst those with the lowest income but qualify for the largest merit scholarships. For the vast majority of students, financing hundreds of thousands of dollars for their education is the reality. 

It is pretty common for student loans to carry interest rates of 6.25 percent, so about double what home mortgages cost, despite the student loans being of lower risk than home mortgages as you can’t discharge student loan debt through bankruptcy. Also normal is a 20-year repayment period. The cost of a $250,000 loan with an interest rate of 6.25 percent and a length of 20 years results in a monthly payment of $1,827.32, which is about $2,500 before tax. In other words, just to cover your student loans, you need to earn $30,000 a year. Even if your cost of education is half of that, you need to earn about $15,000 a year just to cover your student loans. 

Employers that create 529 education savings and tuition reimbursement plans effectively give their participating employees a substantial raise without it costing the employer anything. Money contributed to a 529 plan is tax-deductible, so if the employee contributes $10,000 a year, they’re going to save about $2,500 a year in taxes. That employee has therefore just effectively been given a $2,500 raise by their employer, without that raise costing the employer anything. Even more dramatic is tuition reimbursement, as that doesn’t cost the employee anything. At College Recruiter, we offer tuition reimbursement of $1,500 per year. If the employee’s tax bracket is 25 percent, that’s worth $2,000 to them. We are, effectively, giving those employees a $2,000 per year raise.

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Posted May 29, 2019 by

Why are more students reneging on their job acceptances?

A recent discussion in a listserv moderated by the National Association of Colleges and Employers was about an upward trend that some employers are seeing in the number of candidates who are reneging on their acceptances for both internship and entry-level jobs. One employer shared that they typically see four to five percent renege but this year that has jumped to more than eight percent.

Another employer helpfully shared that they’re also seeing more reneges and speculated that students “seem to be accepting offers as a back-up plan and then continuing the recruiting process throughout the year”. That employer is getting a much higher number of reneges within a week of the scheduled start date, blamed the students, and expressed hope that career services would start counseling students more about why they should not renege on job offers.

A third employer confirmed that they too are seeing higher renege rates but offered the following ideas: “(1) it continues to be a hot job market, (2) more companies are putting focus effort on early career talent, and (3) rapidly advancing / evolving technologies for employers and students are bringing more awareness efficiency (arguably) to the campus recruiting market.”

Another factor that I suspect is playing a role in the increased percentage of candidate reneges is the very long-time — and sometimes increasingly long — between when the candidate first meets with the employer and receives a job offer until the date when they actually start work.

It wasn’t all that long ago when the bulk of on-campus recruiting was late September through mid-November with offers taking weeks to be made. Now, it isn’t at all unusual to see employers interviewing at the beginning of September, making offers of employment in the interview room, and demanding a yes/no decision within days. Backed into a corner, a student would be irrational to decline this “bird in the hand” offer in favor of maybe getting a better offer days, weeks, or even months later a/k/a two in the bush.

Then, accepted offer in hand, some employers will essentially go radio silent and have little to no substantive contact with the student for months. Maybe the occasional email here or phone call there, but the intensity of the relationship goes from passionate to what is minimally required, and sometimes even less. Is it any wonder that the student loses their excitement and is open to reconsidering their acceptance?

To the employers who are frustrated by the reneges, let’s get creative about the entire process. What is within your control? Does your recruiting cycle really need to be driven by a fall/winter schedule that has existed since the 1950’s? Would it make more sense to look at alternative means to engage with, extend offers to, and continue to engage with students? 

Put another way, if an epidemic or other such natural or even manmade disaster were to prevent your team from flying out to college campuses around the country, how else could you recruit your next generation of leaders? Maybe look at those contingency plans — or create some — and then put them into place on a pilot basis. Maybe, just maybe, some of those contingency plans will deliver better candidates faster and for less money than the process many organizations have followed since “I like Ike” was a commonly heard campaign slogan.

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Posted May 27, 2019 by

Paid vs unpaid internships are key to landing a well-paying job upon graduation

One of the most basic factors separating students who find it relatively easy to find a well-paying job upon graduation from those who end up unemployed or underemployed is whether the students had internships or not and whether those internships were paid or unpaid.

According to results of the Class of 2019 Student Survey from the National Association of Colleges and Employers, “more than half of all graduating seniors who applied for a full-time job—53.2 percent—received at least one job offer. Within this group, 57.5 percent of students who had an internship and 43.7 percent of graduating seniors who did not have an internship received a job offer.”

In addition, the students who completed at least one internship prior to graduation were significantly more likely to receive multiple job offers for positions upon graduation. For those who completed at least one internship, the average student received 1.17 job offers. Those without an internship received 16 percent fewer job offers: an average of only 0.98 per student.

Another key factor was whether the internship was paid or unpaid. Many legal experts believe that unpaid internships are illegal unless the employer is a governmental or non-profit entity. But just because something may be illegal doesn’t mean that it doesn’t happen. Just think about the last time you drove a car. Almost everyone breaks at least one law every time they drive, whether that’s failing to come to a complete stop at a controlled intersection or driving even one mile per hour over the speed limit.

The impact of internship pay status was evident as well as 66.4 percent of According to NACE, 66.4 percent of class of 2019 graduates who had a paid internship received a job offer. On the other hand, just 43.7 percent of unpaid interns were offered a job. In other words, if you only graduate with an unpaid internship and your friend graduates with a similar but paid internship, she is 34 percent more likely to receive at least one job offer upon graduation. Ouch.

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Posted May 20, 2019 by

2019 job market best for college grads since 2017

Want more evidence that the job market facing this year’s college grads is the best in years? Actually, the best in 12 years, if you want to get technical.

According to the Class of 2019 Student Survey by the National Association of Colleges and Employers, graduating college seniors who had applied for full-time jobs received an average of 1.10 job offers, the highest rate of average job offers in 12 years.

That students who are merely applying for jobs are, on average, receiving more than one job offer is consistent with NACE’s Job Outlook 2019 Spring Update, which reported that U.S. employers plan to hire 10.7 percent more graduates from the class of 2019 than they did from the class of 2018.

Posted May 07, 2019 by

Massive unemployment still exists amongst high school and college graduates

The U.S. Department of Labor’s Bureau of Labor Statistics recently released some fascinating — and depressing — statistics on the state of the job market for students, drop-outs, and recent graduates of the nation’s high schools, colleges, and universities. The findings may surprise you.

Historically, most high school graduates did not go to college. The trend over the past few decades, however, has been that more and more are going to college. By October 2017,

66.7 percent of 2018 high school graduates age 16 to 24 were enrolled in colleges or universities. That increased 3.6 percent to 69.1 percent by October 2018. To those of us who value education, that’s a great thing. But to those of us who also value converting that education into a great career, the report contained some bleak news: only 72.3 percent of 20- to 29-year-olds who received a bachelor’s degree were employed, meaning that the unemployment rate for that cohort is about 7.7 times the April 2019, national unemployment rate of 3.6 percent.

Want some more highlights?

  • More women are in college than men. About 66.9 percent and 71.3 percent of men and women, ages 16 to 24, who graduated from high school are enrolled in college.
  • High school drop-outs are far less likely to work or even be looking for work than those who graduated. Among 16- to 24-year-olds, 47.2 percent of recent high school dropouts were working or looking for work, as compared to the labor force participation rate of 74.0 percent for recent high school graduates not enrolled in college.
  • A majority of young adults are in school. Only 42.8 percent – 16.3 million people – between the ages of 16 to 24 were not enrolled in school.
  • More graduates of two-year colleges are employed than graduates of four-year colleges. Among 20- to 29-year-olds, 75.0 percent of recent associate degree recipients, 72.3 percent of recent bachelor’s degree recipients, and 80.7 percent of recent advanced degree recipients were employed. Maybe that’s why 20 percent of recent bachelor’s degree recipients age 20 to 29 were enrolled in school.
  • Of those graduating from high school, those of Asian descent are 15.4 percent more likely to enroll in college than those who are black. The college enrollment rate of recent graduates was 73.4 percent for Asians, 69.6 percent for whites, 65.5 percent for Hispanics, and 63.6 percent for blacks.
  • About one-third of college students are also employed or looking for work. The labor force participation rates for male and female graduates enrolled in college were 37.3 percent and 35.5 percent, respectively.
  • Very few high school grads who enroll in college attend part-time. Some 90 percent were full-time students. Not surprisingly, only 32.5 percent of full-time students were in the labor force but twice as many – 74.3 percent – of part-time students were.
  • Four-year colleges are still the draw. Some two-thirds of high school grads enrolled in college attended a four-year colleges. Of these, 31.4 were also working as compared to 44.9 percent of those in two-year colleges.
  • Of the 37.9 million between the ages of 16- and 24-years of age, 21.7 million (57.2 percent) were enrolled in high school (9.4 million) or in college (12.3 million).
  • More than a million college students a year graduate with a bachelor’s degree.
  • Between January and October 2018, 1.1 million 20- to 29-year-olds earned a bachelor’s
  • degree; of these, 810,000 (72.3 percent) were employed in October 2018, making the
  • unemployment rate of 12.9 percent about 3.6 times the national, unemployment rate of 3.6 percent in April 2019.
  • The likelihood of graduating from college and being unemployed was virtually the same between men and women: 71.6 percent of men and 72.8 percent of women who recently earned a bachelor’s degree were employed in October 2018. The jobless rates for recent male and female bachelor’s degree recipients were 13.6 percent and 12.5 percent, respectively.
  • The job market for those with master’s and higher degrees was definitely better than those with associate’s or bachelor’s degrees. Between January and October 2018, 352,000 persons age 20 to 29 earned an advanced degree. Some 80.7 percent of recent grads with advanced degrees were working, as compared with 72.3 percent of those with bachelor’s degrees. In October 2018, the unemployment rate for recent advanced degree recipients was 10.4 percent.
  • Of the 374,000 20- to 29-year-olds who completed an associate degree between January and
  • October 2018, 75.0 percent were employed in October 2018. The unemployment rate for recent associate degree recipients was 9.6 percent.

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Posted April 25, 2019 by

To hire students, you need to recruit on campus. Right? Wrong.

At College Recruiter job search site, one of the biggest changes that we’ve seen over the past few years is the rapidly increasing number of employers who use time-to-hire, cost-per-hire, and productivity data to measure their sourcing partners, including college career service offices. Their findings are shocking to many.

For decades, employers believed that they had to travel to and recruit students on-campus if they wanted to hire “the best” candidates. Those beliefs were typically grounded in false assumptions. You’ve probably heard that productivity data shows that the more diverse and inclusive a workforce, the more productive is that workforce. But that means that an employer who only hires at a small percentage of the 3,000 four-year colleges and universities or the 4,400 one- and two-year colleges is undermining their own diversity and inclusion efforts. So the more targeted your campus recruiting efforts, the less diverse, inclusive, and productive will be your workforce. Ouch.

Another example? Many of our employer customers who have looked at their productivity data have discovered that the more elite the school the employee went to, the less productive is that employee. How can that be true? Because they leave far sooner than those hired from second or even third tier schools. One of our long-time customers is an accounting and consulting company. They cut way back on their on-campus efforts in favor of hiring through what they call “virtual” sources like College Recruiter. Why? Diversity, inclusion, and productivity. They’re becoming school and even major agnostic, meaning they don’t really care what school you went to or even what your major was. They used to only consider accounting, economics, and finance majors. Now they embrace fine arts, Russian literature, and any other major. In their words, “we can teach an employee how to read a balance sheet but we can’t teach them how to think critically”.

College Recruiter believes that every student and recent graduate deserves a great career. Our customers are primarily Fortune 1,000 companies, federal government agencies, and other organizations who want to hire dozens or even hundreds of students and recent graduates of all one-, two-, and four-year colleges and universities for part-time, seasonal, internship, and entry-level jobs.

In this historically tight labor market, are you struggling to hire the dozens or even hundreds of well-targeted, well-qualified students and recent graduates for part-time, seasonal, internship, and entry-level jobs? Would it make sense to either schedule a 30-minute call so that I can better understand your hiring challenges or email those to me so that I can make specific recommendations for how College Recruiter can help?

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Posted April 17, 2019 by

Why are your interns and new grad hires so strapped for cash?

The student debt that Millennials and now Gen Z have and are incurring is crippling and, long-term, could financially devastate an entire generation.

Those who went to college in the 1980’s or earlier simply can’t relate as the cost to attend college then could be covered by working part-time as a waiter or bartender and any debt they graduated with could be repaid within a handful of years working at a job that paid well but not even great.
Today’s students are often attending schools which charge $25,000 or more per year plus another $15,000 in related costs such as traveling to and from school each semester, rent, food, and books. A four-year degree, therefore, often costs $160,000.

Part-time jobs typically pay about $10 per hour. At 20-hours a week, that’s $41,600 over four years, so about $120,000 needs to be financed. Student loans often carry interest rates of eight percent or more, so over 20-years the average student is going to see about half of their gross wages disappear to repay the principal plus interest on their student debt.

The end results is that the average graduate of a four-year college or university is effectively being asked to live on about $25,000 per year. If they run into any unexpected, significant expenses like the need to replace a car or have surgery, then there is a very real possibility of them falling into delinquency. Many of the student loans then charge huge penalties, including significantly higher interest rates. So if you miss a payment one or two times, your already exorbitant interest rate of eight can easily escalate to 16 percent and then 24 percent. Before you know it, you’re paying 24 percent interest on a six figure loan that is non-dischargeable in bankruptcy.

If that’s not a recipe for financial disaster, I don’t know what is.