fantasy of graduating from college and immediately going
to work with the next Mark Zuckerberg is dying.
the first time in years, fewer college graduates are
enamored by the idea of working for startup companies.
Instead, this yearís college graduates say they want
the security and stability that comes from employment at
large established companies, according to a survey by
number seeking jobs at large companies is up 37 percent
over last yearís graduating class, according to
researchers for the business management consulting firm,
who describe this yearís graduates as more like their
parentsí generation than the millennials that preceded
them in college.
are known as an entrepreneurial group ó a generation
skeptical of big business and drawn, instead, to small
startups where they can get in on the ground floor,
innovate, make their mark and maybe get rich off of
stock options if the business hits it big.
working for startups is tough. Only a few grow into a
Facebook or Google. Most donít survive. And this yearís
graduates ó who fit into the next generation, Gen Z
ó are in no mood for risks.
seen the classes before them and their predecessors
feeling underemployed," said Teri Hill, managing
director for Accenture. "This group fears that the
compile its report, Accenture surveyed 1,000 U.S.
students between the ages of 18 and 24 who are
graduating from college in 2017, and 1,000 students who
graduated in 2015 or 2016. The online survey was
conducted in January and February of this year.
found that 54 percent of the people who graduated a year
ago consider themselves underemployed, or working in
positions that donít fully utilize their skills. About
49 percent accepted a lower salary or benefits than they
anticipated and 44 percent found it difficult to get a
than being drawn to an entrepreneurial experience, this
yearís graduates stress the significance of getting a
good salary and training on the job, according to the
report. About 84 percent expect their first employer to
provide formal training.
is exactly the opposite of what small startups typically
hire real smart people, but itís millennials leading
millennials," said Christine DiDonato, founder of
Career Revolution, a workplace leadership training
consultant. "It means working many hours, having no
development and a lot of growing pains. Few can stick it
who previously was a human resources manager at Sony,
said getting graduates to consider employment at a large
company was difficult in years past because of the
allure of startups. The fact that this yearís
graduates are turning back to large companies for
employment is a sign of how different their perspective
new graduates may be surprised if they think they will
be nurtured and trained at large companies.
the financial crisis, companies slashed their training
budgets. Most training money goes toward top executives
with the assumption that the benefit will trickle down
to the workers.
with plenty of college applicants, companies select
individuals who have all the skills needed rather than
people who need training, said Kenneth Tsang, an analyst
for the National Association of Colleges and Employers,
a group which includes professionals in college career
services, university relations and recruiting.
if there is a training budget itís more likely to
exist in the largest companies. According to information
from the Brandon Hall Group in Training Magazine, the
average training budget for companies with 10,000 or
more employees is $13 million. Midsized companies of
1,000 to 9,999 employees spend $3.7 million on average,
and companies with fewer than 1,000 employees budget
$290,000 on average.
are looking for people with the relevant skills so they
donít have to spend time and money on training,"
Tsang said. Large companies use internships to train and
weed through possible full-time job candidates, but even
those internships have been reduced recently, he said.
also may be cutting back on new graduates in favor of
more seasoned employees. Of all the hiring done last
year, 48.3 percent involved recent college graduates,
according to research by the colleges and employers
group. In 2013, 57.2 percent were recent graduates.
year only 46.2 percent of graduates received job offers
as they were finishing college, and the results diverged
greatly based on the studentsí degree, the group
found. Only 27.8 percent of communications majors
received job offers, compared with 61.5 percent of those
in computer science. Pay was also dramatically
different. While the average was $47,000, graduates in
computer science were offered $64,000 while those who
got jobs in communications made $35,000.
the Accenture survey, 69 percent of 2017 graduates
expect to make more than $35,000. Among people surveyed
from the 2015-2016 graduating class, only 49 percent
were making $35,000.