Companies Favor Big State Schools With One-Stop Shopping for Graduates With Necessary Skills
State universities have become the favorite of companies recruiting new hires because their big student populations and focus on teaching practical skills gives the companies more bang for their recruiting buck.
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Under pressure to cut costs and streamline their hiring efforts, recruiting managers find it's more efficient to focus on fewer large schools and forge deeper relationships with them, according to a Wall Street Journal survey of top corporate recruiters whose companies last year hired 43,000 new graduates. Big state schools Pennsylvania State University, Texas A&M University and University of Illinois at Urbana-Champaign were the top three picks among recruiters surveyed.
Recruiters say graduates of top public universities are often among the most prepared and well-rounded academically, and companies have found they fit well into their corporate cultures and over time have the best track record in their firms.
Employers also like schools where they can form partnerships that allow them to work with professors and their students, giving them an inside track when it comes time to make offers for internships and jobs.
Corporate budget constraints also play a role. Recruiter salaries, travel expenses, advertising and relocation costs run upwards of $500,000 to recruit 100 college grads, according to the National Association of Colleges and Employers. "We're all accountable to the bottom line," said Diane Borhani, campus recruiting leader at Deloitte LLP, who said she recently narrowed her roster to about 400 schools from 500.
The impact on students is significant. Steve Canale, head of General Electric Co.'s (NYSE: GE - News) recruiting efforts, said it is critical for prospective students to ask which companies recruit on campus before deciding where to matriculate. GE, for example, focuses on about 40 key schools—many of them state schools—to hire 2,200 summer interns; upwards of 80% of its new-graduate hires come from its internship pool, said Mr. Canale.
The Wall Street Journal survey of recruiting executives set out to identify the majors and schools that best prepare students to land jobs that are satisfying, well-paid and have growth potential. The Journal collaborated with Seattle-based salary and career-data provider PayScale.com and Boston-based human-resource management firm Cambria Consulting to seek feedback from large public and private companies in nearly 30 industries, including finance, consulting, technology, engineering, marketing and health care, as well as nonprofits and government agencies.
The Journal asked companies to rank schools that produce the best-qualified graduates—overall and by major. Recruiters made clear they preferred big state schools over elite liberal arts schools, such as the Ivies. A number of state schools were added to recruiters' lists in the last two years, including Penn State and Arizona State University (No. 5) and Ohio State University (No. 12).
So where are Harvard University and other exclusive schools? While many companies that answered The Journal's survey say they recruit and hire Ivy League graduates, far fewer ranked them as top picks.
Claudia Goldin, a Harvard economics professor and lead researcher on a study tracking Harvard graduates' career paths, said, "We have none of the basic bread-and-butter courses that serve you well in much of industry." What's more, Ms. Goldin said, at Harvard, more than 55% of graduates went on to a doctorate degree, according to a recent survey, so they tend to stay in a first job for a short period of time—often a year or less. It's an observation recruiters in the Journal's study also made.
A Harvard spokesman said, "Harvard College graduates consistently experience success in the job market and in their chosen fields."
Monica Wilson, acting co-director of career services at Dartmouth College, said it's partly a numbers game: "How can you compare a large state school to a small liberal arts school that produces less than 750 students who go into employment each year?"
While companies didn't rate Ivy League grads best overall, several did favor them in some specific majors. Stanford University, for example, was ranked No. 11 in engineering recruits and No. 16 in business/economics; Harvard was No. 4 in business and economics.
Some companies like certain schools so much they set up offices nearby. The University of Michigan (No. 7) "was a huge selling point" in Google Inc.'s (NasdaqGS: GOOG - News) decision to open a sales and operations office in Ann Arbor, Mich., in September 2006, said recruiting manager Kyle Ewing. The company also opened an office in Pittsburgh where it hires computer-science graduates from Carnegie Mellon University (No. 10 overall, No. 1 for computer science), for the same reason.
Campbell Soup Co. (NYSE: CPB - News), Aernnova Aerospace SA and Spanish tech company Barracuda Networks Inc., among others, also set up facilities near the University of Michigan, which ranks in the top 10 across six majors.
Many recruiters say they are closely eyeing schools in their own backyard. Aside from the obvious convenience of proximity, companies are drawn to nearby schools for year-round access to interns and a greater chance that new-graduate hires reside locally, which eliminates relocation expenses.
Partnerships also play a key role. Universities and companies strike research collaborations that often include student participation. Companies get an early look at promising students, leading to internships and job offers.
Partnerships can help boost brand awareness among talented students. The economic climate led Dennis Cornell, head of recruiting for LSI Corp. (NYSE: LSI - News) of Milpitas, Calif., to narrow his on-campus recruiting to three schools where the tech firm wanted to expand its reputation: Purdue, University of Colorado-Boulder and University of California at Berkeley (No. 15 on the overall list, No. 2 for computer science majors and No. 12 for engineering majors).
1. Pennsylvania State University
Penn State, with its main campus located in University Park, Pa., has undergraduates enrolled in more than 160 different majors. It has 20 undergraduate campuses, 10 of which offer University-owned housing. The school is 54% male and 46% female, representing 50 states and 131 countries. The average student/faculty ratio is 17:1.
Upcoming Application Deadline: Nov. 30
Tuition (2010-2011): In-state $15,250; Out-of-state $27,114
Undergraduate Enrollment: 38,630
Admissions Phone: 814-856-5471
Admissions Email: email@example.com
How Majors Match Up
Computer Science (7)
2. Texas A&M University
This Texas school's main campus is in College Station, about 100 miles northwest of Houston and 100 miles northeast of Austin. The school has 10 individual colleges and boasts more than 800 student organizations ranging from athletics and recreation to professional and community service.
Upcoming Application Deadline: Jan. 15; Dec. 1 (priority)
Tuition (2010-2011): In-state $8,387; Out-of-state $22,817
Undergraduate Enrollment: 38,810
Admissions Phone: 979-845-3741
Admissions Email: firstname.lastname@example.org
How Majors Match Up
3. University of Illinois at Urbana-Champaign
University of Illinois at Urbana-Champaign, centrally located between Chicago, Indianapolis and St. Louis, has more than 150 majors and 1,000 student organizations. Students come from all 50 states and 118 countries. The school is 54% male and 46% female.
Upcoming Application Deadline: Jan. 2
Tuition (2010-2011): In-state $13,658-$18,386; Out-of-state $27,800-$32,528
Undergraduate Enrollment: 31,209
Admissions Phone: 217-333-0302
Admissions Email: email@example.com
How Majors Match Up
Computer Science (9)
4. Purdue University
More than half of this Indiana university's students are from the state (62%) with 38% coming from elsewhere. Its West Lafayette campus offers more than 200 majors for undergraduates along with 18 intercollegiate sports teams and more than 850 student organizations.
Upcoming Application Deadline: Nov. 15, other programs March 1
Tuition (2010-2011): In-state $9,070-$10,408; Out-of-state $26,622-$27,960
Undergraduate Enrollment: 29,851
Admissions Phone: 765-494-1776
Admissions Email: firstname.lastname@example.org
How Majors Match Up
Computer Science (8)
5. Arizona State University
Arizona State University is situated less than 15 miles from Phoenix, with four campuses in the metro Phoenix area, including an Arizona State air field for aviation students. The university offers 250 majors to its undergraduates -- who are 71% in-state. There are 52% women compared to 48% men, and more than 30% of freshmen graduate in the top 10% of their high school class.
Upcoming Application Deadline: Feb.1
Tuition (2010-2011): In-state $8,132; Out-of-state $20,296
Undergraduate Enrollment: 54,277
Admissions Phone: 480-965-7788
Admissions Email: email@example.com
How Majors Match Up
—Alexandra Cheney contributed to this article.