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Most College Recruiters Avoiding Signing Bonuses
The job market for 2007 college grads is expected to be strong, but while salaries are forecast to increase, the same is not true of signing bonuses.
Despite escalating competition in recruiting top talent from the nation's colleges, most companies expect to forgo signing bonuses for this spring's graduates. The National Association of Colleges and Employers' Job Outlook 2007 survey revealed that less than half (46 percent) of responding employers expect to use signing bonuses to attract 2007 college graduates -- about the same number as the previous year. "We're not seeing any significant move toward using signing bonuses this year," says Marilyn Mackes, executive director of Bethlehem, Pa.-based NACE. "In fact, more than three-quarters of those who plan to use signing bonuses reported that they will use them selectively. They won't be offering them to all candidates." Mackes says many companies plan to hike starting salaries offered to new grads by 4.6 percent over last year. "That's nearly a full percentage point higher than the increases they reported for the Class of 2006 and the Class of 2005," she says. Signing bonuses would be used by companies to lure top prospects. The possible bonuses ranged from $1,000 to $10,000 -- with an average offer of $3,568, according to the survey. However, more than 60 percent of companies expecting to offer bonuses say they'll offer less than that average. Recruiting for this year's crop of newly minted professionals is already underway, says Terri LaMarco, associate director of employer relations for The Career Center at the University of Michigan in Ann Arbor. She says representatives from various industries keep the recruiting process nearly a year-round effort. "Consulting firms and investment banks recruit very early in the fall," she says. "Others, such as nonprofits, advertising and retail will remain active throughout winter semester." LaMarco says not all employers of interest to graduating students actively recruit on college campuses, requiring each student "to launch a much more active, targeted search." For example, government and public service organizations, arts and entertainment entities typically require an intensive off-campus search by interested students. LaMarco says that, "In talking with employers, it appears that salaries will be fairly similar to what they were last year." Marketing majors are likely to see the biggest jump in salaries over those offered to last spring's graduates, with an increase of 14 percent to $41,323. Business administration majors can expect to see a substantial jump, (9 percent) to a $43,523 starting salary, according to NACE. Other top degree-specific prospects have also realized upward trends in average starting salaries for 2007. Among them are mechanical engineering, up 8 percent to $54,587; chemical engineering, up 7 percent to $60,054; management information systems, up 6 percent to $46,568; civil engineering, up 5 percent to $47,145; electrical engineering, up 3 percent to $54,599; computer science, up 2 percent to $51,070; and accounting, up 2 percent to $46,508. Only a few average starting salary offers have decreased for 2007 grads, including logistics/materials management, down 2 percent to $43,294 and psychology, political science, English, down 1 percent to $30,502. Although it's still early in the hiring season, the job market for 2007 college grads is expected to be strong, according to NACE.
February 15, 2007 Copyright 2007© LRP Publications |
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