Both business and IT/engineering students globally have crowned Google, Microsoft and Apple as the world’s top three most attractive employers this year, according to research carried out by Universum.
In fact, Google and Microsoft were ranked as the top employers for both groups last year too, according to the global employer branding company. Universum’s annual ranking measures how attractive firms are from an employment perspective based on 200,000 university student perceptions from the world’s largest 12 economies each year. It specifically targets students majoring in business, engineering and IT to find out what kind of employers they would like to work for upon graduation. The findings not only reveal which employers they want to work for, but also what factors influence their decision.
Innovation drivers and big names in tech like Google, Amazon and Microsoft continue to rank highly for students in recent years, confirmed Universum’s findings. But this year, students are more interested in jobs in automotive and manufacturing. Young people want to work for companies on the leading edge in industries making historic gains in AI, robotics and automation. Daimler AG, for example, has jumped 10 points among business students and 8 points among engineering and IT students over the last three years, pointed out Universum. Many other auto companies also now rank higher, compared to previous years .
TOP EMPLOYERS FOR BUSINESS STUDENTS
Amazon made the biggest gains in 2020, rising seven spots to number 4 in just one year, reveals the study. The company has been an aggressive recruiter on college campuses over the last few years. “Interestingly, Amazon shifted to virtual recruiting to scale its efforts before the global pandemic set in,” noted Universum.
Accounting, financial and professional service firms – once top choices for business school students – now struggle to remain relevant at a time when students are looking for innovative, entrepreneurial work settings. In fact, the Big Four have taken a tumble in recent years as students are moving away from traditional jobs in consulting and financial services in favour of more exciting jobs in tech, highlighted Universum’s study.
That said, Deloitte has maintained its position at spot number 5 over the last three years. “Among the Big Four, Deloitte has mostly maintained its top World’s Most Attractive Employer” status, but “EY, PwC and KPMG have each lost at least 5 points over the same period”, noted Universum. “Some point to changes in the nature of the accounting field, where advances in AI, natural language processing and robotic process automation will eliminate a portion of entry-level jobs. But the challenge for these companies is much larger than process automation.”
ENGINEERING/IT STUDENT PREFERENCES
The engineering industry rankings tend to move around less than business rankings do. The Top 3 (Google, Microsoft and Apple) have maintained their relative positions over the last three years, confirmed Universum. Amazon gained 4 points in just one year, and 12 points in the last three years – landing at number 4 this year.
“Individual companies within the auto industry fared very differently in 2020, showing that industry forces alone cannot explain the good (or bad) outcomes for employer branding and recruiting,” noted the study. Volkswagen rose 8 points over the last year, while Daimler gained one point. On the other hand, Ford dropped 3 points while Nissan dropped 4 points.
WHAT STUDENTS SEEK
‘High future earnings’ is a key employer attribute for both business and engineering students, noted the study. ‘A friendly work environment’ and ‘secure employment’ are also important, ranking in the top 5 for key employer attributes for both groups of students. Universum has documented a rising focus on compensation and security, as well as a continued focus on training and development, over the last few years. It believes that these priorities will probably accelerate under pandemic conditions, as the recession is likely to persist well into 2021.
Additionally, Universum believes a growing demand for economic security may recalibrate students’ expectations, as well as employer brand priorities. “The 2020 Universum research shows a misalignment between what young people say they want versus the types of employers they prioritise,” noted the report. For example, 40% of students say a “friendly work environment” is a priority, but many fewer choose employers with this attribute. “It’s an important lesson for employers that must discern between idealism and pragmatism. We expect that the global economic recession fuelled by Covid-19 will make these choices even starker,” added Universum.
EMPLOYER CHALLENGES
Despite record-high unemployment, hiring critical and top quality talent will get harder, according to Universum. Among the biggest headwinds in the current economic climate is a passive talent pool no longer willing to risk leaving stable employment and significant restrictions on transnational hiring.
Universum also believes that the appeal of working for startups may be losing its lustre. The Covid-19 crisis has affected start-ups much more than larger, well-funded enterprises. Talent leaders at the largest companies, including the World’s Most Attractive Employers are now less concerned that startups will be a significant source of competition for talent.
DIVERSITY STILL A ‘TOP PRIORITY’
Recruiting for diversity remains a top priority, adds Universum. Recruiting leaders continue to emphasise the importance of hiring from a more diverse talent pool, a practice that has been accelerated through the adoption of more virtual recruitment practices in response to the Covid-19 crisis. This attribute has been important for a number of years in the Universum research, but given recent conversations about racial justice and inequality around the globe, Universum expects that it will “become even more fundamental to recruiting talent”.
Many large companies have already made important changes in how they recruit to ensure more equitable recruiting and hiring practices. Amazon and Goldman Sachs, for example, have both shifted to de-emphasise recruiting at elite universities, now casting a wider net to ensure a diverse applicant pool. To do this, both companies have invested heavily in the technology and training for virtual meetings and recruiting. Many believe the current work-from-home trend will go further in supporting more diverse hiring practices. A virtual workforce can be hired from a more diverse range of geographies, places where a company may not have a major office, or any office at all.
EMPLOYEE ENGAGEMENT IS KEY
Universum believes that employee engagement is now a key priority for employer brand leaders. In addition to supporting talent attraction, employer branding is equally important to employee experience, particularly, keeping faith with employer brand promises and reinforcing a unique sense of culture and identity.
“The 2020 World’s Most Attractive Employer rankings demonstrate that companies can make transformative changes in how they are perceived among would-be employees in just a year or two. Innovation-fuelled brands like Amazon, Daimler AG and Philips made significant gains in the rankings,” confirmed Universum’s Chief Executive Officer, Mats Röjdmark. “The challenge – and opportunity – for employer brands in 2020 is to judge how the global pandemic and economic downturn will affect“employees’ work priorities over the next 12 to 18 months.”
Click here for a copy of the report.
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