Employers Favor Hiring from State Schools

From the Wall Street Journal | September 13, 2010 | By JENNIFER
MERRITT

U.S. companies largely favor
graduates of big state universities over Ivy League and other elite
liberal-arts schools when hiring to fill entry-level jobs, a Wall Street
Journal study found.

Jennifer
Merritt discusses a new Wall Street Journal survey, which reveals
recruiters are shifting their attention away from elite private schools
to focus instead on state universities.

In the
study—which surveyed 479 of the largest public and private companies,
nonprofits and government agencies—Pennsylvania State University, Texas
A&M University and University of Illinois at Urbana-Champaign ranked
as top picks for graduates best prepared and most able to succeed.

Of
the top 25 schools as rated by these employers, 19 were public, one was
Ivy League (Cornell University) and the rest were private, including
Carnegie Mellon and University of Notre Dame.

The Journal
research represents a systematic effort to assess colleges by surveying
employers' recruiters—who decide where to seek out new hires—instead of
relying primarily on measures such as student test scores, college
admission rates or graduates' starting salaries. As a group, the survey
participants hired more than 43,000 new graduates in the past year.

The
recruiters' perceptions matter all the more given that employers today
are visiting fewer schools, partly due to the weak economy. Instead of
casting a wide net, the Journal found, big employers are focusing more
intently on nearby or strategically located research institutions with
whom they can forge deeper partnerships with faculty.

The Journal
study didn't examine smaller companies because they generally don't
interact with as many colleges. In addition, the survey focused on
hiring students with bachelor's as opposed to graduate degrees.

The
research highlighted a split in perception about state and private
schools. Recruiters who named an Ivy League or elite liberal-arts school
as a top pick say they prize their graduates' intellect and cachet
among clients, as well as "soft skills" like critical thinking and
communication. But many companies said they need people with practical
skills to serve as operations managers, product developers, business
analysts and engineers. For those employees—the bulk of their work
force—they turn to state institutions or other private schools offering
that.

Write to
Jennifer Merritt at jennifer.merritt@wsj.com