ASE releases 2020 Starting Salaries for Co-op Students and Recent College Graduates Survey

 

Media Contact: Heather Nezich, Manager, Communications, ASE, 248.223.8040, hnezich@aseonline.org  

(77%) of Michigan employers say their company has hired, or plans to hire, a recent college graduate in 2020.

Livonia, Mich. —January 28, 2020 — ASE, Michigan’s largest employer association, released the 2020 Starting Salaries for Co-op Students and Recent College Graduates Survey today. The annual survey provides a comprehensive look at the current state of wages and benefits provided to co-op students and recent college graduates.  The survey also presents employers a snapshot of the recruitment and retention trends associated with these new entrants to the workforce.

Mary E. Corrado, ASE President and CEO, stated, “The number of employers hiring or planning to hire new college grads has reached its highest level since 2016.  However, while this job outlook looks promising for new college graduates, some challenges may exist.  Our data is suggesting that employers may be slowing the pace of their hiring or that we have reached a plateau.  New grads will need to work harder to distinguish themselves and compete for what might be few opportunities.  Our data suggests that prior work experience and internships play a significant role in employer decision making.  Students should consider internships as a steppingstone to their career.”

121 companies responded to the 2020 Starting Salaries for Co-op Students and Recent College Graduates Survey.  The majority (76%) of the respondents have under 500 employees.  Just over 80% of respondents are located in the metro Detroit region with 58.7% of those classified as automotive suppliers.

2020 Starting Salaries for Co-op Students and Recent College Graduates Survey Highlights:

  • Nearly four out of five (77%) respondents say their company has hired, or plans to hire, a recent college graduate in 2020, three percentage points higher than what was reported in 2019.
    • However, the data suggests that the pace or amount of hiring may be slowing.  Just 19% of companies plan on increasing their hiring efforts, an 11% decrease from last year.
    • When asked why their hiring of college graduates has changed there was a 14% increase in those citing financial concerns.
  • Statistically, the top five in-state institutions the responding companies actively recruit from are: 1) University of Michigan; 2) Michigan State University; 3) Oakland University; 4) Lawrence Technological University; 5) Wayne State University.
  • Based on reported data, the top three most popular technical Bachelor-degree disciplines hired in the past year were: 1) Mechanical Engineering; 2) Electrical Engineering; 3) Computer Science
  • Based on reported data, the top three most popular non-technical Bachelor-degree disciplines hired in the past year were: 1) Supply Chain Management; 2) Business Administration; 3) Finance tied with HR/Labor Relations
  • The top three knowledge/skill factors organizations consider when making hiring decisions, in order, are: related coursework (i.e., to the work required in the job); computer skills; and internship/work experience.
  • The top three perceived shortcomings of recent college graduates are: 1) career expectations (62%); 2) compensation expectations (54%); 3) adaptation to work environment (52%).
  • Of the seven disciplines named above (Business Administration, Computer Science, Electrical Engineering, Finance, HR/Labor Relations, Mechanical Engineering, Supply Chain Management) the highest average starting salary was $71,581 for Computer Science.  Going down in the average starting salaries is Electrical Engineering ($70,236), Mechanical Engineering ($67,600), Business Administration ($65,597), Supply Chain Management ($63,589), HR/Labor Relations ($59,975), and Finance ($59,142).
  • Pay rates for high school and college co-ops and interns were separated by technical and non-technical roles; the average hourly rate for a college senior in a technical field is $18.38 an hour and $16.75 for a non-technical field; the average hourly rate for a college junior in a technical field is $17.11 an hour and $15.75 for a non-technical field.

This survey is available free of charge to ASE members and for $525 to non-members.  Contact Kevin Marrs at kmarrs@aseonline.org for more information.

 About the American Society of Employers (ASE) – a Centennial Organization

ASE is Michigan’s largest employer association and the premier resource for HR excellence.  ASE is a non-profit, mission-based, membership organization – everything we do is based on the needs of members and to drive the success of their organizations.  ASE strengthens organization’s HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, engagement, development, and retention while minimizing compliance risk. Learn more about ASE at www.aseonline.org.