As someone at the intersection of executive recruiting and higher education, I often find myself sitting in on conversations with CHROs about the challenges and benefits of hiring each successive class of new graduates. In some ways, hiring new graduates requires the same focus as hiring anyone else, including thinking about workforce trends, total rewards, compensations, and culture.
At the same time, each graduating class has a unique defined perspective on the working world shaped by their experiences and needs. Hiring the best of the best from the Class of 2025 requires understanding where they’re coming from and where they want to go next. Below is what to keep in mind as you create your strategy to hire today’s new grads.
Big Dreams, But Plenty of Flexibility
The Class of 2025 is full of future leaders or, at the very least, people who want to be future leaders. According to research from Handshake, the latest class of graduates is very interested in career paths that would take them to higher levels of leadership, entrepreneurship, or further education and growth. Among surveyed students:
- 61% are very or moderately interested in managing a team, and 28% are at least a little bit interested.
- 48% are very or moderately interested in serving as a company executive, and 27% are at least a little bit interested.
- 47% are very or moderately interested in starting a business of their own, and 27% are at least a little bit interested.
- 46% are very or moderately interested in going back to school down the line, and 37% are at least a little bit interested.
Despite some major doubts and pessimism about the current moment, the Class of 2025 is full of talent and ready to make big moves. They’re also willing to make significant moves beyond just “climbing the ladder.” Handshake also found that 43% of 2025’s graduates expect to pivot their careers at least once, indicating more perceived flexibility and willingness to focus on transferable skills.
To appeal to the Class of 2025, organizations can focus on those opportunities for short- and long-term career growth by highlighting mentoring programs, upskilling and education opportunities, and examples of leaders promoted from within. These can be a compelling part of the employee value proposition for prospective hires, especially new grads.
Higher Salaries and Qualifications
The job market for new grads is expected to be somewhat more competitive this year. In their annual job outlook, the National Association of Colleges and Employers found that over 40% of employers are increasing salaries at the bachelor’s degree level, and almost 30% intend to do the same for graduates with a master’s degree. Additionally, more than half of employers intend to offer signing bonuses to Class of 2025 graduates, although almost two-thirds will offer these to only some graduates. In general, the Class of 2025 is projected to have 7.3% more job openings than their immediate predecessors.
In return, however, the overall talent marketplace is asking more of its new graduates. Forty-seven percent of NACE-surveyed employers say they’ll be screening applicants for GPA standards, which is a significant increase from the 38.3% who said the same in 2024. It’s an indicator that the competition for great jobs will be just as serious as the competition for top talent.
What does this mean for your organization? You’ll need to carefully evaluate your overall approach to compensation. If the “baseline” salary expectation for the Class of 2025 is higher than before and includes items like signing bonuses, consider what your organization can do to match that. Look for other items in the Total Rewards category to highlight, too, so that new grads can see the complete compensation picture before making any decisions. Plus, don’t neglect culture. Eighty-five percent of students say they’d prefer to work for employers that align with their values!
Focus on Purpose-Driven Work
Speaking of culture, Gen Z’ers, like the Class of 2025, are arguably the most purpose- and value-driven generation in the workplace today. According to an annual study from Deloitte, 86% of Gen Zs say having a sense of purpose is very or somewhat important to their overall job satisfaction and well-being. Fifty percent of Gen Z employees already in the workforce say they’ve rejected a task or assignment due to misalignment with their values, and 44% have turned down a job for the same reason.
Younger employees are particularly looking to work with employers who not only share their values but are also interested in making positive social change. Deloitte reports that 75% of Gen Zs and Millennials say that an organization’s community engagement and societal impact play an important role when considering a prospective job. Sixty-five percent believe that businesses can have a positive impact in areas like protecting the environment, addressing social inequalities, creating opportunities, and ensuring ethical use of new technologies like AI. However, only 49% of Gen Zs believe businesses actually have that kind of effect on the world.
Attract—and retain—promising new talent by emphasizing commitments to “doing good,” whatever that looks like in the context of your industry and organization. Offer opportunities to be part of mentorship or volunteering or highlight ways your team is working to address key challenges in your communities or the world at large. Most of all, when presenting information about roles, go beyond just explaining what they’ll do and focus on why it matters.
At Blue Rock Search, we’re here to help you master the art of the search for the Class of 2025 and beyond. Our combined expertise in Fortune 500 Human Resources and Higher Education helps us tailor each search to the specific demands of your organization and to the unique needs and wants of particular candidate pools, including new graduates. Contact us to learn more about how our talent solutions can drive your growth and success!