Grads “ideal employer” ranking reveals big shake-up
The full effect of recession revealed, the impact on the financial sector as a desirable employer and Gen Y’s mentality revealed in an extensive, decade long research piece.

Based on more than 32,240 employer evaluations, reflecting the opinions of 11,637 students, Universum releases the UK 2010 Ideal Employer rankings. This marks a decade of Ideal employer research in the UK. In 2010, the full effect of the recession is felt and typically popular employers face significant declines in employer attractiveness. The most noteworthy shake-ups are observed in the business/commerce ranking; however, significant ranking drops can be seen in all the main field of study rankings*. At the top of this year’s business/commerce ranking is Apple (1) and Google

These employers, traditionally popular with engineering/IT students, have knocked Goldman Sachs down from third to ninth and PricewaterhouseCoopers from second to fourth. However, PwC remains a top employer amongst business/commerce students, despite their fall of two positions. All of the Big Four accounting firms have dropped, with the exception of KPMG which has climbed five places to 10. In the midst of the recession, the 2009 rankings highlighted distinct winners and losers in the banking/finance sector, although there was little movement amongst the industries as such.

However, 2010 produced no winners from the banking industry with all employers in this sector losing ground in the top ten or falling out of it completely. J.P. Morgan, last year’s number one business/commerce employer slides 13 places. Other significant drops from the banking/finance sector include: Morgan Stanley (-12), Deutsche Bank (-20), Lloyds TSB (-14), Credit Suisse (-29), Citi (-24) and The Royal Bank of Scotland (-17). Similar ranking changes were observed in the US in 2009, with Goldman Sachs dropping four places, Merrill Lynch eight and Morgan Stanley seven. The US fell in and out of recession ahead of the UK and the effect of this on employer attractiveness follows a similar pattern.

“The repercussions of the banking crisis will have significant effects on the recruiting abilities of employers,” explained Anne Margrethe Mannerfelt, director Western Europe, Universum. “The war for talent is re-emerging and many employers from the banking/finance sector who are fighting for top talent may be pipped at the post by employers with a better image.”

The demise of the banks sees new winners this year, including the NHS climbing 20 places to 19 (business/commerce). GlaxoSmithKline has increased in popularity and is the highest climber (27 places) amongst business/commerce students. The popularity of the pharmaceutical industry has also increased as a whole, along with the energy/power sector and the aerospace & defence sector. RWE nPower climbed an impressive 65 places and General Electric 43 places (both natural science ranking). Employer popularity may have shifted in 2010, but career goals and employer expectations have remained consistent. Work/life balance is still the most important career goal for students, highlighting that this is independent of economic health and a permanent goal of Generation Y employees.

Reflecting the current job market, to be secure or stable in my job, is now the second most important career goal (compared to 5th business/commerce, 4th for engineering/IT in 2009). In 2009, secure employment became the most important job characteristic for US students, highlighting that UK students are following the trends set by their US peers. Regarding an employer’s reputation and image, business students still see good reputation, market success and financial strength respectively as the most important attributes, the same as 2009.

This provides a backdrop as to why many City employers have declined in popularity this year. “The attributes employers are associated with is where the Universum data becomes most valuable and interesting,” Mannerfelt said. “We know which attributes students value and this year we can see that the employers with weaker employer brands are simply not associated with them anymore. The top employers have the finger on the pulse of what young talent values,” she continued. Many of the attributes ranked highly reinforce the Generation Y mindset, including professional training and development, the top job characteristic for business/commerce and engineering/IT students. Good reference for future career has grown in importance as a remuneration driver for both business/commerce and engineering/IT students, reinforcing that a job is no longer for life. Has leaders who support my development is now the third most important attribute of an employer’s people & culture for engineering/IT students.

Training and support from senior staff are essentials associated with Generation Y and these are becoming the more prominent attributes of what drives employer attractiveness as we enter the next decade. As an increasing proportion of the workforce belongs to this generation, understanding the needs, and in turn the measures needed to retain this talent group is becoming an important element of competitiveness.

Each year, certain employers highlight the gender divide in employer attractiveness, drawing attention to their struggle to attract both genders. Unsurprisingly, the Arcadia Group is significantly more popular with women (78 place difference amongst humanities/liberal arts/education students, 69 place difference amongst business/commerce students). Electronic Arts is more attractive to men (61 place difference amongst business/commerce students). This reinforces the effect the consumer brand has on employer attractiveness and how it does not always have a positive impact.

However, as Apple climbs to the top of the business/commerce ranking and holds its third place amongst engineering/IT students, the question we should be asking is: is Apple quickly becoming the next Google?