Younger generations look for high earnings, job security in future employers: expert

Yahoo finance’s Alexis Christoforous and Brian Sozzi speak with Universum Managing Director Kortney Kutsop about which employers college students find most attractive amid COVID-19.

Video Transcript

ALEXIS CHRISTOFOROUS: The younger generations are already eyeing their future employers. Universum is out with its 2020 Most Attractive Employers Survey. And the results show that current college students are most interested in the tech and entertainment sectors, surprise-surprise. In the business category, Google and Apple topped the list for most attractive employers.

Here to discuss the survey is Universum's managing director Kortney Kutsop. Kortney, good to have you with us this morning. I'm curious to know if students, these college students, have changed their preferences. Because many of them are starting college or graduating into a very different world given this pandemic. Have they changed their preferences when it comes to what it is they're looking for in an employer?

KORTNEY KUTSOP: They have. They have, Alexis. And I would say, even if you look back from five years ago, what this young generation was saying they were looking for, it was really about, what is the day-to-day work at the company? What does the culture look like, right? Can you bring your pet to work? Are there foosball tables? Do you have free food?

Now, what we're seeing, it's all about financial stability. They're looking for the high future earnings and the job security. And I think that really just goes to show a little bit of how pessimistic, right, this younger generation is becoming given the times that we are in.

BRIAN SOZZI: Kortney, what are some of the top companies?

KORTNEY KUTSOP: Yeah, absolutely. So it's the ones you would expect, right, the technology companies, the Googles, the Amazons, Disney, Apple, Microsoft making up the top of the rankings. But then you're also seeing the banks, JP Morgan, Goldman Sachs up there in the top, although they're beginning to fall this year, and we're seeing, really, the technology companies increasing in the rankings. Those big known brands.

If you look on the computer-science side, very similar, Google, Apple, Microsoft, Amazon, of course, engineering. Among engineering students, you're seeing a bit more aerospace companies. You see Tesla, SpaceX, and then Lockheed Martin in the top of those rankings, as well. So it's really a mix. But I would say the industries that we're seeing in the data increasing the most this year so far are the technology companies as well as some automotive companies, as well. Where more of the professional services, the banking companies, are seeming to drop in the results this year.

ALEXIS CHRISTOFOROUS: What about the way these people are going to be getting these jobs? It looks like they're going to be a lot of virtual interviews. Do they talk about how they feel about that?

KORTNEY KUTSOP: Yes. And so I think they're a bit skeptical. I think one thing we know is that this generation still likes the high-touch approach to a certain extent as well. And so being able to have that in-person interaction is still really important to them. And so they're a bit hesitant. Because they do like to be able to see them in person, and interact, and really get that feel.

So they're learning. I think they're-- you know, again, it's making sure they're set up to have good internet, and laptops, and all of that as well. So yes.

BRIAN SOZZI: Is there any sense from this study on average starting pay for these employees during the pandemic?

KORTNEY KUTSOP: Yes, there are. And you know what's interesting, is there is still a gender gap that exists between females and males. And so, again, it's their expectations, what they expect to make. And when we look at females versus males, the female expectation is actually lower than the male expectations.

But what we start to see as we get into any kind of crisis like this that we're in is that the gap-- again, their expectations start to lower even more. And so instead of increasing their salary expectations, they actually go down more and more. And when we look at what talent is looking for, of course, they want the salary and things like that. And I think what's interesting is, again, this idea of high future earnings.

They're not saying it's, right now, I need to make the money. It's the future, right? That is the key word that they're looking for, is in the future, what am I going to make? They're seeing parents, family, friends getting laid off. They want to make sure that they will have a job as well, in addition to working for a company that has ethical standards, and inspiring purpose.

I have to mention those. Because those are attributes that, as we measure in our data in terms of what talent really wants from an employer, those were two attributes that increased from pre-COVID times during post-COVID. They said, I want to work for a company that has high ethical standards and inspiring leaders.

ALEXIS CHRISTOFOROUS: Challenging time, especially for those entering the workforce. Kortney Kutsop, managing director of Universum. Thanks for sharing the results of that survey with us.

KORTNEY KUTSOP: Thank you.