An investment in early career talent is a long-term investment in the success of any company — but in times of economic turmoil, that message can be hard to communicate to leadership. While stories of widespread layoffs at companies big and small have saturated the news lately, how does that narrative translate to the youngest members of the workforce?
In other words, are companies continuing to hire early career talent?
To get a sense for what early career hiring will look like in 2023, we asked companies with top early career programs about their hiring practices for interns and entry-level positions in the 2021-2022 season, and their hiring plans for 2023. Companies surveyed represented the winners of our 2023 Campus Forward Awards for excellence in early career hiring. You can learn more about the selection process here.
Below are some highlights from our survey results. You can find more data and analysis from our survey in our comprehensive report, “The State of University Recruitment Programs”, including the top strategies for recruiting, supporting, and retaining Gen Z talent today.
There is no dramatic decrease in entry-level hiring in 2023 compared to the 2021-22 season
Despite an economic downturn and threat of a recession, we did not find a dramatic decrease in entry-level hiring for 2023. In fact, we found that 74% of all companies plan to hire the same number of entry-level employees this year as they did in 2021-2022, with 16% increasing their hiring goals, and 10% reducing the number of new hires. Looking deeper, companies with large programs are planning for the most significant hiring increases for 2023, with nearly 30% of these companies planning for increases.
Some industries are more secure than others when it comes to hiring entry-level talent
When analyzed by industry, we are able to see an even more nuanced picture of the state of the market. It’s clear that the Hardware, Manufacturing, & Construction industry, the CPG industry, and the Insurance industry are the three most secure industries, which we defined as the three industries most likely to grow or remain the same in their hiring for 2023, with no signs of making cuts to their hiring.
Taking a look at the Hardware, Manufacturing, & Construction industry, we see that 82% of companies overall plan to remain steady in their hiring of entry-level talent, compared to 74% of all programs, while 18% of companies in that industry plan to increase hiring, compared to 16% of all programs. When it comes to the CPG industry, 85% of companies across program size plan to hire the same number of entry-level employees this year. Within this industry, a third of companies with large programs are planning for an increase in hiring in 2023. 88% of all companies in Insurance plan to keep hiring steady, and 13% have plans to increase entry-level hiring.
You can find a longer list of industries by downloading the full guide here.
Most intern programs sizes will remain unchanged in 2023
We also inquired about whether companies intended to make changes to their intern hiring goals in 2023. We found that, similar to entry-level programs, three-fourths of companies plan to keep their internship programs the same size as the 2021-2022 season (compared to 74% of companies when it comes to entry-level programs). However, we also found that overall, internship programs were slightly less likely to face cuts.
The three most secure industries for hiring intern talent in 2023 include Travel & Hospitality, Hardware, Manufacturing & Construction, and Health & Pharmaceuticals
Taking a look at the Travel & Hospitality industry, we see that while 40% of companies across program size plan to keep their internship programs the same for 2023, 60% of companies intend to increase their programs — a significant deviation from 17% of all companies (across program size) planning for increases. Within this industry, we found that 100% of companies with small programs plan to increase intern hiring. Turning to Hardware, Construction, & Manufacturing, about 80% of companies in each program size confirmed that they did not plan to increase or decrease the size of their internship program for 2023, with small and mid-size programs being most likely to see increases.
Finally, while 17% of companies across program size in the Health, Pharmaceuticals, Medical Devices/ Technology industry plan to increase hiring, those figures are higher when looking within different program sizes. 33% of companies with large programs and 25% with enterprise programs plan for increases.
You can find a longer list of industries by downloading the full guide.
Companies should continue their investment in early career to remain competitive in 2023. Companies with top early career programs aren’t slowing down on their entry-level or intern hiring despite current economic conditions. In fact, top programs overall are more likely to increase than decrease their program sizes in 2023. To remain competitive, you should ensure your program is considered a long-term investment in the overall success of your company.
You can find more information about hiring in 2023 and recruitment strategies that companies with top early career programs are using to attract and retain talent today by downloading our guide, “The State of University Recruitment Programs” or by watching the replay of our accompanying webinar featuring CFA winners here.
