Somewhere in the middle of the “broke college student” trope is a range of financial situations that exist among today’s college students. Some students have some or all of their tuition paid for; some students receive a monthly allowance to cover their cost-of-living expenses; most students work, but the number of hours varies across financial backgrounds. Of the estimated 20 million students receiving an undergraduate education, nearly a third – 6.2 million – come from low-income families and receive little to no financial support. While the differences in students' financial situations has always had an impact on collegiate experience, the COVID-19 pandemic has only exacerbated the inequalities that exist for students on campus.
Companies who hire college students for their entry-level roles won’t know the financial backgrounds of their candidates, but certain recruitment strategies, screening tactics, and internship programs can unintentionally make the job search much more difficult for candidates who come from low-income backgrounds. This is especially problematic for industries already lacking in representation – studies show that students from low-income backgrounds are disproportionately Black, Hispanic/Latinx, and first-generation college students. For companies who care about building a diverse team of talented employees, consider adopting the following strategies – being conscientious about potential financial circumstances can go a long way in creating a more inclusive hiring process.
Widen your recruitment reach to include students on a variety of campuses.
Elite institutions have been making progress to increase diversity across racial, ethnic, and socioeconomic lines. But most lag far behind public schools and less-selective institutions in terms of the sheer number of low-income students they provide an education for. An in-depth study of the income percentiles of students at thousands of U.S. colleges found that many elite schools have more students from the top 1% of the income scale than the bottom 60%. That means the group of schools you focus your recruitment efforts on will have a major impact on the candidates you see in your pipeline.
To avoid excluding a large segment of candidates from lower-income backgrounds, your strategy should include a healthy mix of campuses of varying size and selectivity. In the era of remote recruitment, there's no excuse for limiting your focus to a small number of campuses. While you may still choose to host events with or source from specific schools, leverage tools like RippleMatch to shift to a candidate-centric model of recruiting where your opportunities are being put in front of candidates across the country. Learn more about how RippleMatch can help you broaden your campus reach here, and download our guide “Beyond The Ivy League” for information on the top public schools and other affordable colleges all in one place.
Reconsider GPA requirements and cutoffs.
Several studies, including from researchers at Georgetown University and Cornell University, have found that low-income college students are more likely to struggle to achieve high grades and graduate on time. The main culprit? These students have to work much longer hours in order to support themselves during college, compared to their peers who can work fewer hours or don’t have to work at all. Instead of spending time in the library studying, working students have to balance their studies and extracurriculars with one or (even two) jobs.
If hard GPA cutoffs are a part of your screening process, consider what purpose GPA has in this process. Do you view it as an indicator of a candidate’s work ethic? Their mastery of a certain subject? Depending on its purpose, make GPA part of a holistic evaluation of a candidate and take things like work experience, extracurricular involvement, and skills into account early on as well.
Work experience is work experience – don’t undervalue the skills acquired in a part-time job or campus organization.
In a perfect world, every student’s circumstances would allow them to take on a summer internship in line with their career path. But financial constraints can make it difficult for students – especially those who don’t live near a major metropolitan area – to complete a summer internship that’s relevant to their professional goals.
According to the National Association of Colleges and Employers (NACE), nearly half – 43% – of internships at for-profit companies are unpaid. For the population of students who can’t afford to work for free for three months, those internships are essentially out of reach. While the internships that do pay can be more accessible, requirements to relocate and cost-of-living in pricy cities can still make these opportunities out of reach. Even remote internships – which can be done from anywhere – can be more challenging for low-income students to complete if they lack adequate internet access and a professional space to work from.
While internships are a great way to evaluate the potential of prospective candidates, existing financial barriers can make them a flawed method for screening candidates. Don't discount internship experiences, but value the work experience a candidate has outside of internships, too. For example: A student who has held the same retail job for three years showcases their reliability, client-facing skills, and work ethic. A student involved in several on-campus organizations exemplifies their time management skills and leadership skills. A student who has built and launched several technical products independently displays initiative and applicable skills. None of these students held internships – but by evaluating their experiences without discounting their lack of “professional” experience, you can ensure you aren’t missing out on talented candidates.
If your internship is a funnel to full-time employment, be sure that it doesn’t have any financial barriers.
An internship program can be a great investment in your full-time talent acquisition strategy. But if you rely heavily on an internship program to fill your entry-level pipeline, it’s important to be conscious you aren’t creating the same financial barriers a full-time hiring process might have. That means paying attention to where you recruit, the costs of your interview process, and criteria for evaluating candidates. During the internship itself, interns should be able to afford their cost-of-living expenses, whether that includes supplies for adequately working from home or relocation when in-person internships return.
If you can’t afford an all-inclusive internship program, you don’t need to scrap it entirely. However, don’t prioritize former interns over external candidates when hiring for your full-time roles, as you could miss out on candidates who couldn’t afford to complete the internship in the first place.
Don’t overvalue 'polish' during virtual interviews.
In many ways, the move to virtual interviews has already leveled the playing field by limiting circumstances where a student may have to pay their own way to travel to a final round interview. That said, varying situations due to work-from-home means that not every interview will carry the same level of polish.
Low-income students living at home may be less likely to have access to a strong internet connection and a professional, quiet space to conduct interviews. With this in mind, it's important to focus on a candidate's experiences and what they can bring to a role rather than factors that are out of their control (like their Zoom background or internet connection). Be empathetic when approaching these interviews, and don't fixate on things that aren't relevant to the job or internship itself.
If your company is located in a city with a high cost-of-living, consider offering a relocation stipend.
While remote work has been the norm for many companies since early 2020, offices that have been previously closed may begin opening up again when a vaccine is widespread. If you mandate in-office work, consider offering a relocation stipend to graduating students who are beginning their careers with you. With the cost of travel, moving, and security deposits, getting situated in a new city is expensive. To cover these costs, many college students receive financial help from their families or rely on their savings or credit cards during this transitional time. However, some students simply don’t have the money on hand to cover moving expenses, even if their salary will completely cover their cost-of-living once payroll begins. This is especially true in a year of extreme job loss when many people have had to tap into their savings to stay afloat. You don’t want a candidate turning down an offer because they can’t afford the upfront costs of relocating, so consider helping out on a case-by-case basis if you mandate relocation.
Making your hiring process more inclusive doesn’t mean you’re making allowances for certain groups – it means you’re working to level the playing field to ensure every candidate has a shot. Considering how you can remove financial barriers in your hiring process is another step to increasing access to opportunity and building a more diverse team.
Download our guide “Beyond The Ivy League” for more information on expanding your recruitment reach and finding students at the top public schools, HBCUs, and HSIs.