> Companies are having a hard time recruiting and retaining young talent, and as a result are accommodating what would have once been considered extreme demands. ....so many younger workers have gained the advantage when it comes to negotiating the terms of a new job.
and
> Today, however, economists and sociologists see such homecomings as a rational response to exorbitant housing prices in big cities, and entry-level wages that do not cover living expenses.
So which is it? Employers can't find employees, or the labor market is so oversaturated in big cities that entry level positions don't pay living wages?
My guess is that every company only wants to hire "the top 5% of graduates." So competition for the perceived best (ivy league, specialized skills) grows while Joe State and Cathy Community go chill with the folks and work at Walmart.
The general point of the article is spot on. I've heard that it's getting harder to retain top talent first hand from a lot of corporate recruiters.
I think the only problem with the article is this part:
"Many young people want their own businesses. The barriers to starting an Internet business are low."
The barriers to starting a one-feature company are low, but the barriers to starting a REAL business are still relatively high. Unfortunately it seems like there are still people out there who don't realize this, but even then, they account for a minority among all young jobseekers.
Not a bad read, although I wonder what reality some of these writers live in. If we look at startup participation / entrepreneurism amongst, say, people under 30 years of age, is the percentage really that high on a national scale? If even 1% of 18-30 year olds are opting to run startups instead of getting a job, I'd be surprised (although I'd love some numbers!)
Good comment. A recent article from businessweek talked about the 10 top employers favoured by new grads. Three of them were fed. agencies, one established accounting firm, google, etc. New grads crave job security, comfortable lifestyles, cars, houses and growing bank accounts. After racking up large student loans you can't blame them. And this would be a major impediment to them starting a business in general.
I think this article refers to maybe 0.05% of new grads.
Spot on. If you don't have rich parents you have to go into debt to attend private school. You HAVE to take the real job when you graduate.
I chose to be Joe State (@ motoko). I graduated in the black and was free to start a startup. I'm thinking it was a good decision. That and studying engineering. Thanks Dad.
"If you don't have rich parents you have to go into debt to attend private school."
That's not really true. Most top private school have really, really generous financial aid programs. And they give the money in outright grants instead of loans.
I come from a very middle-class family - father is a househusband, mother is a teacher. I went to Amherst College, which has a $40K/year sticker price. Amherst picked up more than 2/3 of my tuition in outright grants. It didn't cost me much more to attend than it would've at UMass (well, not quite true, I would've gotten a full ride at UMass, but it wasn't much more than the UMass sticker price). I ended up graduating with $4000 in loans, which I could pay back with internship earnings.
More than anything, I think this is about all the money in the baby boom generation--gen y's parents. It isn't so much that most of our peers are deciding between
a) startup
b) 'real' job
but that there's another obvious option:
c) wait around for something better (possibly doing zilch in the meantime)
If mom and dad's basement is available indefinitely and you have no family obligations (wife, kids), there may not be any pressure to do much of anything. Personally, I can't imagine not having some kind of small business, but I think those of us who are actively entreprenurial are vastly outnumbered by those who actively mooch.
As a parent of young kids, this was the most terrifying part of the article, if this trend continues. You mean my kids will still be living in my house after college, and I'll be expected to go to job interviews and negotiations with them?
Are you arguing that an MBA program is not "a real job"? Sounds terrifyingly real to me. I'd work pretty hard to avoid that fate.
And I wouldn't be too quick to assume that "getting financial help from your parents" equates to being relaxed and unpressured. If you disappoint your angel investors, at least you don't have to hear about it at every Thanksgiving dinner for the rest of your life. :)
Some even have their parents in the room for added help, and many respected companies are willing to engage parents in the hiring process if that's what the candidate wants
(!!!)
Wow. Depending on the circumstances, I would escort the iddle bitty baby right to the front door, or...
Exactly. Man I wish I had rich parents, even helping out $10k a year or so could go a long way when you're fresh out of school and expenses are still low.
An ex of mine got something like $25k cash for her college graduation present. Assuming she earned 10% or so on that for the next 40 years, she was already guaranteed to be a millionaire by retirement. Anything she did on her own was gravy.
While getting a $25000 college graduation present would be fantastic (although I bet she just bought a car), your projection is a bit optimistic. While yes, she would have a million dollars, that million dollars would only be worth $295712 after accounting for inflation (at a constant 3% yearly.) Still great, but she's not exactly ready for retirement.
> Companies are having a hard time recruiting and retaining young talent, and as a result are accommodating what would have once been considered extreme demands. ....so many younger workers have gained the advantage when it comes to negotiating the terms of a new job.
and
> Today, however, economists and sociologists see such homecomings as a rational response to exorbitant housing prices in big cities, and entry-level wages that do not cover living expenses.
So which is it? Employers can't find employees, or the labor market is so oversaturated in big cities that entry level positions don't pay living wages?
My guess is that every company only wants to hire "the top 5% of graduates." So competition for the perceived best (ivy league, specialized skills) grows while Joe State and Cathy Community go chill with the folks and work at Walmart.
EDIT: how do you make block quotes?