Competition for car manufacturers increases amongst young professionals

EQS-Media / 10.10.2023 / 13:08 CET/CEST

Press release

Competition for car manufacturers increases amongst young professionals

Universum research identifies the most attractive employers for young professionals in 2023 and what their career preferences are

Berlin, October 10th 2023 The competition for young professionals is intensifying among German car manufacturers: While they continue to be highly sought-after employers among young professionals, they are becoming less associated with current trends such as flexible working conditions and the support of work-life balance. According to the results of the Universum Young Professional Survey 2023, both of these topics have featured among the top four career preferences of young professionals in Germany. While car manufacturers still maintain their positions at the top of the rankings of the most popular employers, they are losing attractiveness in percentage terms. Young professionals increasingly associate car manufacturers with job security, high levels of responsibility, and challenging tasks.

The Employer Branding consultancy firm Universum, part of The Stepstone Group, conducted the survey nationwide, interviewing over 12,300 young professionals in Germany between September 2022 and March 2023*. The results are part of the globally conducted Universum Young Professional Survey 2023, upon which the rankings of the most attractive employers in Germany are based.

"Our survey shows that the German automotive industry should focus more on these new topics and integrate them into their employer brand to remain competitive in the battle for young professionals. Otherwise, they risk losing their current high attractiveness as employers, along with the dedicated talent needed for the transition to a more sustainable future in mobility," commented David Falzon, Country Manager responsible for Universum's operations in Germany.

Car manufacturers are increasingly associated with secure, responsible, and challenging jobs

The automotive industry has traditionally been particularly attractive to young professionals with engineering and IT degrees. However, the loss of popularity that began in previous years continues in the respective rankings. In 2019, major German car manufacturers were considered ideal employers by an average of 17 percent of young professionals in engineering and 12 percent in IT. In the current ranking, these figures have dropped to only 11 percent (engineering) and 9 percent (IT). The decrease in percentage values currently affects the rankings of only a few automotive companies. However, the US manufacturer Tesla is particularly affected. The electric car brand has lost 6 percentage points among engineers compared to the previous year and has dropped 10 places in the ranking. Among young professionals in IT, the loss is 5.25 percentage points and a drop of 7 places.

At the same time, young professionals with engineering backgrounds see fewer of the topics they consider important represented in automotive companies. Compared to 2019, a friendly work environment has moved up ten places in the ranking of career preferences for young professionals with engineering degrees, while the average association of the automotive industry with this topic has decreased by 6 percentage points. Flexible working conditions have improved by six places but are now associated with car manufacturers 4 percentage points less. Additionally, in terms of promoting work-life balance, the industry has lost significantly, with a decrease of 9 percentage points.

The automotive industry, on the other hand, is only associated more strongly with challenging tasks (+1 percentage point), a high level of responsibility (+3 percentage points), and job security (+4 percentage points). However, the latter topic is significantly less important for young engineers, with a loss of twelve places in the ranking of career preferences. "Here, the effects of unemployment may be evident: Engineers are currently in such high demand that they hardly need to worry about their jobs even in economically challenging times marked by inflation," says David Falzon.

Flexible working conditions and work-life balance are top career preferences

The increased importance of flexible working conditions and the promotion of work-life balance, which has been reinforced since the COVID-19 pandemic, has continued to grow among young professionals in the fields of economics, engineering, IT, and natural sciences. Flexible working conditions rank second in the top career preferences for these young professionals. The promotion of work-life balance follows in third place, except for young professionals in IT, where it ranks fourth. Both topics have become absolute musts for young professionals. At the top of the list, an attractive base salary remains in first place.

As a result, interest in remote work among young professionals from all fields has increased by another 4 percentage points to 82 percent. Concerns associated with remote work have decreased slightly. Last year, 52 percent had concerns about feeling isolated and having less contact with colleagues, while this year it is 48 percent. Concerns about overexertion and an inability to maintain the desired work-life balance were at 23 percent in the previous ranking but have decreased to 18 percent this year. The percentage of those with no reservations about remote work has increased from 15 to 18 percent. "Future surveys will show whether this is an indication of a trend. It is possible that employers are increasingly addressing concerns effectively. It is also possible that employees have adjusted to the drawbacks of remote work and reduced their reservations," explains Benedikt Strobel, Senior Research Project Manager overseeing the survey at Universum.

Career-related topics gain importance

Overall, career-related topics have gained importance for young professionals with degrees in business, engineering, IT, and natural sciences compared to the previous year. These include leadership that promotes development, a strong focus on performance, and a clear path for advancement. "The data suggest that young professionals increasingly value recognition for their performance, having a clear perspective, and seeing it clearly defined," says David Falzon.

The most significant changes in career preferences are seen among young professionals in IT: Here, the topics of leadership that promotes development (up 7 places), recognition of performance (up 6 places), a clear path for advancement, respect for employees, and support for future education (each up 5 places) have gained significant importance. On the other hand, topics such as diverse tasks (down 7 places), innovation and teamwork (down 6 places each), a friendly work environment, and a high level of responsibility (down 5 places each) have lost ground. Mass layoffs at large American IT companies such as Google and Facebook may have contributed to a reconsideration of career preferences.

Which companies are the most desirable?

For young professionals with a degree in business, Porsche, Google, the BMW Group, and the Mercedes-Benz Group continue to be the most desirable employers this year (ranked 1 to 4), followed by Bosch in fifth place. Porsche maintains its top position among young professionals with an engineering degree. Siemens rises one rank to second place, while Bosch drops one position to third. The BMW Group retains its fourth position, and Audi gains one position to fifth place.

Google, Microsoft, and Apple maintain their positions 1 to 3 among IT young professionals. Bosch makes a significant jump, moving up four positions to fourth place, while Porsche drops one rank to fifth place.

BioNTech loses its top position among young professionals with a natural sciences degree to Roche and comes in second place. Bayer rises two positions to third place. The Max-Planck-Gesellschaft gains one position to fourth place, while the Fraunhofer-Gesellschaft drops two positions to fifth place.

Overview of the Top 5 Employers for Young Professionals:

Rank

Business

Engineering

IT

Natural Sciences

1

Porsche

Porsche

Google

Roche

2

Google

Siemens

Microsoft

BioNTech

3

BMW Group

Bosch

Apple

Bayer

4

Mercedes-Benz Group

BMW Group

Bosch

Max-Planck-Gesellschaft

5

Bosch

Audi

Porsche

Fraunhofer-Gesellschaft

Strong Management is Important for Retaining Talent

Furthermore, the Universum data provides insights into how corporate leadership influences the willingness of young professionals to change jobs. 87 percent of young professionals who have "a lot" or "some" trust in the company's vision have no interest in changing companies in the next four years. 21 percent of young professionals who have "little" or "very little" trust intend to switch to a new employer within the next year. A similar pattern is observed with trust in leadership. When trust in leadership is low or absent, almost a quarter, 23 percent, plan to find a new employer within a year. For companies, this means that to retain talent, they need an attractive and authentic employer brand as well as convincing and strong management.

"The increasing lack of strong candidates on the market is evidently having an effect on the expectations and desires of the younger generations. In the future, they can choose where they want to work. It is therefore no surprise that young people are preferring to work where they have the optimum chances for promotion and career advancement. Companies that take advantage of this change and treat it as an opportunity, will be able to secure the competitive advantage number 1: top talents," says Dr. Tobias Zimmermann, labor market expert at The Stepstone Group.

*About the Universum Young Professional Survey 2023 in Germany

The Universum employer rankings for Young Professionals in 2023 are based on a survey conducted between September 2022 and March 2023 among 12,314 Young Professionals throughout Germany. Young Professionals are defined as academics who are up to 40 years old and have a minimum of one and a maximum of eight years of professional experience after completing their studies. The respondents provided information about which companies they would like to work for, how they evaluate employers, their salary expectations, and their long-term career goals, among other things. For more information and the complete rankings for all fields of study: https://universumglobal.com/de/deutschlands-attraktivste-arbeitgeber-2023-young-professionals/

About Universum
Universum, part of The Stepstone Group, is a global leader in the field of employer branding. With over 30 years of valuable experience in employer branding, we have established ourselves in 60 markets worldwide and have a presence in 20 countries. Our surveys of students and professionals provide HR professionals with unique insights into what young talent is looking for in companies. Our data-driven and meaningful results are trusted by 1,700 clients, including many Fortune 500 companies, as well as global media partners who publish our annual rankings and trend reports. For more information: www.universumglobal.com/de

Media contact: Universum Deutschland

David Falzon / Country Manager Germany / Mobil: +49 172 456 44 67/ E-Mail: david.falzon@universumglobal.com

Anke Schölzel / PR Consultant Germany (external) / Mobil: 0049 160 75 55 887 / E-Mail: anke.schoelzel@universumglobal.com

About The Stepstone Group
The Stepstone Group is a leading global digital recruitment platform that connects companies with the right talent and helps people find the right job. The Stepstone Group connects more than 110 million job applications with over 140,000 employers every year. With its integrated platforms, The Stepstone Group simplifies the candidates job search as well supporting recruiters with AI-powered solutions for the entire recruitment process. In 2022, The Stepstone Group generated revenue of around €1 billion. The Stepstone Group operates in more than 30 countries - including Stepstone in Germany, Appcast in the USA and Totaljobs in the UK. The company is headquartered in Düsseldorf, Germany and employs more than 4,000 people worldwide. For more information: www.thestepstonegroup.com/en/

Media contact:

The Stepstone Group Presse

presse@stepstone.de

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1745575 10.10.2023 CET/CEST