My Senior Individualized Project, which is a requirement for graduation at Kalamazoo College. It\'s the end result of my HR work at Freudenberg-NOK.

1. Table of Contents
Abstract…………………………………………………………………………………..2
Introduction………………………………………………………………………………3
Experiential Essay – University Relations at Freudenberg-NOK…………………..4
Connections Essay – The Labor Market and College Recruitment………………14
References……………………………………………………………………………..21
Appendix A……………………………………………………………………………..23
Appendix B……………………………………………………………………………..27
Appendix C……………………………………………………………………………..29
Appendix D……………………………………………………………………………..42
Appendix E……………………………………………………………………………..46

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Abstract
This document describes my experiences working in the Human
Resources department at Freudenberg-NOK in Plymouth, Michigan. I spent the
summer researching and documenting the company’s current college recruitment
activity and made suggestions for improvements in the future. I created
documents detailing how best to recruit at four different universities and
presented my findings at the Human Resources Conference in September.
In addition, this paper examines the labor market as it pertains to the
college recruitment process. I discuss the supply and demand for college
students, competition, and marketing. Finally, I describe how the Internet has
changed and improved the college recruitment process by increasing the
interaction between employers and potential job candidates.
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Introduction
Building a long-lasting relationship between a university and a corporation
requires a lot of time and effort from all parties involved. Corporations must be
consistent in establishing a presence on campus so that students come to
recognize the company name and are well-informed as to their business
practices. Starting early is important as keeping a student informed and
interested throughout their college career will greatly increase their desire to work
for a certain company. Students must also do their part and make sure they know
what impresses recruiters so that they will have a better chance of landing their
first job out of college. With the number of students graduating each year
expected to grow in the future, the competition amongst students for entry-level
positions is becoming fiercer.
Although Freudenberg-NOK does not have many entry-level positions
available, there is still an interest in recruiting recent college graduates. Many
facilities use co-op students during the year to help in the engineering
departments. However, the majority of them are not hired upon graduation.
Freudenberg-NOK’s current recruiting activity is very inconsistent among the
facilities; some HR managers recruit from three or more schools, while others do
not recruit at all, but prefer to use recruiting firms to find the workers they need.
Establishing a solid university recruiting program will allow Freudenberg-NOK to
access all the talent and ideas that young people have to offer and will be
extremely beneficial in the long run.
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Experiential Essay – University Relations at Freudenberg-NOK
I completed my summer internship in the Human Resources department
of Freudenberg-NOK in Plymouth, Michigan. While not exactly a household
name, Freudenberg-NOK (FNGP) is a German and Japanese joint-venture that
is very well respected in the auto parts supplier industry. My job at FNGP was to
research the company’s current college recruitment policy and make suggestions
for the future to improve the process. I interviewed the Human Resource division
leads to find out which schools they visit and what they look for when they recruit
college students, then based my research on their responses. At the end of the
summer, I presented my project at the Human Resources conference at the
Plymouth facility in front of about thirty HR professionals. I left Freudenberg-NOK
knowing that I had produced something that they will be able to use for many
years and which will hopefully benefit the company in the long run.
Freudenberg & Co. of Germany has been partners with the NOK
Corporation of Japan for nearly 45 years, and in 1989, the two companies
decided to combine strengths to form Freudenberg-NOK, now one of the world’s
leaders in sealing products and vibration control technology. With nearly 40
locations in the United States, Canada, Mexico, and Brazil, Freudenberg-NOK
also owns the following brands: Corteco (aftermarket products), Dichtomatik
(seals), Simrit (sealing products), Vibracoustic (vibration control), and Flexitech
(brake hoses), among others. Freudenberg-NOK (FNGP) attributes much of its
success to its Growtth® (Get Rid of Waste Through Team Harmony) program,
which emphasizes teamwork and communications to increase effectiveness and
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efficiency. As part of the Growtth® program, FNGP also practices Six Sigma,
which allows for no more than 3.4 defects per million units produced, and many
FNGP plants fall below that level. FNGP has also begun to diversify into several
new markets, including oil and gas, aerospace, fluid power, medical products,
and semiconductors, among others.
The facility in Plymouth, Michigan, where I worked is Freudenberg-NOK’s
headquarters, and houses administration, sales, customer support, engineering,
and research and development departments. I worked for thirteen weeks in
Human Resources under Sarah O’Hare, Vice President of Human Resources,
studying FNGP’s college recruitment practices. With input from Sarah and Sherry
Gray, who is the Director of Organizational Development, I researched the best
schools in the country in engineering and business disciplines to determine which
ones would best fit with the company’s needs. The main goals of my project
were, firstly, to limit the number of schools Freudenberg-NOK recruits from in
order to increase its recruiting power and effectiveness, and secondly, to
broaden horizontal recruiting so that HR representatives would recruit for the
company as a whole at job fairs, not just for their own facility. My other goals in
completing the project were as follows:
Document which schools FNGP currently recruits from, how many co-ops
•
and interns are used at each facility, and how many co-ops and new
college graduates have been hired in recent years.
Determine what Human Resource managers look for when they interview
•
recent graduates for entry-level positions.
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Research the top schools in the nation, determine which schools to target,
•
find the best ways to increase name recognition for FNGP and develop a
recruiting strategy for each campus.
Reaching these goals led to suggestions for a more streamlined and simple
companywide recruitment process, as well as an opportunity for improved
horizontal recruiting.
In order to determine the best schools in the country, I had to spend a
significant amount of time on the Internet looking through university ranking
systems at various institutions. In the end, I used five different sources in my
research:
U.S. News & World Report: This magazine publishes an annual, extensive
•
university ranking list in almost every academic discipline, known as
America’s Best Colleges. The rankings consider peer and recruiter
assessments, acceptance rate, faculty resources, and research activity. I
used their rankings for both the engineering and business disciplines.
The Wall Street Journal: This source was used to research the top
•
American business schools. This list is mostly based on recruiter
assessment, and also ranks universities based on regional recruiting,
minority recruiting, and the recruiting of women.
BusinessWeek: BusinessWeek’s rankings of business schools are
•
determined through three data sources: a student survey, a recruiter
survey, and an intellectual capital score, which is based on the number of
articles published in scholarly journals by a school’s faculty members.
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Academic Ranking of World Universities: This website ranks universities
•
worldwide, both generally and in the field of engineering. To obtain the
rankings for North American schools, I simply removed the international
schools from the list. This ranking system places heavy emphasis on
Nobel Prize winners among alumni and staff, published authors in
respected journals, highly cited researchers, and size of the institution. As
a result of this, the ARWU places schools in a somewhat different order
from the other rankings systems.
Graduateshotline.com: This is most likely the least reputable of the
•
sources I used, but its rankings of engineering programs do not differ too
much from the other lists. This website compiled its rankings using
“various resources on the Internet”, student comments, and data on
funding and research.
These five sources helped me gain a better understanding of which schools
would be the best for FNGP to target. However, I needed more information
before I could make suggestions on this matter, so I turned to the HR division
leads and managers to ask them about their current practices.
The best way for me to find out what Freudenberg-NOK needs from its
relationships with universities was to talk to the HR personnel at the other FNGP
facilities and get their input. I also wanted to ask them about what they like to see
in the college students they interview in terms of personal qualities and
education. For the first part, I sent a mass e-mail on my first day asking HR
managers and leads what schools they recruited from, how many students they
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hired recently, and what majors those students had. Since many people did not
respond to the e-mail, I decided to contact each of the division HR leads by
telephone to ask some more in-depth questions about their usage of co-ops and
interns and which schools they have co-op relationships with, if any. I put all of
this information together in a comprehensive Excel spreadsheet with my
research on universities (Appendix A). In order to find out what HR managers
look for when they recruit, I developed a short questionnaire (Appendix B) asking
such questions as: Do you prefer to fill entry-level positions with new college
graduates or someone with 2-3 years experience? How much does a candidate’s
alma mater affect your hiring decision? Do you generally recruit from larger
schools or smaller ones? I also provided a short list of qualities and
characteristics that are important to managers and asked for them to be ranked
on a scale from 1-5. These were taken from “The Smart Interviewer” by Bradford
D. Smart, who compiled a list of important attributes for hiring managers to use
as a summary of a candidate. These rankings were put into another spreadsheet
which I used to determine the average score for each characteristic and which
ones were rated the highest overall. In the end, motivation, initiative, and integrity
were rated the highest, while creativity, knowledge of the company, and first
impression received the lowest rating.
Based on the information I gained from the HR leads, I altered the focus of
my research to schools that would be easier to establish a relationship with, but
would also be beneficial to FNGP. At the time of the phone interviews, I had
chosen three preliminary schools I wanted to investigate further: The University
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of Michigan in Ann Arbor, the University of Massachusetts at Lowell, and the
University of California at Irvine. I had chosen these schools based on their
geographic location (one east coast, one Midwest, and one west coast), their
academic programs, and their current relationships with FNGP facilities. A
number of facilities recruit at UMASS – Lowell, the Plymouth facility recruits from
U-M, and the Santa Ana, CA facility visits UCI. However, since most of FNGP’s
facilities are in the Midwest or New England areas, UCI would not have been a
practical choice. When I presented these ideas to Sarah, she was very
enthusiastic about U-M, since it is in the company headquarters’ back yard, but
did not want to continue with UMASS – Lowell. Therefore, I went back to the
rankings systems and conducted more research.
Some of the most interesting information I obtained from my interviews
with the HR leads had to do with the number of co-ops and recent graduates
hired in the last five years. The ten leads have used 43 co-ops in the recent
years, but have only hired six of those upon graduation, or only 14%. In addition,
25 new college graduates were hired in the last five years which, including the six
co-ops, totals 31 recent graduates hired. However, only 16 of those are still with
the company today, for a 52% retention rate. Despite these numbers, most of the
HR leads told me they prefer to hire co-ops rather than someone fresh out of
college because co-ops have already been trained and can start contributing
immediately.
Another telling statistic is that 12 FNGP facilities actively recruit from 20
different universities, which does not include multiple facilities visiting the same
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school (for example, at least four reported recruiting at UMASS – Lowell, while
three visited Kettering University). Also there are some facilities that do not
recruit at all, while some visit four or more colleges. These inconsistencies are
more harmful than helpful to the company since the facilities cannot focus their
efforts on one or two campuses and are not recruiting for the company as a
whole.
After obtaining all the relevant information from the HR community and
conducting my research, I presented my findings to Sarah and Sherry. Together,
we decided on four schools to target: The University of Michigan, Purdue
University, Georgia Institute of Technology (Georgia Tech), and the
Massachusetts Institute of Technology (MIT). These decisions were based on
three criteria:
Academic ranking: All four schools are ranked in the top 15 engineering
•
programs by each of my sources. MIT was the top ranked program by
each source. All four also benefit from top business programs.
Geographic location: Most FNGP facilities are located in the Midwest or
•
New England areas, so three of the four schools can cater to those
locations. And the two Georgia locations benefit from a relationship with
Georgia Tech.
Current programs with FNGP facilities: FNGP already has a presence
•
established at three of the four choices (U-M, Purdue, and Georgia Tech).
Sherry was of the opinion that MIT was a lofty goal for the company, but Sarah
saw no reason why FNGP should not be successful there. I believe that it will
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take the most work to establish a presence at MIT and to get the students to
want to work for FNGP. In the end, we decided to focus our efforts on U-M,
Purdue, and Georgia Tech and keep MIT in mind for the future when the
recruiting program is more defined.
Once we had decided on our target schools, I had to look at each one’s
Career Services website to find their corporate relations policies. I researched
the best ways to establish a presence and market the company’s brand on each
campus, how to get interns and co-ops, when to visit the schools for job fairs,
and any other opportunities that made the university unique. Once I obtained all
of this information, I created a handbook that will be distributed to the HR
community so they know all of their recruiting options (Appendix C). Some of the
highlights of the handbook include:
Georgia Tech: There are four different co-op programs for students:
•
Undergraduate co-op, Graduate co-op, Undergrad Professional Internship,
and Work Abroad. Corporations can also become a Career Services
Partner and sponsor the university in return for added recruiting benefits.
MIT: MIT’s only co-op opportunity is called the Undergraduate
•
Professional Opportunities Program, which is for engineering sophomores.
The Career Services website also sells advertising space to corporations
to announce job openings or information sessions.
Purdue: Purdue has recently launched the 21st Century Partnership
•
Program, where corporations make an annual donation in return for
preferred placement at job fairs and other recruiting benefits. The “Talk
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With a Pro” program is a database of professionals who are willing to talk
to students about their careers and field of interest.
University of Michigan: U-M is complicated since each of the colleges
•
(School of Engineering, Ross School of Business, etc.) has its own Career
Services office, in addition to the one that serves the university as a
whole. Each one also uses a separate online recruiting system.
Corporations can sponsor student events through the College of
Engineering and have the company name on all promotional materials.
Although this information will have to be updated to show new job fair and
information session dates, FNGP will be able to use it for a long time for their
recruiting needs.
After completing all of my research, I gave a presentation at the Human
Resources Conference to tell the HR community about my suggestions
(Appendix D). It was received with mixed results; several of the leads were
unhappy that the schools they visit were not chosen, and some said they would
not stop their current recruiting practices because they recruited locally which
benefited their community. However, Sarah reinforced the benefits of recruiting
from limited schools and although some aspects of my project may be modified,
it will be enacted in the near future. The most positive effect my presentation had
was that they all agreed to broaden their horizontal recruiting and interview
students for each other.
The other interesting job I completed during my time at Freudenberg-NOK
was to look at the company’s voluntary employee turnover going back to 2004.
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This provided interesting insight into my recruiting project because it taught me
about FNGP’s employee retention and how the company could benefit from
better university recruiting. In 2005, there was a mix-up in the headcount
reporting; therefore both the headcount and turnover numbers were inaccurate. I
went through the headcount reports and corrected the errors, then calculated the
turnover. Normally, the turnover is calculated on a year to date, annualized basis.
However, I found that calculating on a single month, non-year to date basis
yielded more accurate numbers. There is very little pattern to be found in the
results; about the only consistent data is the spike in August when many hourly
employees return to school. The most common reason for people leaving the
company the last four years was another job opportunity (30% reported this as
their reason for leaving). It was very interesting for me to look at the turnover
while researching university recruiting because it showed me that FNGP could
definitely benefit from having solid relationships established to bring in new talent
and hopefully lower the turnover rate.
Freudenberg-NOK’s current recruiting activity is very inconsistent. Some
facilities do not have many entry-level positions available, therefore a limited
number of new college graduates have been hired in recent years. Although
most HR managers say that it is easier to hire co-ops than new graduates
because less training is required, very few co-ops have been hired in the last
three years. Reducing the number of schools the company recruits from will
make the process much easier and more effective. Forging relationships with a
limited number of universities will be mutually beneficial for the company and the
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schools themselves in the long run, as FNGP can focus its efforts and resources
on getting exactly what it needs while supporting the university financially. A
result of limiting the number of targeted schools will be better horizontal
recruiting, wherein managers recruit for the company as a whole, rather than for
individual facilities. I feel that this strategy will strengthen Freudenberg-NOK’s
recruiting ability and will help build a higher retention rate in the future.
Connections Essay – The Labor Market and College Recruitment
During the course of my internship, I examined the college recruitment
practices of Freudenberg-NOK and how best to recruit from certain schools. This
paper will study the labor market in the college recruitment process and the
economic factors that affect it, such as supply and demand, marketing, and
competition. There are many factors which impact the number of students
seeking work upon graduation and the demand for corporations looking to hire
those students. Both employers and job candidates must market themselves to
one another, a process in which the Internet has taken a prominent role. The
labor market, as it pertains to college recruitment, is constantly changing as
corporations compete to hire new, young talent and students compete for their
first job in the real world.
The level of demand for recent graduates is different for each company.
Those companies that do not have many entry-level positions available will have
relatively low interest in hiring students as they typically have little real work
experience. Some companies have higher requirements for entry-level positions
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than others; for example, some jobs require 2-3 years work experience in
addition to a degree from a 4-year institution, while others will only require a
degree. Many hiring mangers simply prefer to hire someone with a few years’
experience over a new college graduate because they require less training and
can contribute right away. In addition, there are many costs to take into account
when recruiting college students that could affect the level of demand. For
example, a firm has to consider the costs of registering for a job fair, reserving a
space for an information session, sponsoring the university financially, possible
relocation costs for new hires, and purchasing promotional materials and
advertising space. Some firms may find it simpler and less expensive to use a
recruiter to find potential candidates, which would lessen the demand for
graduates. However, larger firms that have the resources to actively recruit and
hire recent graduates will have a higher demand. If the overall demand for new
graduates increases, then the cost of hiring will increase as well, as firms
compete to hire the best students. The demand for students at certain
universities is also higher than at others because of their academic reputation.
For example, demand for students from Harvard or Yale is higher than for those
from Wayne State University because many firms believe students at more
prestigious schools will perform better on the job. Of course, much of this
depends on the pool of candidates available, which has been growing rapidly in
recent years.
The number of graduates annually entering the workforce has increased
steadily as more options are available for young people who are deciding on a
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school, such as two year programs or community colleges. In addition, more
young people are realizing the growing benefits of having a college degree.
According to the Bureau of Labor Statistics, between 2004 and 2014, almost 14
million jobs are projected to be filled by workers with a bachelor’s degree or
higher and who are starting a job for the first time (Crosby and Moncarz 43). The
incentive to obtain a college degree is rising, as those with degrees earn
significantly more than those with only a high school diploma, as illustrated by
Chart 1 (Appendix E, Crosby and Moncarz 44). This graph clearly shows that
workers with a bachelor’s degree or higher earn a substantial amount more than
those who do not attend or complete college. Also, workers who attend college
are less likely to be unemployed, and therefore will make more money in the long
run than those who do not complete their education. The 2005 unemployment
rate for those with a bachelor’s degree or higher was only 2%, half the rate for
those with only a high school diploma (4%), and significantly less than the 7% for
those who dropped out of school (Crosby and Moncarz 45). Obviously, there is
great incentive to complete college and obtain a degree. As more people become
aware of the advantages of having a college degree, more and more will attend
college, thereby increasing the number of graduates entering the workforce. If
this happens, the cost of hiring a student will decrease, and corporations will
have fewer problems finding good employees that suit their needs.
In a perfectly competitive market, neither the consumer nor the producer
has the power to influence market price, which produces a completely efficient
outcome. The labor market as it pertains to college recruitment, however, is not a
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perfectly competitive market. The “goods” in this market, or the students who are
seeking work, are not perfect substitutes for one another. Each candidate has his
or her own strengths and weaknesses and can bring something unique to their
future employer. By the same token, firms are not perfect substitutes either.
Working for Ford is a completely different experience than working for Google,
for example. For this reason, corporations will hire those candidates they feel will
benefit their company the best, while graduates will accept the offer from the
company they feel is the best fit for them. Also, prices in this situation are not set
by the market, as they are in a perfectly competitive market. Firms can offer
whatever salary they wish to the candidates they want to hire. If other companies
want to hire the same students, they must make a better offer than their
competitors. However, there is no perfect or complete information in this
situation, and firms do not know what salaries graduates are being offered by
other firms. All of these factors violate the definition of a perfectly competitive
market, and the competition in this situation therefore becomes extremely steep.
There are three groups in competition in the college recruitment process:
students looking for jobs, firms hoping to hire those students, and universities
trying to bring corporations in to recruit. Students must present themselves well
to recruiters in information sessions and interviews to stand out from the other
candidates. Companies must compete with one another to hire the best students
from the best schools and compete to give the most attractive offer to the
candidates they want. The competition amongst universities is not as fierce
because most want as many firms as possible to come to their campus to recruit
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as it is a source of funds and also improves their image if a large percentage of
their students begin work immediately after graduation. With all three parties,
however, marketing plays a significant role in the process as they must give
themselves an edge over the competition to obtain what they want.
An important part of the college recruitment process is the way the various
parties market themselves to their suitors. Foremost among these is how
corporations market themselves on college campuses. Firms must visit colleges
often and build a relationship with the students to have a better chance of hiring
them when the time comes. As Andrea Poe writes in HR Magazine: “If the first
time college seniors see your recruiters is at a job fair, you’re too late” (60). Firms
need to hold or sponsor campus events often to try and build a personal
relationship with potential candidates. If they are successful, they will have a
better chance of hiring the students they want. Consistency is important, as
students are more likely to respond if corporations send the same
representatives to campus for every event. Poe also recommends using alumni
and peer recruiters because students like to hear success stories from graduates
of their own university, and will relate better with their peers (62).
The next group that must market themselves is the students seeking work.
They must present themselves in interviews in such a way that they stand out in
recruiter’s minds. Many students do not know how to conduct themselves during
interviews and lose out on jobs by behaving or dressing inappropriately. Students
who emphasize their strengths, are honest about their weaknesses, and who
show up for interviews well-groomed and on time will have a much better chance
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of landing their first job than a candidate who does not present himself or herself
well. If students hope to impress the interviewer and get the job they want, they
must do their homework and research how best to act towards a potential
employer.
Universities must also market themselves well if they hope to attract
corporations to recruit on their campuses. Colleges must convince firms that their
students will make the best workers and will bring more to their employers than
students from other schools. To do this, they use their Corporate Services offices
to paint an appealing picture of the school for corporations. They provide firms
information on their students’ academic prowess and on other companies that
have taken an interest in their programs. The university’s role is an important one
because if they are successful, their students have a chance of being hired by
top companies, which would build a good reputation for the university and attract
more firms wishing to recruit.
Increasingly, the Internet is being used as a marketing and recruitment
tool, particularly for companies and universities. Most universities run career
services or corporate relations websites to provide information to corporations
interested in partnering with the school. These websites can also provide a
database where firms can post jobs and view résumés posted by students.
These recruiting systems make it much easier for corporations to find potential
candidates and for students to find jobs they are interested in.
“They offer more information about more jobs in more locations than is
conceivable for paper equivalents. They are easier to search. They are
potentially more up-to-date, because ads are posted immediately and can
be edited frequently. They allow individuals to advertise their skills to
employers as well as the reverse” (Autor 26).
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Employers can also pre-screen candidates by searching for students with
certain credentials. The Internet has modernized the way corporations and job
candidates interact with one another; important information is more readily
available than ever before, which means that job candidates are better prepared
and employers can have a better idea of what their potential new hires are like.
An information asymmetry occurs when one party in a transaction has
more or better information that gives them an advantage over the other party.
This is a regular occurrence in the labor market: “Workers searching for a job are
unlikely to be fully informed about job characteristics, and firms cannot
exhaustively screen and negotiate with all applicants” (Autor 25). Certainly, the
emergence of the Internet as a recruiting tool has helped provide more
information to employers and job candidates, but asymmetries still exist. Much of
the necessary information is readily available, but candidates must take
advantage of it if they hope to be successful in an interview. If a candidate is not
prepared, he or she will be at a disadvantage because their interviewer will
generally be much more experienced. Hiring managers have the advantage in an
interview because they know what to look for, what questions to ask, what it
takes to get hired, and what their company is like. If the candidate prepares for
the interview and researches the company and knows how to present him or
herself, the playing field will be much more level. All of the information they need
is out there on the Internet, but if students are hoping for a job and do not take
advantage of it, they will not find much success.
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The college recruitment process has changed dramatically in recent years
as corporations look for new and more innovative ways to attract students. The
use of the Internet as a recruiting tool has greatly altered the relationship
between employers and potential candidates as more information has become
available and the two parties find it much easier to connect with one another. The
recent growth in the supply of graduates means that corporations have a much
better chance of finding the right workers, and with the number of students
graduating expected to continue to rise, their cost to hire could decrease.
Although many firms prefer to hire workers with a few years’ experience, the
demand for new, younger talent remains strong. The competition in this market is
very intense as corporations try to give themselves an edge to hire the best
students, and the students try to make themselves stand out in the recruiter’s
mind. If firms and graduates do not market themselves well, however, they will
not find much success. Students especially must be adequately prepared or else
they will find themselves at a great disadvantage during their interviews. The
Internet, however, has made it much easier for students and corporations alike to
prepare and have the best chance of getting exactly what they want. The process
of college recruitment requires a significant investment on the part of
corporations as they build a strong presence on campuses, but it is well worth it
in the long run for all parties involved.
References
Autor, David H. “Wiring the Labor Market.” The Journal of Economic
Perspectives. Vol. 15, No. 1 (Winter, 2001): 25-40
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Crosby, Olivia and Roger Moncarz. “The 2004-14 Job Outlook for College
Graduates.” Occupational Outlook Quarterly. (Fall 2006): 42-57
Poe, Andrea C. “Face Value.” HRMagazine. Vol. 45, No. 5 (May 2000): 60
Smart, Bradford D. The Smart Interviewer. New York: John Wiley & Sons, Inc.,
1989
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