It’s the age-old catch-22: you need a job to get experience, but you cannot get a job without experience.
Earlier this year, President Obama launched a new initiative designed to solve this problem called the First Job Hiring and Recruiting Compact.
Now, nearly 40 big name companies have joined together to help new graduates land their first job.
Here’s what you need to know about how this initiative works, what companies joined, and how it will benefit current students and recent graduates.
Difficulty getting first jobs
For many new graduates, landing a job out of school can feel next to impossible.
That’s because one of the main things employers look for when evaluating their candidate pool is work experience. Even for entry-level roles. Yet, that discrepancy can prevent many fresh grads from getting hired.
And that’s a huge problem. When a young person fails to land that first role, it can have long-lasting implications for their future.
According to the White House, people who experience unemployment between the ages of 16 and 24 earn about $400,000 less over the course of their careers than their peers.
Overall, getting people on the path to employment after graduation is pivotal for their financial success. Not to mention an employed workforce can provide significant benefits for the U.S. economy.
The First Job Hiring and Recruiting Compact
On October 11, President Obama announced that nearly 40 of the nation’s largest employers, including Walmart, AT&T, and Hilton Worldwide, joined the First Job Compact.
This development is in addition to the hundreds of smaller companies who have already joined the program.
Essentially, each company that joins the First Job Compact commits itself to best practices for hiring inexperienced young people between the ages of 16 and 24 for both internships and entry-level positions.
That means truly looking at people with zero experience for entry-level positions, rather than asking for a year or two of work history for a starting role.
At the end of the day, giving these applicants a look can increase their chances of getting well-paying work. It can also help them get their feet in the door of their chosen industries.
What’s more, the First Job Compact doesn’t just benefit young workers. It benefits companies, too.
Research shows that companies that invest in young workers have higher retention rates and employee engagement than other employers. This can help them save money on recruiting new talent in the long-run.
In a statement issued to the media, Ajay Banga, President and CEO of MasterCard, shared his thoughts on the program.
“Programs like this help us to have a real and meaningful impact on the communities where we live and work,” says Banga.
“Together, we can create additional opportunities for young people to get a start in the workforce, while inspiring our current and future employees to drive their own growth and careers,” Banga adds.
Joining the First Job Compact is not a vanity project. It’s a trackable initiative with databases that the government will regularly update.
They’ll also be able to share its progress and show how many people each company hires. That way people can see just how serious each company is about changing how they look at young workers.
To join the First Job Hiring and Recruiting Compact, companies agree to commit to the following practices:
- Identify jobs and internships for young people with no experience and make them more accessible to low-income individuals
- Partner with schools, non-profits, and other organizations to connect with young workers
- Develop a plan for advancement for young workers once hired
- Track the value young talent adds to the company
- Develop communications strategy to share how young workers impact the business
The big companies that have signed on to the First Job Compact range from electronics mega brands to food franchises. Below are the companies that have joined so far:
- Alaska Airlines
- Archer Daniels Midland Company
- Chipotle Mexican Grill
- Concur Technologies
- CVS Health
- Delta Air Lines
- Dollar General
- Fairview Health Services
- Frontier Communications
- Gap, Inc.
- Glassdoor, Inc.
- Goodwill Industries
- The Hershey Company
- Hilton Worldwide
- Johnson & Johnson
- ManpowerGroup, Inc.
- The McDonald’s Corporation
- New York Life Insurance
- Pacific Gas and Electric Company
- Potbelly Sandwich Works
- Principal Financial Group
- T-Mobile USA
- U.S. Bank
- Viacom, Inc.
- Visa, Inc.
- Wal-Mart Stores, Inc.
- Xerox Services
How to get your first job
While first jobs or hard to land, this new initiative should make it easier.
So if you’re looking to get your foot in the door with either an internship or an entry-level job, check out these companies first. These businesses have made a public commitment to hiring and developing fresh talent by joining Obama’s First Job Hiring and Recruiting Compact.
Not only are these companies more likely to hire you without any experience, they’re also more likely to invest in your career. You can expect them to provide you with more training and advancement opportunities outlined under the First Job Compact.
If you’re ready to apply to one of these companies, check out these seven ways to make yourself more marketable for post-college jobs. They’ll help increase your chances of getting that first job pronto.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.23% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
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2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Savings example: average savings calculated based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were disclosed. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
Application detail: 5 minutes indicates typical time it takes to complete application with applicant information readily available. It does not include time taken to provide underwriting decision or funding of the loan.
Instant rates mean a delivery of personalized rates for those individuals who provide sufficient information to return a rate. For instant rates a soft credit pull will be conducted, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
Total savings calculated by aggregating individual average savings across total borrower population from 9/2013 to 12/2017. Individual average savings calculation based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were provided. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate||Visit SoFi|
|2.47% – 6.23%1||Undergrad & Graduate||Visit Earnest|
|2.47% – 8.03%4||Undergrad & Graduate||Visit Lendkey|
|2.95% – 6.37%2||Undergrad & Graduate||Visit Laurel Road|
|2.48% – 6.25%5||Undergrad & Graduate||Visit CommonBond|
|2.72% – 8.32%6||Undergrad & Graduate||Visit Citizens|