Agribusiness Job Market Preparation: Market Realities versus Student Perceptions

Paul D. Mitchell AAE 320

Goal
Overview research conducted by my former colleagues at Texas A&M University How should students spend their time? Try to put AAE 320, undergraduate class work, and UW as a whole into perspective

Characters
John Siebert: Dr. Agribusiness! George Davis: Econometric philosopher Kerry Litzenberg: Agribusiness/Sales Josef Broder: Agriculture Dean, U of GA All 4 are award winning teachers

Question
How should junior level students allocate their time to maximize their chances of obtaining the highest starting salary offer from an agribusiness firm? Study both Employer and Student answers How accurately do students perceive preferences of agribusiness employers?

Company Survey
Fall 1997 Spring 1998 69 agribusiness firms Average sales $5.1 billion Agribusinesses: farm suppliers, first handlers, food processors, food distributors, restaurants, and retail grocers

Firm Survey Results Summary

Recommended Student Time Allocation

A junior level student wants to prepare to work for your company and is seeking a top salary offerHow should he/she allocate time among these five areas?
Technical Course Work Raising GPA Work or Internship Experience Leadership Experience in College Interview Preparedness

Recommended Student Time Allocation

50 45

Average % Time Allocated

40 35 30 25 20 15 10 5 0 Tech. Course Raise GPA Internship Leadership Interview Prep

Student Survey
Fall 1998 survey of 993 college students taking agricultural economics courses
806 Texas A&M University 187 University of Georgia

Career Choice
15% to Farm Suppliers 12% to Farming/Ranching < 50% into Agribusiness/Food Supply Chain

Where do the others want to go?

Government/Legal Marketing/Sales (non-agricultural/food) Banking/Finance General Business Pharmaceutical/Medical

Recommended Student Time Allocation

A junior level student wants to prepare to work for your company and is seeking a top salary offerHow should he/she allocate time among these five areas?
Technical Course Work Raising GPA Work or Internship Experience Leadership Experience in College Interview Preparedness

Student Recommended Time Allocation

35 30 25 20 15 10 5 0 Tech. Course Raise GPA Internship Leadership Interview Prep

Average % Time Allocated

Comparing Students and Firms

50
Average % Time Allocated

45 40 35 30 25 20 15 10 5 0 Tech. Course Raise GPA Internship Leadership Interview Prep Firms Students

Pooled Firm and Student Results

40
Average % Time Allocated

35 30 25 20 15 10 5 0 Tech. Course Raise GPA Internship Leadership Interview Prep

Employer Deviations from Pooled Means

6 4
Employer's Deviation

2 0 Tech. Course -2 -4 Raise GPA Internship Leadership Interview Prep

P Values -6

0.2981

0.0023

0.0083

0.0787

0.0073

P Values = probability these deviations actually zero

Summary of Implications
Agribusiness Companies
Value Work/Internship and Leadership Experience more than students believe Value Grades/GPA and Interview Preparation much less than students believe Technical Preparation in business: expect a minimum competency and will teach the rest If you want to work in business, do internships/part-time jobs and get involved in volunteer organizations and student clubs

Citation
Siebert, Davis, Litzenberg, Broder. 2002. Time Allocation Decisions Associated with Job Market Preparation: Undergraduate Perceptions Versus Market Realities. American Journal of Agricultural Economics 84:222233

CALS Student Services Help

Student Services http://www.cals.wisc.edu/students/careerServices/ Students.php Internship/job Search http://www.cals.wisc.edu/students/careerServices/ JobSearches.php
Links to Buckynet as well

Starting Salaries for Jobs http://www.cals.wisc.edu/students/careerServices/ salaries.php

Additional Resources
Buckynet https://cals-wisccsm.symplicity.com/students/ AgCareers.com: http://www.agcareers.com/