Why Do Graduates Turn Away from Private Firms? Examining the Roles of Perceived Job Security, Perceived Management Compliance, Perceived Humanistic Care, and Organisational Attractiveness in the Chinese Context

Abstract

At a time when private enterprises have become the principal absorbers of university graduates in China, an increasing number of young people continue to place their career aspirations in the public sector. This contrast has emerged as a salient contradiction within China's employment structure. Focusing on the question of why graduates avoid private enterprises, this study develops a research model grounded in signalling theory, incorporating perceived humanistic care, perceived management compliance, perceived job security, organisational attractiveness, and intention to seek employment in private enterprises. The model is empirically tested using data collected from 446 Chinese final-year university students and recent graduates within two years of graduation. The findings indicate that all three forms of perception significantly enhance graduates' intentions to pursue employment in private enterprises, and that each exerts its influence through organisational attractiveness as a mediating mechanism. Among them, perceived job security has the strongest effect, followed by perceived management compliance, while perceived humanistic care also plays a meaningful role and should not be overlooked. The results suggest that graduates are not inherently resistant to private enterprises; rather, what they seek to avoid is a career starting point characterised by uncertainty, disorder, and a lack of respect. This study not only sheds light on the formation mechanism of employment intentions towards private enterprises in the Chinese context, but also offers a more targeted explanatory framework and practical guidance for enhancing the attractiveness of private firms to young talent.