What do employers look for most in students looking for jobs/careers in engineering?

As a former hiring manager for a Tier 1 ISP I can honestly say the most import items I looked at were personality and drive. Skills can be learned, and coming directly out of school they will know that you don't have a lot of experience, however that can be made up for in how you present yourself. When interviewing potential employees I always looked how they presented themselves. Did you look me in the eye when speaking, was their communication clear and concise? I of course also looked at their resume and experience/education, but that was secondary to how they answered questions. For example always be honest, if you don't know, then say you don't know, but go find the answer and email/call the interviewer later on after the interview with the correct answer. Also be 100% positive of your answers. If you say the sky is purple, stick with it, be assertive, let them know what an asset you will be to the company.

Companies and other organizations seek to hire “professional engineers.” In this case we are not limiting our discussion to “licensed professional engineers” but are talking more broadly about all degreed engineers with professional skills, behaviors and attitudes. We are simply saying that companies want engineers with engineering knowledge and skills, and professional skills, behaviors and attitudes.
The college of engineering conducted an exercise involving many of its employers that was aimed at identifying core engineering competencies. These are the knowledge, skills, behaviors and attitudes that all employers generally want to see in their engineers. The table below lists the top fifteen competencies that were identified. Further clues regarding skills employers might be looking for can be found by carefully reading their job descriptions.

Grades
Good grades are important. They indicate that you have the ability to learn and have mastered certain skills. There is a fairly strong linear correlation between grade point average and placement at graduation. Additionally, your GPA at graduation will likely affect your starting salary, so there is good incentive to do your best. However, a high GPA alone is not sufficient; straight “A” students have difficulty securing employment when this is all they have to put on their resumes. Many entry level job postings require applicants to have at least a 3.0 GPA, and there are about half as many job opportunities available to those that have a GPA below 3.0.

Work Experiences
In addition to good grades, employers want to see work experiences — especially professional work experiences, such as co-ops and internships. Co-ops and internships are professional positions where the employer has agreed to make it a learning experience and help you develop workplace skills as you complete engineering tasks.

Inquisitive and Conservative Individuals
Employers like “T” shaped individuals. We used to say “well-rounded” individuals but “T-shaped” is easier to picture. These are individuals that have technical depth in their area of study, but they also have a wide range of interests. They are generally inquisitive and enjoy learning. Since engineers often contribute to multidisciplinary team efforts, it is important that they know a little about other disciplines. Attend presentations and interact with other students outside of your major when the subject interests you.

Many employers prefer conservative individuals for engineering positions since they seem less likely to take unnecessary risk. Engineering decisions often involve some level of liability so it is important to err on the side of caution. Creativity and innovation are valued but risk-takers are not appreciated as much as they are in some professions.

I have hired a lot of entry engineers and the standard screening process brings the best technical people to the interviews. I find that the individual's personality can separate them from the rest of the candidates. A great candidates is a good communicator, one that has worked as a team member, someone who is enquisitive, and someone who is personable and professional. Engineers sometimes forget that they may represent the group, company or be a spokesperson for a project and he/she must be professional and well spoken. So be not only be prepared, but be professional. Sounds logical, but you would be surprised how some candidates present themselves during an interview. Good luck... and stand out In a crowd.