As the first national survey to explore the realities of graduate jobs exposes the failed promises of UK businesses, Graduate Prospects and the Association of Graduate Recruiters (AGR) call for employers to take heed and harness talent as a means to economic growth.
Real Prospects 2009 received responses from 24,500 graduates, who reported their actual work life experiences, rather than their perceptions pre-employment. The findings reveal a clear gap between the positive experiences of those on a graduate scheme and the frustration of those who are not. The survey shows:
One in three graduates believes their employer has not met expectations
Opportunities to progress are important to nine in ten graduates, but fewer than three in five are satisfied with their prospects
One in three believe management stifles innovation, their opinions are undervalued and they are under confident in senior management
Given the current economic climate, only 56% feel informed of financial changes
First full fee-paying cohort of graduates achieve a salary of around 18,114 over four years, but 7k higher if they land a place on a graduate training scheme
79% feel confident about their employerís future despite the recession
A supportive learning environment doubles loyalty
More than 130 companies have taken part in Real Prospects 2009, verifying their commitment to improving transparency and raising standards within the industry, facilitating more informed decisions for developing graduate programmes.
Mike Hill, chief executive of Graduate Prospects launched Real Prospects 2009 at the AGRís annual conference, where he called for businesses to work together and learn from the findings in a bid to beat the recession. He explains:
ìGraduates have the ambition to drive the UK economy forward, but what weíre hearing is that some employers may be holding them back. Whilst not ignoring the fact that most graduates are happy in their work, particularly those on a graduate training scheme, we have to stand up and take notice of the third whose experiences simply arenít living up to expectations. Thereís no doubt that weíre in an economic recession, so without the lure of fat salaries we need listen to our graduates and learn from employers who run graduate schemes to enable us to better attract and retain talent.
ìInvestment mustnít stop after the initial recruitment process if we are to bridge the gap between expectation and reality with better communication, training and scope to innovate. If we want our graduates to be the successful business leaders of the future, we must take the process of their growth seriously, developing the talent pipeline and investing in our future.î
Carl Gilleard, chief executive of the AGR adds: ìThere is no doubt employers are spoilt for choice in terms of graduate talent this year because of vacancy cuts and increased competition. However, that certainly does not mean they should allow themselves to be complacent or to let their graduate development standards drop. Organisations which create a ëmisery cultureí for graduates by stifling innovation and progression or ignoring work/life balance risk losing their best talent as soon as there is any sign of an economic upturn.
ìThe AGR continues to campaign for better standards in graduate development in the UK and we hope the results of todayís Real Prospects survey will act as a wake-up call to British business to raise its game in this area.î
Real Prospects is a new annual survey, which launched in January 2009. Responding graduates completed a first degree between 2004 and 2008, and are in full-time or part-time employment.
Organisational leadership and management
Overall, one in three graduates is under confident in the senior team and feels their opinions are undervalued. In addition, just 58% believes their organisation is well-managed with those in the private sector more than likely than those in the public sector to be satisfied with their organisationís management. In addition, half of graduates reported they wanted to more opportunity to innovate, but 36% felt the company inhibited innovation.
Whilst three in five (60%) felt their managers are good at seeking the views of staff, fewer thought their managers are good at responding to suggestions (55%) or allowing employees to influence final decisions (47%).
One in three graduates believe their employer has under delivered on promises, and those on a training scheme are more likely than those who arenít to report satisfaction. Further analysis reveals those who have been with their employer fewer than six months are the most likely to report that their expectations have been met, and graduates who have been with their employer for more than four years are least likely.
Support, supervision and progression
The downturn has had a negative impact on morale. 79% of graduates felt secure about their employerís future, but this dropped to 62% when questioned about security in their job role. Those in the energy/utilities or armed forces are most confident about their future with their current employer, whilst those in recruitment, retail banking and local government are the least confident. This negativity can only be fuelled by the fact that only 56% felt their organisation kept them well-informed about financial changes, with one in five reporting their organisation was bad at communicating in general.
Career progression was vital to almost all respondents (91%), however there is much discrepancy between importance and satisfaction, where fewer than three in five are satisfied with their prospects. Feedback suggests that support from employers is crucial and that there needs to be a clear and flexible progression route. Overall, 73% of people on a graduate training scheme felt satisfied with their support, supervision and progression compared with 50% who are not.
Training and development
68% of graduates are satisfied with their training and development, which when executed in a supportive environment was found to double loyalty; only 22% of those with employers who support their study reported that they may move jobs once qualified, compared with 41% of those whose employers are unsupportive. However, just under one in five (17%) reported that their training did not add to what they already know, suggesting that employers need to identify training needs that are perceived to be genuine to maximise benefits and returns.
Salaries
Those on a graduate training scheme are more satisfied with salary and benefits (73%) than those who are not (44%), and despite reporting lower salaries, graduates in the public sector are more likely than those in the private sector to be satisfied. The median salary over four years is reported at 23,000, but graduates on training schemes receive 25,100 compared to those who arenít, 18,114. Legal professions, management consultancies and accountants reported the highest salaries, whilst those in hospitality, events management, administration, leisure sport or tourism are some of the lowest paid. Those with a postgraduate qualification reported higher salaries (24,400) than those without (22,800).
Work-life balance and corporate social responsibility (CSR)
Whilst 60% rate flexitime as important, itís available to less than half (47%). Time in lieu is the second most popular type of flexible working with 52% reporting it as important. Graduates employed in organisations with fewer than 10 people are more likely than those working for other SMEs to report they are able to work flexi time.
Companies are delivering on CSR, with three in five graduates reporting that their employer has a policy. However, 72% said energy savings measures were important, but only 41% of employers always promote it. 75% reported that their employer always encourages fundraising.
Real Prospects has been developed by Graduate Prospects in partnership with the Guardian, AGR and Human Resources magazine, and conducted by Higher Education Careers Services Unit (HECSU). To get involved in Real Prospects 2010 contact Allan Brown (0161 277 5200 a.brown@prospects.ac.uk).
For the full report or further information contact Clare Schofield (c.schofield@prospects.ac.uk 0161 277 5285) or Sarah Kite (s.kite@prospects.ac.uk 0161 277 5327) at Graduate Prospects.
One in three graduates disenchanted as employers fail to meet expectations
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