SME Graduate Employer Survey 2012

Context

Large companies represent only a fraction of the opportunities available for graduate employment, yet are disproportionally popular in terms of graduate applications. Universities should reflect on how students’ perceptions of employment with small and medium-sized companies could be improved. Wilson Review 2012

“Starting salaries have remained largely stagnant with the median starting salary for first degree graduates in full-time employment remaining at £20,000”Destination of Leavers from HE 2009/10

“The average graduate starting salary remained stagnant at £25,000 in 2010-11; however AGR members predict an increase of 4% for 2011 to £26,000” AGR Winter Review 2012

“Starting salaries are expected to remain unchanged for a third year – at a median of £29,000” High Fliers Graduate Market in 2012.

The Survey

Conducted online during April 2012 Small/Medium Enterprises (SMEs) i.e. businesses with

fewer than 250 employees 185 respondents across the graduate network

representing all England's regions and sectors Range of sizes within the SME bracket i.e. sole traders

up to businesses with 50-249 employees.

Graduate Recruitment Expectations

87% of employers plan to recruit graduates over next 12 months, compared to 64% recruiting over the past year.

0 1 to 4 5 to 9 10 to 24 25 to 490%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Past 12 months

Next 12 months

Number of recruits

How many graduates do you expect to recruit into your organisation over the next 12 months?

Graduate Roles Available

PermanentTemporaryPaid InternshipUnpaid InternshipWork Experience

Majority of graduate roles over the next 12 months will be permanent, with 20% some form of internship.

What types of roles will you recruit graduates for?

Reasons for Not Recruiting

Graduate expectations were too high

Graduates lack employability skills

Graduates lack relevant experience

Other

No graduate level roles

0% 10% 20% 30% 40% 50% 60%

In the current economic climate employers are not recruiting staff at all, including graduates .

Recruitment Marketing Methods

Print advertising

Recruitment agency

Job board/site

Company website

University careers service

Internship/work experience scheme

University careers fairs

Social media

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Would use in futureUsed in pastRecruitment

methods are changing. Greater use of internships and social media, less use of print ads and recruitment agencies.

Which of these methods to attract graduates have you used in the past/would you use in future?

Qualities of a Successful Candidate

University attended

Degree result

Work experience

Other

Degree subject

Positive attitude

0% 10% 20% 30% 40% 50% 60%

SME employers prioritise attitudes and skills for the role over degree grade and institution.

Which of these things do you think is most important when recruiting a graduate?

Graduate Starting Salary

Up to £12,000

£12,000 - £14,999

£15,000 - £17,999

£18,000 - £19,999

£20,000 - £21,999

£22,000 - £24,999

£25,000+

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

SME graduate employers outside of London offer a salary of between £15,000 and £18,000.

What salary would you pay to a graduate fresh out of University?

Perceptions of Graduate Skills

Graduates benefit my business

Graduates have good technical skills

Graduates have good communication skills

Graduates have good employability skills

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Benefits of Graduate Recruitment

Other

Up-skill other workers

Increase productivity

Questions established practice

Strengthen staff resources

Produce future leaders

Give specialist knowledge

Introduce new ideas

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

What benefits do you think graduates can bring to a business?

SME employers see graduates as bringing fresh ideas and becoming the next generation of leaders

Questions?

• How can SME's compete for the graduates, without the high salaries that others offer?

• Do SME's need to think differently about the methods they use to recruit graduates?

• Is there an issue around employer perceptions of graduates that universities, graduates and job brokers must act to address ?

• Do we need to invest in more research on the 'real' graduate labour market?