Myths about graduate recruitment

In this article we challenge some of the myths and issues surrounding graduate recruitment using some of the latest labour market information available. In exploring this information, it is apparent that a degree on its own, without accompanying work experience, evidence of achievement and transferable skills, is not enough, especially against the backdrop of increasing participation in higher education and the provision of such a variety of course choices.

A degree guarantees a good job

There is no doubt that having a degree broadens the employment opportunities available and enhances an individual’s chances of securing employment. According to analysis of the government’s Labour Force Survey (LFS) for the period March 2001 to February 2002 and reported in the autumn 2002 edition of Graduate Market Trends (GMT), the unemployment rate for graduates aged 21-50 was 3% compared to the figure of 5% for non-graduates in the same age bracket. Graduates also have significantly higher earnings than non-graduates and the financial benefits of a degree increase markedly with age. Again this is shown through LFS analysis but this time for the period September 2001 to August 2002 published in the spring 2003 edition of GMT:

• Across all ages (21-60) graduates earn around 50% more than those reporting their highest qualification as A-levels or equivalent and their earnings are more than double those of workers with no qualifications.
• Between ages 21-40, the rise in earnings is steeper for graduates than non-graduates suggesting more rapid career progression.

Despite all these potential benefits, a degree is not a guarantee to a good job. In selecting employees, employers will look at what else graduates have to offer, including their skills, work experience (providing desirable commercial awareness) and overall potential. Quite simply, a degree is not enough on its own.

Employers always look for graduates from specific degree subjects

It is certainly the case that some jobs demand a specific degree subject, especially in the fields of science and engineering. However, nearly two-thirds (64.6%) of vacancies advertised in the year up to April 2003 in Prospects Today, the national graduate vacancy bulletin, asked for graduates from any degree subject, which means that you will have lots of career options whatever you decide to study.

If graduates make the wrong choice of degree this will affect their future career

In addition to the specialist knowledge that a degree provides, the process of studying for a degree and the wider university experience (including living away from home and managing finances) equip graduates with a set of skills that are useful for any career, including analytical and problem solving skills. Consequently, the ability to recognise, offer and use these transferable skills means that many graduates end up in careers not related to their degree. In some instances, during or after studying for a degree, a student or graduate may realise that their interests lie in a specific area for which their degree is not immediately relevant, in which case postgraduate conversion courses are an option. Such courses exist for many professions including law, teaching, social work and even medicine. Similarly some employers are willing to support specialist training in areas such as accountancy, IT, banking and the Civil Service.

Students don’t need to look for a job until after they graduate

There's looking for a job and looking for the right job and career. Even for students in highly vocational courses the process of finding the right job should begin early. According to the survey Graduates in the Eyes of Employers 2002, the majority of recruiters (57%) find that the most effective time to develop relationships with students is during their first or second year at university. In addition, 20% of employers think the most effective time is before students arrive at university. Work experience placements are a particularly valuable way for employers and students to interact. Many employers seek to take on students for the summer (or entire year) prior to their final year which in some cases leads to an early job offer. The Graduate Experience 2002 Report for the Department of Trade and Industry (DTI) found that 73% of the graduates surveyed felt that the work experience they had at university helped their career.

Most graduates want jobs with higher salaries

According to a survey of degree finalists, Careers Information and Career Planning, a good salary is an attraction to many finalists when deciding on the criteria for their ideal graduate career. However, in fairly equal measure is the desire to take part in training or professional development opportunities which can be used as transferable currency from job to job. Another attraction is having a good work/life balance. All three factors account for 91% of those surveyed. Less important was the opportunity to travel along with health and pension “perks”. The UK Graduate Careers Survey 2003 found location to be an important determining factor in career choice. London continues to be the most popular preference for graduates seeking work, although this has dropped slightly from previous years, with some graduates preferring to remain in the region of their university. Motivation to do a particular job is also important and while high salaries may be a priority for some graduates leaving university, those with a strong commitment to the community or creative industries for example, will derive their job satisfaction from the work they do rather than their monthly pay cheque.

Choice of type of university determines a graduate's job prospects

The recent Does it pay to attend a prestigious university? report found that graduates from older universities can earn up to 6% more than other graduates. In addition, the higher UCAS points gained in order to attend an older university may also boost job prospects as certain employers do look at past academic qualifications. However, comparisons of the first destinations of graduates from older and newer universities suggest that entry to a preferred career is faster for those who went to a post-1992 university according to The Graduate Experience 2002 Report. This report states that graduates of traditional universities “have higher career expectations and so may be more inclined to undertake short-term employment rather than a permanent job outside their career”. The survey reveals that 44% of the post-1992 university graduates surveyed were in their preferred first job six months after graduation in contrast to 39% of the pre-1992 university cohort. Possible reasons for this include the more vocational orientation of new universities together with the more likely work placement opportunities during their time at university, both of which could have increased the employability of the newer university graduates. Despite this, major blue-chip employers continue to target students and graduates from ‘prestigious’ universities with just over a quarter of the 104 employers surveyed in the Graduates in the Eyes of Employers 2002 report feeling that new universities turn out lower quality graduates.

Graduates only work for large employers

According to The Graduate Experience 2002 Report, only 14% of respondents were on a graduate training scheme six months after graduation. This was a reduction of 5% from the previous year due to a decline in the number of vacancies and the economic downturn, and reveals the relatively small numbers taking this route. It is, therefore, fair to assume that many graduates secure employment with smaller companies. The latest DTI figures estimate that at the start of 2001, over 99% of the 3.75 million active businesses in the UK were SMEs, which accounted for 55% of UK employment and 51% of turnover. Such companies, employing between 10 and 250 people, are providing graduates with the opportunity to gain early responsibility within a less structured and hierarchical work environment often in a growing and exciting business. In the Financing the Enterprise Society: Financial Services for Small and Mid-Sized Enterprises in 2010 report from the government’s futures programme (Foresight), it is predicted that the number of SMEs in the UK will reach 4.5 million by 2010, creating two million new jobs, many of which will be for graduates.

It is not worth getting a degree

It is true that graduate debts are rising year on year and with the introduction of top-up fees from 2006 this trend looks to accelerate. The average graduate debt according to surveys carried out by two high street banks, which understandably take a keen interest in this area, is around £8,000-£11,000. However, for completers of four-year courses (or longer) such as languages and medicine, debts can be £20,000 or more. Universities are very aware of this situation and look to support students securing paid work experience during their time at university. This has benefits beyond financial necessity. Developing employability skills and gaining commercial awareness will prove to be a huge asset in future job applications and contribute to an impressive CV. Looking beyond financial considerations, the process of obtaining a degree and taking part in the whole university experience is often life-changing - knowledge, skills and personality develop and values, passions and networks are established. The 2003 Student Living Report claims that 87% of students consider university to be a good investment for the future, while 93% of respondents to the Grad Facts 2002 survey felt that university had been a worthwhile experience.

Publications

Graduate Prospects publications

Graduate Prospects and AGCAS publications should be available in your university careers service. You can also order publications from us.

• Graduate Market Trends, Graduate Prospects, quarterly.
• Prospects Today, Graduate Prospects, weekly.
• Careers Information and Career Planning 2003, undertaken by MORI for Graduate Prospects, 2003.

Others

• Graduates in the Eyes of Employers 2002, Park HR/The Guardian, 2002
• The Graduate Experience 2002 Report for the Department of Trade and Industry, in partnership with Barclays and carried out by Collective Enterprises Limited, March 2003
• UK Graduate Careers Survey 2003, produced by High Fliers Research.
• Does it pay to attend a prestigious university?, Arnaud Chevalier and Gavan Conlon, March 2003, Centre for the Economics of Education, London School of Economics and Political Science.
• Small and medium-sized enterprise (SME) statistics for the regions, 2001, Small Business Service press release, 3 April 2003.
• Financing the Enterprise Society: Financial Services for Small and Mid-Sized Enterprises in 2010, Financial Services Panel SME sub-group, Department for Trade and Industry, March 2001.
• Graduate debt continues to increase but at a slower rate, Barclays press release, 18 March 2003, based on the Barclays ninth annual graduate survey 2002.
• The £20,000 degree - school leavers concern over university debt, NatWest press release, 12 August 2003, based on the NatWest 2003 Student Money Matters Survey.
• Student Living Report 2003, MORI/UNITE, 2003.
• Grad Facts 2002, The Guardian/The Association of Graduate Recruiters, 2002.