8 February 2010 – Research released today by
Alexander Mann Solutions (AMS), the provider of world-class talent
and resourcing functions and global leader in RPO, reveals that
competition for graduate roles is set to be tougher than ever in
2010 as more than half of graduates from 2009 join the hunt for
jobs alongside the class of 2010. This increased competition seems
to have hit 2009 and 2010 graduates’ confidence, leading to less
targeted applications and a willingness to apply for positions
outside of their preferred field.
The study, entitled The Emerging Talent Index, found
that of the students that graduated from university in 2009, just
24 percent have been working in a role that requires a degree since
leaving university. More than half (53 percent) of the 2009
graduates surveyed are planning on applying for graduate positions
this year. 63 percent of those set to graduate in 2010 are also
applying for graduate roles (compared to 50% of recent graduates in
2009), leading to far greater competition for positions than in
previous years.
This increase in applicants seems to have
dented graduate job hunters’ confidence with only 26% of those
surveyed confident of finding a graduate position this year.
Perhaps because of their experiences last year, 2009’s graduates
are the least confident; just 22% are confident of finding a
position this year. These low confidence levels appear to be
reflected in graduates’ approach to job hunting with one in five
(18 percent) of 2009 graduates applying ‘for any job’. In fact, the
majority of graduates were found to be broadening their
approach: 59 percent of 2009 graduates are applying for roles
across a number of sectors and just 37 percent of all respondents
are limiting their applications to positions which tie-in with
their long-term career goals.
The trend is not limited to the applications
stage of the process with two thirds (64 percent) of graduates
admitting that they would hedge their bets by accepting more than
one job offer: either by picking their preferred option nearer the
time or accepting an offer and continuing to look for an
alternative. This could cause significant problems for graduate
recruiters.
Clodagh Bannigan, Head of Client Services at
Alexander Mann Solutions, explains: “The lack of confidence in
today’s graduate marketplace means that jobseekers are increasingly
likely to formally accept multiple offers and then make their final
decision just before their joining date. This is, perhaps,
understandable in the economic climate but it represents a real
challenge to employers. Organisations must factor in this kind of
behaviour and ensure their strategy will not be adversely affected
by applicants dropping out late in the day.”
“It is certainly the case that
competition in the graduate jobs market is tougher than ever this
year,” commented Clodagh Bannigan. “However, this rise in
the quantity of applications has not brought a rise in quality.
University leavers are adopting a ‘hit and hope’ approach: applying
for as many positions as possible rather than carefully targeting
the roles that are right for them. This type of approach can cause
problems for employers. Businesses looking to hire graduates need
to ensure that they have the processes and scalability in place to
deal with the high volume of applications, without compromising on
the human touch that is essential when looking to attract the best
talent. This is by no means an easy feat.”
The research also asked graduates which
sectors they perceive as offering the best opportunities to
university leavers. The public sector was identified as the area
that offers the best opportunities, with nearly a third (30
percent) ranking it as the top sector. Financial services and
banking fared much worse, being ranked lowest by 28 percent of
respondents.
Clodagh Bannigan continues: “The fact that
graduates still consider the public sector to be an attractive
destination for university leavers, despite the current economic
and political uncertainty, is certainly encouraging. The
ability to attract the best graduates is a crucial advantage for
any organisation and something that public sector bodies need to
prioritise if they are to successfully manage the changes they will
be facing over the next few years.”
“More worrying is the damage that the
recent economic crisis has had on employer brands in the banking
and financial sector. Employers in this industry have been
scrutinised heavily in the last 18 months and this has
understandably impacted on their reputations amongst graduates.
Businesses in this sector will be able to repair their brands over
time, but should be a great concern to organisations that have
traditionally been very attractive to university leavers and steps
should be taken immediately to restore their standing.”