Reseach Study on Employers in the New Graduate Labour Market

Description
Labour market flexibility refers to the speed with which labour markets adapt to fluctuations and changes in society, the economy or production.

a research centre of the University of the West of England

Employers in the New Graduate Labour Market: recruiting from a wider spectrum of graduates
a project commissioned by the Higher Education Funding Council for England as part of the Innovations in Higher Education Programme, conducted by the Employment Studies Research Unit at the University of the West of England in partnership with The Council for Industry and Higher Education

Kate Purcell, Marie Morley and Gill Rowley
May 2002 ISBN: 1 874223 33 5

The research and analysis were undertaken and this report written by Kate Purcell, Marie Morley and Gill Rowley at esru. A shorter version of this report is available from The Council for Industry and Higher Education (CIHE), 344-345 Gray’ s Inn Road, London WC1X 8BP. The project was designed and managed by Richard Brown, Chief Executive of the CIHE and Kate Purcell, Professor of Employment Studies and Director of esru, and was conduct in partnership by the two organisations.

Acknowledgements
The CIHE and the esru research team are particularly grateful to George Taylor, who was Secretary and a key member of the CIHE-appointed Project Advisory Committee and to the following members of that committee and to their organisations, for donating their time and expertise to guide the project and comment on the draft reports and guidelines: Imogen Daniels, Chartered Institute of Personnel and Development Carl Gilleard, Association of Graduate Recruiters Geraldine Grainger, John Lewis Partnership Maxine Packer, Logica Professor Alec Reed, Academy of Enterprise Professor Theresa Rees, Cardiff University/Equal Opportunities Commission Martin Thorne, Nottingham University, Careers Advisory Service/AGCAS We are also grateful to Cal Weatherald, Geoff Layer and their colleagues in the DfES Innovations Programme Team, who kept us informed about other activities in the Programme and provided useful support at key stages of the project. Most importantly, the research that informs this report could not have been conducted without the contributions of the graduate recruiters and human resource specialists in the organisations we visited in the course of the project. We thank them for giving their time, sharing their well-informed perspectives on the graduate labour market and in providing us with information about their organisations. Responsibility for the report and any inaccuracies it contains rest, of course, with the authors.

The Council for Industry and Higher Education 344-345 Gray’ s Inn Road London WC1X 8BP [email protected]

Employment Studies Research Unit University of the West of England Coldharbour Lane Bristol BS16 1QY [email protected]

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Contents
page Acknowledgements 1 EXECUTIVE SUMMARY 1.1 The issues 1.2 The findings 1.2.1 Characteristics of leading practice organisations 1.2.2 Policies and practices in leading practice organisations 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 3.5.7 4 4.1 4.2 4.3 5 INTRODUCTION The issues The research The objectives of the research FINDINGS The concept of a graduate labour market Recruiting for diversity Age as a variable in graduate recruitment Social class as a variable in graduate recruitment Characteristics of best practice recruiters Recruitment as a marketing function Clarity of purpose Effective networks Career development and the management of expectations Flexible work patterns Strategic management From policy to practice:the importance of commitment at all levels THE IMPLICATIONS OF THE FINDINGS FOR SUPPLY-SIDE STAKEHOLDERS Higher education institutions and academics The careers advisory services Graduates CONCLUSIONS APPENDIX: The Guidelines for Employers The Issue The Business benefits What makes leading organisations different? Achieving diversity 1

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10 12 13 14 16 16 19 21 25 28 29 30

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41 41 42 43

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1. EXECUTIVE SUMMARY
1.1 The issues
The graduate labour supply has become much more diverse in recent years as a result of progressive government and higher education initiatives to encourage wider participation in tertiary education. In particular, the increased entry to higher education of students from under-represented social categories and the return of adult learners to develop their full potential, both personally and in terms of their capacity to contribute to UK social and economic output, have been key policy objectives. There is also evidence that graduates from lower socio-economic backgrounds - the very candidates whom policy-makers have been most concerned to attract into higher education benefit somewhat less than their middle-class peers from achievement of a degree. Recent surveys have indicated that they earn less, on average, than similarly qualified labour market entrants from ‘ traditional’ graduate backgrounds and tend to evaluate their current employment and career development less positively. This project was designed to identify leading practice in graduate recruitment, where employers have consciously developed strategies to recruit effectively and in a nondiscriminatory way from the wider pool of graduate labour with which they are now faced. The aim was to discover and disseminate information about actual and potential mechanisms to develop and promote better synergy between graduate supply and employer demand - for the benefit of employers, aspiring learners, higher education providers (including their careers advisory services) – which would reinforce the Government's higher education agenda. In particular, the brief was to focus on the issues relating to two areas of apparent graduate under-utilisation which are not covered by anti-discrimination legislation: age and socio-economic background. A wide-ranging investigation was undertaken to identify organisations which demonstrated good practice in recruiting from the full spectrum of the graduate labour supply. Interviews and often, more comprehensive research programmes, were conducted in 87 organisations, targeting seven sectors where graduate employment is significant or increasing: Finance, Information and Communications technology (ICT), Manufacturing, Not-for-Profit, Public Administration, Recruitment and Employment Services, and Retail. We wanted to see what these leading practice organisations did to ensure that they recruited effectively from the full range of graduates. The findings, discussed at length in this report and in a shorter report for wide dissemination among employers and other graduate labour market stakeholders, are summarised below. They provided the foundation for the development of the CIHE’ s Guidelines for Employers (see Appendix) released in conjunction with the research reports after consultations with the Association of Graduate Recruiters (AGR), the Confederation of British Industry (CBI), the Chartered Institute for Personnel and Development (CIPD) and the Equal Opportunities Commission (EOC).

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1.2 The findings
1.2.1 Characteristics of leading practice organisations

1. They understand that recruitment is intimately related to marketing, and in order to attract the best graduates (and staff generally) they need to sell their organisations as good equal opportunities employers. 2. They are very clear about the skills and competencies they require and do not confuse these with related attributes. Accordingly, they target sources effectively and tailor their selection procedures to enable them to recruit candidates who will deliver these. 3. Where they have experienced skill shortages, they work with the professional specialist organisations and or regional bodies (including HEIs) to draw attention to vacancies and opportunities and, in some cases, to positively encourage applications from under-represented groups. 4. They manage the expectations of candidates and recruits, external and internal, so that there is a very clear understanding of the nature of the work, the culture of the organisation and the career development opportunities available. 5. They work with higher education institutions (HEIs), typically providing work experience and sandwich degree placements for undergraduates, thus enabling students to develop and demonstrate employability skills and to gain experience that will help them to make informed career decisions when they graduate. Some employers work with academic departments to ensure that course content is aligned with the needs of industry. 6. They are good employers who provide development and training opportunities and reviews for all staff and where possible provide internal labour market opportunities that enable staff to reach their potential. 7. They recognise the need for a work/life balance and have people-friendly policies and opportunities for work flexibility that recognise the diversity and changing needs of their staff, including their graduate recruits. 1.2.2 Their policies and practices

• In all their information about their organisations, they explicitly state that they are an equal opportunities employer and are proud of the diversity of their workforce. • In all their job vacancy information and job specifications, they include explicit statements about their eo/diversity approach and state that they welcome applications from suitably qualified people, regardless of age or social or cultural background.

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• Their job specifications are very clear about the requirements for the job, including details such as whether they involve extensive travel or the requirement to work flexible hours. • They do not make assumptions that some job characteristics will be more attractive to young candidates or preclude older ones, but provide people with sufficient information to rule themselves in or out. • They avoid expressions or visual images that might discourage 'non-traditional' candidates, but depict the diversity of their intake. • Where they provide information about vacancies to HEI careers offices or academic departments, they do so to all HEIs or target a diverse range of them in the specialist or regional areas where they seek to recruit. • They run workshops which help potential candidates to assess their suitability for vacancies and to develop the skills required in the application process. • They recognise and take account of non-traditional routes into higher education and value the enterprise and initiative which achievement of these indicates. • In the selection processes, they ask only for information and evidence that is of direct relevance to the skills and knowledge required for the post. • They invest time and resources in the selection procedure, using a variety of approaches to enable candidates to demonstrate their suitability for appointment. • They monitor their recruitment and selection processes and outcomes to ensure effective and non-discriminatory practices. • They train all staff involved in recruitment and selection to take account of diversity issues and promote equal opportunities. • They treat job applicants with courtesy, acknowledging applications, informing them of outcomes, providing constructive feedback, and routinely paying expenses incurred in the interview process. • They have a flexible approach to appointing staff which allows them to take account of particular circumstances. For example, older candidates with relevant prior work experience can have this reflected in their salary and progression opportunities. Those with constraints can, where it does not interfere with their capacity to fulfil their role, work flexibly and/or concentrate periods of training or travel to fit in with their other commitments. • They work with HEIs to develop, sponsor or support courses that provide career development opportunities for their staff.

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2. INTRODUCTION
2.1 The issues
The graduate labour market has changed dramatically over the last two decades, as a result of government policy to widen access to higher education. This move from an elite to a mass system has had a fundamental impact on the labour supply and the occupational structure, challenging employers’ and graduates’ perceptions of the relationship between higher education and employment. What is a graduate job and what does possession of a degree entail, in terms of the competencies which employers can expect graduates to have acquired? The graduate labour supply has always been diverse and segmented, to a considerable degree, according to specialist skills and knowledge, but one of the characteristics of the UK graduate labour market has been the extent to which possession of a degree has been used by employers as a proxy for potential, in terms of managerial, administrative and creative career entry. Does possession of a degree provide access to careers rather than jobs? Particularly in recent years, as students and their families have been required to bear an increasing proportion of the costs of higher education study, is the investment of three or more years studying for a degree a good use of time and resources for individuals? Government policies are predicated upon the conviction that increasing higher education participation rates are good for the economy and the community, but this relies upon the achievement of a good fit between the skills and knowledge developed within the HE system and the competencies sought by employers. Do graduates obtain employment which values and makes use of their undergraduate education? Do employers recruit staff with the abilities, knowledge and potential that they seek? Despite considerable debate and consultations about threshold standards and ‘ graduateness’ undertaken in the 1990s1, employers remain confused by the diversity of higher education courses and there is clear evidence that a significant proportion of graduates experience difficulty in accessing employment which makes full use of their potential, while some employers complain that they are unable to fill their target graduate vacancies with candidates of the appropriate calibre. This research was stimulated by consideration of labour market analysis and previous research findings, which suggested that employers' failure to meet graduate recruitment targets in some areas and complaints that there are insufficient graduates with relevant key skills and work experience, might reflect their own conservative recruitment strategies. Research findings suggest that some groups of ‘ non-traditional’ graduates experience more difficulty than other in accessing graduate employment and, in particular, those in the older age groups are disproportionately more likely than their younger peers to end up
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After a lengthy process of consultation by the Higher Education Quality Council - see What are graduates? London: HEQC (1996) and Academic Standards in the Approval, Review and Changing of Degrees London: HEQC (1996), a Graduate Standards Programme was conducted nationally by its successor body, the Quality Assurance Agency. Its objective was to define ‘ graduateness’ in relation to occupational standards by setting quality assurance threshold standards across the full disciplinary spectrum of undergraduate provision.

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underemployed. As an indication of this, the most recently conducted large scale UK alumni longitudinal study2 found that older graduates were less likely than younger ones to be in a job for which a degree was required, were more likely to be unemployed and expressed lower satisfaction with their current employment, three and a half years after completing their degree courses, as Figure 1 shows. Figure 1: 1995 graduate respondents' subjective assessment of the overall quality of current employment, based on key indicators (Those in full-time employment only)

4 3.5 3 2.5 2 1.5 1 0.5 0 25 or under 26 - 29 30 - 39 Age Group Job Quality Score 40 - 49 50 or over

Source: 1995 alumni Moving On survey data set (Elias et al. 1999)

Similarly, social background appears to be strongly correlated with employment outcomes, even among this highly qualified population. In the Moving On survey, respondents were asked the occupations of their parents when they were aged 14, and their socio-economic background was recorded on the basis of their response. It is well established that those from lower socio-economic backgrounds are less likely to enter higher education than those from more advantaged backgrounds3 but less clear to what extent social disadvantage may continue to be handicap beyond higher education, as first generation graduates enter the labour market. Recent research suggests that graduate earnings are positively correlated with social background, six months, eighteen months and over three years after graduation: the higher the background, the higher the

Elias et al (1999) Moving on: graduate careers three years after graduation, Manchester: CSU/DfEE See Metcalf, H. (1997). Higher education participation of young people from lower social groups, London: CIHE.
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2

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earnings, on average 4. Social class tends also to be correlated with type of university attended and course completed, so that causal relationships between background variables are difficult to establish conclusively, but Figure 2 reveals graphic socioeconomic differences in the average job satisfaction scores recorded in the Moving On survey. Figure 2: 1995 graduate respondents' subjective assessment of job quality, by social class (Full-time employees only)

Professional

Managerial and technical

Skilled non-manual

Skilled manual

Partly skilled

Unskilled

2.8

2.9

3

3.1 Job Quality

3.2

3.3

3.4

Source: 1995 alumni Moving On survey data set (Elias et al. 1999)

Given findings such as these, the CIHE and the researchers were concerned to explore the extent to which employers’ recruitment and selection policies and practices might contribute towards such differences in graduate outcomes. In particular, we were concerned to identify employers who were addressing the issues raised by widening access to higher education and adapting their recruitment and selection strategies to ensure that they made full use of the new diversity of graduates joining the labour market, in a way which avoided discrimination against ‘ non-traditional’ candidates. This was very much an action research project. In addition to production of a research report, the research partners had a commitment to engage with the employment practitioner and policy communities throughout the research in order to produce and disseminate associated employer guidelines to promote the wider development of good practice in graduate recruitment. The preliminary findings from the research and the draft guidelines were discussed at two workshops in Bristol and London with
Hogarth et al (1997) The costs and benefits of the participation of non-traditional students in higher education, Bristol: HEFCE, Purcell et al. (1999) Working Out? Graduates' early experiences of the labour market, Manchester: CSU and Elias et al. (1999) op cit.
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employers who had participated in the interview programme, and their input has been taken into account in the final analysis and production of the guidelines for employers that are published in conjunction with this report (see Appendix).

2.2 The research
Research work began in November 2000, with a search for organisations demonstrating good practice. In this phase, members of the research team visited hundreds of websites and contacted 220 employer groups and trade associations. Following the design and trial of an interview schedule in February 2001, we conducted 102 interviews in 87 organisations5 across seven industry sectors, selected on the basis that they were significant and/or increasing areas of graduate employment. The distribution of the interviews conducted is shown in Figure 3. Figure 3: Sectoral distribution of the research

Retail

Public

Not for Profit

Manufacturing

Hi-tech

Finance

Employment Intermediaries

0

5

10

15

20

25

Number of Interviews Conducted

Source: 1995 alumni Moving On survey data set (Elias et al. 1999)

The structured interviews, lasting one and a half to two hours, were conducted with graduate recruitment alists and/or human resource managers who had responsibility, where appropriate, for graduate recruitment. The interviews were supplemented by web data, hard copy recruitment literature, and anonymised recruitment data from employers' records. In some cases, the scheduled interview was part of a series of interviews with staff and employees at different sites within the same organisation and more detailed research was conducted, including examination of application and selection records, observation of short-listing and assessment centre selection processes.

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This was not a quantitative study with a randomly selected sample or an even distribution of employers across the seven sectors: the research brief was to identify employers who were on record as being committed to providing equal opportunities in recruitment and employment, and who had demonstrated elements of good practice which they were willing to share in order to promote a more effective fit between the graduate labour supply and demand. Not all of these employers had achieved the equal opportunities they aspired to promote in practice, and there was residual evidence of implicit bias in some of their recruitment and selection processes, but all were impressive and some exemplary. Persuading employers who had exhibited good practice to give research access to the team was more difficult in some of these sectors than in others: • The public sector is relatively well represented, as it proved to be open and accessible, and is committed to implementation of equal opportunities and diversity policies. It has a record of attracting and recruiting mature graduates to a greater extent than other areas of employment. • The not-for-profit sector, in contrast, comprised many organisations that were small in terms of numbers of paid staff, and even the larger ones tended to operate in a labour market where they engaged in what might be labelled ‘ reactive recruitment’ – that is to say, they received a substantial number of unsolicited applications from well-qualified and enthusiastic individuals, obviating the need to invest heavily in their recruitment strategies. • Major graduate employers in finance, operating in a range of graduate labour market segments in which there is both a large supply of graduates and paradoxically, pockets of fierce competition among employers, tended to have sophisticated and well thought out approaches to graduate recruitment, which they were willing to share with us. • Similarly, the large retail organisations proved to have given an impressive degree of consideration to equal opportunities issues. They were particularly alive to the importance of diversity recruitment to serve their diverse clientele, concerned to access the best candidates from the ‘ non-traditional’ graduate labour supply, whom they saw, to an extent, as the contemporary equivalents of previous management cohorts who had been recruited directly from secondary education prior to the expansion in higher education. • Employers in some areas of manufacturing who had experienced skill shortages and had difficulty in meeting graduate recruitment targets were concerned to discuss their policies and practices with the researchers and get the message across that, despite strong commitment to equal opportunities recruitment, the fit, for them, between graduate supply and demand was far from satisfactory.

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• Employers in ‘ hi-tech’ manufacturing and services – often small-to-medium size enterprises (SMEs) – also tended to have experienced recruitment difficulties in recent years – and to be similarly concerned about imbalances in graduate labour supply. • The Recruitment and Employment Services sector is a growing area both of graduate employment in itself, and as an intermediary between new graduates and employers. It is an interesting example of an area of employment where credentials have been becoming increasingly important. Graduates are being recruited for jobs which, in the past, did not require a degree – although technology and the increase in range of services supplied by the industry may arguably require increasing levels of ability, prior skills and knowledge. • The smallest organisations in all sectors were, by definition, ‘ lean organisations’ , where employers had difficulty in making time to participate in the research. In addition, the smaller organisations very often did not define themselves as either ‘ graduate recruiters’ or ‘ good practice employers’ in terms of diversity issues: they had to be persuaded to see the relevance of their experience for the project. Our threshold requirement was that organisations should have recruited at least one new (paid) graduate in the preceding year - a requirement that increased the difficulty of access to SMEs generally as the economic downturn began to bite. Nevertheless, the sample cases included 22 organisations with fewer than 250 employees. A number of factors – including economic restructuring, government policies, and the impact of technology, particularly information and communication technologies (ICT) have led to increasingly blurred boundaries between industries and occupations and between the public and private sectors of the economy. Our assignment of organisations to a particular economic sector should therefore be treated with some caution. In all cases, we have adopted the organisation's own view of its sector, so that, for example, we describe a producer of leading-edge technology as a manufacturer and not as a hi-tech company. Two recruitment specialists were embedded in the public and not-for-profit sectors and did not identify with the sector of commercially driven employment intermediaries. A care trust and non profit-making housing company had much in common with public sector and commercial social care services. And typically, many not-for-profit organisations operated highly profitable trading arms in support of their mission, competing, for example, in the leisure industries market and overlapping with education services.

2.3 The objectives of the research
• To collect detailed information about the recruitment practices of carefully selected organisations in the seven selected graduate recruitment sectors. • To identify good practice in non-discriminatory recruiting, drawing on the full graduate labour supply (especially mature graduates and graduates from non-

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standard backgrounds) in order to achieve the optimum labour force balance required to operate effectively. • To investigate problems posed and overcome and to share the information among sectors. • To disseminate the lessons learned to employers and others concerned with graduate recruitment, in order to encourage participating organisations to align their recruitment practices and policies to those of the most progressive and successful companies. • To gain insight from employers of their perceptions of how well higher education institutions (HEIs) prepare their students for employment and help them to market their skills.

3. FINDINGS
3.1 The concept of a graduate labour market
The project remit was to look at recruitment from a wider spectrum of graduates, but the discussions with employers revealed that for many of them, possession of a degree was merely a threshold requirement in addition to other evidence of suitability, or was related to changes in the labour supply, to guarantee minimum ability and potential and to control entry in a seller’ s market. Many employers were questioning whether possession of a degree was an appropriate or necessary pre-requisite for the jobs they wanted to fill. Across the sectors, many had moved, or were moving, away from qualification requirements and towards evidence of competencies, including generic skills (such as communication skills and team-working) and personal attributes (such as resilience and commitment). Relevant experience was highly valued. Information was being gathered increasingly through competency-based application forms and the use of assessment centres, and these were being used increasingly for relatively junior posts. There was a clear distinction between recruitment for specialist professional and technical occupations – particularly those requiring high levels of numeracy – and recruitment for the more general management, administration and service occupations. Employers recruiting the former were clear that they required graduates and had often experienced difficulties in filling their quotas, despite expansion in the graduate labour supply. Conversely, those seeking to recruit the latter were more likely to regard graduate status as a proxy for potential and to be more concerned with competencies than qualifications per se. Large employers who offered traditional fast-track graduate trainee schemes told us that even on these, many of the jobs graduates did in their organisations did not require a higher education background. In many cases where a

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degree was required, this was associated with specialist expertise and knowledge, such as economics or engineering, or was required as the result of regulation by a third party and was frequently connected with eligibility to undertake further professional training or practice. Many jobs were advertised as requiring 'a degree or equivalent experience', and many of the employers saw the graduate/non-graduate supply both externally and within their organisations as overlapping rather than segregated, as the following quotations illustrate.
‘ I don’ t consider us a graduate employer, although about 50% of my staff are graduates, more by luck than design’ Partner, recruitment services company with 16 offices in UK

‘ If they can do the job, we don't discriminate either way… if they will take the pay.’ Human Resources Manager, not-for-profit SME ‘ We have lots of internal publicity that we put round to people when we are recruiting for [the graduate scheme]. It starts off with –‘Haven't got a degree? Don't worry about it. Have you thought about applying for this?’ . People are always looking for opportunities to get on and people wouldn't think - that's a graduate programme, I couldn’ t go for it - necessarily. People are only too keen to think - I'm as good as graduates… . We identify internal talent – some of them are already graduates who came in via clerical jobs, but some of the best ones aren’ t.’ Recruitment Marketing Manager, public sector service ‘ … a degree isn't really a pre-requisite for us. However, many of our people just happen to have degrees. With some it's a case of having studied accountancy at university but with others, particularly our older people, they did other degrees, went into business and became accountants later’ . Personnel Manager, small specialist accountancy employment agency Many of the employers had A-level entry schemes which they would like to have used more. Given changes in the funding of higher education, it was thought that such schemes, particularly where they offered the opportunity for career development and access to sponsored higher education within the job, might be increasingly attractive to school leavers. For example, one high street bank has an A-level entry programme, whereby school-leavers are recruited onto a five-year management trainee programme, of which the first two years comprise intensive training prior to sponsorship on a degree programme at an élite university with which the bank has developed training and management development partnerships. Effectively, candidates get two years of salary prior to their undergraduate programme and within five years have a degree and five years of work experience. It is marketed heavily in areas where recruiting management-calibre bank staff has been relatively difficult (for example, Wales) and was targeted at bright working class candidates concerned about becoming students and incurring debt.

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The overall picture presented by the organisations studied provided clear evidence that new graduates had been recruited to an extremely wide range of jobs, some demanding high levels of knowledge, expertise and performance, others requiring much lower level skills. In the most impressive larger organisations, there was clear graduate labour market segmentation, but recruits were able to move from one graduate entry level to another as they developed professionally, and graduates recruited to non-graduate posts also had the opportunity to demonstrate that they had the ability to move to ‘ graduate’ occupations.

3.2 Recruiting for diversity
The interview schedule required employers to describe their sources of recruitment, the jobs they recruited graduates for (whether or not they required them to have degrees), their recruitment policies and practices, and their reflections on a range of wider issues associated with recruiting for diversity. Employers who engaged with diversity issues had four main reasons for doing so: a) External drivers - for example, • anticipation of the implementation of current and forthcoming EU and UK legislation; • targets set by the Modernising Government6 White Paper; • cultural audit and alignment prompted by merger activity (for example, takeover by a US company with developed employment equal opportunities and diversity policies and practices). b) The business case - for example, • to improve business effectiveness by recruiting more staff with the relevant skills to understand and reflect the organisation’ s current or targeted customer or client groups, or the community or society in which they operate – and thus improve customer links; • the need for cultural understanding within organisations operating in overseas markets and in multicultural international projects; • the achievement of a richer mix of generic skills in support of operational requirements (customer service, team-working, people management); • the need, as a result of demographic trends, to fish in the widest pool in order to maintain or grow the business. In the latter case, employers were concerned to improve the profile of their workforce for good business reasons, and were prepared to invest in widening access during the selection process to ensure that they achieved this objective.
This point applies specifically to public sector employment. Modernising Government (Cm 4310) published by The Stationary Office on 30th March 1999, set out key policies and principles underlying the government’ s long-term of reform to modernise public service, which included equal opportunities targets.
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c) Commitment to equal opportunities, including open and fair recruitment. • This commitment was strongly articulated in many organisations across the full range of sectors, but was particularly characteristic of the larger organisations which had well-informed human resource management divisions – and this impacted upon the external and internal graduate labour markets d) Commitment to employment diversity. • Progressive employers stressed the organisationally stultifying effect of recruitment in the image of the existing staff and the creative impact of teams bringing diverse experiences and perspectives to their organisations. • Several also mentioned that valuing diversity sent positive messages to current and potential employees which reinforced motivation and identification with the organisation. The differing rationales provide an important context for the policies and practices described in the report that follows. Age and social class tend to be inter-related: mature graduates most often come from homes where they are the first members of the family to benefit from higher education. As the main equal opportunities issues being addressed, they are discussed separately in the section that follows, but in fact they are essentially part of an equal opportunities agenda that, in the leading practice organisations, had been mainstreamed into all aspects of their operations. These are the employers of choice for graduates from all demographic, academic or aspirational backgrounds.

3.3

Age as a variable in graduate recruitment

Ageism in recruitment, and workforce age profiles, are becoming issues for employers, in line with growing awareness of demographic change and European social and economic policy objectives to increase employment rates. However, age is clearly seen as less of an issue in relation to graduate recruitment than in more routine occupations and the concern was rather with development and retention of existing older professionals than recruitment of older novices. The number of new graduates over the age of 30 identified as recent recruits to traditional ‘ high flyer’ jobs was very small. Such recruits were more frequently found in ‘ difficult to fill’ vacancies than where there was a comparative over-supply of applicants. A number of employers with recruiting-for-diversity policies were struggling to meet gender and ethnicity targets, and were clearly committing organisational effort and resource to these programmes. For them, ageism was clearly on their agenda, but not at the top, and they said it was unlikely to be so until legislation drove it up. The big graduate recruiters in all sectors had selected ‘ fast track’ graduate recruits in their late 20s and occasionally in their early 30s, but these were clearly exceptional, and seen as such. It was widely argued that mature graduates de-select themselves from ‘ fast track’ programmes, on the grounds that they are more likely to have dependants, less likely to be geographically mobile and less willing to undertake the kinds of activities expected as part of such programmes: frequent travel, long and unpredictable working hours or moves within the UK or abroad. It is another issue, of course, whether such requirements are essentially core aspects of the vacancies that ‘ high flyers’ are destined to fill, in all the

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organisations which build them into the graduate training programme. We identified leading practice employers who were addressing this, as the exemplary cases in this report reveal. Most of the private sector organisations that operated graduate recruitment programmes said they were designed for graduates with little or no work experience. For example, both global retailers and members of the ‘ big five’ accountancy firms said their organisations would ‘ divert’ experienced mature graduates or MBA applicants away from their graduate trainee schemes and into direct entry posts. In contrast, several public sector graduatetargeting organisations had flexible graduate trainee programmes that accommodated prior experience and allowed relevantly qualified graduates to join at different stages and/or fasttrack through. There is prior evidence that both mature graduates and graduates from lower socioeconomic backgrounds have a greater propensity to study at an HEI within commuting distance of their home. The evidence suggests this preference is due to local commitments in the case of mature students and risk-averseness in the case of students from poorer families. Our fieldwork found that a number of employers' recruitment policies and practices were compatible with – and indeed, capitalised upon - this trend, focusing upon local HEIs. A number of reasons were given for this: they included economy of linkages with institutions, expectations of take-up of job offers, and increased retention rates after appointment. It is interesting that where employers have had difficulty in recruiting nationally, they have sought professionals and management-calibre candidates in the local and regional labour market and modified their training and internal mobility programmes accordingly – and that such recruitment tends to have attracted mature and other ‘ non standard’ graduates. Thus, change in strategy appears to be market-led: where employers have difficulty in recruiting ‘ traditional’graduates, they appear more likely to consider ‘ non-traditional’candidates.

3.4

Social class as a variable in graduate recruitment

Very few employers or recruiters regarded social class as a significant variable in graduate recruitment, although we identified a small number of cases of organisations highlycommitted to employment diversity, who had positively evaluated evidence of achievement by candidates from less advantaged backgrounds. More often, it appeared that implicit discrimination may take place where competency-based recruitment favours those with the confidence that middle-class ‘ cultural capital’ endows. The employers we interviewed generally did not ask for information that would enable them to take account of social background; and where related information might have provided clues (such as school attended) nearly all claimed that this had no impact on their selection decisions. On the other hand, some employers were aware that their client base was diverse, or had changed, and that this had implications for the kinds of graduate recruits required.

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‘ In the past, new recruits tended to be more public school people because of the wine aspect. Wine was at one time a middle class drink… . During the interview we ask people what type of wine they like [but] we wouldn’ t think more of someone who says they love white Burgundy as opposed to someone who says they got a cracking bottle of Bulgarian red from their local Co-op for £2.99… . As long as they could tell us… what they liked about it.’ Recruitment and Development Manager, wine merchant We noted that psychometric testing as a recruitment practice had lost ground to assessment centres. Most of the assessment centres that we examined included structured events that allowed self-confident and articulate candidates to shine. The move to competency-based recruitment eliminates discrimination at the initial screening stages, but it is certainly the case that the later stages of selection - particularly assessment centre performance and panel interviews – can militate against less socially-confident candidates, and social confidence tends to be correlated with social background. The majority of employers were aware of this, but few took steps to encourage less advantaged candidates or counteract the difficulties presented, as confidence was frequently an attribute they valued. Again, we have very few positive examples, although a handful of the organisations studied were extremely aware of this issue and had tried to make their assessment centre exercises as accessible and unthreatening as possible, to eliminate cultural bias and present as few unfamiliar problems to candidates as possible. However, some employers - in their discussion of their difficulties in reaching out to underrepresented ethnic groups (who tend to de-select themselves from applying to these organisations) led us to consider that there might be a similar undertow in relation to social background. In addition, there are lessons to be learned from employers who have positively addressed the need to recruit more ethnic minority candidates and had introduced special pre-entry and entry schemes. In these examples, candidates were provided with training to reinforce their confidence and develop social and interpersonal skills to enable them to demonstrate their abilities more effectively. One of the most interesting reflections made by an interviewee was that experience of running one of these programmes suggested that background – or social class disadvantage – was what tended to handicap the handpicked ethnic minority candidates – rather than attitudes or aspirations deriving from their ethnic background or identity. What she meant was the nebulous but all too pervasive 7 aspects of confidence, brilliantly conceptualised as ‘ the hidden injuries of class’ , which handicap those who come from a background where they are accustomed to being passive rather than active, followers rather than leaders, powerless rather than able to influence events within their own lives and more widely. Such positive action has been very successful in preparing ethnic minority candidates for successful integration to ‘ leading edge’ companies that seek them. They do, however, raise the issue that other disadvantaged candidates would benefit from similar exposure to information and career development coaching – such as those from lower socio-economic backgrounds. A key consideration for the stakeholders involved in the graduate labour market is whose responsibility it is to ensure that such candidates receive the career guidance, preparation
Richard Sennett and Jonathan Cobb (1977) The Hidden Injuries of Class. Cambridge: Cambridge University Press
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and information that they require in order to do justice to themselves in the recruitment process.

3.5

Characteristics of best practice recruiters

From the evidence of our interviews, we suggest that best practice recruiters share some, if not all, of the following characteristics: • They understand that recruitment is intertwined with marketing. • They are very clear about the skills and competencies they require. • They develop effective networks with professional associations and HEIs. • They emphasise career development and training as well as immediate job opportunities, but manage expectations. • They offer flexible work patterns. • They align practice with policy and manage human resources strategically. 3.5.1 Recruitment as a marketing function Leading practice employers, regardless of sector or size, emphasised the importance of proactively marketing their organisations, their job opportunities, and building their reputation as fair and open employers. A number had recently established new posts or secondments (Marketing Director, Marketing/PR Manager, Positive Admissions Officer, Training Officer, Development Executive, Website Manager/Developers) to strengthen their brands, support the recruiting function and effect change. They were keenly aware of the need effectively and efficiently to secure the best match between their organisation and good candidates, in order to manage the selection workloads8, improve take-up of job offers, reduce labour turnover, and grow on their future middle managers and leaders. For many, their strategy was to inspire appropriate potential employees to seek them out proactively, rather simply respond to particular recruitment drives. ‘ A lot of people recruit friends and a lot of our customers tell their children to apply. We do a lot of word of mouth recruitment. The parents shop there and they suggest us as an employer to their kids. We have a good reputation within the industry. As a company, we don’ t actually advertise our product so it’ s word of mouth journalism that gives us our public profile. So we as a department have to be careful about our recruitment advertising… . We have done very well without having a high advertising profile.’ Recruitment and Development Manager, wine merchant
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The sheer volume of applications (including those from overseas candidates) generated by website job advertising was reinforcing the need for tightly targeted marketing by recruiters.

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‘ At one time we expected students to just come to us and we didn't have to really do anything. We put adverts out and things like that, but we expected people to fall over themselves to get to us. In the last few years we have realised, quite sensibly, that we're going to have to work at it because we aren't people's first choice of employer and for most people, they don't even realise that we exist… .’ Marketing Recruitment Manager, non-departmental public body The interviews confirmed the move away from the ‘ skimmed cream’ ethos of the ‘ milkround’to less formal methods: ‘ [The traditional milkround] is a bit passé. It was done when I was at university but there is not a huge budget for graduate recruitment, so our efforts have to be more targeted.’ People Development Manager, supermarket chain ‘ We don’ t do the traditional milkround because it’ s time consuming and a bit out of date. For me, we’ ll go if it’ s milkround or nothing but I would prefer to attend a recruitment fair if there is one in the area we’ re recruiting in.’ Recruitment and Development Manager, specialist product retailer ‘ No [we don’ t do the milkround] because of our resources we would have to be singling out and targeting certain universities, for example the top ten, and this would give us an unrepresentative sample of applications, especially as we’ re supposed to be recruiting for diversity.’ Human Resources Adviser, utilities manufacturer For most of the leading practice employers who still maintained a milkround profile – and this varied among the sectors, from all the finance companies to few of the public/not-forprofit organisations - the ‘ round’ had been modified to include universities with diverse student populations or universities with particular regional advantages. Two main marketing approaches dominated, and were often used effectively in combination. One of these was the use of the employer's website, and this is discussed in more detail later. The second was the targeting of specific HEIs, the main factors influencing selection being: • The technical content and academic rigour of (often specialist) courses. • The student profile in terms of gender, ethnicity and social background. • The geographical proximity of the HEI to the employer and subsidiary units. • The HEI had proved a successful source of good candidates in the past.

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Good practice employers combined the two approaches, mitigating the impact of the biases that underlay institutional selectivity - for example, the implication in (c) above that candidates from universities outside the region of their operations would be less likely to be attracted to jobs which required relocation. Those factors often led to the development of mutually-beneficial relationships with chosen academic departments or institutions, but these were not necessarily exclusive relationships, and were generally used in tandem with wider notification of vacancies via HEIs or the internet. Such practices also had the effect of changing recruiters’ perceptions of the quality of the graduate labour supply and caused them to consider what qualifications and attributes they really did require for particular posts. ‘ We target [two universities - one in London and one in Scotland] - faculty and careers advisory service. We give presentations and contribute to syllabus development - we have good relations… . We are happy with the quality.’ This organisation had been expanding rapidly, and a glance at a random sample from the personnel database showed that recent entrants had graduated from a wide range of HEIs. Graduate Recruitment Officer, government executive agency More restricted use of the milkround was complemented by attendance at careers fairs, most likely to have attracted employers where they were hosted jointly by HEIs on a regionally collaborative basis and where employers were invited to attend free of charge. The emphasis on building a brand image explains the popularity of the graduate recruitment fairs as a method of advertising, albeit mainly for the larger employers, and these fairs were seen as a way of advertising their presence rather than an attempt to sign up potential recruits on the spot. Many employers held their own roadshows, open days, workshops and surgeries for the benefit of students, careers staff and the wider public. Small companies were equally aware of the need to promote themselves as employers of choice: ‘ We find that networks are quite important. If you send someone into a company and they talk to other agency staff that may be there, they tend to compare notes about conditions, pay and such like. If we are not giving the people on our books a good service in terms of providing them with good work then they are highly mobile and can easily move to another agency. The pressure is therefore on us to be seen as a ‘ good’ agency and that in turn attracts possible candidates to us.’ Recruitment Adviser, small specialist recruitment agency Our research reinforced recent reports in both the academic and practitioner literature about the importance of the web as an advertising and recruitment tool. The web provided even the smallest of companies with an inexpensive, flexible, rapid and highly cost-effective way of advertising vacancies, with a very high (in some cases almost unmanageably high) response rate. Some employers saw implications for equality of access to ICT for some groups of candidates, and were aware of the potential to discourage able candidates from

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applying if the language and images used were not inclusive in nature. However, the best practice organisations had recognised this issue and were making efforts to ensure that they did not use phrases and pictures that could be discriminatory in that they did not reflect the reality of what recruiters were looking for in terms of ethnicity and age. Aware of the costs of lengthy online transactions, most of the employers we interviewed offered candidates the option of downloading and emailing back an application form: only a few insisted upon online applications. ‘ One thing that has changed recently under the influence of [new parent company] is that the recruitment advertising has to be able to be accessed by the lowest common denominator, so the website has been changed. You now don’ t need plug-ins to view it, so even those who have very basic PCs have the opportunity to use the website.’ People Development Manager, supermarket chain 3.5.2 Clarity of purpose Leading practice organisations are very clear about the skills and competencies they require and do not confuse these with related attributes. They target these skills and competencies and not types of people whom they considered to possess them. Accordingly, they target sources effectively and tailor their selection procedures to enable them to recruit candidates who will deliver these, focusing in the recruitment process on the skills and competencies they are looking for. Competency-based recruitment techniques focus on demonstrable skills and attributes. Although personality needs to be taken into account when looking for candidates who will fit into the organisation, the leading practice organisations made significant efforts to minimise bias throughout the recruitment and selection processes. ‘ We are heavily driven by our group competencies. None of them are a surprise. We try to take it away from personality as much as we can, although that said, often these types of competencies will reflect themselves in someone with an outgoing personality. I would say we are looking for strong leaders, not necessarily people with proven leadership skills but we are certainly looking during final selection for people who will lead a group and make an impact. Teamwork, good communicators, both in written and verbal form. People who can very easily adapt to change. People who are very customerfocused… . In the last three years, we’ ve probably thought more carefully about our competencies and we’ ve thought more carefully about how the competencies relate to the jobs that they are going to be doing in the business.’ Director of Graduate Recruitment, financial services organisation ‘ We are trying hard to train the assessors to stick to the competencies, rather than get a general idea of what a fast streamer should look like. That actually is what militates against diversity… It’ s getting rid of that preconception.’ Marketing and recruitment manager, central government office

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This move towards more focus on skills and competencies produced immediate, tangible benefits: ‘ We re-engineered the process two years ago. We introduced the business case study at the assessment centre as we thought about what are the best ways of evaluating potential. We also considered the impression the process has on the candidates. We needed to offer a process that impressed the best but didn’ t annihilate the rest. We built the resourcing centre internally and our indications are that candidates chose us on the basis of people they had met. As a result of this, our acceptance stats have gone up.’ Graduate Resourcing Manager, high street retailer Self-selection by applicants was an increasingly used tool that enabled employers to manage the volume of applications while meeting their policies on access. By giving applicants as much information as possible about the organisation, its recruitment process and the posts which were vacant, they were encouraged to measure themselves against the criteria which were required and screen themselves out if they were unlikely to make the grade or be suited to the post. For example: ‘ Applicants are sent an information pack that sets out eligibility terms and includes a self-selection questionnaire to enable them to assess for themselves how well they might be suited for [this] career… . Those who decide to proceed can then try out the web-based self-assessed mock qualifying test software, to test their suitability further. Candidates who continue with the application are then invited to take the qualification test at a designated centre.’ Recruitment Manager, central government office However, one employer pointed out that online self-selection tests were as yet relatively underdeveloped, and required caution in the their use in the recruitment process. ‘ Recruitment is highly targeted. The number of applications per post has declined, but not the quality - perhaps because targeting is stronger and people are self-selecting more. Stronger branding. Information, for example, through the web, is more widely accessible. We encourage candidates to de-select themselves, if they don't have the appropriate skills and attributes, by giving examples and emphasising the toughness of the selection process and the job.’ Recruitment Manager, non-departmental public body This approach could be said to discriminate against those who lack confidence in their personal attributes and abilities, such as graduates from lower socio-economic backgrounds who lack the necessary savoir-faire and experience of operating as equals in professional networks. Observation of assessment centre exercises suggested that this intangible inequality is a significant handicap for some candidates and the many examples described of successful programmes to develop precisely such skills and confidence among another under-represented group - ethnic minority candidates – highlights the fact that social skills

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are learned and their presence or absence may obscure underlying differences in ability and potential. On the positive side, there were organisations who recognised that a range of experience could be used to demonstrate skill and competence and employers were proud to cite their encouragement of non-traditional candidates who had ‘ made it’ through higher education against the odds: ‘ We are particularly impressed by people who have gone straight to work and then come on after that - done OU degrees, Birkbeck degrees - people who've struggled and then applied, who are really committed… . Single parent women often bring tremendous managerial skills, adaptability and resilience. We've also had good [career change] candidates, for example, who studied physics as young people, discovered it was wrong for them and changed direction later.’ Recruitment Manager, central government office We recruited one “rough diamond” recently, a 28 year old... He lacked social skills but he came over as really passionate… really committed about his course and wanting to do the job, and we thought “If we polish the edges, we can get a real gem here”. When we asked what his proudest moment had been, he said “When I graduated, my mum was there and she was so proud: she’ d had to work so hard to get me through, as a single parent”. We take that guy, we give him development, we give him support ..he can do anything.” HR Manager, recruitment agency, recruiting for utilities manufacture

3.5.3 Effective networks Particularly where they had experienced recruitment difficulties or failed to attract diverse applicants, leading practice employers worked within professional networks to address skills shortages and advertise vacancies. There were numerous examples of organisations working with the professions and others to ensure that they were making their opportunities available to the widest possible spectrum of graduates. ‘ The predominant image of banking is white males in suits… so our community affairs department is doing a lot of work in this area and is fostering partnerships between the bank and certain communities. For example, the Impact programme we have running in Bradford. The purpose isn’ t necessarily to get more applications in but to make us more visible to the ethnic communities.’
Director of Graduate Recruitment, high street bank

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‘ We have a [paid] training scheme for ethnic minorities, of which work placement is a part… . Part of the training is done in an office environment. That’ s because ethnic minorities are seriously under-represented… training is something we are trying to do to level the playing field… . They apply to what we call our summer development programme. They have a competency-based application form for that and we pick out the best people through that application process… . What we’ re hoping is that we are encouraging these people to apply [later, for a post] but we can’ t guarantee them a job, I’ m afraid. It’ s very interesting here, the last piece of research we did on our application procedures, it suggested that it wasn’ t ethnicity that was disadvantaging candidates but their socio-economic background. We’ re only just starting to think about how we cope with that… . Traditionally we’ ve gone out to ethnic minorities’ student societies. Maybe we shouldn’ t be doing that, maybe we should be going out to comprehensive schools to where some of these people might be.’ Marketing and Recruitment Manager, central government office Others shared the recognition that recruiting for a diverse workforce was facilitated by working with various agencies and much earlier intervention in the educational process across the sectors. Many employers went regularly into schools to tell their story. For example: ‘ We try to attract a diverse range of applicants for all our vacancies and run workshops that target women, the disabled and ethnic minorities. We are also working with deprived children around the Nottingham area. We introduce them to the university and bring them to this site to encourage them to go to university.’ Graduate Resourcing Manager, high street retailer It was encouraging that it was not only large companies with more resources that were using a varied network of contacts to help their graduate recruitment process. For example, one hi-tech SME in Wales had established links with the Electronic Engineering departments of the Welsh universities, they were members of the Welsh Electronics forum and had strong linkages with the Welsh Development Agency. All of the good practice organisations had links with HEIs, regardless of size. This often took the form of a relationship with the Careers Advisory Services in local or regional universities. For those most satisfied with their relationships, this contact went well beyond advertising vacancies with them to proactive partnership approaches which included positive ‘ profile-building’ input to CAS activities, such as running workshops on employability skills for students and providing work experience for undergraduates. ‘ We run ad hoc workshops at universities. For example, ‘ Winning the applications game’ or ‘ Life after Cogs’ (Cognitive Sciences). We also run specialist computer science courses, all at the request of particular CAS. We run a competition for local technical colleges, this is taking a long-term view. We bring the winners in for a week to see what goes on here.’ Graduate Recruitment Manager, large hi-tech company

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Several of the organisations, particularly in manufacturing and finance, worked with universities to provide sponsorship and placement opportunities for students, although resources were often stretched to meet the demand: ‘ We offer an internship programme which is paid and we follow up students in their final year. There has been a boom in the market for work placements which is being driven by the candidates. People are crying out for placements. It has gone the other way recently. We are now struggling to find vacancies for interns and potentially we are turning down good interns.’ Staffing Consultant, large hi-tech company ‘ [After a period of work placement] they go back to university and we encourage them to apply to the graduate trainee schemes the year after. We’ ve seen them – it’ s the best form of extended selection.’ Head of Graduate Recruitment Project, retail/distribution company ‘ We have a BPP scheme (Business Placement People). It’ s paid and this is either a twelve or six month placement for those on a sandwich degree. It is paid and BPPs can skip the assessment centre if they’ ve had a good placement, except for our finance positions.’ Graduate Recruitment Manager, department store ‘ We run a university summer placement scheme. Students have to fill in an application and we interview them. We take on 60 penultimate year students and at the end we give them an appraisal, if they are ok, they are fast tracked onto the final stage of the graduate application procedure.’ Senior Recruitment Manager, FMCG manufacturer ‘ We work with a local FE college, which runs postgraduate accountancy conversion courses for local (mainly ethnic minority) candidates. Part of the course involves placements in the company’ . This company also runs a [paid] work experience programme for penultimate year ethnic minority students which involves work experience and training in the full range of skills sought of graduate recruits, in preparation for the recruitment ands selection programme.’ Equal Opportunities Manager, international bank ‘ We are a very small organisation and have only taken on one new graduate in the last three years, but we take a student on work experience from our local university every year and when we can afford to grow, we will be able to offer jobs to candidates such as these. In fact, the one who worked here last term was great, and we’ ve got him doing some freelance work for us at the moment. We keep in touch with several ex-placement students.’ Partner, specialist IT software consultancy

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Organisations concerned to promote equal opportunities could not, of course, give preferential treatment to ex-student interns, but the experience of work placement within the organisation and familiarity with the expectations of recruiters is likely to instil confidence. This is particularly the case for candidates who might otherwise feel inhibited by the unfamiliarity of organisational contexts in addition to the formalities of the recruitment process. Sponsorship was strongly related to the size of organisation but there were examples of SMEs working with (mainly) local HEIs. For example, one small, hi-tech company that had excellent relations with their local university sponsored an end of year prize in the department with which they worked most closely. In SMEs, strong relationships like this had often been fostered at departmental level, particularly where they required graduates with highly-specialist skills and knowledge. Another way that companies built partnerships with HEIs was at the degree course level: ‘ We have a special relationship with one university's retail course and we sponsor a fellow there. We’ ve also had talks with [another two universities]. We also run workshops and things arranged by CRAC and ISEC at any university who asks us. We provide a trainer or speakers. We looked at the good retail courses throughout the country and provide a good e-commerce speaker to help us by raising our profile.’ Director of Graduate Recruitment, high street bank ‘ We have a good relationship with [one leading university's] management course and we get lots of recruits from it. So we’ re doing more of that this year. We are targeting particular courses. Retail management and business studies courses, so we’ re looking at [three universities with strong departments in this area]. I want us to get more involved with the courses, perhaps by running tutorials. That way the students get the benefit too. For us, this sort of approach is becoming much more important.’ Graduate Recruitment Manager, supermarket chain ‘ We have close contact with the engineering faculty at [two universities] and the food technology department at [another]. We have links with [a third] mainly for specific manufacturing and product development vacancies so we target chemical engineering and the sciences there.’ Senior Recruitment Manager, FMCG manufacturer ‘ We go to the placement unit or business school director… to course tutors if we know the university, and work to have an input in course development. We provide key speakers, help with project work and bring tutors into the company.’ Graduate Recruitment and Development Manager, retail/distribution company

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A number of organisations across the sectors had found that alumni were useful intermediaries, acting as formal as well as casual conductors in the recruitment effort. One employer maintained a network of 70 recruitment liaison officers - alumni with their own full-time jobs who gave up around five days a year in exchange for a travel and subsistence allowance. 3.5.4 Career development and the management of expectations Leading practice recruiters had a view not just to the short term but aimed to attract candidates who would wish to grow with the organisation and provide a reasonable return on their investment.

‘ Each graduate has a mentor. There is a training and mentoring pack for the mentor and the line manager also has a pack. We estimate that it probably costs us £25,000 to recruit, train and develop new graduate recruits. We are aware of the competition in the market place for the types of graduates we attract so we have to concentrate on retention once they’ re in… . There are no golden escalators. That approach was done away with about five years ago. We put a grenade under that sort of thing. There are no more high-flyers… the philosophy is that it doesn’ t matter at what point you come into the organisation, with what qualifications; we want to grow you. We also have [our company] ‘ university’ , which is accessible to all members. It’ s there to provide professional qualifications or to improve learning. All members of staff are given a budget to spend. Perhaps they would want to do an MBA or it could be a question of improving ‘ x’skills. It’ s all net based. It’ s a constant learning environment and it’ s about focusing on taking people to the next level.’ Manager, Group Graduate Resourcing, UK high street bank ‘ We have lots of students working for us now, so we have access to lots of university students. 30 per cent of our intake this year came from this source – our existing population. Everyone in the company has an annual careers discussion. From that, they go into the relevant talent pool and then they are developed according to their needs. We call this ‘ internal talent spotting’ . We trialled a scheme last year. Every undergraduate working for us was seen one-toone before starting their final year, about their career prospects. They were invited to an open evening, given a talk by one of the directors and then they had a presentation. They were then given the opportunity to meet and talk with other grads who were already on the programme… . We go one step further too. In Head office and Distribution we advertise the training programme to capture the parents of students. We put up posters saying things like, “Is your child graduating this year?”' Education Relations Manager, supermarket chain

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Regular appraisals helped identify potential graduate trainees from the companies’ internal labour markets. The degree of internal flexibility with regard to advancement opportunities within the organisation was essential to ensuring that internal skills and competencies already in the organisation remained there. Recognition of ability and the understanding that not all graduates expect rapid career progression but that some may want to advance at their own pace helps staff retention, which was identified by many of the participant employers as one of the issues facing them in the future: ‘ Not everyone wants to be on a fast-track scheme. For example, one of our summer placement people, she didn’ t want a fast-track scheme. She wanted to develop at her own pace. So to go into a non-graduate job was a better fit for her. It has a lot to do with perception. Graduates on our programme get there quicker. It is our intention, it is a big investment so we expect those people on the scheme to do well.’ Graduate Resourcing Manager, high street retailer ‘ Some are not interested in going on to the programme due to family commitments. You need to be mobile on the programme because you move from business area to business area. Also, some people don’ t want to be associated with the group mentality.’ Graduate Resourcing and Development adviser, supermarket chain ‘ Some [of the graduates employed in ‘ non-graduate’ jobs] don’ t fit the criteria we’ re looking for on the website, so they don’ t apply. Some don’ t want to work in store [which is required in the retail graduate trainee scheme]. So they make their own way into the organisation. It’ s then down to them how they progress. We have some call centres here so that’ s a route they use quite often. For example, they will work in our trading centre call centre and will then apply for a buyer/trader position. For some people it may be that they haven’ t decided what to do. Also it may be that they may have been rejected for other graduate trainee courses so their confidence has taken a knock, although I’ m just guessing on that one. If someone comes to us through these other routes then that’ s okay. We are looking for them to demonstrate their skills.’ People Development Manager, supermarket chain
‘ Once in, they are encouraged by line managers to progress. If they have the talent, they will not be working for very long before they are accelerated and pushed forward - a matter of months. Managers are clued up to spot potential. So are peers and current graduates. There are daily calls to HR and lots of advertising in-store, plus road shows. Managers have the graduate literature. These managers have no financial incentive, other than being good managers, and team development is part of their own appraisal. It's a cultural thing. It is quite common to promote internally.’

Graduate Recruitment and Development Manager, company

retail/distribution

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‘ We do get people coming in to secretarial and administrative posts, just because they needed a job at the time. They have made it into graduate jobs. There is a personal career development plan for everyone, with six-month reviews. It crops up then.’ Graduate Recruitment Officer, non-departmental public body ‘ Sheila had a degree, but worked as a non-graduate administrative officer in training. She was supported to get her CIPD qualification and promoted to a graduate level job.’ Graduate Recruiter, non-departmental public body Employers were increasingly moving towards providing more realistic information in their recruitment practices. Respondents often said that part of their role was to set realistic expectations for potential candidates from the beginning. They clearly advertised the skills and competencies required, thereby allowing potential applicants to deselect themselves. They were open and honest about what the job would entail, especially if the demands of the job could impact on the work/life balance. One supermarket chain did this as part of their assessment centre: ‘ They are taken onto the shop floor, asked to critique a department to see if they have an eye and a feel for retail. They are asked to complete various exercises like working out displays. They are asked to go around and talk to colleagues, to find out certain things, to ask questions. It’ s actually a reality check. For example, one of the things they are asked to do is to find out how many hours the manager worked in the previous four-week period, so they have to go and ask to see their rota. This gives them some idea of the sorts of hours they’ ll be working. So we’ re setting realistic expectations at this point.’ People Development Manager, supermarket chain ‘ We give more and more information to candidates and show them our values. We are informal, with very little structure or restriction at work. That doesn’ t suit some graduates. It’ s a question of honesty about who we are. It’ s a matching process.’ Graduate Recruitment and Development Manager, retail/distribution company 'Tell the whole honest story, boils and all. If the job needs them to account for every minute from 9 to 5, say so. It isn't for everyone.' Graduate Recruitment Manager, finance/management consultancy Setting realistic expectations from the very beginning of the process lowered recruitment costs, as unsuitable candidates deselected themselves, and raised staff retention rates. Lean and relatively flat organisations – particularly, but not only, in public/voluntary sectors – did not always have upward progression opportunities to offer graduate recruits. But there was also a recognition that not all graduates had such aspirations:

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‘ We try to take on people who have reasonable expectations. We do get those sorts of people who apply. There was someone who we were quite interested in. She was potentially very good and had ambition but we realised she was the sort who would have to grow and we didn’ t have enough potential for her.’ Managing Director, hi-tech SME ‘ Good training balances relatively weak salaries on offer. Line managers have it as an objective to identify talent and develop staff. There are quarterly performance reviews. But individuals are also asked to be proactive about their development.’ Recruitment Manager, non-departmental public body ‘ A lot want to go in at bottom, go at their own pace. A lot have had enough studying for the time being.’ Positive Admissions officer, public service

3.5.5 Flexible work patterns Leading practice employers recognised the need for a work/life balance and had peoplefriendly policies and opportunities for work flexibility that recognised the diverse needs of all their staff. The question of the work/life balance was not an issue restricted to those with caring responsibilities. In the course of the interview, graduate recruiters were reporting that potential recruits, irrespective of age and/or social class, often raised this. ‘ There tends to be a view that mature candidates will find it tougher. It’ s not a family-friendly job, so these jobs are not good for people with family commitments. They have to study 9.00-4.30 at college, then do homework for the next day, on block release periods of two months at a time. Although it is now becoming less intensive, more spread out, there is still very high pressure. The assignments sometimes involve travelling and staying away from home, maybe being based somewhere else for months and having to spend Monday to Friday with the client. Having said that, one of our most successful recruits recently was a mature widow with three children, in her early 30s. She moved from Newcastle to London when we appointed her, got a nanny, took the exams.’ Graduate Recruiter, non-departmental public body ‘ We’ ve got a project going on in the firm at the moment called ‘ Project XYZ’ . It’ s very, very much about cultural change, different working practices and being more flexible. Just recognising, particularly for women, that we’ ve not got it right, that we lose too many women too early in their careers.’ Director of Graduate Recruitment, financial services company

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3.5.6 Strategic human resource management In leading practice organisations, policy and practice were aligned. Employers were making great efforts to ensure that recruitment practice reflected policy, even when part of the process was outsourced9. The most impressive organisations were committed to training their staff to ensure that the highest possible standards were being maintained and that there was no bias in the recruitment process. ‘ We outsource our application form screening to a guy who used to work here in our HR department and left to set up his own consultancy. So we are fairly confident that he knows what we are looking for.’ Graduate Resourcing and Development adviser, supermarket chain ‘ We train the assessors and we are confident that they are performing well for us.’ Manager, Group Graduate Resourcing, high street bank ‘ Assessors are field staff – quite senior… . All have had assessor training and have to do at least six a year to keep their hand in.’ Graduate Recruitment Officer, non-departmental public body The organisations routinely analysed their campaigns: they recorded sources of enquiries, numbers of web-site ‘ hits’ and firm applications. They analysed the returns of equal opportunity forms. This allowed them to monitor the alignment of policy and practice with their business objectives. However, very few monitored for age, although this was something that several plan to consider in the future, in response to this project and, perhaps more importantly, in the light of impending legislation. Their reports went up the line for review and allowed them to produce recommendations and, if necessary, realign the strategy thereby allowing them to change procedures if needed, to help simplify and speed up the recruitment process. ‘ Our recruitment policy and processes are under a policy of constant adaptation. Internally, we are constantly learning and this means our policy and processes have to be flexible. We are becoming more of a merit-based organisation and we are definitely supporting equality and diversity strategies. There is an internal cultural shift which is having to consider our image with clients as well. We are also waking up to the fact that quality labour and talent is what we are all chasing. There are a number of us now who are passionate about it. And we are beginning to see the results. The other thing is that it costs money. We have to give budget to it. It is a long-term investment.’ Director, Graduate Recruitment, high street bank

9

Most of the outsourcing was associated with applications management, following the volume caused by website recruiting.

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They regularly reviewed their application forms, information packs, advertising literature and websites to ensure they were achieving their objectives and reaching the target audience. ‘ Our [application] form was too big, there was duplication. We asked about educational background when we did not need it.’ Positive Admissions Officer, public service Good practice organisations regularly evaluated their assessment centre processes and their impacts upon the recruitment process and made revisions to the procedures and substance of the selection processes they used.

3.5.7 From policy to practice: the importance of commitment at all levels of the organisation Responsibility for implementing equal opportunities and employment diversity policies was taken at board level, and there was normally a senior champion with ultimate responsibility to ensure that they were implemented. Companies that demonstrated the very best in leading practice had senior managers who were totally committed to the ethos of recruiting for diversity. They had taken on board the business case and were in fact adopting a first mover strategy, recognising the importance of getting a diversity approach embedded into the organisation at the earliest opportunity. They were alert to the ability of line managers to help or hinder top-down policy, and adopted practices to bring staff on board. ‘ The HR board member, it’ s his baby. His background is from Northern Ireland so it’ s his political stance to champion diversity in the organisation. There is a realisation that at the recruitment level we need to be looking at a wider pool of applicants. We follow a best practice model. We are all CIPD qualified so it’ s drilled into us at an early age that diversity is a good thing. And in going forward, it’ s going to be essential.’ Graduate Recruitment Consultant, financial services company However, it was clear from the research that the policies were implemented most effectively in organisations where the person directly responsible for graduate recruitment had personal insight into, and commitment to, the policies in question. This was particularly the case with the rather nebulous issue of social class. Managers from a middle class background often tended to be puzzled by the survey questions about socio-economic background, whereas those from a working class background understood the underlying issues very well, and this coloured their approach to recruitment and selection. ‘ Sometimes, someone from a socially disadvantaged background doesn’ t have confidence. I feel less confident with middle class people. I wasn’ t expected to even go to university. Only two people in my school went to university. A lot of people don’ t appreciate the competencies of those who go to university against the odds.’ Recruitment Supervisor, car manufacturer

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‘ This is me talking now, not the [organisation]. I think higher education opens doors for people that were never even visible years ago. Someone like me. One time, people from my family never did things like this. The girls were all brought up to go and work in a hosiery factory and the boys were all brought up to work down the pit. I'm from a family of Nottinghamshire coal miners and I'm the first person that ever went to university in my family. People like me don't do things like this, you don't work in the civil service, it's not the sort of thing you do. I was brought up that at 16 I would leave school and go and work in a factory like my sister did. I used to go to the factory when I was a little girl and watch my mum working and that was the best motivator yet to work hard at school, because I used to see what she did and thought - no, I don't want to do that for the rest of my life. I would kill myself if I had to do that, it's just not for me and it just made me work hard. There are some fantastic opportunities and university opened my eyes completely, the best three years of my life, without a doubt.’ Recruitment Marketing Manager, non-departmental public body

4. THE IMPLICATIONS OF SUPPLY-SIDE STAKEHOLDERS
4.1

THE

FINDINGS

FOR

Higher education institutions and academics

As we saw from the leading practice examples, employer-HEI partnerships at a variety of levels were effective in enabling employers to target appropriate graduate job applicants, and, in some cases, to play a part in ensuring that graduates with the skills and knowledge they required were being developed within the HE system. From the point of view of the HEIs, such relationships ensured that their courses were relevant to employers and their students had access to jobs and sometimes, other developmental advantages and resources. Employers interviewed in the course of the project often expressed an interest in becoming more involved in collaborative associations with academics and departments in areas such as course design or running technical seminars. However, there were few recognised or advertised mechanisms that allowed them to do so. This perceived difficulty in establishing relationships between industry and academia was highlighted by the companies who gave us examples of when their attempts to build relationships with universities, other than with the CASs, had been less than successful: ‘ We have sent advertisements to universities with IT departments. We are keen to find an easier way to link with them. How do you start?’ Recruitment & Selection Officer, public sector computer services agency

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‘ We have spoken with the local unis but there are varying responses to our approaching them. At [one 1960s university] I had to sit in front of a panel who asked me all sorts of questions and then said that company sponsorship usually took the form of giving the University a new building. You can imagine my reaction to that and I said that I didn’ t think that would be possible. They then suggested that we give them a piece of equipment. What was it? Some kind of fragmenter which we supply at a cost of £100,000. We made our excuses and left. We were struck by the sheer arrogance of the university and their response is in direct contradiction to the relationship we have with [a 1992 university]. We are currently sponsoring about 15 students with “no strings attached” bursaries. There is no obligation on the students’part to apply to us but of course we hope they will. We are also asked for our input on course design, which is great.’ Resourcing Specialist, hi-tech manufacturer The personnel officer at a small, hi-tech company expressed the company’ s consternation that their efforts to build linkages with a couple of universities were effectively ignored: ‘ We also tried to set up some recruitment bursaries in graphics design at [a Welsh university] and [an English one] because they’ re universities that provide the specialised courses that are relevant to what we are doing but again, we got no response so I wonder if they were promoted at all.’ Personnel Officer, hi-tech software design company This last comment is particularly worrying, given that the company was prepared to donate money to students and in light of the many reported cases of student hardship might have provided a financial lifeline. The fact that the offer was not responded to, far less taken up on behalf of students, merely serves to promote the stereotypical image of universities, held by many in the business world, that they are not in touch with the realities of industry. The reality, of course, is likely to be that staff in the institutions concerned are overworked and too under-resourced to be able to nurture the industry links that are available. It is no accident that the positive examples given to researchers of successful links and relationships were with universities that had been able to prioritise their regional or industry-linked mission and set up mechanisms and procedures to facilitate excellent communication with their chosen client groups. Reciprocally, organisations were likely to develop and embed these close linkages with a restricted number of HEIs, particularly at departmental level: their only reason to spread resources more thinly and widely was if they were experiencing difficulty in recruiting particular skills or particular elements in the staff profile they wished to target. One of the key ways in which academic institutions work with employers to achieve more effective operation of the graduate labour market is in the development of work experience programmes within undergraduate degrees, from sandwich placements to work-based projects. These arrangements, at their best, are of enormous advantage to both students and employers in providing students with relevant work experience, which most employers are increasingly looking for, and as a way of developing demonstrable skills and competencies. Although employers need to invest time and effort in making such schemes work, they said

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they gained from the process, and it was not uncommonly used as a ‘ test and try’ prelude to recruitment. Not only was it a good opportunity for employer and potential candidate to learn about each other, but a good placement was known to have marketing benefit across a wider pool of potential candidates, through word-of-mouth. However, there are two inter-related problems associated with the expansion of undergraduate work placements. The first is that the current demand for placements from students outweighs supply. The second is that there are often vast differences in the administration and support given for placements, even within the same HEI. For example, one department may have a dedicated placement officer who helps students obtain placements and offers support during their time on placement, while other departments offer no such help or support. This may explain the case in one organisation that told us: ‘ We would take a placement student for one year, but can’ t get one… . We made enquiries, but the students were already placed.’ Personnel and Training Manager, not-for-profit SME

In the best schemes, there is clear agreement, in the form of a learning contract, about what the organisation offers in terms of training and experience, what is expected of the student, and how the success of the arrangement will be monitored and ultimately assessed by the academic mentor. Some placements may be certificated by the HEI, the employer, or an external validator, and can contribute the student’ s portfolio of qualifications. Whether or not such performance on schemes is formally assessed, students on good placement schemes are encouraged to reflect upon the value added by their work experience, link it with their academic study and draw upon the experience when they enter the labour market as graduates. Employers pointed out that this reflective process was equally important in terms of the paid part-time work which most students, to a lesser or greater extent, undertake in order to fund their time in full-time higher education. Most of the employers we spoke to felt that HEIs were more attuned to the labour market than in the past. ‘ Overall, I would say universities seem to have twigged onto the fact that employers are looking for practical skills. I know for sure that some very academic courses have had team-type activities and presentation skills, etc, integrated, where probably in the past they wouldn't have. I think it's also fair that you can say that careers services have actually been doing a good job in terms of briefing people and I think candidates probably are more aware of what lies ahead as applicants and in the world of work, than I was as a new graduate.’ Graduate Recruitment Manager, high street bank

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4.2

The careers advisory services

There is a substantial overlap between links which careers advisory services, universitywide industry link initiatives and academic departments have with employers and, in the best practice examples, these stakeholder groups within HEI worked together harmoniously and co-operatively. The key link, however, in terms of enabling new graduates to access appropriate employment, is the higher education careers advisory service (CAS) and the services they offer to their student, graduate and employer clienteles. These services vary considerably among HEIs, according to the resources available to them and the composition of these client groups, and Recommendations 3, 9, 10 and 12 of the Harris Report were concerned that the HE sector should define and deliver at least a minimum of agreed core services to these groups10. The employers participating in the research highlighted the many different relationships that were possible between CASs and employer organisations. For example, the larger graduate recruiters often had a strong campus presence in certain universities which took the form of organised events with a careers focus, such as interview coaching sessions, application form surgeries, CV writing sessions etc. There was also evidence of strong, regional collaborations, where organisations with regional headquarters or establishments had developed recruitment strategies to take account of this, recognising that graduates often have a strong commitment to the region in which they studied. One financial services employer based in the North of England made the following observations when asked about the universities they targeted in their recruitment campaign:

‘ Mainly the northern ones, as we get a better response. For example at Sheffield we did a presentation that attracted 50 participants whilst the presentation at the LSE only attracted 7. We are more well known up here and are known as a big employer in the north. We don’ t tend to attract those with Oxbridge firsts but anyway that sort of candidate hasn’ t had the necessary social skills. It’ s not just about getting a 2.2 or whatever. The job needs more than academic qualifications. ‘ We willingly take anyone because of where we are geographically based and the sorts of people we are recruiting in the north. For example, the lower salaries and so on. I think there is a north/south divide developing especially as more students are staying in their own area as they can’ t afford to go away to University anymore.’ Graduate Recruitment Co-ordinator, financial services company Companies who reported close relationships with CASs viewed this collaboration as beneficial for their graduate recruitment strategy, even if this strategy was merely to raise awareness of their presence as an employer in the graduate labour market.

Harris Report (2001) Developing Modern Higher Education Careers Services. Nottingham: Department for Education and Employment Also at www.dfes.gov.uk/hecareersservicereview

10

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However, there were some companies, particularly SMEs, who expressed the concern that they were not being taken seriously by some CASs and that their efforts to advertise their presence on campus or to advertise one-off vacancies were being hampered by the overpowering dominance of the high profile, high volume recruiters. One specialist hi-tech company in a very competitive and creative field had no difficulty recruiting for experienced hire positions, always getting more applications then they ever had vacancies. However, they had experienced difficulties in recruiting for their new graduate vacancies and commented on the lack of response they had had to campus advertising. ‘ We send a package about us to the respective CASs but I’ m not sure they do anything with them. Do they advertise us at all or do the just fling our literature on a table somewhere? We are the world leaders in our field. There’ s no-one else doing what we do.’ Personnel Officer, hi-tech software design company They felt that they should have been invited onto campus to demonstrate what they did as this would generate interest but the university CASs they targeted did not appear to be helpful. This appears to indicate missed opportunities for closer, more effective communication – almost certainly based upon misunderstanding and lack of ability of both parties to invest time in building on the good intentions which they both had to work effectively together. Most CASs operate with limited resources and are less pro-active than they would like to be in working with employers and identifying opportunities for their undergraduate and graduate clientele. They recognise that a significant proportion of their graduating populations will find positions with the large, well known graduate recruiters, but are faced with considerable difficulties in building and maintaining relationships with the large numbers of SMEs who may recruit small numbers of graduates – or even, in some years, have no graduate vacancies. There are many excellent examples of CASs that do engage with smaller organisations, but this is an area where more investment, and recognition of the costs involved, are required. CASs need to be able to market their services more effectively to such organisations. Employers also had messages for CASs regarding the way that students were prepared for their job seeking activity. One of the main issues was that expectations had to be managed. For example, employers were concerned that many students felt that the onus was on employers to come and find them and not the other way around. While this may be the case for the élite students from prestigious universities who continue to be headhunted by blue-chip organisations, it was not so for the vast majority of the student population, who needed to realise they were small fish in a rapidly widening pool. This trend in volume, exacerbated by web recruitment, made recruitment complex and resource-intensive for employers, requiring reciprocal marketing skills from employer and candidate alike. Respondents reported that students often had unrealistic expectations regarding salary levels, advancement opportunities and the fact that they were frequently operating in a buyers’ market. Some graduates undoubtedly overestimated their abilities, others had not reflected upon the appropriateness of the skills they did possess, some were disillusioned, after recruitment, to find they had mistaken administrative for operational roles. While arts

35

and humanities students were particularly likely to ‘ drift’ in and out of relatively undemanding jobs, without a career plan, vocational students were not exempt. Another area of concern for employers was the general impression they had of most students being ill prepared for careers fairs, turning up with little idea of what they actually wanted to do and unwillingness to make long term commitments. Some were alleged to wander around as if they expected employers to jump off their stand and sign them up for a job there and then. ‘ In terms of careers fairs, graduates don’ t show much enthusiasm and motivation. For example, they’ ll come up to our stand, take some pens and disappear.’ Human Resources Officer, hi-tech manufacturer

‘ There is a lot of evidence about graduates’lack of a need for a career. They seem to be just looking for a first job, not a job for life. So graduates are more laid back. At the moment, there are more jobs than there are graduates, so they can be quite arrogant. We got a lot of stick at careers fairs. People would say, “Why should I come and work for you when you’ re going down the pan?” and retail isn’ t always seen as a good career.’ Graduate Recruitment Manager, high street retailer Not only were students ill prepared for careers fairs but they were often ill prepared for the selection procedure too. Some of the participants reported that students had failed to research the company, sometimes turning up at the selection centre or interview with no idea what the company did. One of the most cited complaints was that too often, students seemed to have no idea what they actually wanted to do. They merely applied for any job without an appreciation of its demands or any idea of how they would contribute. There seemed to be a complete lack of direction or ambition, which gave employers the impression that many graduates were only applying for jobs because they were labelled ‘ graduate jobs’ and were being used as a stepping stone to other things. When asked about the strengths and weaknesses of candidates, one financial services employer said: ‘ Their weakness is a lack of business awareness. Not just knowing in-depth about us as a company but about business in general. For example, many of the candidates at the assessment centre don’ t mention the customer once during a three-hour business simulation exercise. We are a service industry so customer awareness is crucial. Another example is when we asked candidates how they would approach a problem to do with absence rates. One group said we should sack all part-timers because they were not committed to the organisation. Therefore this shows they have no idea about the real world. We have peak periods, for example over the lunchtime period, so we have part-timers to fill in during those peak times. If we didn’ t have those part-timers, we couldn’ t provide a good service for our customers.’ Graduate Recruitment Co-ordinator, financial services company

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The experience of some of the graduate recruiters has implications for the kind of careers guidance required by undergraduates and the extent to which CASs are effectively reaching those undergraduates and graduates who need it most. Evidence considered by the Harris Committee11 revealed that older students, students from lower socio-economic backgrounds and other groups likely to experience difficulty in making the transition from higher education to employment, were least likely to have taken advantage of the careers guidance on offer. Many of the employers recognised this: ‘ I think the careers services do a fantastic job, people don't use the facilities there … careers advisors are ready, willing and able to help people fill forms in. They will check forms, they will give advice on CVs, they don't take the opportunity. I've given up time to go to careers services and give talks to people on how to fill forms in, and you end up with six people turning up because on the whole, they can't be bothered. When they find out what you've got to say and you're not going to be dry and boring, they say, “I wish my friend had come to this.” I think - why didn't they just come?’ Recruitment Marketing Manager, public sector agency ‘ We have a CV service for all, and do interview coaching, etc., mock CVs. For example, we had a grad who left off his CV that he had been to Australia when he was 16 or so and done two years’voluntary work teaching riding to the disabled.’ Account Manager, not-for-profit specialist in the voluntary sector

4.3

Graduates

As this indicates, there are implications for graduates from the research findings. Perhaps the strongest message is that many leading practice employers value the diversity and experience that mature graduates and graduates from lower socio-economic backgrounds bring with them and inject into their organisational culture and are concerned to avoid discriminating against such ‘ non-traditional’ graduate job applicants. Good practice employers are well aware that the student population is no longer as homogenous as it was once believed to be and are doing their best to meet the challenges that this represents for their graduate recruitment policies and practices. Graduate recruitment is expensive, and organisations target increasingly closely within the diverse graduate labour market. There is a clear onus on graduates to identify opportunities, assess their strengths and weaknesses and market themselves to appropriate employers. In this area of self-promotion, mature and socially disadvantaged graduates may require more guidance than their traditional counterparts and the university CASs can provide this.
11

Op cit. Working Papers: Research on Graduate Guidance Needs (esru 1 and 2)

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Many have careers advisers with a special brief to work with particular categories of student, such as mature students. As employers are increasingly moving to competencybased selection methods, such students may have a competitive advantage. Older graduates are likely to have significant life and/or previous work experience to draw on, and this can be used to illustrate abilities, achievements and potential, if the candidates have learned to assess such experiences as sources of strength. However, many employers said that while they would be glad to recognise achievements such as bringing up a family or siblings whilst studying, undertaking part-time work during study, or overcoming difficult obstacles to get into higher education, many candidates failed to exploit this type of experience when applying for jobs or responding to interview questions. The competencies and personal attributes sought by employers invariably included interpersonal skills, communication skills, team-working, self-motivation, time-management, problem-solving, drive, resilience and commitment - all characteristics which are likely to be exhibited by non-traditional students who have entered and completed a degree course against the odds. The other key message for graduates is to develop career management skills, that is, to decide what they want to do, in the light of what they have to offer, and to formulate at best a plan and at least a sense of direction. They should more clearly target jobs and research the employers who can meet their aims. As discussed in this report, leading practice organisations make it very clear to potential applicants from the outset what the job entails, what the expectations of the organisation are and, in the most impressive cases, what the selection process will involve. They go to increasing lengths to illustrate the culture of their organisations in their need for an efficient and effective ‘ good fit’ with serious candidates. Candidates who have done their homework can make a realistic assessment of whether they wish to proceed and are likely to be impressive contenders for the posts on offer. In contrast, some employers reported their dismay to find candidates who had not done their homework on the company, had little idea of what the demands of the job were likely to be, and in one case it was even reported that students regularly got the company name wrong. Overall, few employers12 promulgate the message that they do not discriminate on the grounds of age or social background and it is evident from a review of the advertising literature and web-sites that relatively few actively seek applicants who do not fit a stereotypical profile. Faced with a lack of positive images or messages, many nontraditional graduates may be de-selecting themselves from jobs for which they are wellqualified. It is hoped that the guidelines for employers produced as an outcome of this project will lead to wider adoption of reflectively non-discriminatory practices which enable employers to make better use of the diverse graduate labour supply available to them, and will allow graduates to access employment opportunities that enable them to realise their potential.

However, there has been some movement of anti-ageism along the equal opportunities agenda over the research period. A small number of web sites that were ‘ silent’ on the issue a year ago, now explicitly make non-discrimination or welcoming statements on their home or recruitment pages. These do not relate, however, to graduate recruitment. Many of the strongest proponents of equal opportunities (particularly in the public/not-for-profit sectors) do not target or favour graduates.

12

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5.

CONCLUSIONS

Best practice employers were becoming increasingly focused in reviewing and refining their human resource needs, and were aligning their recruitment practices accordingly. This had been driven by a number of factors, not least among them being the management of the volume of applications arising from: • The increase in applications associated with website recruitment. • The increase in graduate applications as a result of expansion in higher education. • Equal opportunities policies that had opened up job opportunities to non-graduates. The analysis and examples in this report indicate that some leading practice organisations have been transforming their graduate recruitment and selection processes to take account of change in the supply of graduate labour. These organisations exhibited a commitment to efficient and fair policies and practices, allied to a determination to recruit the best possible candidates for the jobs they had to fill. We have discussed throughout this report what makes them different from their competitors. However, this was and is an exercise in action research and one of its main outputs is the set of guidelines for employers that accompanies the shorter version of this report, produced for widespread circulation to employers (see appendix). These derive from the research findings and were drawn up by the CIHE, in conjunction with the researchers, in consultation with the Equal Opportunities Commission, the Chartered Institute of Personnel and Development and the Confederation of British Industry. We hope that employers will use them to benchmark their own organisations against these guidelines, inspired by policies and practices found among leading practice graduate recruiters. Change in the graduate labour market occurs within the wider context of sectoral, technological and occupational change. Global competition and changing boundaries within and among labour markets has added to the complexity of human resource planning and this has implications for government and higher education policy and practice as well as for employers’ workforce resourcing and development strategies. The research revealed that new graduates are employed across the occupational spectrum, but where employers seek to recruit such candidates, there are two main ‘ clusters’ of graduate vacancies: those requiring mainly generalist ‘ soft’ skills and those requiring specialist (particularly quantitative) ‘ hard’skills. The first is a buyers’ market, where the problem for employers is to target effectively in order to restrict applications to those from the best-qualified candidates for particular vacancies.

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The second is a sellers’ market, where employers are being forced to look beyond traditional recruitment sources and methods and to be proactive in developing and identifying an appropriate labour supply. Nonetheless, everyone concerned with the graduate labour market has the same basic objectives: to ensure that graduate skills and knowledge are used effectively, that employers are able to fill vacancies with suitably-qualified and competent employees and that those who have invested three or more years of their lives in acquiring degrees are able to access appropriate employment, without encountering discrimination on the basis of attributes which have no bearing on their employability. The widespread adoption of the guidelines developed as a result of this project will contribute to the realisation of these objectives.

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APPENDIX: The Guidelines for Employers
RECRUITING FROM A WIDER SPECTRUM OF GRADUATES The Issue
It is good practice to recruit graduates from as diverse a range of backgrounds as possible and to seek to avoid discrimination in the process. Currently social class and age remain obstacles to individuals accessing the full range of graduate jobs. Graduates from non-traditional backgrounds (including those from lower social groups and mature graduates) earn less than those from professional backgrounds and are more likely to believe that their skills are under-utilised. We believe that • All graduates, irrespective of their backgrounds or age, should be given every opportunity to access the full range of jobs available; discrimination on the basis of age, social background or university/college attended should not be acceptable; • The UK needs to harness the skills and capabilities of everyone and cannot afford to exclude any section of society; we must encourage everyone to invest in their learning, better realise their potential and believe in the reality of being rewarded for their efforts and often sacrifices by having full and equal access to the jobs market; Under the Employment and Race Directives adopted under the EC Treaty, legislation on the grounds of age, sexual orientation and religion/belief will go alongside existing legislation on gender and race, to come into force between 2003-06. It makes sense for employers to act in advance.

The Business Benefits
• Business effectiveness – by accessing the widest pool of talent, more staff with relevant experiences and skills can be recruited; exposure to diversity improves an individual’ s ability to think critically, understand issues from different perspectives, collaborate harmoniously with others and hence better contribute to business growth and productivity; • Customer links – customers and clients are diverse; their needs can be better understood and closer relationships established by staff who reflect this diversity; • Company Appeal – increasingly, potential recruits look at the ethics and policies of their future employers; minimising discrimination of any sort sends a strong and positive message to current and potential employees that they are all valued; • Drive and initiative – those from less fortunate backgrounds or who have shown the motivation to return to learning often have the initiative, drive and resilience that others from more privileged backgrounds lack;

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• Maturity and stability – for many graduate jobs, maturity is a positive advantage; older recruits often bring strong interpersonal, problem-solving and leadership skills; they and others with families may prove to be more stable in their employment; equally, many may be mobile irrespective of age and commitments.

What Makes the Leading Practice Organisations Different?
• Marketing - They understand that recruitment is intimately related to marketing, and in order to attract the best graduates (and staff generally) they need to sell their organisations as good equal opportunities employers. • Skills - clarity of needs - They are very clear about the skills and competencies they require. Accordingly, they target sources effectively and tailor their selection procedures to enable them to recruit candidates who will deliver these. • Working with the professions and others - Where they have found skill shortages, they work with the professional specialist organisations, regional bodies and with higher education to draw attention to vacancies and opportunities and, in some cases, to positively encourage applications from non-traditional backgrounds and under-represented groups. • Managing expectations - They manage the expectations of candidates and recruits, external and internal, so that there is a very clear understanding of the nature of the work, the culture of the organisation and career development opportunities available. • Partnering - They work with higher education, typically providing work experience and sandwich degree placements so students can develop and demonstrate employability skills and have experience which will help them make more informed career decisions when they graduate. Some work with academic departments to better align course content with business needs. • Career development and training - Good employers provide development and training opportunities and reviews for all staff and provide internal career opportunities that enable staff to maximise their potential. • Work flexibility - They recognise the need for a reasonable work/life balance and have familyfriendly policies and opportunities for work flexibility that recognises the diversity and changing needs of their recruits. • Alignment of policy and practice – Good employers ensure that all the key staff buy into the policy, that it is ingrained in the culture and that recruiters and supervisory and line management all share the same values and talk the same language so that the policy is implemented on the ground. • Senior champion – There is often a senior champion of good practice in the organisation who ensures that good practice is implemented. This person may have a wider equal opportunities brief.

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Achieving Diversity
• Be open and proud of what you do - In all your information about the organisation, state explicitly that you are an equal opportunities employer and are proud of the diversity of your workforce. In vacancy information and job specifications, include explicit statements about your approach and that you welcome applications from suitably qualified people, regardless of age, social or cultural background. • Think carefully about your real needs – Review your organisational needs carefully and test opportunities for the effective use of mature and non-traditional graduates in career paths which would play to their strengths. A diverse workforce with a range of skills and from a spread of backgrounds can enhance innovation, growth and competitiveness. • Be relevant - In the selection procedure only ask for information and evidence of direct relevance to the skills and knowledge required for the post. • Help applicants self-select and make their own judgements – Make sure your job specifications are very clear about the requirements for the job, including details such as whether the job involves extensive travel or the requirement to work flexible hours. Make no assumption that such characteristics will be more attractive to one type of candidate or another give individuals the information to rule themselves in or out. The more applicants are able to do this, the more effort will be saved by employers in reducing the number of inappropriate applications. • Recognise Motivation - Those from socially disadvantaged backgrounds and mature students are likely to have shown considerable motivation in completing a programme of higher education, especially if it was contrary to family and social norms, when financial help was limited or when the person may also have had a job or a family. • Review your advertising and literature - avoid expressions or images which might discourage 'non-traditional' candidates and try to show the diversity of your intake. Take care over any pictures used in advertising and in descriptive literature. Is there an opportunity to show a mix of young and more mature people and to advertise in non-traditional publications, delivering a clear message on social and age diversity? • Check your application sifting - is there a rule about age, and is it necessary? Is there an unstated rule on age? Is full recognition given to non-standard achievements – battling through to higher education from a poor school, caring for younger children or those in the community, or having to combine study with work? Low achievers at school may now be on a rising trajectory. Sifting applications by A-levels or UCAS points takes no account of this. • Value all routes into HE - recognise and take account of non-traditional routes into higher education and appreciate the, maybe different, capabilities developed by those with ‘ nonstandard’ qualifications. Do your recruiters and line managers understand ’ alternative’ qualifications such as Access, GNVQs and BTEC? Requiring a minimum number of ‘ A’ level points could eliminate many socially disadvantaged and more mature candidates. Would competency based recruitment help to minimise bias? • Do not generally discriminate by university – while you may have good connections with certain universities and colleges that have particularly relevant courses, in general where you provide information about vacancies to higher education careers offices or academic

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departments, ensure that the information is accessible to all the graduates who might be interested in applying. Alternatively, target a diverse range of them in the specialist or regional areas in which you seek to recruit. • Evaluate your interview and selection processes - Is there a premium on social confidence or school attended? Are there opportunities for those who are not so confident to express themselves in a less apparently threatening situation? Does the process use a variety of approaches to enable candidates to demonstrate their suitability for appointment and show their abilities? We suggest you make it clear that you pay reasonable expenses to attend interviews and selection centres. Not doing so may put off some candidates and limit the field. • Be flexible - For example, do you sufficiently value the experience older candidates can bring to the job? Salaries should be objectively related to relevant experience. What about the work/life balance and concentrating periods of training or travel to fit in with other commitments? • Treat applicants how you would want them to treat your organisation - Treat job applicants with courtesy, acknowledging applications, informing them of outcomes and providing constructive feedback. Tell them about the process, so that there are no surprises. • Partner with universities and colleges - Work together to develop, sponsor or support courses that provide career development opportunities for your and their staff. You might help run interview workshops and model assessment centres targeted at those students that may need coaching to help them better present their strengths and skills, or to help potential candidates assess their suitability for vacancies. You might offer more placements or vacation work where you can assess potential recruits and they can get a better feel for your organisation. • Train your staff - Train all staff involved in recruitment and selection to take account of diversity issues and promote equal opportunities. • Monitor progress - Monitor your recruitment and selection processes and outcomes to ensure effective and non-discriminatory practice. • Establish a policy at Board Level - If the Board sets the tone and commits to diversity, then the culture of the organisation and its policies and actions are more likely to reflect good practice and capture the business benefits. These guidelines were produced as an outcome of the Recruiting from a Wider Spectrum of Graduates project, conducted by a research team at ESRU in conjunction with the CIHE. Subsequent consultation about their format has been undertaken and endorsement obtained from the AGR, CBI, CIPD and EOC.

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