aregraduateschemesfit for

purpose?

graduateschemes

graduateschemes

graduateschemes

graduateschemes

HIRING MADE SIMPLE

Meeting the demands of a new generation

Introduction

1 The power shift

2 Employer brand and reputation

3 A candidate-driven market

4 Alternative routes into work

5 Takeaways

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05

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C O N T E N T SW E L C O M E

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The recruitment process is brokenEmployers’ talent attraction strategies are not evolving in line with contextual changes in the working world or the demands of new generations entering the workforce. They lack transparency, accessibility and simplicity; features that Gen Z values. As a result, employers are missing out on the best young candidates, restricting their talent pool and destroying their brand reputation.Employers are relying on outdated and archaic recruitment processes that either lead to candidates being snapped up by more unconventional competitors, or completely put them off applying in the first place. As employers look to hire the next generation of talent, their attraction strategies must be re-examined to compete effectively in a candidate-driven job market. Top graduate employers rely on graduate schemes to attract and hire the future workforce but are graduate schemes still fit for purpose? This study takes a look at graduates schemes’ impact on an employer’s ability to attract and hire the right young people. We explore the wider effect they have on the candidate experience, diversity efforts and employer brand. We also see how young candidates’ priorities and values influence the routes they want to take into the world of work.

I N T R O D U C T I O NW E L C O M E

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I N T R O D U C T I O NW E L C O M E

Ursula Brewer Head of SME Operations, BulbGraham Livesey Head of Recruitment, what3words

Matt Bradburn Co-Founder, People CollectiveJeffery Lovejoy Global Future Talent Programme Manager, N26

The final year students from Bristol, Newcastle and Exeter University

THANK YOUWe want to thank the following individuals for their input

Background for studyAt Tempo, we believe the recruitment process lacks transparency, simplicity and accessibility. We’re on a mission to make recruitment exciting again. As the working environment moves forward, recruitment is being left behind. This study takes a deep-dive into what young candidates demand of their future, and uncovers why graduate schemes may be unfit for these demands. The research was conducted by Opinium Research between 29th May and 13th June 2019. Through an online survey we collected 1,035 responses from current and recent graduates – 518 of which left university in the last three years and are currently working, and 517 students who are graduating in the next three years. The quantitative research is accompanied by qualitative input from innovative employers and final year students.

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OBJECTIVES OF THE RESEARCH

Understand how soon-to-be graduates are looking to enter the working world and their view on traditional routes into employment

Understand what recent graduates think of graduate schemes and where businesses are falling behind

Understand the business implications graduate schemes have for employers and their wider talent attraction strategy

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The power shiftEmployers now operate in a candidate-driven job market. Low unemployment rates and increasing demand for more specific skill sets has given way to a power shift towards candidates. If a candidate has a bad hiring experience or a negative impression of a company they now have the ability (and guts) to turn down the opportunity altogether. Lever states that 60% of job seekers have quit an application midway due to its length or complexity1 and more than two thirds of job seekers turn down a job if their impression is substandard.2 Employers no longer have the upper hand and must re-examine their hiring strategies to remain attractive and relevant. They need to consider the changing landscape they operate in and the aspirations and demands of the candidates they are looking to hire.

of job seekers have quit an application midway due to

its length or complexity

60%

T H E P O W E R S H I F TS E C T I O N 1

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Gen Z: The new generation of workers Meet the newest generation to join the workforce: Gen Z. This generation is entering the workforce and bringing with them their very own set of beliefs, values and aspirations. Gen Z is purpose driven. They want to make an impact in the companies they work for and in the work they do. This drive for a sense of purpose is evident in the type of work cultures they’re looking for; those which are honest, diverse and collaborative. This generation has grown up in a world enhanced by technology. While Millennials are tech-savvy, Gen Z is tech-native. Technology is expected to be an integrated part of the work itself but has also encouraged the ‘side-hustle’ and a multi-jobbing, entrepreneurial mindset with a need for flexibility – and this mindset should be fostered within organisations regardless of size. Gen Z sees the organisations they work for as directly reflective of their own values and expects the values to be emulated across any touchpoint they have with an employer. Including the hiring process.

“I believe in making a difference, and the company culture is important for me as the environment in which you work in will affect the outcome of your work” Final year student Newcastle University

GENGENGENGEN

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The hiring process Hiring is no longer transactional. Employers must adopt a holistic approach where the hiring process is not isolated, but instead considered an integral part of a much wider attraction strategy. It must be considered a key tool in conveying the wider values of the organisation and building a strong employer brand. 61% of the UK’s top graduate employers say that improving candidates’ perception of their organisation is a key challenge3. This comes alongside a range of other challenges, including a lack of resources, finding the right quality of applications and reaching diversity targets. As employers rely on graduate schemes to attract young talent, it’s not only vital to consider their attraction and hiring process but also the wider effect the graduate schemes have on business.

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of the UK’s top graduate employers say that improving

candidates’ perception of their organisation is a

key challenge

61%

82% Believe that the

entire hiring process should take less than two weeks

81% Would consider joining the ‘gig

economy’

77% Say a company’s level

of diversity affects their decision to work there

35% Say that the application

process makes the biggest impact on their decision to accept a job

46% Have applied for a job via their mobile phone

35% Don’t think they have enough opportunities

to advance in their current role

Graduates at a glance

T H E P O W E R S H I F TS E C T I O N 1

66% Believe that certain people never get a

fair chance at success because of their

backgrounds

54% Won’t submit an

application if they think the recruiting methods

are outdated

49% Want to leave their job

within two years

26% Say that a lack of

technology throughout the process would deter them from accepting a job

47% Want to make a

positive impact on society and/or

the environment

Sources Deloitte, 2019; Inc, 2019; Yello.co, 2019

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S E C T I O N 2 E M P L O Y E R B R A N D A N D R E P U T A T I O N

22EMPLOYER BRAND AND

REPUTATION

“Honesty and transparency have never been more important. Young candidates want to know what progression opportunities they have, what your purpose is, and what you’re working towards. It’s not enough to create a great marketing website, they see straight through that. You’ll come across as much more authentic if you admit that everything isn’t perfect but that you’re working towards a better world.” Matt Bradburn Co-Founder at People Collective

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E M P L O Y E R B R A N D A N D R E P U T A T I O N

of candidates rank employer brand very important when

considering a job offer

69%

Employer brand and reputationEmployer brand is the way your company is perceived by employees, candidates and the outside world in terms of your culture, values and mission. How you build this brand goes much further than the list of benefits and perks offered to employees – it’s also about your mission and purpose as a business. Gen Z is a highly purpose-driven generation and as such, a strong employer brand has arguably never been more important.A final year student at Bristol University told us: “I want to work for a company that trains me well and gives me a kickstart, even if that means being thrown in at the deep end as it will make me more employable in the future. Second most important is the culture and the people at the firm. Pay and perks are of lesser importance”.The employer brand plays a huge role for candidates when considering job opportunities. According to MRI, 69% of candidates rank employer brand very important when considering a job offer.4 To convey your brand effectively to Gen Z you must consider how they consume information and interact with brands; from social media to word of mouth and everything in between. A brand’s messaging and values need to remain consistent across all channels in order to maintain authenticity. In our digital, hyper-connected world, a bad interaction with an employer can have immense consequences; in fact 72% of candidates would talk about it to friends or share their experiences online.5 When it comes to graduate schemes, our research indicates that graduate schemes create a perception of an outdated employer brand with 61% of recent graduates believing that graduate schemes are tied to more traditional businesses. From the outset, graduates associate companies that rely on graduate schemes with companies that have outdated notions of the new working world.

S E C T I O N 2S E C T I O N 2

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The importance of diversity and inclusionDiversity and inclusion play a key role in building a strong employer brand. 63% of Gen Z feel it is most important to work with people who have different educations, backgrounds and skill sets according to EY. 6 “Diversity is important to me because everyone has their own opinions and ability to input valuable information, depending on their upbringing and background. Diversity to me means people who come together from different backgrounds to live or work harmoniously to achieve great things.” said one final year student from Newcastle University.There’s plenty of proof that a diverse workforce fosters a more innovative environment and drives business growth – according to Josh Bersin, inclusive companies are 1.7 times more likely to be innovative leaders in their market.7 Employing a diverse workforce will not only support business revenue, it will also convey your organisation as having an open, inclusive culture and brand, and thus attract a wider pool of candidates. If candidates see themselves represented within an organisation and see their perspectives valued, it’ll have a huge positive impact on attraction and hiring.

Inclusive companies are 1.7 times more likely to be innovative leaders

in their market

1.7x “If you are confident about your recruitment process then diversity should come naturally and not be something you have to seek out. Broadening the scope and building engagement of potential candidates is critical to success – there is top talent everywhere, not just at Russell Group universities” Jeffery Lovejoy Global Future Talent Programme Manager at N26

S E C T I O N 2

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E M P L O Y E R B R A N D A N D R E P U T A T I O N

How graduate schemes impact diversityAre graduate schemes an effective way for employers to attract and promote a diverse workforce? From the outset there is a perception that graduate schemes actively limit accessibility to those from varied backgrounds. Our research shows that 39% of those who are applying or have applied for graduate schemes feel that they should be more accessible for people with different educational qualifications, disabilities or ethnic minorities.This perception is reinforced by candidates employed in graduate schemes; there is a clear disparity between the makeup of society and of candidates in a grad scheme. Research by the Institute of Student Employers indicates that of 38 employers – recruiting 32,202 young people and representing 17 sectors – privileged young people were clearly over-represented.8 In fact, only 57% of graduates hired by companies had a state school education compared to 91% across the UK population.9 Graduate employers often focus on Russell Group Universities to source candidates for graduate schemes but as just 26% of young people from low income families go to university versus 43% of their better-off peers,10 employers are not considering the environment from which they are hiring. Employers forget to consider that socio-economic bias within the university environment is limiting diversity at the attraction stage.

S E C T I O N 2 E M P L O Y E R B R A N D A N D R E P U T A T I O N

Grad schemes population

National population

57%State school educated

93%State school educated

33%Privately educated

7%Privately educated

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S E C T I O N 2 E M P L O Y E R B R A N D A N D R E P U T A T I O N

of recent graduates feel the graduate application process is unfairly tailored to those with a

specific background

Gender bias remains prevalent within graduate schemes. From the outset, graduate schemes are made more appealing to men; our research shows that male graduates apply for an average of seven graduate schemes compared to five for women and consequently in the last three years, 44% of male graduates completed a graduate scheme versus 27% of women. This disparity is maintained throughout the graduate scheme itself with schemes clearly geared to meet the demands of male candidates over those of female candidates. Of those who completed graduate schemes, 56% of men were positive about the experience compared to only 46% of women, and men were 40% more satisfied with pay than women.The fact that graduate schemes are perceived to have an outdated notion of the workforce is perpetuated by the lack of diversity present within them. There is clear bias present throughout the graduate scheme, giving way to a perception that the process favours those from certain backgrounds. This perception will deter diverse candidates from applying, damage your employer brand and have an adverse effect on business.

39%Of appilcants feel that they should

be more accessible for people with different educational qualifications,

disabilities or ethnic minorities

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S E C T I O N 3 A C A N D I D A T E - D R I V E N M A R K E T

A candidate-driven marketThe first point of contact a candidate has with an employer is through their application. Gen Z candidates have grown up in an environment where a customer-first experience is a given. They expect all interactions with brands to be personalised, authentic and honest – also when it comes to application processes. Candidates view the way they’re treated throughout the process as a direct reflection of the internal culture of the employer. 68% of candidates think the way they are treated in the hiring process reflects how a company treats its employees.11 A negative experience will not only cause you to lose out on top talent but damage your overall employer brand; 33% of candidates with a negative experience planned to share it via social media, and 41% of candidates intended to take their loyalty elsewhere.12

68% of candidates think the way they are treated in the hiring

process reflects how a company treats its employees

33A CANDIDATE-DRIVEN MARKET

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S E C T I O N 3 A C A N D I D A T E D R I V E N M A R K E TA C A N D I D A T E - D R I V E N M A R K E T

“There's a lot of noise to compete with online. If Generation Z lands on your careers page you only have a moment to communicate your culture and values. Be targeted. Be relevant. Whether it’s a pair of trainers, a holiday or a new job, digitally native Generation Z's no doubt already know what they're looking for.” Graham Livesey Head of Recruitment at what3words

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S E C T I O N 3 A C A N D I D A T E D R I V E N M A R K E T

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Reinventing the application processIn our survey of 1,035 graduates, 58% of those who applied to graduate schemes believe the application process is time-consuming and old fashioned, 30% feel that the process is too tailored towards people from certain backgrounds, 47% feel confused by the process and would like more insight into assessments, 25% struggle with a lack of communication throughout the process and 25% feel that the process requires them to over-self-promote or lie. Combining all this, it’s unsurprising that 65% of recent graduates feel that graduate applications are daunting. There is an evident disregard for what is important to Gen Z candidates or how the hiring process reflects an employer’s brand, considering that young candidates value honesty, transparency and communication more than anything. This generation has grown up in a world enhanced by technology and with automation enabling fast and simple experiences. A hiring process that doesn’t emulate these values does not reflect a culture Gen Z want to be part of. Neglecting to innovate and modernise the way companies attract young people only perpetuates the notion that graduate schemes are outdated.When asked about what improvements could be made to the application process itself, 39% of graduates suggested greater accessibility for those with different qualifications and backgrounds. They also stated the process needs better feedback and communication throughout (38%), needs to be made more personable and inviting (36%), needs more clarity around the process (33%) and that they would like to have more opportunity to prepare (31%). 58%

of those who applied to graduate schemes believe the application process is time-consuming and

old fashioned

A C A N D I D A T E - D R I V E N M A R K E T

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“The candidates we’re recruiting are not the same as they were 5 or 10 years ago, so why are the recruitment methods?” Ben Chatfield CEO & Co-Founder at Tempo

Of those who do commit to applying, more than half are not successful; 51% of graduates who applied for graduate schemes in the last three years didn’t even secure a role. With the increasing blur between candidate and consumer, a negative interaction with an employer will create a negative perception of that company’s brand as outlined in the previous chapter. Virgin Media previously announced that 18% of their rejected candidates were customers and a significant amount of these candidates decided to cancel their contracts.13 A perfect example of how the bad hiring experience directly impacted the company’s revenue. Considering the candidate experience throughout the application process will significantly widen your talent pool. A quick, easy and convenient experience will attract a wider, more diverse range of candidates by emulating a positive image of what you can offer as an employer. But most importantly, it will create ambassadors for your brand and improve your bottom line. Of candidates that have had a positive experience, 62% reported a better relationship with a company or brand, 78% said they would refer someone in the future and 62% stated that they would apply again.14

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Alternative routes into workAn increasing number of students are turning their backs on traditional graduate schemes and looking for alternative routes into work. According to young talent, graduate schemes are both highly competitive and tied to more traditional companies. They are associated with values that differ from the candidates’ values and 53% of graduates feel there is too much emphasis placed on graduate schemes when starting out their career. Today’s young candidates were brought up in a hyper-connected, high-tech world and are exposed to a working world that celebrates entrepreneurialism. With technological advancements lowering the barriers to entrepreneurial activity and granting access to self education, there’s a growing trend towards graduates wanting to work for themselves; 29% want to start their own business, 25% want to be their own boss and 30% want to be a key member of a small team. By multi-jobbing or working for themselves, this generation doesn’t have to compromise on the lifestyle they choose to lead – they can work when and where they want and pursue what interests them.

GO

There’s a growing trend towards graduates wanting

to work for themselves; 29% want to start their

own business

S E C T I O N 4 A L T E R N A T I V E R O U T E S I N T O W O R K

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44ALTERNATIVE

ROUTES INTO WORK

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Ben Chatfield CEO & Co-founder at Tempo

“Traditional recruitment processes focus on education and experience when in

fact young people today want to build a portfolio career. There’s a real need for flexible and convenient tools to attract

this workforce”

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Multi-jobbing is seen as an effective way to learn and develop, and remain relevant and competitive. Nearly half of recent graduates want to develop a wider breadth of skills. For Gen Z, learning new skills comes from having varied experiences; 41% say they want to gain more exposure to all areas of a business, 28% want to carry out short term/temporary contracts across different companies/industries, and 32% would prefer to build a portfolio career rather than stay in the same company for a long period of time. Multi-jobbing is not only considered an effective way to support a flexible lifestyle but also a way to broaden their skill set by being exposed to a range of experiences, functions and industries. Attitudes towards traditional working structures are shifting as young people’s expectations are evolving. 61% of students graduating in the next three years believe graduates schemes are tied to traditional businesses. Graduate schemes are perceived as far more rigid, locking candidates into three year placements compartmentalised into prescriptive rotations. This is hardly synonymous with the desire for flexibility and the lure of portfolio careers. In fact, 37% feel that pursuing alternative paths will support a more flexible lifestyle.

“I do think the traditional 9-5 job is dying and that companies should think of more flexible approaches to work because of the cultural shifts in the economy. As people are becoming more connected online there are opportunities to work wherever you are in the world.” Final year student Newcastle University

S E C T I O N 5

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Tearing up the 9-5

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Making an impactThere’s a clear trend towards young people wanting to make an impact and to work in a diverse, innovative environment. They want to work for companies with a sense of purpose and not just be a ‘cog on a treadmill’ as one final year student from Exeter University put it. The thriving SME and startup scenes are perceived as being far more aligned to graduates’ ethical desire to make an impact. As a result, a large percentage of soon-to-be graduates are interested in entering into smaller businesses; 39% are interested in working for smaller, more dynamic companies, 28% want to work in a startup, and 26% want to carve out their own role in a smaller company. Here they believe they can make a bigger impact, collaborate in small teams, have a healthier work-life balance and be exposed to a wider set of functions, allowing them to learn and develop.

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The thriving SME and startup scenes are perceived as being far more aligned to graduates’ ethical

desire to make an impact

When asked about her experience at a large consultancy firm, Ursula Brewer, now Head of Operations at Bulb said: “It felt I was in such a huge corporation that I was a bit like a small cog in a large machine. When I decided to make the jump to a startup it was really because I wanted to get my hands dirty and have a lot more ownership and responsibility with the work that I did.”The graduate schemes are associated with being outdated and incompatible with the lifestyle choices Gen Z aim to pursue. As a result, an increasing number are exploring alternative options that are more synonymous with their values and aspirations. Employers that rely on graduate schemes can no longer ignore the need to tap into young people’s mindsets to understand what they are looking for, where they are going and how to attract them.

“Not everyone wants to join the conveyor belt into a big firm” Final year student Exeter University

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TakeawaysAn increasing number of students are turning their backs on traditional graduate schemes and looking for alternative routes into work. According to young talent, graduate schemes are both highly competitive and tied to more traditional companies. They are associated with values that differ from the candidates’ values and 53% of graduates feel there is too much emphasis placed on graduate schemes when starting out their career. The graduate scheme is not dead. But its current state is not fit for attracting the next generation of candidates. Graduate schemes are damaging employers’ most valuable asset for attracting the modern candidate: their employer brand. As young people look for a lot more from employers than pay and perks, employers need to bring out the human aspect and be authentic to support candidates’ values and lifestyles.

Like anything else in our hyper-connected, digital, constantly moving society, the schemes need to adapt and evolve to meet new generational needs.”Ben Chatfield CEO & Co-founder at Tempo

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S E C T I O N 5 T A K E A W A Y S

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Traditional graduate schemes often have a damaging effect on employer brands. Graduates feel that the schemes are tailored to candidates from a certain background and thereby actively stunting diversity. The application processes are long, outdated and daunting, and create a perception that the companies offering them are too. These negative perceptions and experiences conflict with Gen Z’s values. As such, they’re turning their backs on graduate schemes and increasingly seeking alternative routes into the workplace. Employers are starting to recognise the limitations graduate schemes have on their talent attraction and are making changes accordingly. EY has dropped the degree classification threshold for entry to its graduate scheme, Deloitte uses school and university blind-recruitment to eliminate unconscious bias, and Ogilvy has gotten rid of graduate schemes altogether and now focuses on supporting candidates’ career journeys through apprenticeships. While these examples show great progress to support the demand for flexibility and alternative routes into work, many employers still fail to adapt and meet the needs of younger generations. Graduate schemes still have their place. They offer graduates opportunities to learn and develop, and provide access to training with great benefits and perks. They should certainly not be dismissed as a way to employ and develop future leaders. But for employers to remain competitive and relevant in the modern working world, they need to tap into the mindset of those they are trying to attract and act accordingly. Ease and flexibility has never been more important.

About TEMPOTempo believes that work should be an adventure and recruitment the most exciting thing companies do. We're on a mission to make that happen.Tempo is an end-to-end hiring platform connecting tens of thousands of candidates to non-technical roles with the fastest growing, most innovative companies in the world. By using video and machine learning at the most time-consuming parts of the process, we reduce time to hire to a matter of days whilst reducing recruitment costs by 65%. But the real reward is that we give you the tools to get excited about recruitment again. That’s hiring made simple.

@Tempo_UK

Tempo UK

Tempo UK

heytempo.com

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SOURCES1. Lever, 7 Stats that Highlight the Importance of Candidate Experience, 20172. HRreview, Majority of jobseekers would turn down a job if the interviewer

gave a poor first impression, 20143. High Fliers, The Graduate Market in 2019, 20194. MRI Network, 2018 Reputation Management Study, 20185. WorkplaceTrends, Candidate Experience Study, 20166. PR News Wire, Failure Drives Innovation, According to EY Survey on Gen Z, 20187. Josh Bersin, Why Diversity and Inclusion Has Become a Business Priority, 20158. The Telegraph, Top graduate schemes dominated by private schools, 20189. Student Times, Top graduate jobs soar yet state-schooled graduates are vastly

underrepresented, reports Institute of Student Employers, 201810. Social Mobility Commission, State of the Nation 2018-19: Social Mobility in

Great Britain, 2019 11. Hundred5, The Importance of Candidate Experience and how it Affects your

Employer Brand, 201912. Personnel Today, Could your hiring processes be damaging your employer

brand?, 201813. LinkedIn Talent Blog, Bad Candidate Experience Cost Virgin Media $5M

Annually – Here is How They Turned That Around, 201714. Personnel Today, Could your hiring processes be damaging your employer

brand?, 2018

ADDITIONAL READING• Business Insider, How people get hired for jobs can affect the bottom line,

2017• Deloitte, Deloitte Global Millennial Survey 2019, 2019• Inc, How Generation Z Will Transform the Future Workplace, 2019• Times Higher Education, Ernst and Young drops degree classification

threshold for graduate recruitment, 2015• Yello, Meet Generation Z: The New High-Tech and High-Touch Generation

of Talent, 2019

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