AGR: “One in six drop out of graduate programmes.”

The Association of Graduate Recruiter’s 2017 Development Survey reveals that 20% of graduates leave in the first year of a graduate development programme, a figure that rises to 46% after 5 years in employment.

However, the report also identifies that employers invest significantly in graduate talent, with the industry investing more than £69 million every year, hiring graduates onto permanent contracts and 2 year development programmes and spending an average development budget of £3,015 per graduate.

Employers typically report losing 16% of their intake in the first 2 years – an increase of 9% on last year.

Figures from the AGR Development Survey 2016 include that 17% of graduates had left in the first year after their development programme, increasing to 39% after five years.

This is all in contrast to the relative stability of graduate retention from 2011 to 2014.

The lower level of retention appears to be new and consistent across different sectors, suggesting a systemic change in graduate behaviour.

The trend in the decline of graduate retention spans programmes in utilities, construction, engineering and legal sectors, with only financial services reporting an increase in retention of 1%.

The report suggests that graduates who leave in the first three years of employment with a company have various motives. Almost a quarter leave for a complete career change, 19% move on for better pay, and 14% are dissatisfied with the level of progression.

Other reasons include graduates relocating and being compelled to leave due to a lack of permanent positions.

For those that stay, median salaries (£27,500) increase by a quarter 3 years after joining an organisation and progression is rapid with almost 40% in management positions within 5 years.

Many companies do aim to protect their investment by developing their programmes in line with graduate feedback and by investing in interns as a way of ensuring cultural fit. A 2016 AGR survey reported that interns who went on to be graduate employees stayed with a company 6 months longer than those who hadn’t completed an internship. 

Stephen Isherwood, Chief Executive of the AGR said: “Over the last ten years retention rates have remained relatively stable, so contrary to popular belief not all millennials are job-hoppers. Graduate expectations are changing and they are leaving for a myriad of reasons. Employers will need to monitor and respond to this trend to ensure they benefit from their investment.”



Tuesday, 23 May 2017

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AGR: “One in six drop out of graduate programmes.”