While the next wave of graduates is a few months away, now is the time to assess the pros and cons of graduate recruitment initiatives. Iain Hopkins investigates how to tap into the hearts and minds of tomorrow's workforce
You may have heard about the increasingly absurd lengths that some professional services firms are taking to entice young graduates to sign on the dotted line with their organisation: Limousines pulling up outside the candidates' home, senior partners lounging in the back seat, French champagne and the latest iPod in hand. It sounds like a bad Hollywood movie, but the scramble to hire fresh grads is very real and increasingly competitive.
Is the scramble justified and should organisations be bending over backwards to attract the notoriously fickle Gen Y?
Steven Dahl, MD of Onetest, believes the fuss is justified, but notes there is a gap between the theory of feeding young people into an organisation and the reality of actually making it happen. "In general the concept of getting grads into a business and developing them over a period of time into tomorrow's workforce is a great idea. I don't think there are too many pitfalls about that as a concept because it's becoming increasingly difficult for organisations in selected industries to find people at an experienced level. It's definitely the right approach. However, it's how companies actually go about it that they can potentially run into trouble," he says.
Dahl also notes a word of caution: "There are many organisations going far beyond what they need to do in regards to graduate recruitment programs, so you've got some that have built it into such a hyped process that the graduates are almost being treated like rock stars; and then you've got other organisations that are doing nothing to improve their reputation and their employability profile with grads. It's a mixed bag."
More to the point, Dahl firmly believes that far from enticing these younger candidates, extravagant gifts and promises of great things to come can actually turn them away. "The Gen Y population is pretty savvy and they will say, 'they're putting this on'. Grads know, and if they don't know when they start with the organisation, within a few months they will say, 'this isn't what the grad process was like'. You're actually presenting your company as something it's not," he says.
How and when?
So what is the most effective way to get these grads in the door, and just as important, ensure they stay the course with your company? From apprenticeships to internships, cadetships, co-op years and general graduate intake programs, the options available for recruiting fresh blood into an organisation are many and varied. Of course, grad recruitment need not be limited strictly to raw graduates (those fresh out of university). Some organisations will take mature age grads who have perhaps returned to study later in life or who have undertaken a career change, as well as those who have completed post-grad courses.
Putting aside apprenticeships, internships, cadetships and co-op years, typical graduate recruitment programs vary in length from one to two years, and occasionally three years and beyond if there are activities such as regional rotations involved in the program. It can be a balancing act to get the length correct - too long and grads may decide they are sick of doing menial back-end work and move elsewhere; too short and it may not be enough time to get buy-in to the company and what it can offer them.
Many organisations have also moved beyond the traditional one or two intakes a year. Dahl notes that many will keep their program open year round. "Organisations need to know there will be attrition regardless of how well they run the program, so they may need to consider hiring more graduates than they might need, or do top-up sessions at other stages throughout the year. Our survey indicates that 45% of grads actually look for graduate roles after June in their final year. A lot of companies are running their grad programs in the first half of the year so if half the target market aren't actually looking when you're running your grad program, then you're only picking from half the population," he says.
The process
In many cases, graduate recruitment programs operate alongside the general recruitment strategy of the company, and the steps in the two programs will also be similar, with only minor differences. IBM, which operates a year-round graduate Associate Program, operates its grad program as one component of its overall workforce planning strategy. "Grad hiring is a critical component of the overall workforce plan, partly because what we're looking to do is build capability for the future," explains Helen Thompson, Australia/New Zealand workforce management lead at IBM. "We see our grads as our future leaders, so it's an absolute cornerstone for that workforce plan. Typically we've been hiring in response to our growth as well, which once again brings it back to the workforce plan."
One area any recruitment program has to consider - let alone one targeting Gen Y - is the presence and perception of the organisation. Grads like to see organisations actively involved on university campuses, not just on career expo days but throughout the year. It's a win-win scenario: the organisation gets brand exposure with the people they are targeting; and the grads can benefit from learning more about the organisation, as well as tips for writing CV's and interview techniques.
According to Onetest's 2007 Graduate Opinion Survey, 44% of respondents said they are not influenced by outsiders when making decisions on an employer or grad program. That means Gen Y are switched on when it comes to making decisions and will do their own research. Websites will be explored, blogs checked and questions asked at careers expos.
IBM has invested heavily in its graduate recruitment website and has carefully aligned its content to correct some mismatched external perceptions of the company. Thompson sees it as a crucial way of communicating much more transparently and authentically with grads. The website uses current and former IBM grad employees to create dynamic content, including unscripted video testimonials and 'day in the life' discussions. "We learnt through our research that, prior to joining IBM, most students saw the company as a huge corporate global company - which has its own benefits - but we understood from our grads that we weren't really reaching out to them, talking about our culture, our personality, what we stand for. The grads told us that once they joined IBM what they found was a much more colourful, diverse, creative and flexible environment than what they perceived," she says.
A two-way street
The importance of an easy-to-navigate, transparent and quick application process is crucial. But again, it needs to work both ways as the organisation can glean valuable information from online applications and can use simple techniques to screen applicants. "Some organisations will get thousands of applications and they will use the application process as a screening device upfront - not so much screening for behavioural fit because of cost, but they can look at things like work values and aptitude testing," says Tina Gavan, project manager for LINK HR Consulting.
"We need to gather what we need to make the process fair and transparent when we're screening but we also need to weigh that up against the time it's going to take for the grad to put all that together, and keep that realistic. Asking less rather than more is the preference these days but you still need to be professional and collect enough information to be able to screen based on that information," Gavan adds.
From there it's not unusual to hold whole day assessment events whereby applicants will take part in further aptitude tests, panel interviews and behavioural profiling.
IBM takes onboard approximately 400 grads each year (a number that has doubled year on year over the last two years), and they call their assessment event Fast Track Day. Eight candidates work for a day with a group of pre-selected panellists who are either project managers or whoever is appropriate for that particular group of skills sets. The group runs through case studies, panel interviews and capability tests.
"It's the final stage of the selection process," explains Thompson. "Basically it's aimed to help students and hiring managers together to make the best possible decision. It also helps students avoid the pain of the waiting game because after that one-day event we're able to give the graduates our decision within 24 hours."
Ticking all the boxes
Dahl says it's an easy mistake to assume that corners can be cut throughout the recruitment process. "It's vitally important that organisations are using means and methods to identify people who are a good fit for the company and who will possess the sort of attributes that they're looking for as an organisation. Will they fit the values and culture of the organisation? Do they have the ability to step into more senior roles at a certain point in the future? From there it's a matter of what opportunities you give that graduate to learn, grow and develop and how well they're managed as individuals as to whether they'll stay," he says.
Dangling the carrot
It's easy to generalise about whole generations, but it is a misnomer that raw grads are looking for a significant pay package as soon as they enter the workforce. Gavan notes that this can vary widely depending on industries and the grads' personal preferences. A grad who has changed career direction, for example, might be looking for higher pay. "You could have a raw engineering grad going out to a large private corporation on $80K+ as opposed to someone else who may consider taking less salary for the opportunity to receive a wealth of training and development in their first year, and a salary increase in their second year. It depends on their focus and what they're looking for. Most grads know that if they're going to get that high salary, work-life balance will be sacrificed and if you break down the per hourly rate, it probably makes it comparable to working fewer hours in an organisation paying less," she says.
Dahl says remuneration becomes an issue only when the goings on and 'selling point' of an organisation is unclear or hidden: "Grads may feel that they can't really evaluate the business properly so all they can do is ask, 'who's offering the most money?'."
More important, Dahl maintains, is that an organisation is seen to have a good reputation and well established brand in the market, or be attempting something different to everyone else. "Typically grads only see HR and grad recruiters throughout the early stages of the recruitment process but businesses really need to put their best people in the spotlight and meet and greet with the grads to portray that sense of quality," he says.
L&D
A common complaint heard about grads is that they take a significant injection of time and money to make them battle-ready, or ready for the rigors of work life. David Gage, GM of Dimension Data Learning Systems (DDLS), says it's not the technical skills that grads lack so much as the softer skills. "While new grads may be technically competent, they may not be equipped with the soft skills needed to transition into a corporate environment - things like communication skills, time management, project management," he explains.
DDLS, via its SpecIT training program, targets IT grads making the transition to the workplace by partnering with clients to identify the skills required by a role. Potential recruits are sought and candidates who may need a skills refresher undertake a tailored program. Once the applicant has completed the course and received their certification they are made available to the employer, who is under no obligation to take each candidate. "We've found the results out of that to be excellent. The organisations that are taking on these people are far more successful in making them effective and productive quickly and then retaining them within the organisation longer," Gage adds.
Gage is under no illusion that, despite many grads being fresh out of a learning environment, they are keen to add to their skills. "I've found with Gen Y that they do want a clear understanding of how an organisation is going to help them progress through their career quickly. They want to accelerate their career and it's got to be now. Organisations need to be able to clearly articulate what the training and development programs are to help Gen Y graduates reach their goals in a relatively short period of time," he says.
It's knowing those goals that is the key. If handled correctly, Dahl believes the recruitment process can unlock exactly what is going on in the hearts and minds of young recruits. "Those pre-recruitment tools - the interviews and the discussions - can unveil exactly who is interested in skills development, who is content to coast for a while, who wants international experience, and so on. It's about finding those hot buttons and determining what drives people," he says.
"That reference back to what's unveiled in the recruitment process is starting to happen more and more. Grad recruiters are starting to realise that they've just spent thousands of dollars profiling these people and they've put the information in the bin or back in the filing cabinet and never referred to it again. However, you've uncovered some important information in terms of motivators, drivers, ability levels and performance potential. There needs to be a linkage between the assessments and measurements they do in the recruitment process and using that for development and retention," Dahl adds.
ROI
Another common complaint aimed at grads is that they have a reputation for taking training and running to the competitor once the grad program is completed. Thompson notes there's not a lot an organisation can do to tie a grad to a company. IBM, she says, focuses instead on developing a sophisticated Associate Program, concentrating on development, training and the other key drivers that Gen Y respond to. Once grads have moved through the Associate Program, retention then becomes part of the outcome of the IBM culture.
"Not many companies have the breadth of scale to offer as many careers and opportunities as IBM. We can look at the softer items around ROI - for example, we can immediately assess from the recruitment perspective the calibre of our applicants, the acceptance rate of the grads coming through, and ultimately the productivity and growth of our company and clients. There are other hard-to-measure factors such as the strengths and differences that our grads bring to our company: the way they challenge the status quo; their creativity; the diversity of thought they bring - which equals innovation. All that diversity can bring immeasurable ROI," Thompson says.
Easing into work
One effective way of ensuring the investment in new grads doesn't walk out the door is through a mentor program or rotation system (see boxout). IBM uses both formal and informal mentoring not just for new grads but all employees. Thompson says it's not unusual to see the names of senior executives listed as mentors, and she is certain that the benefits flow both ways
"We've got some great personal stories on this. We have a website for almost every program we run and we've got executives telling stories about what they've gained and learnt from being part of our mentoring program. It really is a deep part of the IBM culture. Both the mentor and the mentee get significant benefits from it," she says.
Dahl notes that employers can do a lot more pre-employment engagement work - that is, getting grads to start at the organisation a day a week for a period before they commence full time. "Every business has small projects they need to get done, why not get the grads to work on it for six months between the time they've accepted the offer and the time they start? This also improves your day one start rate in terms of who's accepted and who's started - because there's a big drop off for some companies. It's also easing them into how the company likes work done and giving them experience to some projects going on in the business," he explains.
Cross-generational management is an area of concern for many managers, but Dahl believes managing younger people need not be daunting. Starting from induction, he says, ensure that the do's and don'ts in the business are understood, along with the values that everyone aspires to. For example: don't take a sickie when you're not sick; information that is private and confidential is not talked about; we back up and support people in the business and we don't complain about them.
"Set those boundaries from day one when grads come in and are very timid - hit them hard with the way things are done. Then make sure they know what their job is and what's expected of them, let them know what good and bad performance means in that job and then set them on the path towards doing that job. That to me is the base platform. Then getting to know those people from a managers' perspective: find out about their friends, their family. If you do all those things it doesn't matter if they're Gen Y or Gen X or older," he says.
Indeed, it appears the hype about Gen Y is perhaps misguided. Yes, they know what they want and will not hesitate to move elsewhere if those needs are not being met. However, Gavan says that ensuring retention of these workers beyond one year is not rocket science: the key is to match candidate values to the values of the organisation.
"We all thought Gen Y would settle for a year and then move on - but we've noticed that the organisations securing a three to five year commitment are simply appealing to the values and hot buttons of that generation. That alignment between the organisational values and personal values is so important," she concludes.
What are you thinking?
When looking for their first full-time job, Australian tertiary students would prefer roles with responsibility over positions that offer a good starting salary, according to a 2008 survey from CareerOne.com.au in partnership with CoreData.
A reputable company and a training and progression plan were also highly sought after and rated above a good starting salary as chosen by the 525 graduates surveyed.
Google Inc. was found to be a graduate's employer of choice in a separate poll of 3,303 graduates. Macquarie Bank and Microsoft were second and third respectively.
The survey also found:
* 84% of respondents stated they had little or no knowledge relating to how to negotiate a salary
* 56% of graduates earn less than $40,000 as a starting salary.
* 40% of graduates are not working in the field related to the discipline they studied. The majority of these had their degree in Sciences or the Arts fields
* 40% of those surveyed said work experience in the chosen field of work was the most important qualification to have when trying to secure a graduate job
* After starting work, graduates were surprised to learn that they had to start from the bottom up
* Vocationally directed fields such as pharmacy and health, creative services, media/advertising/marketing, education and IT were most likely to offer graduates positions in their studied field
Further insights
In 2007, Onetest conducted a survey of over 1,600 graduates. Here are some insights from that survey:
* Top 5 priorities when selecting a graduate employer:
1. Competitive salary and benefits package
2. Good employer reputation
3. Permanent position at completion of graduate program
4. Structured training and development
5. Job security/stability
* Males are looking for a longer graduate program than females
* Females are looking for job rotation in the workplace more than males
* Females are looking for flexible working options more than males
* Seek, Career One and MyCareer were the top 3 preferred advertising sources when looking to apply for a graduate position
73% consider a company's 'carbon footprint' to be either extremely or somewhat important in their decision to work for an organisation
56% indicated that the maternity/paternity leave package would impact on their decision to choose an employer either moderately or very large extent
51% expect further on-the-job training from their graduate employers
25% do not look or apply for graduate positions after they have graduated
32% applied for more than 11 graduate programs
Out of the box
In the digital age, campus recruitment drives are not enough. Mike Beeley of ReAgent Employer Marketing provides 10 examples of innovative branding strategies specifically targeting young people:
1. Backlit panel ads in airport terminals of inbound-outbound mining centres
2. Eyecorp's Eye Interactive Zones, where Bluetooth devices receive invitations from static displays (in shopping malls or CBDs) to receive further information on jobs such as video downloads or hyperlinks to virtual careers centres
3. Direct mail via association lists
4. Ambient and guerrilla activities outside uni campuses, such as treasure hunts or mystery trips
5. Outdoor campaigns (static and mobile) targeted at competitor workplaces
6. Using fleet vehicles (trucks, trains, etc) as mobile employer branding sites
7. Coles Supermarkets checkout displays - pull-through ads at foot of screen
8. Mobile phone SIM cards which connect targets to recruiters free when placed in their phones
9. Skywriting over competitor construction sites
10. Ads on electronic lift panels in competitor buildings
Top tips
Kylie Barrington, GM of specialist contact centre and customer service recruitment specialist, Select Teleresources, offers some sound advice for employers hoping to recruit graduates.
* Know your ABCs:
To make your graduate offer as attractive as it can be, make sure that you understand the advantages of your graduate program and that both your employer branding and culture are strong. Any industry recognised qualifications or awards should be at the forefront of your campaign.
* Be positive:
Make the recruitment experience a positive one for graduate candidates. Provide a quick turnaround to job applications, make consistent contact with graduates and invite them to functions and site tours. This will make them feel like a valued member of your organisation.
* It's all about timing:
Today's graduates are very keen to make a head start in their career, so it is best to time your advertising and marketing campaigns at least a year ahead of course completion. Keep in mind that your graduate proposition needs to also be ahead of your competition.
* Versatility is key:
Graduates are telling us that when applying for graduate programs (such as the Vedior Asia Pacific Graduate Program - the parent company of Select Teleresources), they tend to apply for a range of different roles. What this tells us is that graduates want choice. So give graduates the opportunity to participate in different areas of your business.
* Be flexible:
Every graduate is unique, each equipped with a different set of skills. To get the most out of graduates ensure your program is flexible enough to be tailored to their level of experience with room for them to learn and grow.
* Manage expectations:
Many graduates like to hit the ground running and can sometimes bear high expectations about the rate of their progression and level of exposure to business activity. Set a clear career path that outlines their graduate role, personal and professional development and any training opportunities.
* The proof is in the pudding:
Make the most of your graduate programme by inviting past graduates to talk to candidates about their experience and success after the program.
* Execution:
One of the most effective ways to recruit graduates is to engage a recruitment agency that specialises in your industry sector. Following the development of a candidate attraction campaign, you will need to determine how you go about selecting your graduates. An assessment centre is usually the most cost-effective and timely method to identify the strengths and personal characteristics of your candidates by placing them in a team environment as opposed to a one-on-one interview.
Global rotation
In May 2008 ING Australia announced it will put a fresh twist on rotation programs by offering international rotation via its Young Talent Programme.
Brendan Keys, executive director people & performance at ING Australia believes that ING is the only company based in Australia that guarantees people the opportunity to work in up to four countries as part of an internal rotation program.
"ING globally wants to continue to attract the best and brightest young people and to do so we need to offer them something different. This year is the first time high potential Australians have been invited to join the Young Talent Programme and I believe it represents a unique opportunity in our market place to work across several countries during an accelerated learning program.
"The opportunity to work across not only different roles in an internal rotation program but also in different countries offers people an enhanced learning experience, learning not only the technical side of different roles but also how to operate across different cultures and the various sensitivities required to do so," Keys says.
Entry to the program is rigorous and involves written assessments and interviews. Eligibility generally requires a Masters degree and 2-5 years of relevant work experience.