An Innovative Way to Feed your Talent Pipeline in the Current Climate

Australian organisations have been running student programs for well over 30 years. Many report conversion rates of above 70% in terms of students who make it onto subsequent graduate programs or gain employment with their organisation. These student programs generally range from shorter (VAC) Vacation Program placements to longer term (IBL) Industry Based Learning Programs (also know as (CO-OP) Cooperative Programs).

According to statistics provided in the 2009 AAGE Employer Survey, 68% of organisations are offering Vacation type programs and 38% CO-OP based programs. Whilst many organisations have been running VAC and CO-OP student programs for many years and enjoying the benefits, it is fascinating to get an insight into some of the innovative student program strategies employers are turning to and using in the current financial environment.

Speaking to L’Oréall Recruitment Coordinator, Amanda Casabene, L’Oréal has taken the innovative approach of "recruiting undergraduate students and giving them the opportunity to gain industry experience while they complete their studies”. In the case of L’Oréal, students could be involved in the program for up to 2 years in either a full time or part time capacity whilst studying before becoming a L’Oréal graduate.

According to Amanda, "the rationale behind integrating students into the program earlier on in their career came from our observations that our most successful graduates have had previous L'Oréal experience. This allows us to prepare the students for life as a graduate and beyond at a much earlier stage in their development. We are able to plan their training and integration over this 2 year period to ensure that if and when they do become a graduate they can really hit the ground running”.

On the question of success, Amanda Casabene states "the conversion from Student to Graduate program can be as high as 90%”.

There is a growing trend amongst employers to look at the viability of building student programs as a feeder for the organisation and longer term graduate programs, rather than committing to straight out graduate intakes. The general consensus would be that Graduate Program Intakes have been the main pillar underpinning talent feeder programs for many years. There is clear evidence that the environment is changing and that there is a need to review the merit of student programs based on the potential and the flexibility they offer, considering the current climate.

There are many organisations who have been advocating the business case for VAC and CO-OP programs for decades based on the success of their own conversion rates. The major consulting firms, investment banks and car makers such as Ford Australia and Holden have experienced Student to Graduate Program conversion rates of up to 80% over extended intakes. This has resulted in lower graduate intake costs and less effort in finding the right graduates, based on the fact that the talent has already been identified and immersed into the organisations.

This article aims to provide you with further information and insight into;

1. What Is a Vacation and Cooperative (IBL) Programs?

What is a Vacation Program?

• Vacation work is degree related work
• Hands on, full time, paid pro rata work (approx. $38,000-$42,000 or 70% of your graduate salaries)
• Students can be placed on short term fixed term contracts or may be assigned through an agency
• The placement can be undertaken from the end of a students second year of study
• Vacation work is undertaken by students during either the mid year break (July) or through the post exam period in November to the start of their learning year in February.
• Placements are usually made for a 12 week period over summer from December 1 to the end of February
• The work needs to be real and challenging
• Many employers give students pre organized projects that are managed and require an outcome or proposal
• Students need to be inducted and need to be assigned a delegated manager

What is a Cooperative Program (also known as IBL placement– Industry Based Learning)

Whilst most of the detail from a Vacation Program applies to CO-OP programs, the differences are;

• CO-OP Students should be in their penultimate year of study (i.e. 1 year to go)
• A CO-OP program is longer in duration, students are placed for either 6 or 12 months with an organsation
• Programs usually commence in either February or mid year post the exam period
• Because of the longer duration of the placement the type of work given to students is more complex, detailed and students are given more responsibility

2. The Pro's and Con's of such programs for Employers and for Students

PRO's

Employers

• Gain first hand insight into the capability of students who will be potential longer term employees
• Students are eager, innovative, technologically savvy and want to showcase their ability and determination
• Priority access to the best available talent
• Low cost resources at student pay rates
• The beginning of the 2 way interview process
• Potential employees with an awareness of the organisation, people, culture, processes and career paths
• Promotion of an employers brand amongst students
• Opportunity to offer some development initiatives and begin the fast tracking of potential talent
• Talent being selected before competitors have even started their processes

Students

• Gain career-relevant experience
• Opportunity to preview an organisation, its people, culture, processes and career paths
• CV enhancement
• Enhanced knowledge of the industry
• Networking opportunities
• Gaining ‘a foot in the door' and increasing the chance of getting a grad position

• Improved grades: as students go back to university with a greater understanding of their chosen field
• Being offered a graduate position or employment before the major graduate intake cycle

CON's

Employers

• Can employ the wrong type of person
• Need to have appropriate resources, processes and infrastructure in place to manage intakes
• There is an associated cost with the selection, placement and development of students
• Students need to be fully engaged by the roles they are given and the managers they are assigned
• The type of work and projects need to factor in the shorter nature of assignment
• Employers are putting their brand and reputation on the line from a student perspective

Students

• They are putting their reputation and ability on the line in terms of being assessed
• They may not get a long term opportunity out of the placement
• The placement may not live up to expectations

Amanda Casabene from L'Oréal states that the following are the key benefits to such programs:

• "Allows L'Oréal to go to market in July instead of February, giving us more time to plan and saving us up to 50% on advertising costs."
• "Targets penultimate year students who are seeking either full time or part time industry experience with the view of developing into Graduates and beyond."
• "Allows us to instil the L'Oréal culture early on in the students working life so they are less likely to experience culture shock as a fresh graduate straight out of University.”
• "Gives L'Oréal a competitive advantage in the Work Integrated Learning and the Graduate market."
• "The business receives a graduate who has potentially had 2 years experience within L'Oréal.

3. Graduate Programs versus Student Programs

Whilst graduate intake programs have historically fed the entry level talent needs of an organisation, there is an emerging trend based on the impact of the current market to look at flexible, lower cost alternatives that require less commitment and that have the same longer term impact, if not better.

Whilst employers have placed great emphasis on getting their Graduate Intake processes in place and no one would doubt the benefits of a well executed Graduate Program, Student Program alternatives such as Vacation or Cooperative Programs provide a shorter term, lower cost alternative with the major benefit being that the required commitment is fixed for a shorter period of time rather than the longer term proposition associated with Graduate Programs.

organisations and Students "can try before they buy!" and then be placed on Graduate Programs if the opportunities exist or at a later date.

Many organisations have cut their Graduate Intake numbers or entire programs because of the existing financial uncertainty, mainly due to the longer term fixed financial commitment of Graduate Programs. This will result in some organisations potentially having a longer term talent gap or shortage. With a well executed student program, this gap can be filled with a lower cost alternative that can produce the same desired outcome by allowing employers the luxury of shorter term contracts, lower costs whilst still providing the opportunity to identify the "best available” longer term talent for your organisation.

4. How employers can get involved?

• Employers can simply work with a range of careers services by state or by university that will be more than happy to assist in developing a tailored approach to branding your organisation on campus and showcasing your available opportunities
• Traditionally most careers services run VAC/CO-OP specific careers fairs between August and September
• Australia's leading Graduate/Student job guides unimail and Graduate Careers Australia run student program specific guides and post opportunities on their websites.

5. How employers can keep their talent pipeline flowing with low cost, low risk student feeder programs

• There are examples of organisations taking on 15 – 30 Vacation or Cooperative students per year, of which 10 may ultimately stay with the organisation longer term
• They get their return on investment based solely on productivity returns
• This is taking into account that they are paying up to  50% less than what they would potentially pay a qualified person to do the same job
• At the end of the placement - be it 3, 6 or 12 months they still have the ability to choose the best suited talent for longer term Graduate or Employment placements ahead of their competitors, who would be just starting their selection processes
• These students are "ready to go” based on their pre-existing experience with the organisation
• If approval is not given for intakes at a later date, the flexibility of student programs allows for a seamless end to contracts, rather than the pain of reneging on graduate offers or cutting graduate intakes

6. The wider benefits of a student talent program for your organisation?

• Talent feeders for any long term talent management strategy
• Talent identification at a very early stage in terms of the recruitment cycle
• For an organisation NEW to the graduate or student experience, it is an effective way of gently introducing your organisation to the concept, as opposed to the detailed longer term commitment required with a Graduate Intakes
• Try before you buy opportunity (shorter term contracts)
• Low cost option that can achieve high productivity returns when well managed
• Increased awareness and the recognition of your brand on-campus and amongst students

7. Key points to convince your stakeholders of the merits of student programs? (The Business Case)

• Cost/Commitment/Flexibility of implementing a student program
• Try before you buy approach
• Productivity based on enthusiasm, innovation and technological competency
• The benefits of student conversion to Graduate Program or full time employment
• Feeding the Talent Pipeline and Talent Identification at a very early stage
• Brand Awareness amongst student market

For more information on how to add value to your Student or Graduate Program strategies please contact Fusion Graduate Management Solutions at info@fusiongms.com.au