2010 Graduate Intakes: The Changing Landscape

What a fascinating year 2009 is turning out to be from a graduate intake perspective!

For the very first time in a decade the foundations of our graduate industry have been challenged with many employers cutting graduate numbers, cutting graduate programs and some cutting entire graduate management teams in light of the changing financial landscape.

Time will only tell what the longer term impact will be on employer’s graduate brands and the talent gaps left by a year or more of shutting down or slowing down a talent pipeline. Longer term, time will tell what the benefits are to employees that have maintained their commitment to talent.

Through all off this many employers have continued to run traditional graduate intake programs and would be ending their current cycles by making their final offers in June. Many employers have reported increases in the number of applications received, but there hasn’t as yet been a direct correlation to an increase in the quality of applicants.

The Question?

Is it simply a case of the same graduates applying for more positions than the 2009 AAGE Candidate Survey median of 5 applications? Or based on the reduction in intakes and subsequent intake numbers, are their potentially more talented graduates out there?

The changing landscape has resulted in a growing trend that has seen many employers hold off on their intakes whilst others are coming up with innovative strategies to keep their talent pipelines flowing.

Those employers that have chosen to delay or cut their intakes have done so;

• Because they have simply not been able to get intake approval as their business questions the investment required and value in the current environment
• To assess the landscape and recruit in the second half of 2009, knowing that their will be quality candidates still available
• To use the additional time to come up with innovative ways to keep their pipelines following

There are a large number of employers who as late as June/July, will be starting their graduate intake process or will take on a staggered approach for the rest of the year. This will enable employers to fill roles on an as needs basis;

• Ensuring that they can fulfill the expectations and promises made to graduates without damaging their brands
• To continue to build and filter potential future talent through their pipelines
• To satisfy their organizations need to operate within the financial limitations being imposed and deliver ROI
• To take on graduates on an as needs basis to ensure that they do not overstock up on grads, renege or withdraw offers or build up unwanted liabilities in an uncertain environment

There have been a number of new employers entering the market to take advantage of the landscape and the glut of potential graduates still available in the second half of 2009. New graduate employers are seizing the opportunity to showcase the strength of their employer brands by starting their Graduate Programs in what others deem to be a difficult market. For those employers who have identified that their organisation is facing a talent shortage, there is no better time based on a valid business case, to start the regeneration process. NOW.

There is mounting expectation that graduate vacancies will reduce by as much as 20%-30% on the 2008 statistics which indicated 11.2% growth as reported in the 2009 AAGE Employer Survey. Fewer vacancies will equate to more talented candidates still being available.

Many organisations are confident that because of the decrease in graduate programs and intakes, quality candidates will still be out there in the later part of the year as economic indicators begin to show the stabilization and recovery of the financial landscape. Employers are beginning to plan strategies based on the belief that there is an ongoing need for graduates, especially when some of their pre-existing head count issues have been rectified through their various rationilisation processes (e.g. redundancies).

Tough economic times? Struggling to get approval for a graduate intake campaign?

Then there are the innovators!

• Why not look at the benefits of taking on IBL or Vacation students with the view of transitioning the best performers to a graduate program at a later date when the business case has more validity?

What are the benefits to your business?

• You keep the talent pipeline and identification process running and can buy some valuable business time before making a decision
• Unlike a graduate program, you have the opportunity to "try before you buy" before making your graduate offers
• Your employer/graduate brand is still present in the market place
• IBL and Vacation students are placed on short term contracts which will give your organisation short and longer term contract flexibility
• The cost of a IBL or Vacation student is significantly lower at an average salary of approx. $38,000 pro rata
• Your selection process for IBL or Vacation students can be built at low cost to ensure that you are recruiting potential future talent
• You can offer similar development opportunities to IBL/Vacation students to ensure that you are investing in the longer term growth and fast tracking of their development
• You would have the full support of University Careers Services prepared to help you take on their students

Is it too late to run an Intake?

NO. With a valid business case, support and resourcing, there is no reason why a business cannot be ready to welcome their 2010 intake in February 2010 or later. The IBL and Vacation season is in August and September of every year so there is still a great window of opportunity to get involved.

What do you need to do if you are considering an intake for 2010?

• How do you convince your business of the benefits of a graduate program?
• How do you develop a business case?
• What is the level of involvement to turn this into a reality?
• What is the cost of a talent gap or shortage in the longer term?
• What are the involved costs and ROI of a graduate program?
• What are the realistic number of graduates you may need to fill longer term needs?

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