Speaking at a conference recently Sir Stuart Rose, the Marks & Spencer chief executive, warned employers not to use the recession as an excuse to cut graduate placements. He explained that M&S have maintained their intake numbers in 2009 and suggested it was 'woolly-thinking' to suddenly stop recruitment because it would create a gap of people coming through.
How right he is! But with a quarter of graduate job vacancies being cut this year it seems that not all businesses are heeding his advice or learning from past experience.
The 25% fall in vacancy levels this year* is the biggest fall since the recession of 1991 when cutbacks reached a staggering 32%! The following year vacancies fell by a further 14% There was also a slight fall in 1993 after which there was 5 years of significant growth as employers tried desperately to play 'catch-up' and fill the talent gaps in their organisations which were undermining efforts to take advantage of the much improved economic climate.
This time around it is a bit different in that most employers have continued to recruit graduates albeit at reduced intake levels. However, those businesses that have cut back dramatically or ceased recruiting altogether may live to rue the day they took the short-term option of ceasing to recruit talent.
The dangers are obvious, without taking in fresh talent businesses are not able to prepare for the upturn when it comes, as inevitably it will. They will be dependent on attracting experienced hires. both a risky and expensive strategy, and the gaps in their talent pipelines will be there for years to come.
Even small businesses should think twice about turning away from recruiting graduate talent. The evidence from research shows that graduates do genuinely bring added value to organisations. Creativity, drive, enthusiasm, new approaches and challenge and they often give a quick return on the investment that is made in them, what is known as 'speed to value'.
And, here's a bit of good news for employers; starting salaries have stabilised and in some sectors have actually fallen, so graduates present even better 'value for money'. Running a small business I understand only too well the pressures that they face in the downturn and for many it is difficult enough to keep the existing workforce busy. However, there has never been a better time to attract graduate talent. The overall cutbacks in vacancy levels means that there are more graduates chasing fewer jobs and the choice for small businesses has never been better. Not only that, but I suspect that the attractions of small and medium sized businesses are likely to appeal to a growing number of newly qualified graduates. If your business can take in one or two talented individuals, their impact on your business might be just the fillip you require and when the market does improve you will certainly be better placed to respond than your competitors who did not make the investment.
So, listen to what Sir Stuart Rose has to say and learn from the lessons of yesteryear. You can't say you have not been warned!
Carl Gilleard
Chief executive
AGR
* AGR Graduate Recruitment Survey Summer Review 2009
