Retaining graduates ‘increasingly difficult’ for employers
UK employers are typically losing 16% of their graduate intake within the first two years, a survey conducted by the Association of Graduate Recruiters (AGR) has revealed.
The number has increased from 9% last year, and 20% of graduates leave by the first year after completing a graduate training scheme; rising to 46% after five years of employment.
Compared to last year’s findings, 17% had left by the first year after a development programme had ended, increasing to 39% after five years.
AGR believes graduates who leave within the first three years of employment have a variety of motives. While nearly a quarter (24%) leave for a career change, 19% move on for better pay and 14% are dissatisfied with their career progression. In addition, 7% move away and 6% leave due to a lack of permanent positions or redundancy.
“Over the last ten years retention rates have remained relatively stable, so contrary to popular belief not all millennials are job-hoppers,” said Stephen Isherwood, chief executive of the AGR. “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.”
The median starting salary for a graduate training scheme is £27,500, and for those that stay with their employers, this will likely increase by a quarter after three years of service. Career status can also progress quickly, with an average of 39% in manager positions after five years.