Adding Value Beyond Measure, a research project conducted by Dr Anthony Hesketh of Lancaster University`s Management School, revealed that the business case for graduate recruitment programmes is a strong as ever, at a time when economic uncertainty has led to many organisations adopting limited graduate recruitment strategies and, in a few cases, even retracting them.
- The research, conducted in 22 different organisations, showed how graduates bring added value in a number of ways:
- Creative destruction: a capacity to articulate innovations and the ability to cope with the changes this brings about.
- Speed to value: they develop faster than other employees and add value to an organisation more quickly. They hit the ground running and demonstrate leadership qualities faster.
- Corner fighting: not just having good ideas but the skills to articulate ideas into the cut and thrust of working life.
- Stimulating change: initiating change - not just accommodating it.
- Re-inventing the wheel: not looking at things and thinking, "That`s too difficult", but coming up with solutions and being innovative because they want to make their mark.
Dr Hesketh went on to explain how there is a general consensus among employers that graduates contribute in the region of three times their own salaries. Based on the number of places that AGR members offer in a year and the salaries they pay, that adds up to massive £1bn.
Graduate recruitment is a costly business, but like everything, the ultimate value of it comes down to whether it is viewed as an investment or a cost. Investment levels vary between organisations but the research indicates that the abandoning of a graduate recruitment programme is largely seen as a risk that could lose the organisation a number of value added benefits.
Dr Hesketh talked about how, in particular, graduate recruitment is seen as an invaluable investment in a `talent pipeline`, borrowing a topical football analogy from JP Morgan`s Tom Smith when asking,`do you have a Chelsea or build your own?`
`Building your own` emerged as being clearly more cost-effective than recruiting from the wider-market place at the next recruitment level up, enabling organisations with substantial levels of investment to `handpick and hothouse` graduates, giving them access to senior management and excellent development and coaching facilities. Graduates who are nurtured and shaped within the organisation also emerged as likely to stay with the organisation longer and be more aligned with the values of the organisation.