Investors in People s first Talent of Tomorrow report

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2 2 3 Investors in People s first report was developed with the intention of helping employers understand what the workforce of tomorrow want from prospective employers today. In essence, to give organisations the tools to construct meaningful opportunities for talent entering the UK workforce. Surveying 500 university graduates alongside 500 college leavers, the findings in this report give clear insight into the ambition and motivations of millennial talent leaving education and looking for work in Investors in People s first report seeks to provide employers with the necessary insights to create meaningful job roles and graduate schemes for the millennial talent leaving education this year. Recent statistics from the ONS suggest that nearly 1.6 million people were studying their first undergraduate degree in 2017, while the Association of Colleges asserts that 2.2 million were continuing their learning at college. These figures reveal the extent of the talent landscape in the United Kingdom and the countless skills and qualifications that will be entering the workforce over the next few years. However, research from Universities UK has suggested that 1 in 3 graduates end up in roles that they aren t suited to. This means that the practical knowledge that students gain from further education is giving them neither the insight nor the soft skills they need to carve out the right career path. As such, this means it is more important than ever for employers to make their graduate schemes and recruitment processes as transparent and informative as possible to ensure that skilled education leavers can apply for roles feeling wellinformed and confident in their suitability. Our report sets out the key components of job structure, workplace support and office culture that millennial talent look for when entering the labour market. Our insights are broken down by region, gender and education type to give employers the information they need to create jobs to attract the talent they rely on to ensure business success. Our core findings are clear: students entering the world of work this year want to work for organisations with demonstrable proof of putting their people first, a track record of investment in learning and development and a guiding purpose at the heart of work. If you re looking to recruit millennial talent then the following pages set out a definitive framework of insights to give you the tools to make that happen. /InvestorsInPeopleUK Paul Devoy CEO, Investors in People For the duration of this report, university graduates and college leavers, when referred to collectively, will be called millennial talent.

3 4 5 The survey asked respondents an array of questions, ranging from the sector that they would be most likely to seek work in, to the level of confidence that they have of finding a job within six months. Beyond this, the intention was to also establish the different factors and components of job creation that millennial talent place the most importance on. The statistics showed that 84% of this year s talent would like to work for an organisation which has a proven dedication to putting their people first (such as Investors in Most popular sectors: People accreditation). This, coupled with the fact Healthcare 11% that a clear investment in learning & development is the biggest motivator of loyalty (50%), suggests that Creative arts & design 9% the talent of tomorrow want to work for companies Teaching & education 8% that are also prepared to work for them. The first page of this report combined the thoughts and attitudes of college leavers and university graduates into one classification of millennial talent. However, within these two groups of incoming workers, there are distinct trends and motivations behind their approaches to joining the world of work. For example, although two thirds of the respondents in each group are equally confident in their chances of finding a job within 6 months of completing their course, university students are more concerned with finding a long- term role (80%), compared to college leavers, 63% of whom are looking for that long- term position. What proportion of millennial talent Three priorities for college leavers: Job security 51% 74% of students leaving education in 2018 intend to look for a job straight away Plan to look for a job immediately upon course completion? Learning & development 47% 71% are considering long term roles rather than short term jobs. For 50% of millennial talent, the biggest driver of loyalty would be a company continuously investing in their learning and development. College leavers 75% Uni graduates 73% Are considering looking for a long-term position? Organisational purpose 37% College leavers 63% Uni graduates 80% 66% of millennial talent leaving education in 2018 are confident in their chances of finding work within 6 months. 50% Are confident in their chances of finding a job within 6 months of completing their course? College leavers 66% Uni graduates 66% Three priorities for university graduates: Job security 53% 66% What is millennial talent looking for? Are more interested in career progression than salary? Learning & development 52% 84% of talent in 2018 would like to work for an organisation which has a proven dedication to putting their people first (such as an IIP accreditation) Job security 52% College leavers 69% Uni graduates 72% Career progression 42% 84% Learning & development 49% The factor most likely to boost loyalty amongst college leavers and university graduates is seeing that an organisation invests in their learning and development. 15% of university graduates already had a job lined up at the time of the survey. 60% value career progression over salary Salary & career progression 36% Similarly, 9% of college leavers had the same.

4 6 7 84% of men leaving education this year would like to work for an organisation that has a recognised accreditation for putting their people first, the exact same figure as women. Does gender impact the career intentions held by former students? Earlier this year, Investors in People updated its research in the area of gender equality in the workplace with a report entitled Gender discrimination in the workplace: perceptions and attitudes. This study found that 80% of women felt that they had experienced gender discrimination in the workplace. As a result of this evidence, the report has sought to unpick whether millennial talent in 2018 will leave education and set out for work with different intentions informed by their gender. Sectors male talent most likely to pursue Engineering 13% How confident is millennial talent of finding a job within the next 6 months? Male 74% Gender has little impact on when millennial talent intends to launch their job hunt; 74% of men and 75% of women intend to begin looking as soon as they complete their course. 67% of men completing a college or university course in 2018 would rather have clear career progression than a large starting salary, compared to 72% of women. Finance 11% IT 8% Sectors female talent most likely to pursue Healthcare 14% Teaching 10% Creative 10% What proportion of 2018 talent is considering positions with long-term career progression over short-term jobs? Male 66% Female 62% What do millennial women want from prospective employers? Job security 54% Learning and development 54% Purpose driven 35% What do millennial men want from prospective employers? Job security 48% Learning and development 39% Interestingly, men and women in this demographic have the same top-two priorities when it comes to what an employer can offer; job security and learning and development opportunity. Millennial workers want to feel secure, but also that their employer is investing in their potential. However, when it comes to their third choice, men are more concerned with salary, whilst women want to work for an organisation driven by purpose. 72% of female talent would rather a job offered clear progression routes than a larger starting salary, compared to 67% of male talent. This suggests that having a visible career path is a bigger motivator for women, where salary might take precedence for men. Male millennials leaving education this year are most likely to be loyal to a company that invests in their training and development, the same as women. Female 74% Guaranteed salary progression 38%

5 8 9 Region & post-education intention: Is there a connection? Within the initial survey, region was established as a filter question to enable IIP to draw conclusions as to whether the region that millennial talent lives in might have a bearing on their intentions for work once they had finished their respective qualifications. As a result, clear regional trends have been revealed, suggesting that region really does influence the outlook of students as studies and courses draw to a close in However, one unifying factor is that across every region, more than 80% of new talent would like to work for an organisation which holds an accolade for putting its people first. Below are a series of headlines providing insight into the main factors and motivations that drive emerging talent in different regions. There are clear trends which will allow businesses to base their approach to talent attraction on real attitudes. Region where millennial talent is most open to looking for a long-term position? Region where millennial talent is most likely to look for a job straight away? East of England & East Midlands 76% East of England (East Anglia) 79% Region where millennial talent is least likely to be looking to long-term position? North East 67% Region where millennial talent is least likely to look for a job straight away? Scotland 65% North East 67% Proportion of millennials entering the workforce who would like to work for an organisation that puts their people first: South East 88% Northern Ireland 88% South West 87% Wales 87% North West 87% Yorkshire & The Humber 86% Scotland 84% West Midlands 83% London 82% East Midlands 81% East Anglia 80% Regions with most confident millennial talent (belief that they will find a job within 6 months): Northern Ireland 75% London 71% North East 70% Wales 70% North West 69% West Midlands 66% East Midlands 65% South East 65% Yorkshire & The Humber 62% Scotland 61% South West 57% Millennials leaving education in Northern Ireland are most likely to say they d rather have a clear career progression route than a larger starting salary (82%), compared to 65% of workers in the East Midlands, North East, North West and Scotland. Talent based in Yorkshire & The Humber is mostly likely to search solely for a short-term job, with a quarter seeking this sort of work. For the millennial talent in all regions, an organisation that invests in training and development for employees is most likely to inspire loyalty in these prospective recruits. Indeed, in seven of the twelve regions more than half of respondents chose this component of people management as likely to make them more committed to a future employer.

6 10 11 Methodology About us How can you attract the talent of tomorrow, today? Invest in development This report outlines clearly that the millennial talent heading for the workforce this year wants learning and development opportunity. Not only will this attract new talent to your organisation, respondents to the survey also highlighted that this is the factor most likely to make them loyal to an employer. The simple act of investing in training and development can draw the best talent, reduce employee churn and boost satisfaction. Tailor to your region 4 Make your recruitment processes as transparent and flexible as possible. If this report has striven to prove anything, it is that no two people are exactly the same and that all prospective employees will have different things that they want to see from you. In today s talent market, recruitment of millennial talent is as much about what you can do for them as what they can do for your organisation. If you bear this reciprocal balance in mind, your strategy will be infinitely stronger. A survey of 500 college leavers and 500 university graduates was conducted by research organisation OnePoll on behalf of Investors in people between 2nd- 9th July The survey sought to collect information about the intentions of millennial talent planning to enter the workforce following the completion of study. For more information, please contact press@ investorsinpeople.com or Investors in People is the Standard for people management. Our international Standard defines what it takes to lead, support and manage people well for sustainable results. We work with thousands of businesses across 58 countries, from Allianz insurance to Brompton Bikes. Successful accreditation against the Standard is the sign of a great employer, an outperforming place to work and a clear commitment to sustained success. Region had an impact on what talent in your location wants. Take the time to look through the regional findings and develop a talent strategy that reflects the wants of college leavers and university graduates in your area. Undertstand the motivations Be aware that college leavers and university graduates are looking for different things. IIP s report has shown that 83% of university graduates are looking for long term positions, compared to 63% of college leavers. Understanding the motivations and intentions of all millennial talent leaving education in 2018 is vital to ensure that new members of the workforce find the right fit for them. 5 Look after your people The findings within this report also evidence strongly the desire from prospective employees in this demographic to work for an employer with a demonstrable record of looking after their people (84% of talent expect this from an employer). An accreditation with a consultative organisation like Investors in People is one way of achieving this, thereby promoting your people management credentials to potential talent. /InvestorsInPeopleUK

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