>83 13% The AGR 2016 Annual Survey

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1 > % The AGR 2016 Annual Survey

2 The AGR 2016 Annual Survey Association of Graduate Recruiters Bath Place London EC1A 2JE Findings for this report were collected in July- August 2016 and the report was published in September Both the survey and report have been produced by Samuel Gordon, AGR Research Analyst. For any queries please or contact All information contained in this report is believed to be correct and unbiased, but the publisher does not accept responsibility for any loss arising from decisions made upon this information. Association of Graduate Recruiters 2016 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior permission of the publisher. 2

3 Contents Contents Foreword 4 Executive summary 5 Structure of report 7 5. Internships and placements 40 Hires and salaries 41 Applications per vacancy Market Overview 8 Top ten challenges Three transformative trends 11 Closing skills gaps 12 Identifying the best talent 16 Building talent pipelines earlier Graduates 23 Offers to graduates 24 Applications per vacancy 26 Hires and salaries by sector 27 Hires and salaries by region 28 Hires and salaries by career area Apprenticeships 32 Levels, hires and salaries 33 Offers to apprentices 35 Applications per vacancy 36 Minimum entry criteria 37 Impact of apprentice levy 38 Developing higher apprenticeships Securing resources 44 Cost per hire estimates 45 Use of outsourcing 48 Hires per recruiter Attracting candidates 51 Number of universities visited 52 Engagement with universities 53 Number of schools visited Selecting candidates 55 Time to offer 56 Selection instruments 58 Psychometric tests 60 Feedback on the process 62 Appendix 63 Methodology 64 Profile of respondents 65 3

4 Foreword Foreword Stephen Isherwood Samuel Gordon Welcome to this year s AGR Annual Survey: your invaluable guide to the student recruitment market. Our aim is to share the most comprehensive benchmarks on employer activity in order to help you make sound business decisions about student talent. This year, we have broadened the insight we provide you. To capture a richer picture of student recruitment, we have included more detailed salary and hiring information on graduates, apprentices, school leaver programmes, summer internships and industrial placements. To provide you with a clearer sense of how our industry is changing, we have captured year-on-year trends wherever possible and included relevant insights from our last five surveys. What s more, to prompt your thinking about how to build on these findings, we have added commentary on key trends and included a range of questions to explore. Employers are getting smarter about recruiting the best talent. They are actively tailoring their recruitment to find key skills and exploring multiple ways to close skills gaps. While 2:1 degrees remain the most common entry criteria, firms are also using new tools to find the most suitable candidates: use of strengths-based assessment is up, and use of psychometric tests is rising. Organisations are building their talent pipelines even earlier by engaging with schools and increasing the share of graduates who were previous interns. Recruiters are using a wider variety of channels than ever before. Employers are also collaborating with a range of organisations. They are running employability workshops with universities, working with other employers on specific areas such as improving diversity and promoting apprenticeships, and partnering with suppliers so they can outsource key aspects of their recruitment campaigns. The high level of competition in the market appears to be driving collaboration as opposed to preventing it. Our research continues to evolve to support you and we value your feedback on what you find most useful. Make the most of this report be that five minutes to browse the overview, or an hour to digest the complete picture and we look forward to your continued engagement with AGR and our analysis. Stephen Isherwood Chief Executive, AGR Samuel Gordon Research Analyst, AGR Students hired by 2016 survey respondents 33,755 4

5 Foreword Executive summary Overview of the market This AGR Annual Survey is the largest and most wide-ranging survey of the student recruitment market in the UK and the respondents are a robust proxy to the wider market for student talent. The 208 employers who contributed come from 17 sectors, recruit into all UK regions, represent all sizes of firm, and range from those who recruit less than 15 graduates up to those which recruit over 1000 every year. Responding organisations represent around 10% of the UK workforce more than 3 million staff and offered a total of 33,755 permanent vacancies and 12,659 temporary vacancies to students in Collectively, they spent an estimated 82 million on graduate recruitment alone. The combined market for graduate and apprentice vacancies has shrunk by an estimated 3% this year. Graduate vacancies are down by 8%, but a 13% increase in apprenticeships makes up some of the shortfall. The average number of applications per graduate vacancy has also risen to 68, up from 65 last year. The top challenges expected by employers in the year ahead reflect market uncertainty and are Brexit (Britain s exit from the European Union), the UK apprenticeship levy, and attracting candidates in light of increasing competition. That said, there are still thousands of high quality jobs available for students and employer offers are more attractive than ever. Median starting salaries for graduates rose by 2% to 27,500. Intern salaries rose by 4% to 330 a week, placement salaries rose by 3% to 337 a week, and apprentices are typically paid more than double the minimum wage. Employers are thinking more holistically about their offers too with 24% of firms offering a relocation bonus for graduates and 24% of London employers offering a London allowance. Opportunities for apprentices are also on the rise. In the last four years, use of both higher apprenticeship programmes and school leaver programmes has doubled. 55% of employers currently recruit apprenticeships, and 12% of employers say that the apprentice levy will lead them to repackage graduate schemes as degree apprenticeships. 37% have either developed or are developing higher apprenticeships in more than one career area. Competition for apprenticeship talent is expected to increase. Three transformative trends Besides the rise in apprenticeships, three key trends are expected to shape student recruitment in the years ahead. These trends are: efforts to close skills gaps, changing methods of identifying the best talent, and building talent pipelines earlier. 5

6 Foreword Executive summary (continued ) Employers are proactively identifying and closing skills gaps. For example, 71% of employers are tailoring their recruitment processes to find candidates with commercial awareness and 51% are tailoring their recruitment to find candidates with negotiating or influencing skills. 72% of employers are engaged in some form of employability workshop or seminar with universities, and 22% of employers collaborate with other organisations to improve student employability. However, training is not yet aligned to skills gaps and there are varying views on the best time for students to learn nine specific skills. Collaboration on skills could reshape the way that employers and universities interact. Secondly, employers are removing traditional entry criteria and using data-driven approaches to identify the best talent. The share of employers considering all UCAS points has risen by 12 percentage points, the share of employers using a 2:1 degree has dropped by 3 percentage points, and the share of employers having no minimum entry criteria at all has risen by 3 percentage points too. 19% of employers now assess students on their strengths rather than their competencies, 38% use situational judgement tests and 42% of employers check psychometric test scores against on-the-job performance. These changes could reshape the way that employers look for talent and how they define it. Thirdly, employers are also building multiple talent pipelines by engaging with students earlier. 36% of graduate intakes are now comprised of previous interns, up from 31% in One in ten employers converted more than 83% of their interns into graduate hires and employers typically visit 26 schools and hire from 24. Greater investment in younger talent could reshape recruitment teams and recruitment methods. Resourcing for recruitment Employers still invest significantly in recruiting graduates though. They spend 1,722 on average to attract each hire, and 1,661 on average to select and assess them. The average recruitment team has 5.4 people, with 89% of teams combining graduate and intern recruitment and typical hire-to-staff ratios as 28 to 1.39% of organisations work in partnership with suppliers to outsource at least one aspect of their recruitment process. Investing in university engagement is still overwhelmingly common even with use of digital marketing. 95% of employers engaged with universities and the most common method of engagement are careers fairs (91%), although 49% engaged with students directly and 54% engaged with departments. On average, they visit 20 universities and hire from 30. Employers also invest significantly in their selection process, with the average time to offer being 10 weeks for graduates and 9 weeks for interns. 93% of employers use assessment centres, video interviews are now used by 42% of employers compared to just 6% four years ago, and psychometric tests from at least fifteen different providers are being used across the industry. 92% of employers ask candidates for feedback this year, reflecting an increasing focus on improving the experience of their candidates. Share of AGR employers Running employability workshops 72% 6

7 Foreword Structure of report This report is structured so that key information is available at the front for easy reference. We gathered the results of this survey in July and August 2016 and launched the findings in September employers responded, representing 33,755 permanent student hires and over 3 million UK staff. Chapter 1: Market Overview. This chapter is a snapshot of key trends and benchmarks for student talent in 2016, including overall hiring volumes, salaries, applications per vacancy and average cost per hire. Chapter 5: Internships and placements. This chapter covers the use of internships and placements within different sectors, as well as median salaries paid and applications per vacancy to help employers benchmark their offers and attractiveness to students. Chapter 6: Securing resources. This chapter provides benchmarks for employers financial investment in recruiting graduates. Key insights include estimates of cost per hire by sector and by size of intake, as well as use of outsourcing, typical team sizes and average ratios of hires per recruiter. Chapter 2: Three transformative trends. This chapter highlights and explores three trends which are expected to share student recruitment over the next 2-5 years. These trends are efforts to close skills gaps, changing methods of identifying the best talent, and earlier engagement with students as part of building multiple talent pipelines. Chapter 3: Graduates. This chapter provides benchmarks for the offers being made to graduates and the level of competition for talent in different sectors. It includes salary benchmarks for graduates split by 12 UK regions, 17 sectors, and by 20 types of roles to help organisations compare against competitors. Chapter 4: Apprenticeships. This chapter provides benchmarks for how graduate employers are recruiting apprentices and the level of competition for apprenticeship talent. It includes the use of intermediate, advanced and higher apprentices in different sectors as well as median starting salaries, applications per vacancy, the expected impact of the apprenticeship levy and the development of higher apprenticeships. Chapter 7: Attracting candidates. This chapter reviews methods of attracting student candidates and benchmarks for this type of activity. It includes the number of universities and schools visited and hired from, and the most common ways in which employers engage with universities. Chapter 8: Selecting candidates. This chapter highlights common methods used by employers to assess and select their candidates. Insights include time to offer, use of selection instruments, use of specific named psychometric tests, and the share of employers asking for feedback on their process. Appendix. This chapter provides the survey methodology as well as details of the sectors, firm sizes and graduate intake sizes of the responding organisations. Change in graduate vacancies this year -8% 7

8 Chapter 1 Market Overview In 2016, graduate vacancies dropped for the first time in a four year period. Employers indicated that this was due to market uncertainty and economic conditions. Apprenticeship vacancies increased by an estimated 13%, making up some but not the entire shortfall as the overall market for graduates and apprenticeships shrunk by 3%. The volume of internships has increased by 13%. Table 1.1: Type of student hires Share of AGR Hires Median salary Applications employers hiring 2016 per vacancy Graduates 96% 22,960 27, Apprenticeships 55% 10,110 See Chapter 4 22 School leaver direct entry 11% , Summer Internships 73% 9,390 17, Industrial placement students 48% 3,269 17, Table 1.2: 2016 vacancies and year-on-year changes % of % change % of % change % of 22,960 in volume 9,390 in volume 10,110 graduates year-on-year interns year-on-year apprentices Overall 100% % +13% 100% Accountancy or professional services firm 22.7% -8% 17.4% +19% 6.1% Public sector 14.8% -7% 7.2% +51% 9.5% Retail 10.6% -16% 7.9% +1% 17.6% Banking or financial services 10.4% -8% 22.2% +13% 21.7% Engineering or industrial company 10.2% -14% 10.2% -3% 16.6% IT & Telecommunications 8.2% +5% 0.9% - 3.9% Law firm 5.4% -5% 17.0% - 1.0% Construction company or consultancy 5.4% -12% 5.8% +25% 7.5% FMCG company 2.4% +1% 2.4% +14% 1.6% Investment bank or fund managers 1.5% +24% 1.9% - <1.0% Energy, water or utility company 1.4% +2% 2.0% -24% 4.6% Note: annual changes based on 154 employers with year-on-year data on graduates, and 112 employers with year-on-year data on internships. Blanks indicate not enough data to establish a trend. Overall apprenticeship change is based on 109 employers who also had year-on-year data on graduates. Not yet enough robust data to establish year-on-year apprenticeship trends by sector. Change in apprenticeship vacancies this year +13% 8

9 Chapter 1 Graduate vacancies have dropped across most sectors when compared to figures from the AGR 2015 Annual Survey. The sharpest decreases are in the retail, construction and engineering sectors, and the largest growth by volume is in the IT sector. FMCG firms, investment banks and energy firms also recorded increases, although these sectors hire small numbers of graduates. The average cost per hire for a graduate, excluding law firms, is estimated to be 3,383. This comprises of 1,722 on attraction & marketing and 1,661 on selection & assessment. In total, responding employers spent an estimated 82 million on recruiting graduates this year. Figure 1: Average cost to recruit a graduate 110 employers with 15,792 graduate hires Top ten challenges Recruiters identified a wide variety of challenges which they expect to face in the year ahead. Below are the top ten, as identified by survey respondents in an open-ended question and categorised by common themes. All of these challenges are worth addressing and being prepared for. Figure 2: Top 10 challenges recruiters expect in the year ahead 171 employers with 20,424 graduate hires Top 10 challenges recruiters expect in the year ahead - Brexit 29.2% 9

10 Chapter 1 Dealing with market uncertainty is seen as the biggest challenge and already appears to be reflected in this year s vacancy trends. The impact of Brexit Britain s exit from the European Union was the number one challenge and was expected to affect most areas of recruitment. Specific challenges listed by employers included: the impact of Brexit on European roles/promotion, impact of Brexit on our business, hiring needs and my team, impact of Brexit on the talent available, This levy comes into force forecasting resourcing needs in face of in April 2017, and uncertain market following Brexit requires all UK employers and Brexit is potential challenge with a pay bill of over to budgets. 3million to pay 0.5% of this to government, which can Apprenticeships and the then be used for apprenticeship levy were also apprenticeship programmes. seen as a major challenge. This levy comes into force in April 2017, and requires all UK employers with a pay bill of over 3million to pay 0.5% of this to government, which can then be used for apprenticeship programmes. Recruiters highlighted the impact of this change on their internal planning, managing business expectations and finding quality candidates. Comments about specific challenges related to the levy included getting students excited about apprenticeships and encouraging them to consider this as a pathway, convincing the business that graduate recruitment is still relevant in light of apprenticeship levy, finding high quality candidates that don t want to go to university, delivering the business requirements of the Apprenticeship Levy in a strategically sustainable way, launching new legal apprenticeship scheme - ensuring effective embedding of apprentices in business and maintaining a constant level of talent coming into the organisation. Longer-term trends are also intensifying. Competition for students continues to increase: employers mentioned competition from other organisations, not just other law firms, differentiating our firm in a crowded market and competition from more household names and more attractive locations. Attracting candidates, including raising brand awareness, was high on employer minds. Specific comments included raising prestige of public sector roles amongst graduates and marketing through technology which appeals to parents. Securing budgets is a constant challenge too: employers listed doing more for less- reduced budgets (and team capacity to deliver!), costs of bespoke recruitment, and budget and resources to deliver a much wider scale early careers programme. Other trends reflect more recent developments. Diversity and social mobility are rapidly rising up employer agendas: quotes included Ensuring we meet our gender and diversity targets as we look to increase the number of participants, competing for quality diverse candidates, and attracting female applicants for front office roles. Accounting for declined offers is also becoming more important, with comments including Student commitment when accepting offers, increasing numbers of reneges, and keeping students engaged. To secure the best student talent and provide them with great opportunities, the industry will need to continue to be responsive to these trends.? Questions to explore: Which of these challenges can be translated into scenarios you can map out and plan for? How can you convince your internal stakeholders to address these challenges? Can you work with other organisations to minimise the Diversity and impact of each social mobility are challenge? rapidly rising up employer agendas: quotes included Ensuring we meet our gender and diversity targets as we look to increase the number of participants 10

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12 Chapter 2 Three transformative trends This chapter highlights and explores three trends which are expected to share student recruitment over the next 2-5 years. These trends are efforts to close skills gaps, changing methods of identifying the best talent, and earlier engagement with students as part of building multiple talent pipelines. Closing skills gaps Employers are proactively addressing skills gaps by tailoring their recruitment processes to find specific skills and investing in on-the-job training. The graph below shows nine key skills which AGR employers have identified as important for employability/on-the-job performance, as well as the share of employers tailoring their recruitment to find these skills, and the share of graduates which have them when hired. Figure 3: Skills gaps 177 employers (trained on), 172 employers (hired), 159 employers (sought) Note: the two top bars are from the AGR 2016 Development Survey. Share of graduate intakes that are self aware 29% 12

13 Chapter 2 These nine skills are a guide only as opposed to an exhaustive list. For example, other skills that were mentioned by employers include resilience and adapting to change. Graduate attitudes and attributes are also worth supporting and recruiting for. However, mapping skills gaps in this way provides a guide as to where employers should be focussing their attention. Skills training and skills gaps are not yet aligned. Supply and demand are not aligned either. For example, 71% of employers tailor their recruitment to find candidates with commercial awareness, but only 15% hire graduate intakes which have this skill and 79% of employers train graduates in this skill once they are on the job. Closing skills gaps will take further work by employers, universities and suppliers. To close skills gaps, employers are likely to need to make value judgements about which skills they want and allocate their resources accordingly to obtain these. These judgements include which skills they expect graduates to have prior to hiring, which skills their business is willing to invest in as part of graduate development programmes, whether that training is generic or bespoke to their organisation, and what type of outreach they are prepared to make in order to boost the supply of these skills. For example, we don t test commercial awareness because that is something they are expected to pick up once they join stated one organisation about their recruitment. Collectively, employers and universities also need to ensure that students understand common skills gaps and to coordinate skills training in order to avoid duplication of effort. The best timing of skills training varies by skill. Based on a sample of suppliers to graduate employers, which AGR surveyed separately, perceptions of the best time for students to learn each skill are shown below. 41% of suppliers think that managing up is best learnt on the job, suggesting that universities should be informing students about this skill rather than investing in training on it. In a similar vein, 45% of suppliers think that commercial awareness is best learnt during an internship, so there is a case for embedding some skills training into internship programmes. Tailored approaches are likely to be needed. 71% of employers tailor their recruitment to find candidates with commercial awareness, but only 15% hire graduate intakes which have this skill and 79% of employers train graduates in this skill once they are on the job. Figure 4: Supplier views on the best time for students to learn each skill 24 suppliers. Note: only those suppliers which offer soft skills training/employability services. Source of data: AGR 2016 Supplier Survey. 13

14 Chapter 2 The most effective and the most feasible types of skills training will also vary. As a result, closer collaboration between employers, universities and suppliers will be needed to deliver targeted skills training on an ongoing basis and these benchmarks should be used to start a conversation about how and when. Joined-up skills training has the potential to reshape the way that employers and universities interact and in the long run influence the purpose of higher education. On a positive note, most employers are already engaged in this process by collaborating with universities on skills. 72% of employers engage in some form of employability workshop or seminar with universities, and larger firms are more likely to engage than smaller firms, as shown below. However, given the size of some of the skills gaps listed in Figure 3 such as 71% of graduates lacking self-awareness the content of these workshops and their effectiveness is worth reviewing. Figure 5: Share of employers engaging in employability workshops/seminars with universities 194 employers with 22,154 graduate hires Several employers made comments about the specific nature of this work. We delivered skills workshops at several universities and these sessions got good engagement from students, although we found that measuring the impact was very tricky stated one retail employer. Another explicitly tied their employability work to their recruitment process. An employer from the FMCG sector commented: Recently we have adapted our Milkround strategy to include more employability workshops with universities. Not only has this allowed us to reach out to students that might not necessarily have considered the business as an intern or graduate employer previously, it has enabled us to directly talent spot from these sessions particularly our Assessment Centre Workshop. Employability workshops have also helped us target students that may be suited to our harder to fill roles, increasing applications for these vacancies. A construction employer highlighted the value of indirectly improving employability We ran joint presentations with STEMNet to encourage student volunteering as well as raising awareness of our graduate and student roles. We encourage students to expand their CVs by taking part in volunteering activities such as these, because the transferable skills you can learn from participating are invaluable in the workforce. Identifying ways to measure the impact of employability projects is a key next step in the process of closing skills gaps. 14

15 Chapter 2 22% of employers also collaborate with other organisations to teach employability skills. In fact, this is the third most popular form of employerto-employer collaboration after promoting apprenticeships and improving diversity. One employer noted their specific model: We operate on a science campus model where we work closely with other organisations and collaborate on apprentice recruitment and training. There is scope to increase the level of collaboration on skills in future. share of employers collaborating to improve graduate diversity 32.5% Figure 6: Share of employers collaborating on specific topics 194 employers with 22,154 graduate hires There is also an appetite for more employer-toemployer collaboration. Usually these opportunities are university or supplier driven rather than employer and employer deciding to work together quoted one respondent. No [collaboration this year] but would love to do so stated another. Something we may plan on doing in future and Not taken place in this will change for the upcoming academic year were other comments. Employers could be far more proactive at reaching out to others in their sector when it comes to closing skills gaps. These efforts could change the way that employers compete for talent. There is also an appetite for more employer-to-employer collaboration. Usually these opportunities are university or supplier driven rather than employer and employer deciding to work together? Questions to explore: In your view, when is the best time for graduates to learn each specific skill? Should employers be training graduates on generic skills or company-specific skills, or both? How can you measure the impact/effectiveness of employability work with universities? How can employers and universities work together to develop specific skills for specific sectors? 15

16 Chapter 2 Identifying the best talent Employers are gradually but steadily changing the way they identify the best and most suitable talent. Organisations are broadening their size of their potential talent pool, reducing the use of entry criteria as a means of identifying performance, and applying more data-driven and predictive techniques. The first aspect of this trend is that employers are broadening their entry criteria beyond a 2:1 degree. This criteria is still the most common threshold for students to clear in order to be considered, with 71% of employers using it as part of their minimum entry criteria. However, there are shifts: the share of employers with no minimum entry criteria at all has risen by 3 percentage points this year, there has been a 3 percentage point rise in the share who don t require specific degree subjects, and a 12 percentage point rise in the share of employers who don t use UCAS tariffs. These trends continue what was already happening between 2014 and Figure 7: Trends in minimum entry criteria 194 employers (2016), 168 employers (2014 and 2015) Several employers were able to describe their changes in more detail and the reasoning behind them. One mentioned benefits in terms of process efficiency: by removing arbitrary screening criteria such as academics, work experience and positions of responsibility and replacing these with a suite of market leading online assessments we have not only levelled the playing field for candidates but also significantly reduced the amount of time taken to screen and process high volumes of applications. Another employer described the impact on application volumes and candidate feedback. We made the decision two years ago to change our minimum entry criteria from a 2:1 degree classification to a 2:2. Over the past two years, we have taken on average 5% of candidates with a 2:2. Application numbers have increased slightly, but to combat this we implemented a behavioural situational judgement test to our process. Since making the change, we ve also received feedback from candidates that they welcome our 16

17 Chapter 2 approach, as it is more inclusive and allows students to apply who have perhaps had personal challenges or difficult circumstances which have been barriers to achieving a 2:1. Others mentioned diversity. Specific comments included 280 UCAS [points at the moment] but looking to move away for 2017 recruitment to help diversity agenda and bring more females into [the business], are implementing contextual recruitment from to flex UCAS bar, and tend to align minimum of 2:1 for Bachelors and 2:2 for Masters now to widen and diversity the talent [pool]. Depending on the role; we re trying to move away from using 2:1 classification stated another. More rigorous entry requirements do exist as well. These included, most of our engineering degree roles require a Masters degree so that the students can get chartered in time, some specialist areas still use UCAS, and a requirement to have graduated within past three years. Requirements for secondary school performance include AAB at A level, 3B s at A-level for finance, Minimum of B in Maths and English GCSE in addition to degree. The overall trend however is greater inclusiveness. Employers are rethinking the type of candidates which they consider. The second change to the way that employers identify the best talent is a shift towards strengthsbased assessment. In 2016 there has been a rise of 11 percentage points in the share of employers basing their selection process on strengths, as opposed to basing their selection process on competencies. Intriguingly, most of this increase comes from employers who were trying both approaches in 2015 and switched to just using strengths in This suggests that when the two approaches are compared directly, a strengths-based approach is delivering better results. Figure 8: Approaches to selection process 124 employers with 17,559 graduate hires in Note: in the 2015 question was phrased as Which of these approaches best describes your selection process for graduate recruits? with competency-based and strengths-based as separate options but both could be selected. We do not have minimum entry criteria for our graduate programmes as we feel that the testing we put them through is more predictive of success in role than their degree classification. The difference between strengths-based and competency-based assessment, and a key reason for this shift in approach, were both succinctly described by one employer from the fast-moving consumer goods (FMCG) sector. We do not have minimum entry criteria for our graduate programmes as we feel that the testing we put them through is more predictive of success in role than their degree classification. We recruit on a strengths basis which looks at future potential as opposed to what has been achieved in the past. 17

18 Chapter 2 Employers are also testing candidates against other criteria. Meeting company core values stated one. Competency based interviews and technical presentations on the degree that [they] are currently undertaking confirmed another. Our process is focussed on behavioural characteristics and gathering the evidence that the candidates possess these, and Different approaches to different schemes e.g. analytical have a technical requirement stated a third and fourth. A variety of approaches exist. However, more organisations will shift to strengths-based recruitment in For [our] 2017 intake we will be using strengths based, [we] will be using strengths from Sept 2016, we will be using a more strengths-based approach for apprentices and [we are using] values, potential and culture fit, moved away from competency assessment were some of the specific comments made by survey respondents. More bespoke and more rigorous approaches to identifying the best talent are expected in future. The third aspect of changes to the way employers identify the best talent is that psychometric tests are increasingly being used as predictors of future performance. 75% of employers now use these tests in their selection process, compared to 71% last year. However, 58% of employers do not check candidate test scores against their on-thejob performance, which makes it difficult to tell whether or not these tests are effective. Applying psychometric tests to the task of predicting performance, and calibrating the use of such tests, is expected to become more widespread. Figure 9: Share of employers who compare psychometric test scores with on-the-job performance 169 employers with 19,254 graduate hires In practice, there is more than one way to make comparisons between test scores and on-the-job performance. Employers listed adhoc comparison[s], Looking at conversion of interns onto graduate scheme and cross reference with test scores, compare scores with previously hired grads/interns, and if we were to use them then we would definitely check if there is any inherent bias and whether they are good predictors. They also mentioned compare scores with assessment centre performance and variances of the above...had the test created bespoke for us based on the typical traits and skills we need. There are many options that employers can try, if they choose to. More employers are expected to do this in Several stated that they are still developing their analysis: tested on current graduate intake to validate and determine benchmarks, stated one, and we have recently taken a data analytics project looking at all applications back to 2010 stated another. Others highlighted that they intend to start soon: This audit piece is in progress but will be applied in 2016 recruitment, used for the first time in 2016, and we are going to do some research soon. Using psychometric tests as predictors of performance could reshape the way that employers look for talent, and in the long run the way that talent is defined. Share of employers who compare psychometric test scores with on-the-job performance 42% 18

19 Chapter 2? Questions to explore: What is the expected impact of changing entry criteria on application volumes? How does changing entry criteria affect the diversity of graduate intakes? Should the choice of universities to visit be based on the performance of previous recruits? How much of on-the-job performance is due to an individual s characteristics, and how much is due to the context which they are put into? What is the best way to predict on-the-job performance? What systems need to be in place to compare test scores with on-the-job performance? Are the tests which predict short-term success also the tests which predict longterm success? 19

20 Chapter 2 Building talent pipelines earlier Employer are engaging with students earlier than ever before, and hiring them in larger volumes. They also appear to be becoming more strategic about how they manage and integrate various forms of talent into their businesses. These trends are expected to continue. Use of higher apprenticeship programmes and school leaver programmes has doubled amongst graduate employers in the last four years. The former rose from 6% to 11% of employers, while the latter rose from 12% to 23%. The share of employers hiring intermediate and advanced apprenticeships appears to have dropped slightly although is still higher than in Figure 10: Share of employers hiring these types of early talent 208 employers (2016), approx. 200 employers other years Employers are creating more opportunities for interns and making more job offers to the interns who re-apply for graduate programmes. The volume of internships rose by 13% this year (see Chapter 5), and the share of graduates who are previous interns is now 36% on average, up from 31% in 2015 (although the former number included placement students so the actual increase is likely to be higher). Organisations are reshaping the way that they bring in talent. Figure 11: Average share of graduates who were previous interns 79 employers with 13,066 graduate hires in Note: 2015 figures refer to past interns and placement students, while 2016 figures refer only to interns 20

21 Chapter 2 An average of 45% of interns who were on an internship programme in 2015 joined their employers as graduate hires this year. This conversion is not automatic candidates who choose to re-apply also need to be successful in the application process for graduate positions but it highlights the value that internship programmes provide in terms of preparing students for working at an organisation. Some firms are extremely effective at converting interns and one in ten employers converted more than 83% of their intern hires 1. Figure 12: Share of 2015 interns converted into 2016 graduates 96 employers with 14,742 graduate hires Note: only those employers who converted at least one intern 1The 90th percentile represents the value for which 90% of the data points are below. An accountancy and professional services employer was able to pinpoint some of the success factors that help to encourage interns back into the business as graduates. We take a view that interns should be treated like a graduate would be treated in terms of how they re dealt with; whether that be onboarding, buddying, providing them with an induction and crucially a meaningful experience during their placement, as well as ensuring they are able to access and get involved in the social activities that are on offer. This has helped us to achieve such a high conversion rate. Another employer, from financial services, sees the benefits of an internship programme increasing over time. We have offered a 10 week summer internship programme now for the last 6 years and continue to see a progressive increase in the number of interns offered a graduate role each year. The internship provides an invaluable experience for undergraduates in terms of working for our business, and enables us and the interns to make an easier decision on whether they are a good fit and would like to work for us in future. Employers are expanding their programmes partly as result of experiencing this range of benefits. According to one public sector employer Our internship programme has grown significantly over the past few seasons as we not only secure impressive hires a year in advance but we benefit enormously from their ability to promote us positively to friends and peers back at university, regardless of having an offer of employment. That positive endorsement is well worth the investment we make running the internship programme. Share of 2015 interns converted into 2016 graduates - PUBLIC SECTOR 41% 21

22 Chapter 2 Employers are tailoring the way they assess different types of student talent too. 40% of employers are now using different selection processes for graduates and interns, up from 25% last year. Most employers (82%) also use different selection processes for apprentices and graduates. This indicates that organisations are getting more sophisticated about the way they manage multiple pipelines of talent. This is expected to reshape the use of recruitment methods and the organisation of recruitment teams. Figure 13: Share of employers with the same selection process for different types of talent 184 employers with 21,594 graduate hires Note: each bar is only for those organisations who employed these types of talent. Questions to explore:? What steps can organisations take to convert more interns in to graduates? How can organisations identify skills gaps in school leavers, and are these skills gaps expected to be the same as for graduates? Are graduate candidates who have done an internship programme less likely to renege? How does a shifting balance of internships and graduate hires affect the role of on-campus activity in attracting qualified applicants? How might use of interns be affected by the introduction of the apprenticeship levy? Where do graduates fit into your organisation s overall talent strategy? 22

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24 Chapter 3 Graduates This chapter provides benchmarks for the offers being made to graduates and the level of competition for talent in different sectors. It includes salary benchmarks for graduates split by 12 UK regions, 17 sectors, and by 20 types of roles to help organisations compare against competitors. Offers to graduates 71% of employers appoint graduates on permanent contracts. However, larger firms are more likely to use permanent contracts than smaller firms; the same trend as last year. 46% of graduates in SMEs are on fixedterm contracts. Figure 14: Share of graduates on permanent contracts 189 employers with 21,814 graduate hires (2016), 171 employers (2015) Employers hiring graduates onto graduate programmes have a strong financial offer for graduates compared to the other opportunities available to these candidates. Graduates at AGR employers typically earn around 6,000 more than graduates in all other types of work. Comparing past AGR data with statistics from the Higher Education Statistics Agency shows that this difference in pay is also widening: the gap is 50% larger than it was in Graduates starting at AGR employers in 2016 have a median starting salary of 27,500, compared to a median salary of 21,691 for all graduates who left university and entered the workforce in Figure 15: Median starting salaries for graduates - Source: AGR Surveys, Higher Education Statistics Agency Note: revised figures from 2010 based only on employers who provided exact salary information for these years rather than ranges. 24

25 Chapter 3 Employers are also strengthening their offer to graduates with a broader rewards package. 24% offer a financial bonus to graduates after joining, and a quarter of London employers offer a London allowance. One in six (16%) offer a relocation bonus to support graduates who are moving to a new part of the country. Figure 16: Offers to graduates 189 employers with 21,814 graduate hires Other rewards included interest free loans to help with relocation, performance-based bonuses, a training budget, allowances, staff discounts, season ticket loans, a 1,000 welcome bonus, private healthcare, paid accommodation for rotational placements, flexible working, and a 250 one off payment for clothing. As competition What are the benefits and drawbacks of using fixedterm contracts in smaller firms? Offers to graduates Fixed term contact 29% for graduates increases, employers are taking a more holistic approach to the way they attract graduates. Questions to explore:? What is the impact of relocation bonuses on student s willingness to move? What is the best way to manage student expectations around salaries? As graduate salaries rise, how does this change the business case for apprenticeships? 25

26 Chapter 3 Applications per vacancy Applications per vacancy have increased to an average of 68 this year, up from 65 last year. Part of this increase can be attributed to the decrease in vacancies available. Transport, retail and FMCG firms had the highest numbers of applications per vacancy while law firms have the lowest. Transport and logisitics 137 Figure 17: Applications per vacancy, by sector 178 employers with 22,097 graduate hires Questions to explore:? Which marketing activities are most effective at increasing application volumes? What is the indirect impact of internship programmes on application volumes for graduate positions? What percentage of applications come from graduates local to the vacancies available? What types of companies and sectors do your unsuccessful applicants end up joining? 26

27 Chapter 3 Hires and salaries by sector Median starting salaries have risen by 2% overall, from 27,000 to 27,500. The highest median starting salaries are offered by Law firms ( 38,000), Investment banks ( 37,000) and banking or financial services firms ( 33,000). Accountancy, public sector and retail firms hire the largest volumes of graduates. Median rates of salary progression also vary by sector, according to data from the AGR 2016 Development Survey. Table 3.1: Hires and salaries by sector % of 22,960 Median starting Median salary grad vacancies salary 2016 progression after three years* Accountancy or professional services firm 22.7% 25,000 65% Public sector 14.8% 24,000 - Retail 10.6% 24,500 30% Banking or financial services 10.4% 33,000 29% Engineering or industrial company 10.2% 26,500 15% IT & Telecommunications 8.2% 29,000 30% Law firm 5.4% 38,000 65% Construction company or consultancy 5.4% 25,625 - FMCG company 2.4% 29,000 27% Investment bank or fund managers 1.5% 37,000 - Energy, water or utility company 1.4% 27,500 32% Transport or logistics company 0.5% 25,000 - Other 5.9% - - Salaries based on 192 employers who provided salary information. Blanks indicate not enough responding employers to establish a trend. *Source: AGR 2016 Development Survey, based on graduates recruited in Questions to explore:? What share of graduates decline offers due to receiving a higher salary offer elsewhere? Which sectors should your organisation be benchmarking your offers against? 27

28 Chapter 3 Hires and salaries by region Salaries offered to graduates in London are still higher than in the rest of the country. In 2016, the median starting salary for London is 29,500, compared to median salaries in each region of typically between 25-26,000. Starting salaries for London graduates also rose by 3.5% compared to Other regions which experienced increases this year were the South East, East of England, North East, Scotland, Wales and Northern Ireland. Given that the sample of responding employers varies from year to year the regional differences should be treated as guides only. Table 3.2: UK hires and starting salaries by region % of 17,719 Median starting Median starting vacancies salary 2016 salary 2015 London 50.4% 29,500 28,000 South East 4.6% 26,000 25,000 South West 1.4% 25,000 25,500 East of England 5.9% 25,384 25,000 East Midlands 5.1% 25,000 25,000 West Midlands 8.8% 25,000 24,750 North West 2.6% 25,000 25,000 Yorkshire and Humberside 7.6% 25,000 24,750 North East 1.9% 25,000 24,500 Scotland 5.9% 26,207 25,000 Wales 1.3% 25,750 24,000 Northern Ireland 1.2% 23,500 23,000 Vacancies based on 166 employers who provided regional vacancies information. Salaries based on 174 employers who provided regional salary information data based on AGR 2015 Annual Survey. In 2016, the median starting salary for London is 29,500, compared to median salaries in each region of typically between 25-26,000. Starting salaries for London graduates also rose by 3.5% compared to

29 Chapter 3 The bulk of graduates vacancies with AGR employer are in London. In 2016, 51.4% of vacancies are here compared to 46.7% the year before. The share of graduates hired in Scotland, Yorkshire and Humberside, the East of England and the East and West Midlands also rose. The share of employers hiring into a region is often much higher than the share of graduate vacancies in that region. For example, while only 6% of graduates are hired into the East of England, 31% of employers have vacancies in this region. Employers trying to fill regional vacancies should be careful not to understate the level of competition for candidates willing to work in these areas. Figure 18: Share of employers and graduates in each region 166 employers with 17,884 graduate hires Questions to explore:? What is the best way for organisations to reach graduates who have decided to move back into an area after studying elsewhere? What partnerships between employers and local institutions could help to fill vacancies? What is the impact of socio-economic status, gender or ethnicity on students willingness to move? What share of reneges is related to the location of available vacancies? Do graduates hired locally have higher rates of retention than those hired from elsewhere? 29

30 Chapter 3 The Hires and salaries by career area Employers are hiring graduates into a wide variety of roles and career areas in % of all hires are in just three types of role accountancy, consulting and IT roles although these are also present in a wide variety of sectors. Starting salaries and hiring volumes for twenty types of roles are listed below. Other roles included construction management, quantity surveying, data science/analytics, operations, software engineering, commercial banking, health/safety and environmental and communications/pr. highest paying roles in 2016 are investment banking roles ( 45,000), legal roles ( 38,000), IT roles ( 30,031) and Actuarial roles ( 30,031). 15% of graduates go into some form of management role. The highest paying roles in 2016 are investment banking roles ( 45,000), legal roles ( 38,000), IT roles ( 30,031) and Actuarial roles ( 30,031). 15% of graduates go into some form of management role. Vacancies based on 183 employers who provided vacancy information by career area. Salaries based on 165 employers who provided salary information by career area. Table 3.3: Hires and salaries by career area in 2016 % of 21,202 Median starting graduate vacancies salary 2016 Accountancy 16.6% 25,500 IT 12.1% 30,031 Consulting 10.8% 28,000 General management 8.1% 26,000 Legal work 6.0% 38,000 Investment banking 5.7% 45,000 Retail management 4.2% 25,000 Civil engineering 3.2% 26,000 Mechanical engineering 3.0% 26,100 Sales/customer management/business development 3.1% 26,500 Financial management 2.9% 27,750 Science 2.8% 26,000 Electrical/electronic engineering 1.8% 26,100 Actuarial work 0.8% 30,011 Human resources 0.8% 27,000 Marketing 0.8% 27,000 Purchasing 0.8% 27,000 Manufacturing engineering 0.9% 29,000 Research and development 0.8% 27,500 Logistics 0.7% 27,000 Other 14.4% 27,000 30

31 Chapter 3 Many different sectors are often competing for the same talent. As an example, 34% of employers hire graduates to fill IT roles, and these types of vacancies are available across ten different sectors including over half of retail firms and two-thirds of energy, water or utility companies. Employers should look outside their sector when benchmarking the level of competition for qualified candidates. Share of employers recruiting graduates into IT roles - Retail: 67% Figure 19: Share of employers recruiting graduates into IT roles 183 employers with 21,093 graduate hires? Questions to explore: Many different sectors are often competing for the same talent. As an example, 34% of employers hire graduates to fill IT roles, and these types of vacancies are available across ten different sectors including over half of retail firms and two-thirds of energy, water or utility companies. Which of these types of roles are expected to be hardest to fill in three years time? How might student choices differ if they were aware of this labour market information before going to university? 31

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33 Chapter 4 Apprenticeships This chapter provides benchmarks for how graduate employers are recruiting apprentices and the level of competition for apprenticeship talent. It includes the use of intermediate, advanced and higher apprentices in different sectors as well as median starting salaries, applications per vacancy, the expected impact of the apprenticeship levy and the development of higher apprenticeships. Levels, hires and salaries 55% of graduate employers currently recruit apprentices, with responding employers offering 10,110 of these opportunities in total. The most common type of apprenticeships offered are intermediate level apprenticeships (52% of the total). The breakdown of types of apprenticeships offered and median starting salaries for each are shown below. Employers are paying apprenticeships far above the minimum wage. Share of AGR employers hiring advanced level apprentices 27% Table 4.1: Levels of apprenticeships offered by AGR employers Name Level Equivalent Share of Median Number of educational level employers hiring starting salary vacancies Intermediate 2 5 GCSE passes at grades A* to C 28% 14,000 5,148 Advanced 3 2 A level passes 27% 14,050 3,058 Higher 4,5,6, 7 Foundation degree and above 23% 16,000 1,735 Degree 6 and 7 Bachelor s or master s degree Source of apprentice definitions: Vacancies based on 115 employers who provided a breakdown. 10,110 apprenticeships were offered in total. 55% of graduate employers currently recruit apprentices, with responding employers offering 10,110 of these opportunities in total. Figure 20: Share of 9,941 apprentices at different levels of apprenticeship 115 employers who provided a breakdown. 33

34 Chapter 4 The sectors hiring the highest volumes of apprenticeships are shown below. Graduate employers in retail, banking and energy firms employ the largest volumes of intermediate level apprenticeships. Accounting, engineering and banking employers hire the largest volumes of higher apprenticeships. It is clear that different levels of apprenticeships fill different types of business needs and so vary in attractiveness for different sectors. Most employers pay apprentices far above the minimum wage of 6,900 annually ( 3.30 per hour). The median starting salary for an intermediate level apprentice is 14,000, rising to 16,000 for a higher level apprenticeship. A limited number of sectors also provided enough responses to establish salary benchmarks. Banking firms paid a median starting salary of 15,015 for an intermediate level apprentice and 17,500 for an advanced level apprentice. Construction firms paid 11,500 to intermediate level apprentices and 18,000 to higher level apprentices. Engineering firms paid 12,000 to advanced level apprentices and 14,250 to higher level apprentices. Table 4.2: Apprenticeship vacancies with graduate employers in 2016 Intermediate Advanced Higher Total % of 5,148 % of 3,058 % of 1,735 vacancies vacancies vacancies Banking or financial services 19% 28% 10% 22% Retail 27% 2% 5% 18% Engineering or industrial company 2% 39% 22% 17% Public sector 14% 3% 1% 10% Construction company or consultancy 9% 4% 7% 8% Accountancy or professional services 2% 0% 30% 6% Energy, water or utility company 16% 9% 7% 5% Other 12% 16% 19% 15% Note: only includes sectors which provided a breakdown and represent at least 5% of total apprenticeship vacancies. Table 4.3: Minimum wage levels in 2016 Apprentices Under to to and over Source: Questions to explore:? What is the total cost of recruiting an apprentice? What level of support and mentoring from mid-level and experienced staff is needed to develop an apprentice, and what is the availability of this support? What progression opportunities does your organisation offer apprentices, and how are these embedded into your talent strategy? How does the performance and retention of apprentices vary to that of graduate hires? 34

35 Chapter 4 Offers to apprentices Roughly equal shares of employers are hiring apprentices on fixed-term contracts as opposed to permanent contracts. According to employers, this is because the nature of the business needs that apprentices are filling are often very specific and opportunities for progression are different to those for graduates. 15% of employers offer a London bonus, suggesting that this kind of incentive is worth considering for those London employers looking to attract the best apprenticeship talent. BONUS PAID AFTER JOINING 7.6% Figure 21: Offers to apprentices in employers with 14,860 graduate hires? Questions to explore: How do total rewards packages for apprenticeships compare with total rewards packages for graduates? How do school leavers willingness to move regions compare with graduates willingness to move regions? According to employers, this is because the nature of business need that apprentices are filling is often very specific. 15% of employers offer a London bonus, suggesting that this kind of incentive is worth considering for those London employers looking to attract the best apprenticeship talent. 35

36 Chapter 4 Applications per vacancy Student applications for apprenticeships are currently not as high as those for graduates. On average, graduate employers receive 22 applications per apprenticeship vacancy compared to 68 applications for every graduate vacancy. The most popular sectors for apprenticeships are investment banks, energy, water or utility firms and FMCG companies. As competition for the best apprenticeship talent increases, employers should consider benchmarking the volume of applications they receive as a guide to the attractiveness of their offer. Overall Applications per vacancy for apprenticeships 22 Figure 22: Applications per vacancy for apprenticeships, by sector 79 employers with 12,469 graduate hires On average, graduate employers receive 22 applications per apprenticeship vacancy compared to 68 applications for every graduate vacancy. The most popular sectors for apprenticeships are investment banks, energy, water or utility firms and FMCG companies.? Questions to explore: What is the diversity of your apprenticeship applicants? How might your methods of attraction & marketing for apprenticeships need to be different to those for graduates? What forms of collaboration with other organisations are most effective at increasing the attractiveness of apprenticeships to students? 36

37 Chapter 4 Minimum entry criteria Entry criteria for apprentices and school leavers are very different to those for graduates. The most common criteria for these programmes were UCAS tariffs, despite the primary purpose of these tariffs being a way of assisting entry into higher education. The average level of tariff used was 290 points, although listed tariffs varied between a range of 240 and % of firms have no minimum entry criteria at all, compared to 11% for graduates. 12% of employers require their apprentices/school leavers to have 5 GCSE s. Figure 23: Minimum entry criteria for school leavers/apprentices in employers with 10,246 apprentice and school leaver hires Other criteria were varied. The most common GCSE subjects sought by employers were English and Maths. Other comments mentioned flexible entry that includes...ucas, work experience, values and achievements, Enthusiasm and willingness to learn, and use of a balanced scorecard. Tailored approaches were also listed: Typically 300 UCAS points for the sponsored degree programme and varies for the apprentices. The statistics above have caveats and should be treated as a guide only. There are many types of apprenticeship and school leaver programmes and not all criteria apply to all programmes. However, these benchmarks also reflect a lack of standardised approaches to identifying the best school leaver and apprentice talent. This is expected to change as the apprenticeship market gets more competitive. Questions to explore:? How do different entry criteria affect the diversity of apprenticeship applicants? How might suitable entry criteria vary for different levels of apprenticeship? How do skills gaps for apprenticeship hires vary to those for graduates? How can performance data on existing apprentices be used to identify the most appropriate entry criteria for new hires? Is a student s performance in specific subjects more important than their overall grades? 37

38 Chapter 4 Impact of apprentice levy The apprenticeship levy will affect graduate recruitment in 2017 but the extent of these changes is still unclear. 32% of employers don t know what the impact will be, with comments including 2017 too soon to have significant impact, despite prep work being underway in-house. 36% also expect that it will only have a marginal impact e.g. Graduate programme to continue as independent from other areas of recruitment. However, the employers who don t know represent 8,659 graduate vacancies this year so their responses to the levy could significantly shape the student talent market. Some employers are expecting major changes. One in eight organisations stated that the levy would lead to graduate roles repackaged as degree apprenticeships, with one employer stating 10% of graduate roles repackaged as degree apprenticeships. Another stated We have actually cancelled our graduate programme for 2016 to focus on the launch and design of our first apprenticeship programme. Another commented More focus on reskilling our existing workforce and bringing in more apprentices at all levels. Figure 24: Expected impact of apprenticeship levy on graduate hiring volumes in employers with 21,063 graduate hires Questions to explore:? When will apprenticeship strategies be in place in your organisation and what impact might this have on your resourcing and graduate recruitment? What is the optimal balance of apprentices and graduates in your organisation? Is there an upper limit to the volumes of apprenticeships that can add value to your organisation? 38

39 Chapter 4 Developing higher apprenticeships 37% of employers have developed, or are developing higher apprenticeships in multiple career areas. 18% have developed or are developing higher apprenticeships in just one career area. A wide variety of career areas are represented as shown in Figure 25. Higher apprenticeships for IT, accountancy and human resources roles are the most commonly used and planned. Figure 25: Share of employers who have developed or plan to develop higher apprenticeships 179 employers with 21,063 graduate hires Employers have and are developing higher apprenticeships in many career areas too. These include areas as diverse as quantity surveying, construction management, insurance underwriting, building services engineering, relationship management, business administration and project management. Organisations are taking the development of apprenticeships seriously. The above percentages are expected to increase over the next twelve months. Some employers are waiting on internal changes before doing more:? Questions to explore: How might the apprenticeship levy affect the volume of higher apprenticeships? Which career areas are likely to experience the largest growth in higher apprenticeships in future? How can employers collaborate more effectively on the development of these? What is the role of higher education institutions in this development? we are in the process of devising an organisation-wide apprenticeship strategy. Other firms are waiting for more details of what the apprenticeship levy will look like: [we are] waiting to understand impact if e.g. students already have Masters degrees on levy funding for level 7 professional qualifications and If apprenticeship Levy comes in we will develop a plan. 39

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41 Chapter 5 Internships and placements This chapter covers the use of internships and placements within different sectors, as well as median salaries paid and applications per vacancy to help employers benchmark their offers and the attractiveness of these offers to students. Hires and salaries 73% of employers hired interns and 48% of employers hired industrial placement students in For the purposes of this report, an industrial placement is a fixed-term period of work that forms part of a degree and usually lasts between 6-12 months. A summer internship is usually between 6-12 weeks, but could be as little as two weeks during the summer holidays. Different sectors recruit different volumes of interns and placements. Banks hire interns in the largest volumes and pay the highest median starting salaries for both types of talent ( 21-30,000 for interns and 23,000 for placements). Engineering and accountancy firms also make high use of interns. By contract, engineering or industrial companies and retail firms hire placement students in the highest volumes. The median salary for a placement student at an engineering or industrial firm is 16,500 a year. Table 5.1: Intern and placement hires and salaries in 2016 % of 9,390 % of 3,269 Median Median By sector intern hires placement intern placement hires salary salary Overall 100% 100% 17,160 17,500 Banking or financial services 22.2% 6.5% 21,000 23,000 Accountancy or professional services firm 17.4% 8.0% 18,000 19,663 Law firms 17.0% <1% 16,900 - Engineering or industrial company 10.2% 19.9% 16,500 17,000 Retail 7.9% 7.9% 18,000 17,500 Public sector 7.2% 2.7% 16,382 - Construction company or consultancy 5.8% 3.9% 16,500 17,500 FMCG company 2.4% 7.0% 18,000 18,000 Energy, water or utility company 2.0% 4.1% 15,800 16,250 Investment banking 1.9% <1% 30,000 - IT & Telecommunications <1% 15.6% - 17,000 Salaries based on 128 employers who provided internship salary info and 89 employers who provided placement salary info. Blanks indicate not enough respondents to establish a trend. 41

42 Chapter 5 Median salaries for both interns and placement students rose in Intern salaries rose by 4% to 330/week, while industrial placement salaries rose 3% to 337/week. Industrial placement students have historically been paid more than interns but the gap is narrowing. This suggests that the value of interns to organisations is steadily increasing, as well as reflecting increased levels of competition in the market. Figure 26: Median weekly salary for interns and placement students 128 employers with 7,564 interns and 89 employers with 2,982 industrial placement students. Note: axis begins at 300. Source for previous years: AGR 2015 Annual Survey, AGR 2014 Summer Survey. Questions to explore:? How can employers and universities encourage more students to apply for internships? Which UK regions have seen the largest growth in internship vacancies? What is the most effective way to embed skills training into an internship programme? How does the level of support and skills training for interns vary by sector? 2016 Median weekly salary for interns

43 Chapter 5 the Applications per vacancy Internships receive an average of 40 applications per vacancy in This is a higher ratio than for apprenticeship vacancies but a lower ratio than for graduate vacancies. Opportunities at investment banks, public sector and other types of banks appear to be the most attractive to students. Figure 27: Average applications per internship vacancy, by sector 129 employers with 19,425 graduate hires Questions to explore:? How do student motivations for applying to internships vary by subject? Which methods of attraction & marketing are most effective for finding suitable interns? How can organisations attract more local students to internships? How can universities and employers encourage more applications from candidates who come from low socio-economic backgrounds? Investment bank or fund managers - average applications per internship vacancy

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45 Chapter 6 Securing resources This chapter provides benchmarks for employers financial investment in recruiting graduates. Key insights include estimates of cost per hire by sector and by size of intake, as well as use of outsourcing, typical team sizes and average ratios of hires per recruiter. Cost per hire estimates This is the second year that AGR has been able to produce average cost per hire estimates for graduates. Employers spent an average of 3,383 to recruit each graduate in 2016 compared to 3,396 in This average excludes law firms due to the high spend in that sector, and includes two components: attraction & marketing spend ( 1,722 per hire), and selection & assessment spend ( 1,661 per hire). Average cost per hire varies significantly by sector as shown below. Figure 28: Recruitment cost per hire of AGR employers, by sector 110 employers with 15,792 graduate hires These figures can also be used to estimate the total spend on graduate recruitment across the industry. Multiplying the 3,383 cost per hire by this year s 21,711 non-legal graduate hires, then accounting for the 1,249 graduates in the legal sector with a higher cost per hire, gives a total spend of 82 million. These cost per hire estimates have caveats and should be used with care. They only cover two components of spend and exclude money spent on team salaries and graduate salaries. Different businesses also include different activities within their marketing and assessment budgets. However, these estimates can act as a guide to aid in reviewing budgets, securing resources internally, and securing investment. These cost per hire estimates have caveats and should be used with care. They only cover two components of spend and exclude money spent on team salaries and graduate salaries. 45

46 Chapter 6 Cost per hire shows economies of scale and decreases for larger intakes. Employers who recruit less than 15 graduates typically spend 5,263 per hire, while the largest intakes spend 1,805 per hire. Selection & assessment spend also appears to drop dramatically for intakes of more than 50 hires, while attraction & marketing spend appears to drop dramatically for intakes of more than 100 hires. Figure 29: Estimated recruitment cost per hire, by size of intake 110 employers with 15,792 graduate hires Marketing cost per hire appears to have decreased in 2015 and then increased again in These benchmarks are based only on those employers who provided marketing data in the last three years, so come from a smaller sample of employers than for Figure 28. However, the trend of decreasing and then increasing cost per hire is consistent across most sectors with available data. Figure 30: Estimated average marketing spend per hire over three years 64 employers with 10,348 graduate hires in 2016 Note: only employers with data in all three years. Source of past data is 2015 AGR Winter Survey. Benchmarks are different to Figure 28 due to a different and smaller sample of employers. 46

47 Chapter 6 Employers appear to allocate roughly equal amounts of money to recruiting and developing graduates. Based on 43 employers with information on both aspects of cost per hire, 48% of their total spend was on recruitment. This data has caveats it is a combination of recruitment information from 2016 and development information from 2015, and is from a limited sample of employers but it does provide a rough guide as to how employers are allocating their resources. Construction firms appear to invest proportionally more in on-the-job training for graduates compared with other sectors. Figure 31: Estimated balance of recruitment & development spend per graduate hire 43 employers with 2,585 graduate hires Note: Development spends based on one hire across a two-year development programme. Source of past data is 2015 AGR Development Survey. Questions to explore:? Share How low can marketing spend per hire go without affecting the quality of hires? What might be the ideal balance of recruitment and development spend, by sector? To what extent can the use of outsourcing affect these costs? of spend allocated to development construction 62% 47

48 Chapter 6 Use of outsourcing 39% of employers outsource at least one component of their recruitment campaigns, although most individual activities are done in-house. Phone and video interviews are the activities most commonly outsourced either partially or completely at 33% and 31% respectively. Final face-to-face interviews are the least commonly outsourced with only 2% of employers outsourcing these. Figure 32: Level of outsourcing of various recruitment activities 189 employers with 21,152 graduate hires Outsourcing has a range of benefits for those employers who use outsourced services. For example, according to an accountancy or professional services employer Outsourcing our first stage interviews has made a significant contribution to reducing our time-to-offer as this has allowed us to be far more responsive to peaks in candidate volumes and overcome the challenge of resourcing interviews internally during periods of intense business activity. Candidates are invited to self-schedule their interview via an online portal, providing individuals with the flexibility to schedule an interview around their own availability whether during the day, evening or even weekend. According to an FMCG employer We outsource elements of our graduate recruitment activities for five key reasons. These include allowing us to deliver an effective candidate experience with a relatively small internal team, being able to utilize the experience and knowledge that suppliers bring to the table, and achieving efficiencies of scale. Outsourcing also allows our team to be more strategic without being held back by administrative tasks, and gives us a Tap on Tap off service reducing the requirement for a permanent large team in-house. While another employers commented For us, outsourcing is about optimisation of resource we fundamentally don t have capacity to sift, screen and interview new candidates whilst continuing to develop our current graduates across the different year groups internally. Outsourcing helps us to delivery to internal timescales at reduced cost.? Questions to explore: What are the benefits and drawbacks of outsourcing interviews? How can your organisation strengthen partnerships with outsourced service providers? How can you gain internal stakeholder buy-in for outsourcing services? How does your organisation calculate the return on investment of outsourcing? 48

49 Chapter 6 Hires per recruiter There are typically 5.4 staff members in a student recruitment team, with larger teams for the largest intakes. For example, organisations which recruit fewer than 25 graduates typically only have three employees in their recruitment team, while organisations which recruit more than 500 graduates typically have thirty. The large jump in size for the largest intakes reflects the fact that some of these employers hire over a thousand graduates a year. Figure 33: Average team size, by size of graduate intake 175 employers with 19,853 graduate hires Most teams recruit more than one form of student talent. For example, 89% of employers combine graduate and intern recruitment within a single team. As a result, the most appropriate benchmark for the average number of hires per recruiter is the total number of graduates and interns recruited, as opposed to the number of graduates alone. Figure 34: Structure of recruitment teams 197 employers with 22,164 graduate hires Share of teams combining graduate & intern recruitment 89% 49

50 Chapter 6 There is typically a total of 28 graduates and interns for every member of a student recruitment team. This ratio increases for large intakes: 14 hires per team member for those employers which hire less than 25 graduates, and 67 hires per team member for employers who hire graduates. The number of hires per team member is lower than last year with the decrease in graduate vacancies expected to be part of the reason. Figure 35: Average hires per recruiter, by size of graduate intake 174 employers (2016), 138 employers (2015) Note: ratios do not indicate direct responsibility for hiring. Source of 2015 data is AGR/Mercer Survey.? Questions to explore: How might the apprenticeship levy affect the structure of student recruitment teams? What organisational models of recruitment teams are most effective? What expertise from graduate recruitment is transferable to apprenticeship recruitment? Average hires per recruiter, by size of graduate intake graduates (2016) 49 50

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52 Chapter 7 Attracting candidates This chapter reviews methods of attracting student candidates and benchmarks for this type of activity. It includes the number of universities and schools visited and hired from, and the most common ways in which employers engage with universities. Number of universities visited Employers hire from more universities than they visit. They typically visit 20 universities and hire from 30, but there are wide variations by sector. Accountancy and public sector firms typically hire from the most, while retail employers visit the most. Law firms typically hire from the fewest universities and investment banks typically visit the fewest. Figure 36: Universities visited versus hired from in employers with 15,386 graduate hires Note: only those employers who provided information on both visited universities and those hired from.? Questions to explore: Use of digital marketing is part of the reason for this difference. According to AGR s 2015 Winter Survey, more than half of employers now have a budget for marketing via social media. Use of such a budget also rose from 44% of employers in 2014 to 54% of employers in However, this form of marketing appears to complement on-campus activity rather than substituting for it. The three sectors most likely to make use of digital marketing accounting, FMCG and banking - are not the three sectors which hire from the most universities or visit the fewest. Would changing the specific universities visited affect the levels of reneged offers? What is the total cost in terms of staff time for university visits? What are the applicant-tohire conversion rates for different forms of digital marketing? 52

53 Chapter 7 Engagement with universities The overwhelming majority of employers are active on university campuses with 95% of employers engaging with universities. Attending careers fairs is the most common way to engage, with 91% of employers taking part in at least one of these, although 49% of employers state that they try to engage with students directly in ways such as sponsoring networking drinks. Employers are proactively creating a wide variety of ways for talented students to engage with their organisations. Figure 37: Methods of engagement with universities 194 employers with 22,154 graduate hires Other forms of engagement were extremely varied. These included business games, student competitions, scholarships, in-house events, lectures, drop-in sessions, mock interviews, speaker panels, fast track recruitment events and employer involvement in advisory boards. 5% of firms listed student brand managers, reflecting the importance of connecting current graduate employees with students. A specific example of doing this was we developed a programme of campus activities where this year s graduates went back to their universities and engaged informally. Share of employers running bespoke events 53% However, the extent of university engagement is also limited by business resources. We were not able to engage due to resource limitations stated one organisation. Another mentioned We only target 10 universities due to budget and we have nominated graduates who are alumni [and] lead all engagement.? Questions to explore: What volume of hires come via digital methods compared to university visits? What is the return on investment of different forms of employer activity on campus? How can universities and employers collaborate more effectively? 53

54 Chapter 7 Number of schools visited Employers visit more schools for recruitment purposes than they hire from the reverse of the trends for hiring graduates. This suggests that it is more difficult to encourage students to apply to school leaver/ apprenticeship programmes. As one employer put it, Getting students excited about apprenticeships and encouraging them to consider this as a pathway is a major challenge. Another reason for this difference is that employer activity in schools has a wider variety of objectives: 23% of employers collaborate on promoting apprenticeships and 20% collaborate on promoting STEM subjects. The school leaver and graduate markets require very different approaches. Figure 38: Number of universities and schools engaged with 25 employers (schools), 141 employers (universities). Note: Schools figure is only for those employers who recruit apprentices/school leavers and visited at least one school.? Questions to explore: schools visited for apprentice/school leaver recruitment 26 Is there a role for employers to play in improving careers guidance at schools? How should support for employability skills vary between school leavers and graduates? Which student misconceptions about employers are easiest or hardest to overturn? What does a great opportunity for a school leaver or apprentice look like? Which methods of attraction & marketing are not transferable from the graduate market to the school leaver market? 54

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56 Chapter 8 Selecting candidates This chapter highlights common methods used by employers to assess and select their candidates. Insights include time to offer, use of selection instruments, use of specific named psychometric tests, and the share of employers asking for feedback on their process. Time to offer The average time between students applying for a job and receiving an offer ( time to offer ) is very similar across different forms of student talent. It currently stands at around 10 weeks for graduates and 9 weeks for interns. Law firms and energy, water or utility firms have the longest time to offer, whilst banks and accountancy firms have the shortest. This indicates that there is scope for efficiency gains. Table 8.1: Type of student talent Time to offer (weeks) Graduates 10 Apprentices 8 School leavers 9 Summer interns 9 Figure 39: Time to offer (weeks) for graduates and interns in employers with 16,297 graduate hires. Note: only those employers with information on both types of talent. 56

57 Chapter 8 These estimates should be used as a guide only for the relative efficiency of different sectors. Many employers who answered this question estimated time to offer as a range rather than an exact number of weeks. Others made specific comments about the inherent variability of their selection process. These comments highlighted the various factors which can affect time to offer. One employer mentioned the influence of candidate behaviour: depends heavily on when they apply within the nine week period of applications being open. Another referred to the model of recruitment being used: we do not do rolling recruitment, we review all applications after the deadline which can increase the time to offer. Business needs also come into play: very variable depending on how firm demand is, candidate pipeline, room and assessor availability. Other factors outside of the control of recruiters include some assessment centres run early so has increased average time to hire for overall figures and this is approximate and depends on when the first available assessment centre is rather than efficiency of process. Still, efficiency gains are still possible: We tend to extend offers within 24 hours of an Assessment Centre taking place mentioned one firm.? Questions to explore: Will a reduced time to offer mean an increase in the share of candidates who accept offers? In your organisation, where could your selection process be more efficient? Would making offers earlier or later in the season affect the level of reneges and declines? How does a shorter time to offer affect candidate experience? What keep warm/ engagement activities does your organisation have in place post-offer? Time to offer for 11 graduates in Law in weeks we do not do rolling recruitment, we review all applications after the deadline which can increase the time to offer 57

58 Chapter 8 Selection instruments Graduate employers select the best candidates via a variety of selection instruments. Assessment centres are the most common with 93% of employers using these. In 2016 there have also been increases in the share of employers using interviews, although the two trends are related: several employers mentioned that final face-to-face interviews are incorporated into their assessment centres. Figure 40: Changes in graduate selection instruments 122 employers with 17,386 graduate hires in 2016 Note: only those employers who provided information in both years. Phone interviews are used by 54% of employers and can provide a range of key benefits. One energy, water or utilities firm was able to list some of these: Telephone interviews are an integral part of our process and we expect to keep using them. This style of interviewing provides us with a chance for candidates to be assessed on their technical subject knowledge, allows us to probe further into their motivation for applying, and to assess the candidates understanding of our organisation. A focus on candidate experience and cost saving appears to be driving at least part of the increase in phone interviews. Both factors were highlighted by one accountancy or professional services employer We switched to phone interviews last year [from face-to-face interviews] to make it more convenient for candidates and speed up our application-to-outcome times by removing some of the scheduling delays inherent in face-to-face interviews. We were keen to eradicate any bottlenecks identified in the previous year s campaign, and improve candidate experience wherever possible and this allowed us to do both. A secondary but still important consideration was the savings it would offer in terms of the administrative support required and travel expenses payable. Use of video interviewing also continues to grow steadily. 42% of employers are now using the technology, up from just 6% only four years ago. In three sectors Investment banking, IT & telecommunications and the FMCG sector video interviewing is now being used by over half of employers. A need for efficiency is one driver contributing to the rise of this technology. As one FMCG employer stated We switched to video interviewing to meet one of our key business goals, which was better conversion rates of applicants to hires (particularly at the assessment centre phase, which is resource-intensive). Although we had been using pre-screened telephone interviews, we felt we had an opportunity to measure and manage conversion rates more robustly and worked very closely with a video interviewing provider to focus on this. This change absolutely delivered for us with a two-fold increase in conversion rates. There are wider benefits to video interviewing too, as indicated by a law firm. Video interviewing has had many benefits for us in our graduate recruitment process. It has allowed us to increase the number of candidates we take through from application form 58

59 Chapter 8 stage and thus increase the diversity of individuals who we see. It has saved time in terms of conducting first stage interviews and making decisions as the interviews are shorter and candidates can be easily compared to one another. Finally it provides candidates with an easy to use platform and the flexibility to undertake the interview at a time that suits them. Employers are also using more than one form of video interviewing. A construction employer indicated We chose to use Skype interviewing this year as we prefer the convenience of a virtual interview with the face-to-face nature of a live interview. It gives us more flexibility in terms of our scheduling and enables us to easily reach candidates from around the country, without compromising on the interaction you get from a live encounter. Figure 41: Use of video interviewing, by sector 189 employers with 21,152 graduate hires (2016), varying numbers of respondents in other years Questions to explore:? Which model of interviewing provides the best return on investment for your organisation? What is the best way to prepare students for the experience of video interviewing? How does use of different selection instruments affect the diversity of applicants and hires? Including staff time, what is the total cost of using different selection instruments? 59

60 Chapter 8 Psychometric tests Employers are changing the types of psychometric tests they use as well as the application of these tests as mentioned in Chapter 2. There has been an increase of 1 percentage point in the use of situation judgement tests (SJTs), while use of verbal reasoning tests has dropped by 8 percentage points and use of personality tests has dropped by 3 percentage points. Organisations appear to be reviewing what works and adjusting their investments accordingly. Figure 42: Use of psychometric tests 180 employers (2016), 122 employers (2015), 66 employers (2014) Tests from the provider Saville & Holdsworth Limited (SHL) are the most commonly used by employers. 43% of employers selected SHL or mentioned their Occupational Personality Questionnaire (OPQ) when asked to name the specific psychometric tests they employ. The second most common provider is Saville consulting and the next most common tests are Watson-Glaser critical thinking tests. Figure 43: Use of named psychometric tests 100 employers with 13,474 graduate hires. Note: only those employers who used psychometric tests and named the specific tests they used. Overall, employers are using psychometric tests from at least fifteen different providers. Korn Ferry, Psytech, Cubiks, Kenexa/IBM, Jobmi, eras, Penna, Criterion Partnership, and Pearn Candola were some of the other providers that were mentioned. Some employers highlighted that they use their own: All tests were created in house and are bespoke. The share of employers using different providers is likely to change as more organisations become aware of the range of tests that are available. 60

61 Chapter 8? Questions to explore: What metrics does your organisation use to assess the relative usefulness of different psychometric tests? How might changing the pass rates for psychometric tests affect the diversity of your hires? How can universities and employers prepare students for taking psychometric tests? 61

62 Chapter 8 Feedback on the process There has been a large increase in the share of employers asking for feedback on their selection process this year. 92% of employers now do this, compared to 75% in There has been a rise of 14 percentage points both in the share of employers asking for feedback from successful candidates, and the share of employers asking for feedback from assessors. Given that candidate experience and reneged offers were some of recruiter s top challenges in the year ahead, this suggests that employers are actively trying to manage the experience of their candidates in order to increase their loyalty. Figure 44: Whether employers ask for feedback on their selection process 122 employers with 17,472 graduate hires in Note: only employers who provided information in both years. The most common place for collecting feedback from candidates was at assessment centres. We ask for feedback at the end of the assessment day, feedback from unsuccessful candidates limited to those at assessment centre stage (and only those who are willing to provide feedback), only at assessment centres and at the final point in the selection process stated employers. This is not surprising, given that these candidates have the most comprehensive insight on what the selection process is like. Employers expressed a desire to better understand the views of their candidates too. Specific comments included We want to get better at gathering feedback in the coming years, we have employed an external consultant to review our processes and make recommendations. Part of the new process will be to request feedback, and Talent partners in markets [are] involved in the process. Identifying effective ways to respond to candidate feedback is expected to be a priority in the year ahead. The student recruitment industry continues to evolve.? Questions to explore: When is the most appropriate time to ask assessors for feedback? What role can existing graduate hires play in designing selection processes? What types of feedback questions elicit the most useful and actionable responses? What are the most effective methods of delivering employer feedback to successful and unsuccessful candidates? 62

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64 Appendix Methodology & respondents Employer responses for this survey were captured via a web-link open for four weeks in July and August An invitation to complete the survey was ed to main contacts at 316 AGR employer members. 208 responses were received, representing a 66% response rate. The survey focussed on the October September 2016 recruitment season, based on expected hiring volumes at the time of survey collection. Responses were analysed via a mixture of statistical and manual methods. Statistical software was used to generate key statistics including frequencies, means and medians 2. Wherever possible, specific values perceived to be outliers (e.g. 100% above the next highest value in a particular sector) were checked with responding employers and updated, or excluded from the analysis. Annual salaries for interns were also converted into weekly salaries using the online tool To ensure reliability of the trends and to maintain the anonymity of respondents, the minimum threshold for reporting on a sector is five employer responses. The number of employers who responded to each question is listed below each graph. Data from a variety of previous AGR surveys has also been incorporated into this report in order to establish trends. These surveys are listed below, and are available for AGR members on request. Employer responses from the 2015 AGR Annual Survey and 2015 Winter Survey were used to establish vacancy trends for graduates/interns and apprenticeships respectively. Other trends are based on data from the same employers in different years wherever possible, in order to maximise their robustness of the findings. Table A: AGR surveys used to compile this report Published AGR 2016 Supplier Survey October 2016* AGR 2016 Diversity Survey June 2016 AGR 2016 Development Survey March 2016 AGR 2015 Annual Survey September 2015 AGR/Mercer 2015 Survey How do you and your team compare? June 2015 AGR 2015 Winter Survey January 2015 *expected date of publication at time of this report s publication. 2 A frequency reports the proportion of respondents giving a specific answer. A mean (average) is calculated by adding together all of our results and then dividing it by the total number of respondents. A median is the number obtained by placing all of the responses to a given question together in order of their value, and selecting the middle value. Where there is no single middle value, the two middle values are added together and divided by two. 64

65 Appendix Profile of respondents As in previous years, survey respondents represent a wide variety of organisations and are a robust proxy to the wider market of graduate employers. The 208 AGR employers who responded expect to hire a total of 33,755 graduates, apprentices and school leavers in These employers have an estimated 3,039,000 employees in their respective companies, meaning that they collectively represent around 10% of the UK workforce. More than 17 business sectors responded to the survey. The largest share of responses came from law firms (19.7%), banking or financial services firms (10.1%) and engineering or industrial companies (10.1%). Trends in 2016 include higher representation from law firms, and lower representation from engineering and industrial firms. Other sectors include chemical and pharmaceuticals, insurance, motor manufacturers and oil companies. Figure 45: Business sector of responding organisations 208 employers with 22,960 graduate hires Share of respondents from legal sector 19.7% The 208 AGR employers who responded expect to hire a total of 33,755 graduates, apprentices and school leavers in These employers have an estimated 3,039,000 employees in their respective companies, meaning that they collectively represent around 10% of the UK workforce. 65

66 Appendix Respondents also represented a roughly equal spread of business sizes, as shown below. Around half (45%) of responding organisations employed less than 2,500 staff, which is an increase on the 40% of respondents of this size in % of responding organisations employed more than 250 employees. Figure 46: Business size of responding organisations 208 employers with 22,960 graduate hires Note: slightly different bands in 2015 e.g employees as opposed to 251-1,000 A wide range of sizes of graduate intake are also represented. Just over half (55%) of respondents recruited between 1 and 50 graduates. Around 4% of employers did not recruit graduates this year. Those employers who commented on the reasons for not recruiting indicated a pause in activity rather than a complete stop. Figure 47: Size of graduate intake of responding organisations 208 employers with 22,960 graduate hires 66

67 Responding organisations Responding organisations Survey respondents are listed below in alphabetical order. 3M Aberdeen Asset Management Accenture Advanced Computer Software Group AECOM Ltd AIG Europe Ltd Allen And Overy LLP American Express Aon Arcadis Ark Arriva ASDA Stores Ashurst Associated British Foods Ltd Atkins Limited Aviva AXA Babcock International Group BAE Systems Plc Baillie Gifford Bank of England Barclays Bank Barratt Developments Plc BDO Services Ltd Bentley Motors Ltd Berwin Leighton Paisner Bird & Bird LLP Bloomberg BNP Paribas CIB Boots UK Ltd Bristows LLP British Council Burges Salmon Company Limited Burness Paull Capgemini UK Plc CBRE Ltd Centrica CGI IT UK Ltd CH2M HILL United Kingdom Charles Russell Speechlys LLP CHP Consulting Citigroup Civil Service Resourcing Clifford Chance LLP Commerzbank AG Costain Cummins Ltd Danone Ltd DCC Plc Dechert LLP Defence Science & Technology Laboratory Deloitte Dentons UKMEA LLP DHL Diageo Great Britain Dixon Wilson DLA Piper UK LLP DNV GL DWF LLP Dyson Ltd E.ON UK EDF Energy Enterprise Rent-A-Car 67

68 Responding organisations Essentra Plc Evercore Expedia.Com Ltd Explore Learning EY FDM Group Ltd Fidelity International Financial Conduct Authority First Group Holdings Firstco Ltd Frontline Fujitsu GlaxoSmithKline Goldman Sachs International Government Legal Service Gowling WLG (UK) LLP Grant Thornton UK LLP G-Research Herbert Smith Freehills LLP Hilton Worldwide Hogan Lovells International LLP Howard Kennedy LLP HSBC Hymans Robertson IBM UK Ltd ICAP Plc IG Group IHG IMI Plc Imperial Tobacco Ltd Interserve Plc Investment 2020 J Sainsbury Plc Jacobs UK Ltd Jaguar Land Rover Limited JLL John Lewis Partnership Johnson Matthey Plc Kellogg Marketing & Sales Company Ltd Kennedys Kent County Council KFC King & Wood Mallesons LLP Kingfisher Plc Kirkland & Ellis International LLP KPMG LLP Kuehne & Nagel Ltd Laing O Rourke Latham & Watkins Lidl UK Lloyds Banking Group Lloyd s Register Local Government Association Lockheed Martin London Stock Exchange Group L Oréal M&G Investments Mace Ltd MacFarlanes Macquarie Group Limited Majestic Wine Warehouses Ltd Marks & Spencer Plc Mayer Brown International LLP Mazars LLP MBDA McDonalds Restaurants Ltd McKinsey & Company Merlin Entertainments Group Michelmores Microsoft Mills & Reeve Mott MacDonald Ltd 68

69 Responding organisations Nabarro LLP National Audit Office National Grid National Instruments Nestlé UK Ltd Network Rail New Look NFU Mutual NHS Leadership Academy Norges Bank Investment Management Norton Rose Fulbright LLP nucleargraduates Olswang Ove Arup and Partners International Ltd Pendragon Plc Pinsent Masons LLP Police Now Primark Procter & Gamble UK PwC QinetiQ Group Plc Redrow Homes Reed Smith LLP Rolls-Royce Plc Royal Bank of Canada Royal Bank of Scotland Group RWE Npower Ltd Saffery Champness Sanctuary Group Santander Schroders Science & Technology Facilities Council ScottishPower/ Iberdrola Severn Trent Water Shearman & Sterling (London) LLP Shell International Ltd Sig Plc Simmons & Simmons LLP Sky Smith & Williamson Specsavers Squire Patton Boggs (UK) LLP SSE Plc St. James s Place Wealth Management Standard Life Assurance Company Stephenson Harwood LLP Taylor Vinters LLP Taylor Wessing Services Ltd Teach First Telefonica O2 UK Ltd Tesco Stores Ltd Thales Group Ltd The Highways Agency The Whitehall & Industry Group Think Ahead Thomson Reuters TLT LLP Transport for London Travers Smith LLP Travis Perkins Plc Unipart Group Virgin Media VMware Vodafone Group Wates Group Ltd Watson Farley & Williams LLP Weil, Gotshal & Manges Wellcome Trust Willis Towers Watson Wood Group PSN WSP Group / Parsons Brinckerhoff 69

70 Notes Notes 70

71 Founded in 1968, the Association of Graduate Recruiters is an independent, not-for-profit organisation dedicated to supporting employers in all aspects of graduate recruitment and development. Our aim is to set the agenda for change in graduate recruitment and development and our unrivalled knowledge and experience in this field gives employers the edge.

72 The Association of Graduate Recruiters 6 Bath Place, Rivington Street, London, EC2A 3JE