LOVE THEM OR LOSE THEM

1. LOVE THEM OR LOSE THEM Carl GilleardChief ExecutiveAGR

2. “The top 10% retain 80% of their graduates over 5 years, the bottom 10% lose 80% over the same length of time. The difference in costs amounts to £2.5m.” AGR Research • Issues: • Does it matter? • Why do some businesses do so much better than others? • What can be done to improve retention rates? • Raises other questions – why do we recruit graduates in the first place?

3. The findings of ‘Should I Stay or Should I Go’ • Tell it how it is • Love them or lose them • Graduates work to live • Graduates are prepared to take charge of their careers but need support • Danger point at the end of the training – “riding the waves” • Source: Jane Sturges and David Guest / AGR Research

4. Generation Y Characteristics • Me me me! • Want it all and want it now • Must feel valued • Want to make a difference • Success driven • Demand feedback • Must be connected at all times

5. Generation Y – Values • Long-term career development and multiple experiences in a single organisation • Sense of purpose and meaning to the work • Access to mentors and other champions • Work-life flexibility • Open social networks that embrace open / honest communication • Source: Deloitte (2004)

6. Facts and figures • When would you expect to be promoted? • In the first six months 8% • In the first 12 months 52% • In the first 2 years 36% • Longer than that 7% • What do you feel is a reasonable length of time to stay with one employer? • Less than one year 2% • One to two years 34% • Two to three years 57% • Four or more years 7% • Source: Ask Gen Y

7. Dr Paul Redmond, University of Liverpool

8. Quote - Unquote “You feel a certain loyalty to them because they delivered what they promised to deliver and probably a little bit more.” “They established high expectations of career progression and commitment to management trainees. We were told we were the Top Guns – we soon found out that wasn’t the case!”

9. Tell it how it is “The recruitment and selection process is key to bringing the kind of graduates into an organisation who are likely to want to stay with it in the longer term.” • Transparency and honesty in marketing • Emphasis on case studies • Use of real people (rather than models) • Two way recruitment (they are choosing you) • Feedback

10. “The Silo Mentality” • Resourcing and development functions too often fail to work closely together • HR professionals often have to make an early decision on whether to concentrate on resourcing or development • Each silo only has part of the picture • Rarely do the two sides share knowledge and agree common standards so that the expertise of the one informs the actions of the other • Source: Richard Alberg, Kenexa

11. Quote - Unquote “I work to live. I don’t live to work. I won’t be happy at work unless I’m happy in my social life.” “I want to do something that fits in with my domestic life. My family and my outside interests are very important and I want to find a balance between hard work and family life.” “The time I had to spend working away from London made me want to leave. Living in hotels is hardly an ideal lifestyle.”

12. Graduates work to live “Graduates loyalty to their employer depends on whether they feel they are able to balance their work life with their home life.” • Employers should take WLB seriously rather than encourage a culture where commitment is measured by the number of hours worked • Employees are unlikely to raise their concerns on this issue directly for fear of showing a lack of commitment • Not just an issue for those with young children • Ignoring evidence that graduates today measure their success in terms of work/home balance as well as organisational progression is likely to undermine the investment made.

13. Work life balance – reality or rhetoric? • AGR research project about to commence • Will consider WLB from both the employer v employee perspective • From the employee perspective will explore: • - the extent to which they want WLB • - what it means to them • - are they achieving it • - are employers meeting their expectations • From the employer perspective will explore: • - how they should and do facilitate WLB • - how salient an issue it is • - how seriously they treat it • - what might be considered good practice • Make recommendations for best practice

14. Quote - Unquote “The training scheme was the single biggest attraction to me personally.” “The more opportunities and positive experiences you have, the more good things you think are coming your way, and the more committed you become.” “There’s been absolutely nothing since I took up my appointment – we were well looked after and supported for a while and then it stopped.” “My line manager finds it frustrating the amount of time I spend doing training and development activities.”

15. Love them or lose them “Organisations must ensure that the development they provide for graduate recruits is of a high quality, relevant, timely and likely to develop skills for future as well as current jobs, if they wish to build long term loyalty.” • Catch 22 • Career planning • Career progression • Taking responsibility • Continued learning – structured training, professional courses and qualifications • Feedback • Support for line managers

16. Quote - Unquote “The support you are given is not sufficient – most management trainees struggle.” “Developing confidence is the biggest step in enabling you to do all this stuff off your own back.” “I’ve had help with managing my career from a management development person. I get advice from her, she’s a great sounding board. She highlights what I need to do next and how I’m going to get there.” “At the end of the day, it boils down to the line manager – most of the support for your development has to come from them.”

17. Graduates are prepared to take charge of their careers but need support “Organisations should not underestimate the amount of help with career development graduates expect and seek and the negative effect it is likely to have on their commitment if they do not receive this.” • Development more important than financial rewards • Not enough career management preparation prior to starting work • Build career management into the development programme • Mentoring and coaching • Line manager training • Social networking – graduate trainees helping each other • Recognition

18. Quote - Unquote “I was happy with what I got on the programme but now it’s stopped.” “I didn’t manage anyone for two years, then all of a sudden I’m managing five people.” “I’m still getting developed – their investment in me is continuing. Now they are talking about possible MBAs and I have faith that this will be delivered.” “I have not had any functional training to help me work in marketing.”

19. At the end of the programme; Lift off or fall off? “Graduates need to feel that their careers are progressing after they have completed their training programme if they are to remain loyal to their employer.” • Beyond the structured training programme – what next? • End of training often coincides with drop in motivation • Graduates feel they are cast adrift – plenty of support followed by no support • Line managers can make all the difference • The type of work graduates are given to do should be appropriate and they should be properly prepared for it

20. Practical Considerations • How long should the programme be? • 1, 2 or 3 years depending on outputs • 8% of members have increased the length • 6.4% have decreased the length • Are programmes specialist or generic in nature? • 43.7% are specialist • 33% are both • 21.8% are generic

21. Other issues • Mobility or the lack of it • Two-tier fast-tracking • Taking account of diversity • Managing expectations • What about the parents?

22. Why do graduates move on? Source: trendence Institute / AGR Graduate Recruitment Survey 2007 (Summer Review)

23. Retention and Generation Y “Retention to a Gen Y’er does not mean what it used to mean. If you mentioned staying with an organisation for life, they would probably be out of the door before you could say the word ‘pension’. • It is a myth that they are disloyal • Grown up with change – thrive on it • See movement as a response to a changing economy • Get to know them – understand their motives better • Crucial factor is line management • Keep challenging them • Act now to harness their desire for innovation and collaboration • Source: Ask Gen Y

24. Learn from those who leave • The issue of retention is incredibly complex • Some factors outside of control • Some movement is healthy • View movement positively rather than negatively • Exit interviews • Does moving on necessarily have to mean moving out?

25. Talent Management - getting beyond the clichés • Talent management is high on corporate agendas • HR is slightly obsessed with it • Thinking about their future supply of people in a more strategic way • Influenced by business and social change • Lack of future supply presents real dangers to business development • Effective succession planning • Source: Wendy Hirsch, Institute for Employment Studies

26. Effective Talent Management • Fine balance between meeting business needs and helping individuals achieve their own career goals • How many organisations really talk to their employees about their goals? • Actually helps to retain and motivate • Line managers need training to do this properly • Develop a clear, business relevant focus for talent management activity • Better quality dialogue with employees • Sustained and collective follow-up on the delivery of career development and skills development • Source: Wendy Hirsch, Institute for Employment Studies

27. Challenge – Embedding and sustaining talent management activities • Tendency to scrap, re-invent, re-launch slightly different processes • Negative effect on managers and workers • Keep it simple • Think and act long-term • Collective management of talent – managers and employees • Source: Wendy Hirsch, Institute for Employment Studies

28. Challenge – Measuring the added value • Adding Value Beyond MeasureDr Anthony Hesketh • FINDINGS: • Those graduates hired by AGR members contribute £1 billion of added value • Organisations no longer recruit axiomatically • Graduate recruitment forms a part of the annual human capital management programme • A key area in raising talent levels • Graduates bring: • Innovative change • The ability to cope with change • Speed to value • Thinking outside the box • Growing your own preferable to buying in experience • Linking the metrics with the financial performance of the business proving difficult

29. What is AGR doing? • The Graduate Score Card • As part of the AGR Standard – The Fifth Element, Graduate Development • Annual one-day conference • Annual award to recognise best practice • Work / life balance research

30. Thank you Any questions www.agr.org.uk