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TARGETjobs Breakfast News - April 2012


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TARGETjobs Breakfast News - April 2012

  1. 1. AGENDA FOR TODAY Welcome – Simon Rogers The economic forecast – Bryan Finn, Business Economics Ltd. A comprehensive analysis of the macro economic factors currently affecting graduate recruitment. Apprenticeships – Philip Taylor The BBC TV’s The Apprentice star will talk about the benefits to businesses and the support available in the development of a programme based on his work in the City of London Corporation. Graduates versus apprentices – Marcus Body, Head of Research, Work Group An exploration of the business rationale for graduate schemes and apprenticeship schemes, relative to each other and to standard lateral hiring. The world turned upside down or simply rebalancing? – John Morewood, Senior Apprenticeships and Qualifications Specialist, HSBC Bank plcA few years ago graduate recruitment was all the rage. Apprenticeships were dismissed as relics of a bygone age.Now apprenticeships are enjoying a resurgence – some ‘experts’ say they could replace graduate schemes in a few years. Who is right?
  2. 2. TARGETjobs high flying!• The fastest growing graduate recruitment website – finalists using grew by 10% this year with 90% finding it useful• Career Service Guides used by the highest quality students – Cambridge guide read by 65% of finalists• Our specialist sector titles continue to be the most useful publications on campus for finalists• TARGETjobs GET Directory finalist readership is 6% up Source: The UK Graduate Careers Survey 2012 produced by High Fliers Research
  3. 3. UK economy: GDP growthAnnual % change 6% 4% 2% 0% -2% -4% -6%
  4. 4. UK economy: recruitment cycleAnnual % change 6% GDP 20% Recruit 4% 10% 0% 2% -10% 0% -20% -30% -2% -40% -4% -50% -6% -60%
  5. 5. World economy: growth ratesAnnual % change 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10%
  6. 6. World economy: oil prices$ per barrel 130 120 110 100 90 80 70 60 50 40 30 20 10 0
  7. 7. UK economy: share pricesFTSE 100 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500
  8. 8. UK economy: retail sales Annual % change
  9. 9. UK economy: house pricesAnnual % change 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25%
  10. 10. UK economy: consumer confidenceBalance 10 5 0 -5 -10 -15 -20 -25 -30 -35 -40
  11. 11. UK economy: unemployment % of workforce 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0
  12. 12. UK economy: graduate unemployment
  13. 13. UK economy: job vacancies 000s 750 700 650 600 550 500 450 400
  14. 14. UK economy: job vacancies by sectorAnnual % change Nov 2011–Jan 2012
  15. 15. 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2012-0.5%-1.0% 2013-1.5%-2.0%
  16. 16. Apprenticeships: growth trends
  17. 17. Presswork : 1997–2003
  18. 18. Presswork : 2012
  19. 19. The value of my apprenticeship...
  20. 20. The evolution of….
  21. 21. City of London apprenticeships
  22. 22. Employer support
  23. 23. Our partners
  24. 24. The big picture
  25. 25. Eg engineering functions • Finite resource • Hard to recruit • Finite resource • Hard to recruit (and it’ll get worse…)
  26. 26. The case for inexperienced hireFor employers: – Cheaper to recruit – Lower salary costFor existing staff: – Opportunity to supervise – Greater promotion prospectsAnd the drawbacks: – More uncertainty – More training needed – The ‘Gen Y/Z’ thing…
  27. 27. Generation P‘The contempt of risk and the presumptuoushope of success, are in no period of lifemore active, than at the age at which youngpeople choose their professions.’
  28. 28. Apprentices vs grads Apprentices GraduatesMarketing cost £ £Hiring cost £ £Salary cost £ ££Training cost ££ ££‘High potential’ ? ?
  29. 29. Apprentices, grads, or both?Tricky question #1: Unless graduates stay long enough to achieve it, why is long-term ‘potential’ a factor?
  30. 30. Apprentices, grads, or both?Tricky question #2: Do all your ‘inexperienced’ hires need a degree at all?
  31. 31. Apprentices, grads, or both?Tricky question #3: Could you just cross out ‘graduate’ and recruit whoever passes the tests?
  32. 32. Apprentices, grads, or both?Tricky question #4: Could there actually be an argument for getting young people out of the education system sooner?
  33. 33. The education debate What is education for?
  34. 34. Introducing Seth Godin… • Yoyodyne (1995-1998) • Squidoo (2005-) • ‘Stop stealing dreams‘ (2012)
  35. 35. The history of education (UK)Education Act (1870): Reading, writing and arithmetic (primary)Balfour’s Act (1902): LEAs - some secondary provisionEducation Act (1944): Secondary education for all
  36. 36. Western economy jobsThen: Repetitive, disciplined, and formulaicNow: Machinery, MS Excel and off-shoring Jobs have changed. Has education?
  37. 37. Employment and education‘We are educating people out of their creativity.’ Sir Ken Robinson‘The majority of technical skills being taught in schools and universities will bedefunct by the time young people are 10 years into their careers.’ Gavin Patterson
  38. 38. Education and employmentWhy go to university?Cardiff University: ‘1: To improve career prospects.’ ‘Graduates tend to earn substantially more than people with A levels who did not go to university.’ You are at the centre of the case for higher education.
  39. 39. Not a ‘second best’ optionTricky question #5: Are employers helping to maintain the need for a degree? Couldn’t they offer young people something better?
  40. 40. The big question:Is ‘graduate recruitment’ a helpful idea?‘Skilled hire’ ‘Entry hire’• Lateral hires • Apprentices• Graduates with a specific ability • All other graduates • Career changers
  41. 41. ‘The world turned upside down’ Yorktown 1781
  42. 42. The world turned upside down?‘It seems to me that the disaster was the event that not only made theworld rub its eyes and awake but woke it with a start and kept itmoving ever since. To my mind the world of today awoke April 15th1912.’ Jack Thayer
  43. 43. The world turned upside down ?. ‘457,000 people started an apprenticeship programme in 2011- a 64% increase on the previous ‘Apprenticeship frameworks exist year.’ for specialists, managers and can be the equivalent of degree and master degree level.’ ‘Our ultimate goal remains to see apprenticeships go beyond parity of esteem with university graduates. That an apprenticeship place is as valued as one at university.’
  44. 44. Rebalancing?‘There is much to be learnt from the past and much to be gained fromsharing experiences and ideas on coping with todays new world. TheAGR Annual Conference has always provided the best networking andsharing experiences in the graduate calendar and this year will be noexception (2011).’
  45. 45. HSBC current position – graduateschemes• Internships – first year/penultimate year• Executive trainee programme• Graduate development programmes for key business areas (commercial, retail, operations, investment banking)• International management programme• National Graduate Recruitment Award: Sector Winner : Banking, Insurance and Financial Services 2009, 2010, 2011, 2012. Overall sector winner 2010
  46. 46. The case for change. ‘We believe there is significant commercial value in us having employees who are more capable than average and who fully commit to lifelong learning and applying their knowledge to help us build stronger relationships with our customers.’ ‘Are our graduates more interested in commercial, Head Office, investment banking and our international operations than ‘We believe the benefits will be providing the leadership of our improved customer service, retail bank?’ productivity and morale and ultimately a reduction in the need for external recruitment.’ ‘We should recruit from the communities in which we do business.’
  47. 47. An answer?What we wanted ApprenticeshipsIncreased professionalismIncreased customer serviceIncreased employee productivityIncreased staff motivationIncreased staff retentionImproved customer referrals
  48. 48. How are apprenticeships structured? Employment rights & Competence-based responsibilities qualification Knowledge-based Functional skills qualification
  49. 49. Pros and cons • No bank had done this before. • How was it to be delivered? • Who could help?
  50. 50. Apprenticeships at HSBC…Current position Feedback340 people currently on 88% of learners after 6 weeks on programme saidprogrammeDirect entry level staff in retail they believe the programme will upskill them.banking, commercial and operations70% of current apprentices have Line managers observe improvements in customerworked for HSBC for less than 5 years service, productivity and morale. ‘I have seen improvements with all my team’s capabilities since enrolling on the programme. They have more understanding around customer service as a whole, why it is important to deliver superior customer service and get it right first time.’ ‘I think the apprenticeship programme is working really well. I really do not think you can improve on what you are doing.’
  51. 51. Could it fit into an emerging talent strategy? Graduate development Internships programmes Progress into : •other roles in same business area Advanced •other roles in different business area apprenticeships Stay in same roleNew staff after3/6 months Branch networkprobation andexisting direct Call centresentry staff Commercial On completion of advanced apprenticeship can move on Operations to expert elements of internal learning. Additional development activities and qualifications
  52. 52. Could it fit into an emerging talent strategy? Graduate developmentWork experience scheme Internships programmes Progress into : •other roles in same business area Advanced •other roles in different business area apprenticeships Stay in same roleNew staff after Branch network3/6 monthsprobation andexisting direct Call centresentry staff. On completion of Commercial advanced apprenticeship can Operations move on to expert elements of internal learning. Additional development activities and qualifications
  53. 53. Work experience. ‘We had run work experience schemes in the past but this wasn’t uniform, structured or tied into our recruitment strategy.’ ‘We believe a structured, well designed programme, accessible by more students from a range of diverse backgrounds, linked in to our recruitment strategy will allow us to source better candidates for our apprenticeship and graduate development programmes.’
  54. 54. Work experience – how does it work?Financial Skills Partnership – monthly communication to 3,500 schoolsand colleges in UK
  55. 55. Work experience- how does it work? New website on •Apprenticeships •Work experience •Graduates Recruitment process •Online •SHL test •Telephone interview by grads Structured development •Workbooks, projects
  56. 56. In the future Graduate developmentWork experience Internships programmes – furtherscheme: developed-More diverse,motivated, loyal,capable employees A more motivated capable talent pool with a professional development structure Advanced Higher apprenticeships for apprenticeships managers? for direct entry – employees creating Quicker progression? higher capability and a greater culture of A culture of professionalism professionalism A bank people trust
  57. 57. The futureCome and work for us – get a career, get paid, get a degree, get no student debt
  58. 58. Forecasts sometimes do come true In 1898 a novelist Morgan Robertson wrote a story about a superliner which was: • considered practically unsinkable • the largest ship afloat • had new watertight compartments • sank after striking an iceberg on a calm April night with great loss of life. He called his ship…………………
  59. 59. • The Titan