Home > Business Finance News > 'Retaining graduate talent is key to a company's future success'

'Retaining graduate talent is key to a company's future success'

Published On 9 March 2007 at 16:42:22

Companies, including many of the country's small and medium-sized enterprises (SMEs) must work harder to retain their graduate employees.

That is the conclusion that Royal Bank of Scotland (RBS) drew from its most recent Career Start Study. It was revealed that UK companies are set to lose £365 million as graduates plan to leave their first job within two years.

Overall, the study found that 39 per cent of final year university students thought they would stay in their first job for less than two years. Only 10 per cent believed they would still be working for their first employer five years down the line.

On average, companies spend £4,000 hiring and training each graduate they employ. The fact that many have no intention of remaining in the job for a significant amount of time means that SMEs could be wasting money on this training.

"Attracting and retaining graduate talent is key to a company's future success," said Jacqueline Biddle, the head of graduate recruitment at RBS.

"Our research shows that both undergraduates and companies could be doing more throughout the graduate recruitment process to avoid mutual disappointment further down the track."

RBS' research revealed that being offered more money was the most efficient tactic for SMEs to ensure they held on to their graduates. Better benefits, the opportunity for international travel and some kind of 'golden handshake' would all also encourage graduates to agree to work for a particular company.

 

Related Business Finance News:

• FPB urges SMEs to prepare for higher interest rates
  8 June 2007 at 12:21:42
  A group which represents the interests of small and medium-sized enterprises (SMEs) in the UK has advised its members to take advantage of the Monetary Policy Committee's decision not to increase interest rates, and look for good fixed-rate loans.
• Businesses welcome rate decision
  7 June 2007 at 12:46:24
  Business leaders have welcomed the Bank of England's decision not to increase interest rates again.
• SME tax case goes to the Lords
  6 June 2007 at 12:44:49
  The Federation of Small Businesses (FSB) has backed a small business as its case against HM Revenue & Customs (HMRC) is heard in the House of Lords.
• Rain dampens retail sales figures in May
  5 June 2007 at 12:14:59
  Bad weather during May was partly responsible for the poor retail sales figures which small and medium-sized enterprises (SMEs) in the UK recorded in the month, a new report argues.
• Further rate rises 'will hurt SMEs'
  4 June 2007 at 17:01:38
  Ahead of next week's meeting of the Monetary Policy Committee (MPC), a group representing the interests of small and medium-sized enterprises (SMEs) has urged the Bank not to increase interest rates again.
• Bank offers free services to SMEs
  4 June 2007 at 09:01:54
  A leading high street bank has unveiled a new offer to try to encourage small and medium-sized enterprises (SMEs) to switch their banking services.
• Bank offers advice to start-ups
  31 May 2007 at 12:23:30
  A leading high street bank has launched a new service designed to help entrepreneurs start their own small and medium-sized enterprises (SMEs).