agr 2010 winter survey report

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The AGR Graduate

Recruitment Survey 2010Winter Review

Produced for AGR by


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The AGR GraduateRecruitment Survey 2010

Winter Review


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Graduate Recruitment Survey 2010 Winter Review

Association of Graduate Recruiters

The Innovation Centre

Warwick Technology Park

Gallows Hill

Warwick CV34 6UW

Survey produced for AGR by

CFE

Phoenix Yard

Upper Brown Street

Leicester LE1 5TE

For more information please contact Hayley Lamb on 0116 229 3300 [email protected]

Website: www.cfe.org.uk

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.

CFE and the Association of Graduate Recruiters

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.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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ContentsForeword ................................................................................................................................... 2

Executive Summary ................................................................................................................... 3

Introduction .............................................................................................................................. 6

Methodology .................................................................................................................................................................. 6

Participation ................................................................................................................................................................... 7

Graduate vacancies and salaries .............................................................................................. 12

Graduate vacancies in 2009 and 2010 ......................................................... .............................................................. ... 12

Changes in vacancies by business sector ................................................................ ...................................................... 14

Vacancies in 2009 by business sector ............................................................................................................. .............. 18

Vacancies in 2009 by region ......................................................................................................................................... 19

Vacancies in 2009 by career area ................................................................................................................................. 19

Achievement of 2009 recruitment targets ...................................... ............................................................... .............. 21

Diversity of graduate recruits in 2009 .......................................................................................................................... 22

Challenges in filling anticipated 2010 vacancies ............................................................... ............................................ 25

Graduate salaries in 2009 and 2010 ............................................................................................................................. 27

Graduate salaries in 2009 by business sector ........................................................ ....................................................... 29

Graduate salaries in 2009 by region ............................................................................................................................. 29

Graduate salaries in 2009 by career area ..................................................................................................................... 31

Expected salary changes in 2010 by business sector ........................................................ ............................................ 32

Lump sum payments to graduates in 2010 .................................................................................................................. 33

Education premiums and other remuneration for graduates in 2010 ............................. ............................................ 34

Graduate recruitment marketing ............................................................................................. 37

Total marketing spend in 2009 and 2010 .................................................................................... ................................. 37

Graduate recruitment marketing activities in 2009 ................................... ............................................................... ... 38

Spend on key activities in 2009 and 2010 .................................................................................................................... 39

Marketing spend per vacancy ........................................................... ................................................................. ........... 39

Targeting universities in 2009 and 2010 ................................................................ ....................................................... 40

Hot topics in graduate recruitment .......................................................................................... 44

School-leaver entry programmes ............................... ................................................................. ................................. 44

Recruiting for UK vacancies overseas ............................................................................... ............................................ 45

Advice to graduates in difficult times .................................................................... ....................................................... 46


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ForewordI begin by welcoming our new research partner, CFE, who have stepped up to the plate admirably and

produced a very readable and fascinating report. I must also pay tribute to the previous research team at

Trendence for the professional way in which they dealt with the handover.

While I am expressing my gratitude, I want to issue a big thank you to all the organisations who took the

trouble to complete the survey questionnaire. Without your efforts the Review would be a meaningless

exercise. The more members who contribute, the more meaningful the findings become. These are busy

times for graduate recruiters and we do appreciate your support in ensuring that the AGR Graduate

Recruitment Survey continues to be the largest and most respected survey of its kind. It is our intention to

build up the participation rate and if your organisation did not manage to complete the survey this time,

prepare yourselves for the next survey, which is to be revised following a consultation exercise with AGR

members, before it goes live in May 2010.

Much has happened to the UK economy in the past 12 months and this has clearly had an impact on the

graduate recruitment market but in what ways and to what extent? The Summer 2009 Graduate

Recruitment Survey predicted significant cutbacks in recruitment activity. Were these predictions met?

For the first time since we have undertaken the survey, graduate salaries were predicted to stagnate rather

than rise. Was this actually the case? And what has been the impact of the recession on marketingactivities and spend?

To find out the answers to these and other intriguing trends in the sector, read on!

Carl Gilleard

Chief Executive

AGR


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Executive SummaryGraduate recruits, vacancies and salaries

The 8.9% decrease in graduate vacancies experienced during the 2008/09 recruitment season is far less

dramatic than the 24.9% fall that was predicted in the Summer 2009 Review. While AGR employers

anticipate a further 1.6% decrease in graduate vacancies during 2010, this does suggest that the fall in

vacancies may have started to level out.

The 2009 graduate vacancy market was dominated by accountancy/professional services, oil companies

and investment bank/fund managers who together offered nearly half of 2009s graduate vacancies. Oil

companies are expecting to significantly increase the number of graduates they recruit in 2010, while

employers in the public sector are among those predicting a decrease in vacancies. More than half of

graduates continue to be recruited in London and the South East although notable increases were reported

in Scotland, the North West and Europe during 2009.

The AGR employers predicting an increase in vacancies during 2010 attributed this to either an anticipated

or actual growth in business. In most cases, employers predicting a decrease in vacancies reported that this

was either a direct or indirect consequence of the economic climate.

The vast majority of AGR employers did not face difficulties filling their 2009 graduate vacancies and over

nine-tenths felt they met their 2009 recruitment objectives. However, AGR employers expecting to recruit

graduates during 2010 predict they are likely to experience high dropout rates as candidates apply to a

large number of organisations simultaneously.

In 2009, almost half (48.1%) of graduate starting salaries ranged from 22,001 to 26,000, with only one in

ten (11.9%) exceeding 36,001. For the second successive year, it is predicted that there will be no change

to the average starting salary offered by AGR employers. Mirroring the Winter 2009 Review, the median

starting salary for graduates recruited in 2010 is anticipated to be 25,000.

Investment bank/fund managers and law firms again topped the salary charts in 2009. While most sectors

predict there will be no change to graduate starting salaries during 2010, construction or consultancy and

transport or logistics both anticipate increasing salaries by more than 6%. No sectors are expected to

experience a dramatic decrease in salaries during the year. The proportion of organisations offering lump

sum payments to attract graduates is expected to fall by 6.3 percentage points to 26.6% in 2010.

There has been an 11.7 percentage point increase in the number of employers intending to offer a financial

premium for qualifications above an undergraduate degree. Pension schemes and training for professional

qualifications remain the most common non monetary benefits offered by AGR employers to graduates.


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Graduate recruitment marketing

AGR employers median spend on graduate recruitment marketing activities in 2009 was 20,000.Although significantly less than the 80,000 predicted in the Winter 2009 Review, the median marketing

spend is not expected to drop further in 2010. AGR members plan to use a mixture of marketing

techniques for their 2010 recruitment campaign. More than nine-tenths will use brochures and/or the

company website followed by on campus activities and advertising. Just under three-quarters plan to use

online promotion techniques. Compared to 2009, AGR employers plan to allocate bigger median budgets

on their recruitment websites and smaller median budgets on recruitment brochures for their 2010

campaign. Median budgets for online promotions, advertising and on-campus activities are expected to

remain unchanged during 2010.

Hot topics in graduate recruitment

The proportion of AGR employers offering a school-leaver entry programme for 16 to 18 year olds has

declined by 3.4 percentage points since 2008 and now stands at 26.3%.

2009 saw a further fall in the number of AGR employers looking overseas to fill their UK graduate vacancies.

Despite this, many AGR employers still look abroad to ensure they recruit the most talented graduates

available and to reap the benefits of an international workforce.

As the UK emerges from the longest recession since records began, many graduates are still struggling to

find a job. In these difficult times, the advice from AGR employers to graduates is to attend interviews well

prepared. Conducting research into prospective employers and their sector is crucial, as is gaining

interview practice. To graduates considering postponing their job search to improve their employability,

AGR employers stress the importance of accepting temporary employment, undertaking skills training or

accepting unpaid work. In the current climate, graduates must do everything they can to get ahead of the

competition.


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Introduction


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IntroductionWelcome to the AGR Graduate Recruitment Survey 2010 Winter Review. The AGR Graduate Recruitment

Survey is the definitive study of AGR employer members and their recruitment practices, providing up to

the minute insights into conditions and trends in the graduate recruitment market alongside benchmarking

of key market indicators such as vacancy and salary levels.

As the leading survey of graduate recruitment practices, spanning the longest continuous series of

recruitment seasons, the Survey is the primary source of information on graduate recruitment levels,

methods and practices amongst AGR members an invaluable tool for assessing and optimising graduate

recruitment activities.

The Graduate Recruitment Survey is conducted twice a year. Undertaken on behalf of AGR by CFE, the

Winter Review provides an assessment of the latest graduate vacancy levels and salary information while

also examining AGR employers predictions for the near future. It describes the ways in which employers

marketed their graduate opportunities during the 2009 recruitment season and provides insight into their

recruitment marketing plans for 2010. The content of the Winter Review is largely unchanged from

previous years, although work will shortly be undertaken to develop the content of both the Summer and

Winter surveys to ensure they continue to meet the needs of AGR members. CFE will be consulting with a

sub-group of AGR members as part of this process. It is envisaged that the format of the Winter andSummer Review reports will change following this consultation; in the meantime, we have included some

additional commentary in the Policy Insight and Comparative Data boxes to position the findings in a wider

context.

The Summer Review, to be published in July 2010, will further investigate recruitment practices and

graduate recruitment management.

Methodology

An online survey was developed and hosted on the CFE website. AGR employer members were invited toparticipate in the survey by an email which included the link to the survey and a personalised password.

The survey contained a combination of different types of questions; some of these were mandatory in

order to ensure a high in-variable response rate for key questions. Respondents were automatically routed

through the survey on the basis of their response to previous questions.

The survey was open for a period of four weeks between November and December 2009. The results were

analysed using statistical software and are presented using tables and a variety of charts and graphs. In

addition to frequencies and averages for the overall sample, data is also reported by business sector, region

and career area where the size of the base is sufficiently large to permit robust analysis. The number of

organisations that responded to each question is presented for each table and chart as the base; that is, the


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total number of valid responses on which the figures or percentages are calculated. This changes for each

question to reflect the routing not all respondents were asked the same questions.

Participation

361 AGR employers were invited to participate in the survey; responses were received from 214 of these

which represents a 59% response rate. Collectively, responding organisations recruited 19,247 graduates in

2009. Submissions were received from a cross-section of AGR members in terms of business sector, size of

organisation and the career area and region graduates are recruited to. The findings of the Graduate

Recruitment Survey 2010 Winter Review can, therefore, be regarded as representative of AGR employer

membership.


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The following AGR members took part in the survey

AAccenture

Accenture (Technology Solutions)

Addleshaw Goddard

AECOM Ltd

AIESEC (UK) Ltd

Airbus

AkzoNobel

ALDAR Properties PJSC

Allen & Overy LLP

American ExpressAmey

Aon Ltd

Arcadia Group Plc

Argos

Army Recruiting Group Headquarters

Arriva Plc

ASDA Stores

Ashurst LLP

Atkins

Atos Origin

Audit Commission

AXA GroupAXA Investment Managers

BBAE Systems

Baillie Gifford

Baker & McKenzie

Bakkavor Ltd

Balfour Beatty

BAM Construction Ltd

Bank of America Corporation and Merrill Lynch & Co.

Bank of EnglandBarclays Bank Plc

Barclays Capital

Barclays Wealth

Barratt Developments Plc

BDO LLP

Bechtel Limited

Bircham Dyson Bell

Bloomberg

Bond Pearce LLP

Boots Plc

Bovis Lend Lease Limited

BP International Ltd

Brathay Hall Trust

Brodies LLP

BT

BUPA

CCabinet Office

Cadbury Plc

Cancer Research UK

CapGemini UK Plc

Capital One

Carillion Construction Limited

Centrica

CFE

CHP Consulting

Citigroup

Clifford Chance LLP

CMS Cameron McKenna LLP

COA Solutions Ltd

Corus Group Plc

Credit Suisse

Cummins Ltd

DDanone

Davis Langdon LLP

Deloitte

Department for Work and Pensions

Detica

DHL International Ltd

Diageo Plc

Dixon Wilson

DLA Piper UK LLP

Doosan Babcock Energy Ltd

DSG International PlcDTZ

Dunnhumby Ltd

EE.ON UK

EC Harris

Edmund Nuttall Ltd

Enterprise

Enterprise Rent-A-Car

Ernst & Young

European Personnel Selection Office


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Eversheds LLP

FFactSet Europe Ltd

Fidelity Investments

Filtrona Plc

Financial Services Authority

Freshfields Bruckhaus Deringer

Fujitsu Services

GGardiner & Theobald LLP

GCHQ Government Communications HeadquartersGlaxoSmithKline

Government Economic Service

Graduate Recruitment Bureau

Grant Thornton UK LLP

HHammonds LLP

HAT Group of Accountants

Hewitt Associates

Hiscox

HM Prison Service

HM Revenue & Customs

HSBC

Hymans Robertson

IIBM UK Ltd

IMI Plc

Imperial College London

Infosys Technologies Ltd

JJ Sainsbury Plc

J.P.Morgan

Jaguar and Land Rover

John Lewis Partnership

Johnson Matthey Plc

Jones Day

KKerry Foods Ltd

Kirkland + Ellis International LLP

KPMG LLP

LLinklaters LLP

Lloyds of London

Lloyd's Register

Lockheed Martin

Logica

L'Oreal

Lovells LLP

London School of Economics and Political Science

MMacfarlanes LLP

Majestic Wine Warehouses Ltd

Marks & Spencer Plc

Mayer Brown International LLP

MBDA UK

McDonalds Restaurants Ltd

McKinsey & Company

Mercer HR Consulting

Microsoft Corporation

Mills & Reeve LLP

Millward Brown

Moore Stephens LLP

Morgan Stanley & Co International Plc

Motability Operations

Mott MacDonald Ltd

Mouchel

Mountbatten Institute

NNabarro LLP

National Express UK Limited

National Grid

National Nuclear Laboratory

Nationwide Building Society

Nestle UK Ltd

Network Rail

NG Bailey

NHS Institute for Innovation and Improvement

Nomura International

Northern Foods Plc


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OOlswang LLP

Osborne Clarke

Ove Arup International Ltd

PPilkington Group Ltd

Pinsent Masons LLP

PriceWaterhouseCoopers

Procter & Gamble UK

QQinetiQ

RRaleigh International

RBC Capital Markets

Reed Smith Richard Butler LLP

Research in Motion UK Ltd

Reynolds Porter Chamberlain LLP

RM

Rolls-Royce Plc

Royal & SunAlliance Insurance Group Plc

Royal Bank of Scotland Group

Royal Mail

RWE npower

SSantander UK Plc

Scott Wilson Holdings Ltd

Scottish Water

ScottishPower

Sellafield Ltd

Shell International Ltd

Siemens Plc

Simmons & Simmons

Skanska UK

Sky

Standard Bank

Standard Life Plc

Stephenson Harwood

SunGard

Swiss Reinsurance Company

TTAC Europe

Tate & Lyle

Taylor Wessing LLP

Technip UK Ltd

Tesco Stores Ltd

Thales Group Ltd

The Co-operative Group

The National Audit Office

TLT Solicitors LLP

Towers Perrin

Transport for London

Trayport Ltd

UUBS

UK Intellectual Property Office

Unilever UK

United Biscuits

United Utilities

University for Lloyds TSB

VVT Group Services Ltd

WW M Morrisons

Waitrose Ltd

Watson, Farley & Williams LLP

Westinghouse Rail System Ltd

Whitbread Plc

Wolseley Plc

WRC Plc

ZZurich Employment Services Ltd


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Chapter 1

Graduate vacancies and

salaries


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Graduate vacancies and salariesThis chapter provides a comparative analysis of the actual vacancy and salary levels experienced by AGR

employers in 2009 and predicted levels for the 2010 recruitment season.

Please note: the predicted changes in vacancy and salary levels between 2009 and 2010 are based on the

responses of employers who provided data in the Winter Survey for both 2009 and 2010. Those

organisations that provided data for only 2009 or 2010 were discounted to ensure consistency with the

method used in previous surveys, although their responses are included in all other analyses.

Graduate vacancies in 2009 and 2010

The decrease in vacancies observed in 2009 (8.9%) appears set to continue with a 1.6% drop expected for

the 2010 recruitment season based on AGR employer predictions. The last decrease in vacancies observed

in 2002 which stood at 6.5% - was similarly followed by a further small drop of 3.4% in 2003 so this is

consistent with previous trends. However, the decrease expected for 2010 is relatively slight and suggests

that the fall in vacancies may have started to level out. Moreover, with the final year-end figure for 2009

captured in this survey indicating an actual 8.9% decrease in vacancies, the decline in vacancies turned out

to be less dramatic than feared in the Summer 2009 Review when a 24.9% fall was anticipated (Figure 1.1).

Figure 1.1:

Graduate vacancy changes at AGR employers 2000 - 2010 (predicted)

Percentage increase or decrease on previous year (varying bases)

-1.6%

-8.9%

0.6%

12.7%

5.2%

5.1%

15.5%

-3.4%

-6.5%

14.6%

14.7%

-15% -10% -5% 0% 5% 10% 15% 20%

2010 (predicted)

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000


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Further evidence of the more positive outlook for 2010 is apparent in Figure 1.2. Overall, 51.5% of

responding organisations predict to have more vacancies in 2010 than 2009; the comparable figure for the

Winter 2009 Review, which compared the 2008 and 2009 recruitment seasons, was significantly less at

34.5%. This suggests that the significant slowdown in graduate recruitment experienced last year was

primarily as a result of the recession and does not look set to continue. Although the increase is small, with

one-quarter (25.8%) of AGR employers indicating that they will be offering between one to ten more

vacancies in 2010, it represents good news for the graduates set to leave university in 2010 together with

those who graduated in 2009 but have yet to find their first job. The percentage of organisations reporting

a decrease in the number of vacancies has similarly dropped from 46.0% in the Winter 2009 Review to

31.0%. The majority of this decrease can be seen amongst the category one to ten fewer graduates

(16.8%).

Figure 1.2:

Changes in vacancy levels 2009 to 2010 (predicted) Base = 195

4.2%

1.6%

8.4%

16.8%

17.4%

25.8%

14.2%

2.6%

8.9%

0% 5% 10% 15% 20% 25% 30%

51-200 fewer

26-50 fewer

11-25 fewer

1-10 fewer

Same as 2009

1-10 more

11-25 more

26-50 more

> 50 more

Comparative Data:Percentage change in vacancies

The Office for National Statistics Vacancy Survey provides estimates of the number of vacancies for

which employers are actively seeking recruits from outside their organisation across the UK. This

indicates that the decrease observed in 2009 amongst AGR employers was significantly less than that

experienced across all occupations. Based on a three month rolling average for the period June to

August 2009, a 29.0% decrease was observed when compared to the same period in 2008 for all job

vacancies. Comparing the findings of the Office for National Statistics Vacancy Survey and the AGR

Winter 2010 Review, we therefore see that graduate recruitment amongst AGR employers has not

been as adversely affected by the recession and provides further cause for optimism in 2010.


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Analysis of the number of vacancies offered by AGR employers in 2009 and predicted levels for 2010

(Figure 1.3) encouragingly indicates a small decrease in the number of organisations reporting no new

vacancies (3.6% compared to 5.1%). Although still above the equivalent figure of 2.9% for 2008, as

reported in the Winter 2009 Review, some initial signs of levelling out of graduate vacancies are apparent

in 2010. Increases can also be seen in the percentage of AGR employers predicting between 26-50, 101-

250 and 251-500 vacancies (Figure 1.3).

Figure 1.3:

Number of graduate vacancies offered by AGR employers in 2009 and 2010 (predicted) Base = 195

Changes in vacancies by business sector

Figure 1.4 provides the expected percentage change in vacancies from 2009 to 2010 by sector. In stark

contrast to the Winter 2009 Review, the majority of the bars are to the right of the vertical axis illustrating

an anticipated increase in the number of vacancies. Those sectors reporting an increase in 2010 include the

traditionally largest graduate recruiters: banking or financial services (24.5%), investment banks and fund

managers (16.2%) and accountancy or professional service firm (0.4%), although in the case of the latter

this is only marginal. This contributes to a more optimistic picture for graduate recruitment given the

percentage of total vacancies typically offered by these operating sectors. However, the largest predicted

increase between 2009 and 2010 is for oil companies (49.7%) and consulting or business service firms

(47.2%) where there are almost half as many more vacancies in 2010 as in the previous year.

However, a small number of sectors are predicting significant decreases in the number of vacancies offeredin 2010, most notably third sector (49.2%) and transport or logistics (13.5%) organisations.

0.0%

5.1%

37.2%

19.9%

11.2%

5.6%

12.2%

3.6%

4.6%

2.1%

3.6%

34.9%

22.6%

8.2%

4.6%

14.9%

5.1%

4.1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Don't Know

No new vacancies

1-25

26-50

51-75

76-100

101-250

251-500

More than 500

2010 (predicted)

2009


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Please note: oil and utility companies and third sector organisations have not featured previously as

standalone operating sectors. In earlier Graduate Recruitment Surveys, they were included in the all other

sector category as there were too few organisations to provide robust sector levels. However, due to the

large number of vacancies offered by all other sectors if grouped in this way, which stands at almost one-

quarter (23.1%) of all vacancies in 2009 according to the final year-end figures, the above sectors in this

Winter Review are presented in their own right. This is designed to provide more useful intelligence to AGR

members about the sectors accounting for the largest number of vacancies in 2009. It should be noted that

the number of organisations that responded to the survey from these sectors is small and the results

should, therefore, be used with some caution. This is applicable to all the sector breakdowns provided in

the Winter 2010 Review, including salary levels. The other category includes only those sectors not clearly

belonging to a sector listed in the questionnaire and chemical or pharmaceutical companies.

Figure 1.4:Expected percentage change in vacancies from 2009 to 2010 by sector Base = 195

-17.9%

-49.2%

-13.5%

-8.9%

-7.5%

0.4%

5.3%

7.4%

10.3%

11.8%

16.2%

20.5%

22.8%

24.5%

30.9%

32.0%

47.2%

49.7%

-60% -40% -20% 0% 20% 40% 60%

Other

Third sector

Transport or logistics company

Insurance company

Public sector

Accountancy or professional services firm

Energy, water or utility company

Law firm

Engineering or industrial company

FMCG company

Investment bank or fund managers

IT hardware or software company

Motor manufacturer

Banking or financial services

Retail

Construction company or consultancy

Consulting or business services firm

Oil company


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With a much more positive picture apparent for the 2010 recruitment season, what are the reasons behind

this? AGR employers were asked how important several factors are in their predictions to recruit more or

less graduates on a scale of one to six, where one is not important at all and six is very important. The

mean score is provided in order to compare the importance ascribed to these factors.

Figure 1.5 indicates that, amongst those employers who expect an increase in vacancies between 2009 and

2010, anticipated (4.32) and actual (4.25) growth in business were rated more highly than any other factor

cited. This is in contrast to the Winter 2009 Review which indicated that the increase was primarily as a

consequence of an increased strategic focus on graduates within organisations; anticipated growth in

business in particular was of much less significance. With a mean score of 3.93, increased focus on

graduates continues to be of importance in 2010 although it no longer remains the primary driver. Higher

recent turnover of staff (2.55) and an increase in the number of applicants (2.48) were deemed by AGR

employers as significantly less important in accounting for the increase in vacancies.

Policy Insight: Government support for key sectors

The Government is now taking a more active role in promoting the development of key sectors that it

believes hold the key to economic growth and future prosperity. This increased activism was first

signalled last year in the paper Building Britains FutureNew Industry, New Jobs and has meant that

funding (including that provided to universities to place graduate interns with employers) is already

being prioritised to support key sectors such as advanced manufacturing, life sciences and digital and

creative industries. Related to this, plans were outlined in the Governments recent higher education

framework, Higher Ambitions, to help deliver the higher level skills needed for these sectors to

develop. This included enhanced support for STEM subjects degrees in the sciences, technology,

engineering and mathematics. The 10,000 additional student places announced by the Government

in 2009 were restricted to STEM subjects.

Comparative Data: Percentage change in vacancies by sector

The Office for National Statistics Vacancy Survey offers intelligence on the percentage change in

vacancies by sector. However, as the business sectors used in the Graduate Recruitment Survey are

reflective of AGRs membership rather than standard classifications, comparisons with the national

picture are less robust. CFE will be undertaking some work to align AGR sectors with the Standard

Industrial Classification (SIC) 2003, which is used in all major government surveys to categorise

establishments by the type of economic activity in which they are engaged. The AGR sectors will also

remain to ensure data is of value to members.


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Figure 1.5:

Relative importance of various reasons for expected increase in vacancies from 2009 to 2010Mean ratings on a scale from 1 (not important at all) to 6 (very important)

Figure 1.6 indicates that the impact of the economic climate is once again significant in explaining the

decrease in graduate vacancies. Indeed, with a mean score of 4.51, direct result of the economic climate is

deemed more important than any other factor cited. At 3.47, indirect result of the economic climate is also

rated relatively highly and is consistent with the findings of the Winter 2009 Review. More positively for

the increasing number of young people entering higher education, lower strategic focus on graduate

recruitment was deemed of relatively low importance (2.39) and, therefore, reaffirms organisationscommitment to the employment of graduates.

Figure 1.6:

Relative importance of various reasons for expected decrease in vacancies from 2009 to 2010

Mean ratings on a scale from 1 (not important at all) to 6 (very important).

2.48

2.55

3.93

4.25

4.32

Increase in the number of applicants (b=82)

Higher recent turnover of staff (b=80)

More focus on graduate recruitment (b=81)

Actual growth in business (b=79)

Anticipated growth in business (b=80)

2.39

2.77

3.47

4.51

Lower focus of graduate recruitment (b=31)

Improved retention rates (b=30)

Indirect result of the current economic climate (b=32)

Direct result of the current economic climate (b=35)


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Vacancies in 2009 by business sector

In terms of the percentage of total vacancies, the graduate vacancy market in 2009 was dominated byaccountancy and professional services (18.2%), oil companies (15.1%) and investment bank or fund

managers (14.9%). Whilst the ascendency of accountancy and professional services was evident in the

Summer Review where it topped the table at 24.4% - banking or financial services have dropped to fifth

place in the table and law firms to sixth. In the case of banking and financial services, this represents a

decrease of 5.7 percentage points and is indicative of the global credit crunch and banking crisis (Table 1.7).

The increase in vacancies recorded by oil companies is unprecedented; in the Summer 2009 Review they

were included in the other category and now feature as the second highest recruiter of graduates

amongst AGR members at 15.1%. The gains made by investment banks and fund managers are similarly

significant. In the Summer Review, investment banks stood seventh in the table at 5.5%.

Table 1.7: Vacancies at AGR employers by sector 2009

% of total vacancies

Accountancy or professional services firm 18.2%

Oil company 15.1%

Investment bank or fund managers 14.9%

Public sector 10.0%

Banking or financial services 7.9%

Law firm 6.5%

Retail 5.6%

Engineering or industrial company 5.2%

Consulting or business services firm 3.3%

IT / Telecommunications companies 2.7%

Construction company or consultancy 2.3%

Third sector 2.0%

Transport or logistics company 1.7%

FMCG company 1.5%

Energy, water or utility company 1.0%

Motor manufacturer 0.3%

Insurance company 0.3%

Other 1.6%

Based on the responses of 195 participants (Base count of vacancies = 19,247)


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Vacancies in 2009 by region

At 42.8%, over two-fifths of 2009s total vacancies were in London. This represents a decrease whencompared to the Summer Review where it stood at 49.0% and a narrowing of the gap between London

and the South East (11.0%) by 6.5 percentage points. However, collectively London and South East account

for over half (53.8%) of all vacancies in 2009 and thus reiterates the dominance of the South. Notable

increases can be seen in the North West, Scotland and Europe, whilst decreases are evident in relation to

the South West, Wales, East Anglia, the North East and Yorkshire (Table 1.8).

Table 1.8: Vacancies at AGR employers by region in 2009


London 42.8%

South East 11.0%

The Midlands 9.3%

North West 8.3%

Scotland 6.5%

South West 6.2%

Wales 2.5%

Northern Ireland 1.4%

East Anglia 1.3%

North East 1.2%

Yorkshire 1.1%

Offshore British Islands 0.3%

Europe 6.4%

Rest of the world 0.6%

Ireland 0.4%

Asia 0.3%

USA 0.2%

Based on the responses of 195 participants (Base count of vacancies = 13,867*)

*Due to the fact that some respondents did not know the exact number of

graduates they recruited within each region.

Vacancies in 2009 by career area

Whilst there were once again more vacancies in accountancy than any other career area (14.8%), there has

been a marked decrease when compared to the Summer Review where it stood at 24.7%. At 14.0%,

general management has maintained its ground whilst legal work has dropped to third in the table (8.5%).

This is indicative of the resurgence of general management due to the popularity of rotational schemes.

Indeed, analysis of past AGR Graduate Recruitment Surveys indicates that general management has been


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falling in popularity over the past decade. Encouragingly, the percentage of vacancies in investment

banking is higher than reported in the Summer Review 9.6% compared to 7.8% - possibly signalling some

recovery following the turbulence in the banking and financial services sector (Table 1.9).

Table 1.9: Vacancies at AGR employers by career area in 2009


Accountancy 14.8%

General management 14.0%

Investment banking 9.6%

Legal work 8.5%

IT 7.6%

Consulting 6.7%

Financial management 4.8%

Retail management 3.6%

Civil engineering 3.0%

Electrical / electronic engineering 2.9%

Mechanical engineering 2.6%

Human resources 2.5%

Sales 2.5%

Marketing 2.2%

Research and development 1.8%

Manufacturing engineering 1.6%

Logistics 1.6%

Purchasing 1.2%

Science 1.2%

Actuarial work 1.1%

Other 6.2%

Based on the responses of 195 participants (Base count of vacancies = 13,448*)

*Due to the fact that some respondents did not know the exact number of

graduates they recruited within each career area.


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Achievement of 2009 recruitment targets

The vast majority (80.5%) of AGR employers filled their graduate vacancies in 2009. Although marginallylower than the predicted rate reported in the last Summer Review where nine-tenths indicated that they

anticipate to fill their vacancies this nevertheless confirms that the economic downturn has almost

eliminated recruitment shortfall (Figure 1.10). Engineering or industrial companies have the strongest

representation in the small group of participants who experienced a recruitment shortfall (17.6%). They

are followed by accountancy or professional services, law and banking or financial services companies,

which are equally represented. Moreover, analysis of recruitment shortfall by size of organisation indicates

no discernible differences with both larger (defined as 2,500 employees or more) and smaller (up to 2,499

employees) organisations filling the majority of their vacancies.

Figure 1.10:Proportion of AGR employers with a recruitment shortfall in 2009 - Base = 185.

Analysis of the extent of shortfall in 2009 (Figure 1.11) indicates that for the majority (55.9%) it was

relatively small at between one and five per cent of vacancies. Encouragingly, only a small minority of AGR

employers stated that they experienced a shortfall of between 26 to 50 per cent of vacancies at 2.9%;

however, over a quarter (26.5%) had experienced a shortfall of between 11 and 25 per cent.

Figure 1.11:Extent of shortfall of graduate recruits in 2009 - Base = 34

Yes80.5%

Don'tknow1.1%

No18.4%

55.9%

14.7%

26.5%

2.9%

0%

10%

20%

30%

40%

50%

60%

1 to 5 %of vacancies





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All respondents were also asked about the extent to which their organisation met its graduate recruitment

objectives in 2009. Interestingly, over nine-tenths (94.6%) answered yes in response to this thus, indicating

that respondents perceived their organisations to have achieved their aims despite a shortfall in the

number of graduates recruited. Indeed, nearly four-fifths (79.4%) of those who indicated that they had a

shortfall stated that they had achieved their objectives for 2009. This suggests that target numbers of

vacancies are just that targetsrather than bottom line must have recruits.

Diversity of graduate recruits in 2009

The majority of respondents monitor recruitment by both gender (74.6%) and ethnicity (54.5%) which isconsistent with the findings of the Winter 2009 Review. This amounts to an increase of 5.2 percentage

points in the proportion of AGR employers monitoring recruitment by gender. Disability is monitored by

45.1% of respondents and age by just over one-third (29.1%). Within the past year, the percentage of

respondents monitoring recruitment by age has dropped by 6.6 percentage points to 29.1%. This is of

particular interest as arguably a small increase may be expected following the introduction of the

Employment Equality (Age) Regulations in 2006, which made it illegal to discriminate against employees,

jobseekers or trainees on the grounds of age. Indeed, whilst previous Graduate Recruitment Surveys have

indicated that age is receiving increasing awareness from AGR employers, this increase has not been

sustained in 2009.

Gender

Just under three-quarters (72%) of respondents who monitor recruitment by gender stated that they know

the number of male and female graduates recruited. For these respondents, the total number of males

recruited in 2009 was 5,185 in comparison to 2,867 females. On average, each responding organisation

recruited 45 males and 25 females.

Table 1.12 provides data on the gender split across sectors. This indicates that males formed the majority

of all graduates recruited to AGR employers in 2009 in all sectors with the exception of law firms. No

difference was observed in the case of FMCG, where a 50/50 split was apparent. Males were significantly

over-represented in a small number of operating sectors, including investment bank or fund managers,

engineering or industrial companies, construction companies or consultancy, and transport or logistics,

where they comprised over three-quarters of graduate recruits. This is consistent with the findings of

previous AGR Graduate Recruitment Surveys.


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Table 1.12: Gender split across sectors

Male FemaleTransport or logistics company 83.3% 16.7%

Investment bank or fund managers 81.3% 18.7%

Engineering or industrial company 76.7% 23.3%

Construction company or consultancy 76.6% 23.4%

Energy, water or utility company 75.9% 24.1%

Oil company 73.3% 26.7%

Public sector 72.7% 27.3%

IT / Telecommunications companies 66.4% 33.6%

Consulting or business services firm 65.4% 34.6%

Retail 61.3% 38.7%

Accountancy or professional services firm 59.6% 40.4%

Banking or financial services 57.9% 42.1%

Insurance company 55.6% 44.4%

FMCG company 50.0% 50.0%

Law firm 45.0% 55.0%

Other 58.4% 41.6%

Based on the responses of 115 participants

Age

Figure 1.13 indicates that almost four-fifths (78.6%) of graduates recruited in 2009 whose age is known by

the responding organisation are aged 24 years or below. This represents a slight decrease of three

percentage points when compared to the Winter 2009 Review. Whilst the figure reported for 25-34 year

olds is broadly consistent (16.6% in 2009 compared to 16.8% in 2008), the percentage of graduates aged 35

years and over has more than doubled between 2008 and 2009 from 1.6% to 4.9%. This represents an

increase of 3.3 percentage points.

In absolute numbers (derived from 62 responding organisations) 2,373 recruits were 24 years old or less,

500 recruits were aged 25-34 years and 147 recruits were 35 years old and over.


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Figure 1.13:Percentage of graduates recruited by age

Based on the responses of 62 participants (Base count of vacancies = 3020)

Ethnicity

Over half (54%) of respondents who monitor recruitment by ethnicity stated that they know the number of

graduates recruited from a minority ethnic background. For these respondents, the total number of black

and ethnic minority graduates recruited was 1,344, which is equivalent to an average of 21 graduates per

responding organisation.

Ethnic minority graduates accounted for up to 10% of all graduates recruited in 2009 in two-fifths (42.6%)

of responding organisations. At 22.2%, the next largest category was 11% to 20% (22.2%) followed by 31%

or more (20.4%). The average percentage of ethnic minority graduates recruited was 17.4%.

Figure 1.14:

Percentage of graduate recruits from ethnic minorities Base = 54

24 or less78.6%

25 to 34years old

16.6%

35 orolder4.9%

42.6%

22.2%

14.8%

20.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Up to 10% 11% to 20% 21% to 30% 31% or more


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Figure 1.15 indicates that almost one-third of ethnic minority graduates recruited in 2009 were Indian

(31.2%). This represents an increase of 7.8 percentage points when compared to the figure for 2008

reported in the Winter 2009 Review. At 15.7%, the next largest category is Chinese (15.7%) followed by

Pakistani (11.2%).

Figure 1.15:

Breakdown of ethnic minority graduates recruited Base = 54

Disability

56% of respondents who monitor recruitment by disability, as defined by the responding organisation,

stated that they know the number of graduates recruited with either a physical or mental impairment.

Amongst these, the total number of disabled graduates recruited was 149. On average, each responding

organisation recruited 3 graduates with a disability and 66 graduates without a disability.

Challenges in filling anticipated 2010 vacancies

AGR employers expecting to recruit graduates in 2010 responded to a sequence of questions about the

challenges they anticipate to face in filling their vacancies on a scale of one to six, where one is definitely

will face and six is definitely will not face.

Candidate dropout because graduates are applying to a large number of organisations (3.34) and

graduates perceptions of the industry sector (3.34) are the two main challenges that AGR employers

anticipate that they are most likely to face. Whilst graduates perceptions has been a relatively consistent

challenge in recent years, candidate dropout represents a new challenge and is reflective of the economic

downturn which has seen unprecedented levels of youth unemployment. The recession is not only

affecting those traditionally at risk of unemployment, such as the low skilled, but also those with higher

1.7%

5.2%

6.5%

8.3%

10.7%

9.6%

11.2%

15.7%

31.2%

0% 5% 10% 15% 20% 25% 30% 35%

Black other

Black Caribbean

Bangladeshi

Black African

Other Asian

Mixed

Pakistani

Chinese

Indian


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level qualifications including recent graduates. Indeed, data published indicates that, in the quarter

September to December, one in six unemployed 18-24 year olds hold a degree; this is up from one in five

three years ago (Source: The Guardian, 6th January 2010). In this context, graduates are applying to a large

number of organisations to increase the likelihood of success rather than identifying a more limited

number to approach. Interestingly, both candidate dropout and graduates perceptions relate to the

quality of applicants rather than internal issues relating to AGR employers. Dropout is an unfortunate yet

understandable side effect of the tightening jobs market for employers.

Late changes in the businesses requirements (3.27) is only marginally below that of candidate dropout and

graduates perceptions and therefore also poses a significant challenge. In an uncertain economic climate,

delayed decisions or late changes may adversely affect their ability to meet their targets for 2010.

Figure 1.16:

Relative likelihood to face different challenges in filling expected graduate vacancies in 2010

Base = 199; Mean ratings on a scale from 1 (definitely will not face this challenge) to 6 (definitely will face this

challenge)

1.87

2.39

2.41

2.42

2.6

2.83

2.96

3.27

3.34

3.34

Offering a competitive graduate training and development programme

Candidates dropout because selection and assessment process is slow

Offering a competitive starting salary

Not enough applicants with the right qualifications

Shortage of applicants in specific geographical areas

Limited resources to market graduate vacancies properly

Not enough applicants with the right skills

Late changes in the businesses' requirements

Graduates' perceptions of the industry sector

Candidates dropout because graduates are applying to a large numberof organisations

Policy Insight: Government support for employability skills

The Government has outlined plans to ask all universities to produce a statement on how they

promote student employability, setting out what they are doing to prepare their students for the

labour market, and how they plan to make information about the employment outcomes of their

provision available to prospective students. Universities will be expected to demonstrate how they

prepare their students for the world of work and support the development of generic employability

skills such as team working, business awareness and communication.


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Graduate salaries in 2009 and 2010

For the second consecutive year, it is predicted that there will be no change in the median starting salary ofgraduates working for AGR employers in 2010. For the first time in the history of the Graduate Recruitment

Survey, the Winter 2009 Review predicted stagnation in salary levels; both the Summer 2009 and Winter

2010 Reviews confirmed this to be true with the average graduate employed by an AGR employer earning

25,000 in 2009. Although the 2010 figures are predictions, this trend looks set to continue in the

prevailing economic climate with the class of both 2009 and 2010 the first cohorts to pay top-up fees for

higher education provision in England and Wales feeling the full impact of the downturn (Figure 1.17).

Figure 1.17:

Changes in median graduate starting salaries at AGR employers 2000 - 2010 (predicted)

Percentage increase or decrease on previous year (varying bases)

0.0%

0.0%

1.8%

2.4%

2.0%

7.1%

3.4%

4.1%

2.6%

2.7%

5.7%

0% 1% 2% 3% 4% 5% 6% 7% 8%

2010 (predicted)

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

Comparative Data: Median salary for adults with a degree or equivalent qualification

The Labour Force Survey, which interviews some 53,000 UK households each quarter, is one of the

most drawn upon sources of information on the labour market. It asks questions about all aspects of

the labour market, including salary level. The latest publicly available data indicates that, in the

quarter July to September 2009, the median salary for adults with a degree or equivalent level

qualification was 30,004. This amounts to a difference of 17% when compared to the median salary

offered by AGR employers. However, it must be remembered that the figure reported in the Labour

Force Survey is the average salary for all degree qualified adults in the UK and not a starting salary. In

this context, the starting salary offered by AGR employers is, therefore, competitive.


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Figure 1.18 indicates that one-quarter (25.0%) of responding AGR employers expect to offer a starting

salary of between 24,001 to 26,000 in 2010, with a fairly even distribution between 22,001 to 24,000

(20.1%) and 26,001to 31,000 (20.7%). Just under two-thirds of survey respondents are represented in

these bandings.

Figure 1.18:

Graduate starting salaries at AGR employers in 2009 and 2010 (predicted)

Base = 184

0.0%

2.7%

5.9%

25.4%

22.7%

22.2%

8.6%

11.9%

3.9%

4.9%

4.9%

20.1%

25.0%

20.7%

7.6%

13.0%

0% 5% 10% 15% 20% 25% 30%

Don't know

Less than 19,000

19,001 to 22,000

22,001 to 24,000

24,001 to 26,000

26,001 to 31,000

31,001 to 36,000

36,001 or more

2010 (predicted)

2009

Policy Insight: The importance of a good salary

A good salary is more important than ever to recent graduates - the class of 2009 is the first to have

paid up to 3,225 in top-up fees for each year of study and the financial cost of obtaining a degree is

only likely to increase in the future. The Government recently launched an independent review of

student fees led by Lord Browne, the former head of BP, and it is widely expected that the review will

recommend that the current cap on tuition fees should be lifted. Projections in a report published by

Universities UK in 2009 indicated that even a modest increase in fees to 5,000 could lead to

graduates owing an average of 26,000.


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Graduate salaries in 2009 by business sector

Investment bank or fund managers top the salary chart in 2009 with a median starting salary of 38,250an increase of 3,250 when compared to 2008. Law firms have dropped from first to second place in figure

1.19, which is in part accounted for by the drop in salary offered by this sector, from 37,000 in 2008 to

35,000 in 2009. Oil companies for the first time appear in the chart in third place. Not unsurprisingly,

third sector organisations offer the lowest median started salary in 2009 at 19,000 followed by the public

sector and retail (both offering starting salaries of 23,000).

Figure 1.19:

Median graduate starting salaries at AGR employers in 2009 by sector

Base = 184

Graduate salaries in 2009 by region

Unsurprisingly, London continued to top the median starting salary table in 2009, although the decrease

observed in recent years has continued from 28,375 in 2007, 28,000 in 2008 and 27,750 in 2009. The

South East has maintained its position in second; however, the Midlands has over-taken the South West for

third place thus suggesting a narrowing of the gap between the South and elsewhere. Interestingly, East

Anglia which offered a median starting salary in 2008 of 23,250 has dropped from fourth to last of all

of the regions in the UK (Table 1.20). This may reflect changes to the sectors recruiting in this area since

the Winter 2009 Review; in 2008, accountancy was the main sector whereas in 2009 it was retail.

25,000

19,000

23,000

23,000

23,000

23,500

23,500

25,000

25,000

25,500

25,500

26,000

27,000

27,750

28,500

33,500

35,000

38,250

Other

Third sector

Public sector

Retail

Construction company or consultancy

Engineering or industrial company

Transport or logistics company

Energy, water or utility company

Accountancy or professional services firm

FMCG company

Insurance company

Motor manufacturer

IT / Telecommunications companies

Consulting or business services firm

Banking or financial services

Oil company

Law firm

Investment bank or fund managers


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Table 1.20: 2009 starting graduate salaries by geographical area

Median salary Upper Quartile Lower Quartile

London (Base= 136) 27,750 33,500 24,500

South East (Base= 78) 24,500 27,000 23,000

Midlands (Base= 75) 24,000 26,000 23,000

South West (Base= 71) 24,000 26,500 23,000

North West (Base= 74) 23,750 25,000 23,000

Scotland (Base= 65) 23,500 26,000 22,250

Yorkshire (Base= 57) 23,500 25,000 22,750

Wales (Base= 34) 23,250 25,000 20,500

Northern Ireland (Base= 25) 23,000 25,000 20,750

North East (Base= 45) 23,000 25,500 22,500

East Anglia (Base= 30) 23,000 25,000 23,000

USA (Base= 2) 34,750 36,000 33,500

Europe (Base= 20) 28,500 37,750 22,500

Asia (Base= 5) 28,500 37,250 24,750

Ireland (Base= 8) 25,000 27,750 23,000

Offshore British Islands (Base= 4) 25,000 27,750 20,500

Rest of the world (Base= 5) 26,750 37,250 22,000

Comparative Data: Median salary for adults with a degree or equivalent qualification by

region

Data from the Labour Force Survey similarly confirms the dominance of the South in terms of salary

level. Analysis of data on the median salary for adults qualified to degree level or equivalent in the

UK by Government Office Region for the quarter July to September 2009 indicates that London tops

the table at 34,008. It is followed by the South East (33,592), East of England (32,578) and West

Midlands (30,004). The North East and North West regions offer the lowest median salary at

27,976 and 27,248 respectively. The regions used in the Graduate Recruitment Survey differ

marginally from the classification of Government Office Region used in major national datasets;

development work will be undertaken to align these sectors to facilitate analysis in the future.


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Graduate salaries in 2009 by career area

Table 1.21 indicates that investment banking continued to offer the highest median starting salary whencompared to all other career areas offered by AGR employers in 2009. This is consistent with the Winter

2009 Review, although it should be noted that legal work which previously shared first place with

investment banking has dropped to second in the chart with a difference of 3,250 between these

functions. This is reflective of the decrease in median starting salaries in the legal sector, from 37,000 in

2008 to 35,000 in 2009. Consulting, actuarial work and IT have maintained their positions in third, fourth

and fifth place, with small increases in salary observed for all career areas apart from IT, where a decrease

of 500 is apparent. However, the most notable difference is in relation to accountancy, which was

previously in sixth place with a median starting salary of 25,000, now sits in fifth from the bottom of the

table in seventeenth place. Although only a relatively modest decrease of 500 in the median starting

salary of graduates entering this function is apparent when compared to 2008, other career areas

including sales, science, purchasing, electrical engineering, mechanical engineering, and research and

development have increased their salaries and overtaken accountancy in the table.

Table 1.21: 2009 starting graduate salaries by career area

Median salary Upper Quartile Lower Quartile

Investment banking (Base= 16) 38,250 41,500 32,250

Legal work (Base= 34) 35,000 37,250 26,250

Consulting (Base= 24) 28,250 32,250 25,250

Actuarial work (Base= 15) 28,000 30,000 25,000

IT (Base= 63) 26,000 28,500 23,750

Sales (Base= 31) 26,000 27,250 23,000

Science (Base= 14) 25,500 27,500 25,000

Financial management (Base= 48) 25,000 28,500 23,500

Electrical / electronic engineering (Base= 35) 25,000 26,750 23,000

Human resources (Base= 43) 25,000 27,000 23,000

Marketing (Base= 41) 25,000 26,750 23,000

Research and development (Base= 21) 25,000 27,500 24,000

Manufacturing engineering (Base= 21) 25,000 26,500 23,000

Purchasing (Base= 22) 25,000 26,250 23,500

Logistics (Base= 20) 25,000 27,000 23,000

Mechanical engineering (Base= 38) 24,750 26,000 23,000

Accountancy (Base= 45) 24,500 26,000 23,000

General management (Base= 48) 24,500 27,000 23,000

Civil engineering (Base= 22) 24,250 25,250 23,000

Retail management (Base= 14) 23,750 26,750 23,000

Other (Base= 37) 24,000 27,000 23,000


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Expected salary changes in 2010 by business sector

Table 1.22 is reflective of the predicted stagnation in the overall median starting salary of graduatesrecruited during the 2010 season, with eight sectors reporting no change in the salary level offered to

graduates. Of these, this is the second consecutive year for which there is no change for investment bank

or fund managers. The banking or financial services and accountancy or professional services sectors

experienced a decrease between 2008 and 2009 and is, therefore, indicative of the levelling off of their

salary levels. The anticipated stagnation in public sector salaries is in part accounted for by the squeeze on

public sector salaries and pensions as the Government attempt to scale back the 178 billion deficit. The

Pre-Budget Report issued in December 2009 indicates that this is set to continue with a two year cap of 1%

on all public sector pay settlements from 2011. At 8.7%, the largest increase can be seen in construction,

which is the only sector to increase its salary for a second consecutive year. Transport and logistics,

consulting or business services firms and law reported no change between 2008 and 2009.

Table 1.22: Predicted salary change from 2009 to 2010 (predicted) by sector

Construction company or consultancy +8.7%

Transport or logistics company +6.4%

IT / Telecommunications companies +5.6%

Consulting or business services firm +2.7%

Law firm +2.5%

Energy, water or utility company no change

Banking or financial services no change

Accountancy or professional services firm no change

Public sector no change

Investment bank or fund managers no change

Retail no change

Oil company no change

Third sector no change

FMCG company -2.0%

Insurance company -2.0%

Engineering or industrial company -2.1%

Base= 179*

*Participants who recruited in a specific sector in 2009 but are not planning to recruit in that

sector in 2010 were not taken into account for the calculation of salary changes. As a result,

some sectors do not appear in the above table.


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Lump sum payments to graduates in 2010

Figure 1.23 indicates that just over one-quarter (26.6%) of responding organisations intend to attract andreward successful candidates in 2010 with a lump sum payment. Not unexpected in the current economic

climate, this amounts to a decrease of 6.3 percentage points since the Winter 2009 Review. It follows that

there has been a significant increase in the percentage answering no in response to this question (64.5%

compared to 55.1% in the Winter Review which amounts to 9.4 percentage points).

Figure 1.23:

Proportion of employers expecting to pay lump sums to graduate recruits Base = 203

At 33.3%, the largest category is lump sums between the value of 1001 and 2,000. Just under one-

quarter (24.1%) of responding organisations pay between 2,001 and 3,000 whilst one-fifth (22.2%) pay

4,001 and above (Figure 1.24). The median lump sum expected to be offered by AGR employers in 2010 is

2,500, which represents an increase in this figure for the first time since 2008 of 500.

Figure 1.24:

Predicted lump-sum payments for 2010 Base = 54

No64.5%

Don't Know8.9%

Yes26.6%

3.7%

9.3%

33.3%

24.1%

7.4%

22.2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't Know

Less that 1,000

1,001 to 2,000

2,001 to 3,000

3,001 to 4,000

4,001 or more


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Lump sums are paid when graduates start work in the vast majority of organisations (79.6%); only a small

minority (11.1%) make a payment when the offer is made. At 46.3%, payment is in addition to salary in

almost half of responding organisations.

Figure 1.25:

Facts about lump-sums paid - Base = 54

Education premiums and other remuneration for graduates in 2010

Just under one-third (29.7%) of responding organisations intend to offer a financial premium for

qualifications above an undergraduate degree in 2010. This represents an increase of 11.7 percentagepoints when compared to the Winter 2009 Review and thus suggests that competition for talent continues

despite the economic crisis. Figure 1.26 indicates that more organisations offer a financial premium for

PhD degrees (12.3%) than for a postgraduate degree (9.9%), such as an MA or MSc. Relevant work

experience attracts a financial premium in only a small minority of responding organisations (5.9%). PhD

degrees attract the highest median financial premium at 3,000 followed by postgraduate degrees (1,125)

and relevant work experience (1,000).

Please note: the above percentages have been calculated on the total number of respondents to this

question rather than those who offer educational premiums only, as in the Winter 2009 Review. These

figures are, therefore, not directly comparable with previous Graduate Recruitment Surveys and should be

used indicatively.

3.7%

7.4%

11.1%

46.3%

79.6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Payment is an advance of salary

Payment is repayable loan

Paid when offer is made

Payment is in addition to salary

Paid when graduate starts work


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Figure 1.26:

Qualifications for which premiums are paid - Base = 203

Pension schemes (96.1%) and training for professional qualifications (84.7%) continue to be offered by thevast majority of responding organisations in 2010 and maintain their position as the popular non-monetary

benefits. Private healthcare (65.0%), free or subsidised sports and leisure facilitates (60.1%) and study

leave and sponsorship (59.6%) remain in third, fourth and fifth position in the table when compared to the

Winter 2009 Review with almost no discernible difference in the percentages reported. Whilst the

relocation package continues to fall in popularity (30.0% compared to 33.9%), it is travel where the largest

decrease is apparent; it has dropped by 8.3 percentage points from 40.3% in 2009 to 32.0% in 2010 (Figure

1.27).

Figure 1.27: Benefits offered - Base = 203

4.9%

5.9%

9.9%

12.3%

70.4%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other qualifications

Relevant work experience

Postgraduate degrees

PhD degree

We do not pay premiums

0.5%

0.5%

6.9%

29.6%

30.0%

32.0%

59.6%

60.1%

65.0%

84.7%

96.1%

0% 20% 40% 60% 80% 100%

Don't Know

We will not offer any benefit

Company car

Share options/schemes

Relocation package

Travel

Study leave or sponsorship

Free or subsidised sports or leisure facilities

Private healthcare

Training for professional qualifications

Pension Scheme


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Chapter 2

Graduate recruitment

marketing


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Graduate recruitment marketingIn this section we turn the spotlight on AGR members graduate recruitment marketing practices, and in

particular the size of recruitment marketing budgets and the proportionate spend on different marketing

activities and approaches.

Employers were asked to specify their actual spend in 2009 and their predicted spend in 2010 on key

marketing activities. These activities were: employers own graduate recruitment brochures and websites;

graduate recruitment advertising; online graduate recruitment promotions; and employer presence at

graduate careers fairs and on-campus presentations. The survey also asked employers to indicate how

their spending was distributed within each of these areas.

Total marketing spend in 2009 and 2010

The final year-end data for total marketing spend per organisation indicates that the predictions made by

AGR employers for 2009 were extremely optimistic. Estimated at 80,000, the actual figure was some

60,000 less at 20,000. This suggests that the full impact of the recession was not felt until after AGR

employers set their budgets for the 2009 recruitment season and, as the economic climate worsened, they

were forced to downgrade their total marketing budget. More positively for 2010, no further decrease is

expected with median total marketing spend remaining steady at 20,000.

Figure 2.1 indicates an increase in predicted marketing spend in 2010 across all bandings with the

exception of 30,001 to 40,000 and 40,001 or more. Whilst a decrease of only 1.1 percentage points is

apparent in relation to the former, the equivalent figure for 40,001 or more is considerable at 10.1. The

increase observed across the remaining categories is marginal, with no difference observed in relation to

10,001 to 20,000; the notable exclusion is the category 20,001 to 30,000 which has increased by 9.1

percentage points.


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Figure 2.1:

Median total spending on graduate recruitment marketing in 2009 and 2010 (predicted) Base = 188

Graduate recruitment marketing activities in 2009

The traditional mainstays of graduate recruitment marketing activity continue to feature in AGR members

recruitment plans for 2010. As Figure 2.2 shows over nine-tenths (92.8%) of respondents to the survey

plan to utilise brochures and/or company websites, with 89.7% of recruiters planning to use on-campus

activities such as attendance at careers fairs, presentations or promotions. Interestingly, although still an

important method of marketing, the percentage of recruiters saying they will use paper-based advertising

has fallen from 95.1% in the Winter 2009 Review to 86.7%. This may be an indication of planned cutbacks

in advertising during the recession.

Figure 2.2:

Graduate recruitment marketing activities planned for 2010 - Base = 195

9.0%

4.3%

6.4%

8.5%

37.2%

4.8%

29.8%

9.6%

5.3%

6.9%

8.5%

46.3%

3.7%

19.7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

No Budget

Up to 4,000

4,001 to 10,000

10,001 to 20,000

20,001 to 30,000

30,001 to 40,000

40,001 or more

2010 (predicted)

2009

72.8%

86.7%

89.7%

92.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Online promotion

Advertising

Career fairs/campus presentations or promotion

Brochure/company website


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Spend on key activities in 2009 and 2010

Figure 2.3 indicates an interesting finding: that there is no difference in the predicted median spend ofresponding AGR employers in both 2009 and 2010 on online promotions, careers fairs and paper-based

advertisements. This is particularly surprising given the increasing popularity of online methods, including

social media. Expenditure on careers fairs and paper-based advertisements in 2009 was less than that

predicted in the Winter 2009 Review (by 5,000 and 6,000 respectively), presumably as a consequence of

the economic climate, with the figures reported predicted to remain static in 2010. An increase in spend on

recruitment websites is predicted, with a decrease expected for recruitment brochures.

Figure 2.3:

Median spend 2009 and 2010 (predicted) on key activities Varying Bases

Marketing spend per vacancy

Marketing spend per vacancy has been calculated by dividing the total marketing budget available to AGRemployers in 2009 and 2010 by the number of vacancies.

At 800, the median marketing spend per vacancy in 2009 was significantly below the figure of 2,533

predicted in the Winter 2009 Review. Moreover, this is predicted to decrease further still during the 2010

recruitment season to a meager 540. This is reflective of the slowdown in graduate vacancies and salaries

which had not impacted upon graduate recruitment marketing until the 2010 season.

It follows that, in contrast to the Winter 2009 Review, a small decrease in median marketing spend per

vacancy is apparent across all bandings (Figure 2.4) with the exception of up to 1,000, which has increased

by 7.2 percentage points from 47.2% to 54.4%. Smaller proportions of AGR employers are, therefore,

3,750

5,000

15,000

15,000

15,000

2,000

7,000

15,000

15,000

15,000

Recruitement brochure (Base= 139)

Recruitment website (Base= 125)

Paper Based ads (Base= 127)

Careers fairs/ campus promotions (Base= 135)

Online promotions (Base= 95)

2010 (predicted)

2009


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expected to be spending in the highest brackets in 2010 which is reflective of the overall decrease in

marketing spend per vacancy. Moreover, an increase of 2.5 percentage points is apparent in relation to the

percentage of organisations with a null budget per vacancy which is predicted to increase from 5.6% in

2009 to 8.1% in 2010.

Figure 2.4:

Median marketing spend per vacancy in 2009 and 2010 (predicted) Base = 161

Targeting universities in 2009 and 2010

When asked if they had targeted UK universities for campus events or local advertising, the vast majority of

AGR recruiters (82.2%) said they had done so. This proportion is forecast to remain largely unchanged into

2010 (82.6%) (Figure 2.5).

Figure 2.5:Whether targeted and whether will target UK universities - Base = 213

5.6%

47.2%

21.7%

11.2%

10.6%

3.7%

8.1%

54.4%

20.0%

8.1%

7.5%

1.9%

-10% 0% 10% 20% 30% 40% 50% 60%

Null budget per vacancy

Up to 1,000

1,001 to 2,500

2,501 to 4,500

4,501 to 10,000

10,001 to 20,0002010 (predicted)

2009

0.5%

17.4%

82.2%

4.2%

13.1%

82.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Don't Know

No

Yes

2010 (predicted)

2009


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Further analysis of those 175 employers who targeted UK Universities for campus events and local

advertising shows that 42.9% of employers targeted between 1 and 10 universities, with a further 33.7%

targeting between 11 and 20 universities and 22.9% targeting over 20 universities. As Figure 2.6 shows, the

forecasted picture is one of an increase in the proportion of employers targeting the mid range figure of 11-

20 universities with a resultant reduction in the numbers seeking to target 10 or less and 20 or more.

Figure 2.6:

Number of UK Universities targeted for campus events in 2009 and 2010 (predicted)Base (2009) = 175; Base (2010) = 176

Personal contact with university careers advisers is the most utilised form of communication with

universities with 65.7% of AGR members saying they adopted this approach. A further 41.7% of members

said they had made personal visits to academics on campus.

The broader approach of the use of open days for careers advisers and academics were less popular

methods of communication with universities in 2009 with 34.9% and 13.7% of recruiters adopting these

approaches respectively. However, significantly more recruiters are planning to use open days in 2010 with

43.2% of recruiters saying that they plan to run open days with careers advisers and 22.7% mentioning that

they plan to run open days with academics. This growth is in part attributed to AGR-led sector focus groups.

In 2009, four sectors (retail, banking or financial services, engineering and FMCG) ran events

targeted specifically at careers advisers; in 2010, the number of sectors running similar events is expected

to increase to six.

37.5% 38.6%

19.9%

4.0%

42.9%

33.7%

22.9%

0.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 to 10 11 to 20 more than 20 Don't know

2010 (predicted)

2009


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Figure 2.7:Communication methods used to contact universities in 2009 and 2010 (predicted)

Base (2009) = 175; Base (2010) = 176

5.1%

13.7%

34.9%

41.7%

65.7%

11.9%

22.7%

43.2%

47.7%

67.0%

-10% 0% 10% 20% 30% 40% 50% 60% 70%

Don't Know

Open days' for academics

Open days' for careers advisors

Personal visits to academics on campus

Personal visits to careers advisors on campus

2010 (predicted)

2009


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Chapter 3

Hot topics in graduate

recruitment


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Hot topics in graduaterecruitmentThis final chapter of the Winter Review addresses a series of current hot topics in graduate recruitment.

The chapter begins with our annual look at the prevalence of school-leaver entry programmes among AGR

employers, as well as examining the proportions of members who actively recruit for UK vacancies abroad

and their reasons for doing so.

School-leaver entry programmesThe proportion of AGR employers who offer a school-leaver entry programme for 16 to 18 year olds has

declined from 29.7% in the Winter 2009 Review to just over 26.3%. An entry programme for school-leaversis under consideration at 12.6% of those organisations who currently do not operate one (see Figure 3.1).

This is an increase from the 10.6% of employers who reported they were considering implementing an

entry programme for school-leavers in the last Winter Review.

Policy Insight: The demand for university places is outstripping supply

In January 2010, the Higher Education Statistics Agency revealed that than 1.14m students started

undergraduate or postgraduate courses in 2008/09 a jump of 7% on the previous year. In the face

of this unprecedented demand, it is estimated that as many as 200,000 individuals could miss out on

a place at university. Cuts in the higher education budget have also meant that universities face fines

if they recruit more students than planned, despite the slow progress being made towards the

Governments target of 50% of 18-30 year olds achieving a higher level qualification. In Skills for

Growth, the Governments national skills strategy published in 2009, this target was increased to 75%

and expanded to include young people completing an advanced apprenticeship or equivalent

technician level course.


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Recruiting for UK vacancies overseas

The number of AGR members looking overseas to fill UK graduate vacancies continues to steadily fall. One-

fifth (22.8%) of survey respondents reported this as being part of their recruitment policy in Winter 2009

Review, while this year (as shown in Figure 3.3) the figure has fallen again to 18.4%. This may be a

reflection of the tightening graduate jobs market, resulting in more home-grown talent applications and

less need to look overseas. Of the AGR employers who plan to recruit overseas, 25.6% are from the

investment bank or fund manager sector, with a further 17.9% from engineering or industrial companies

and 12.8% from the banking or financial services sector. All of these expect an increase in vacancies in

2010.

Just under one-third (30.8%) of those respondents who actively market UK vacancies abroad limit this

activity to Europe, down from 36.0% in last years Winter Review (see Figure 3.4).

No70.9%

Don'tknow2.8%

Yes26.3%

Figure 3.1:

Proportions of employers operating a school-leaver

entry programme (16-18 years)Base = 213

Figure 3.2:

Proportion of employers not yet operating but

considering a schoo

agr 2010 winter survey report

Documents