Graduates and SMEs: Making the links and making the breakthrough AGCAS Biennial Conference 2013 Chris Phillips, GTI Media Philip Donnelly, STEP Tracy Scurry, Newcastle University Business School Leigh Sear, SFEDI Solutions

Workshop overview Introductions Roundtable discussion - Perceptions and Labels SME and graduate perceptions - Chris Phillips (GTI Media) and Phil Donnelly (STEP) Roundtable discussion - Barriers to Graduate Recruitment in SMEs Overcoming the Barriers - Leigh Sear (SFEDI) and Tracy Scurry (Newcastle University) Making the Breakthrough – strategies and actions Summary and action plans

Getting Started – Perceptions and Labels Take two minutes individually to answer the following question: –What do you think a small business looks like? On the basis of your individual answers to the above question, as a group, consider: –What do you think a small business looks like to a graduate? –What do you think a graduate looks like to SMEs? You have 10 minutes for discussion: –Please outline your main points on the flipchart provided for feedback to the group

The great SME conundrum Few University-based careers and employability staff would argue against the value of engaging with SMEs So why, if it is commonly accepted good practice, do so many of us find it so difficult?

Two large-scale research surveys c900 undergraduates from all disciplines, all years, conducted independently by NUS C250 smaller ‘high-growth’ businesses, across all sectors and geographies Full Report including career stories, ‘Guide to recruiting graduates from universities’ launched at big AGCAS Conference on 26 November in Birmingham

Preliminary findings - students

Looking around you at university, how would you describe the profile of smaller employers as recruiters of graduates or providers of work experience?

If you have heard about opportunities with smaller employers on campus, how did you do so?

To what extent do you agree with the statement that working for a larger and well- known employer looks better on your CV.

And do you think you will learn more skills and develop as a person quicker with…?

How willing, if at all, are you to consider starting your career with a smaller employer?

Summary points Students don’t find working for smaller business unattractive they just aren’t aware of the opportunities available. Top comment was ‘Advertise’ Although students are positive about working in small companies a lot mention using them as a route into a larger company. Q. How do small companies compete with the prestige/brand a large company has? A. By stressing the benefits of working in a smaller business...visibility, responsibility, impact, key member of team not ‘bit-part player’

Preliminary findings – smaller businesses 46% have recruited at least one graduate to a permanent position in the last year, up 20% since 2010, when only a third indicated that they had recruited a graduate 40% have offered one or two work experience opportunities in the last year, up 15% in the last three years

How they recruit graduates Half approach universities directly and a similar proportion recognise the value of recruiting via internships Around 40% rely on ‘word of mouth’ or their own website

Working with universities In terms of proactive university-led approaches, a third had never been contacted directly by a University, and of those that had, a quarter said that contact was ‘very rarely or every few years’. When asked whether they had been contacted by their local university, one respondent said: “No. I would like to have been though!” 60% found it ‘challenging’ to recruit a graduate.

Why do they recruit graduates? The overwhelming majority (75%) say it was to address an immediate or specific requirement However, over a third mentioned their ‘potential as future managers’ and a similar number ‘the knowledge and (usually technical) skills’ that their business was lacking 40% referenced a more generic need for ‘fresh ideas and thinking’

Small businesses’ views of graduates – quote from Report “With media focus on the ‘dumbing-down’ of education and comments about graduates’ lack of employability, we are encouraged that precisely the audience that you might think would have the most negative views clearly doesn’t.

Graduate skills most in demand Team working/communication skills Flexibility to handle multiple roles Good team player ‘Can do' attitude Common sense Understanding of profit and loss Attitude and commitment

What graduates may lack Commercial awareness Confidence (expressed most in terms of poor communication skills). Related to these were concerns relating to: - attitude and approach - lack of focus - low boredom thresholds - commitment

Summary points – smaller businesses Growth in recruitment of graduates for jobs and work experience in last three years Not always easy to work with universities to attract/recruit graduates Graduates valued and praised for what they bring to the business Smaller businesses want more of them and easier access

The Barriers – Have We Been Here Before?

Employer Size% of graduates% of total workforce 1 to %36.6% 50 to %14.6% 250 or more44.2%48.8% Not known9.7%- Question not answered 13.1%- Total100% Sources: BIS (2012) and HEFCE (2011)

The Barriers – Roundtable Discussion In small groups discuss the following: What are the barriers for you as a careers service professional to increasing the number of graduates entering employment in SMEs? You have 10 minutes for discussion Please outline your main points on the flipchart provided for feedback to the group

Overcoming the Barriers

Type of market failureExamples from the evidence base Information failuresDemand side – the perceived need for graduates; the perceived quality of graduates Supply-side – lack of consideration of SMEs as a graduate labour market outcome, perceived lack of status of SME employment, perceived lack of career opportunity within SMEs SME capacity constraintsResources available to recruit graduates through formal methods Resources available to support the development of graduates when in employment ‘Consumer’/’producer’ behavioursEntry points into HEIs for SMEs to working with graduates Attractiveness/value of small businesses vs. large business ‘brands’ for University Careers Services

Overcoming the Barriers AWARENESS RAISING Storytelling Case studies EDUCATION AND EXPERIENCE Enterprise education Engagement events ENGAGEMENT AND DEVELOPMENT Mentoring Recruitment portals Internships Placements SME/Graduate Champions

Making the Breakthrough In small groups discuss the following: Having heard what you have heard today, what practical strategies and actions will you and your work colleagues implement first to make the breakthrough? You have 10 minutes for discussion: –Please outline your main points on the flipchart provided for feedback to the group

Summary and Action Plan

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