An Investigation into Postgraduate Employability in the UK’s Small and Medium Size Enterprises (SMEs) By: Clive Potts May 2017 Supervisors: Dr T. Olden, Dr A. Nazarian And Dr M. Pellegrini

Postgraduate Employability in the UK’s SMEs THE AIM OF THE RESEARCH The aim of this research is to investigate Master’s postgraduate employability from an SME perspective, and to compare and contrast the views of SMEs with postgraduate students and professional recruitment agencies. Branine (2008) indicated that SMEs are recruiting postgraduates, however, this is an area that seems to have been little researched.

Postgraduate Employability in the UK’s SMEs Background There are 5.5 million SMEs in the UK, 99.9% of all private sector businesses (Department for Business, Energy and Industrial Strategy, 2016). There were 306,670 Masters students studying in UK HEIs during 2015/2016 (HESA, 2017).

Postgraduate Employability in the UK’s SMEs The Research Question To what extent are the profiles of postgraduates (Masters) entering the labour market meeting the needs of SMEs?

Postgraduate Employability in the UK’s SMEs Sub-Questions What skill profiles do SMEs look for when recruiting? What benchmarks and mechanisms are available at the SMEs disposal when employing postgraduates? To what extent are SMEs satisfied that postgraduates have the employability skills that they are looking for? What is the postgraduate perception to working in the SME sector? To what extent are postgraduate students satisfied that they have acquired the skill sets to work for SMEs?

Postgraduate Employability in the UK’s SMEs Literature Review – Master’s Students Masters degrees have increased intensity, complexity and density of study compared with undergraduate study. Their content is diverse and is determined by the institution (HEFCE, 2013).

Postgraduate Employability in the UK’s SMEs Literature Review – Master’s Students Connor et al. (2010), identified the following skills and qualities of postgraduates as 1) Subject specialist knowledge. 2) Research/technical skills. 3) Analytical/problem solving skills. 4) Maturity. 5) New ideas/innovation. 6) High calibre candidates. 7) Future leadership potential.

Postgraduate Employability in the UK’s SMEs Literature Review – Master’s Students However, several writers, including Scott (2014), Clarke & Lunt (2014), and Artess et al. (2014) have commented that the value added of postgraduates is not necessarily appreciated or understood by all businesses.

Postgraduate Employability in the UK’s SMEs Literature Review – Master’s Students Furthermore, Clarke & Lunt (2014), indicated that the increase in postgraduates and the uncertain economic climate means that postgraduates are employed in a range of different contexts.

Postgraduate Employability in the UK’s SMEs Literature Review - SMEs Matlay (1999) The vast majority of owner/managers of micro-firms rely exclusively on informal channels of recruitment. Barrett et al. (2007), small firms frequently use recruitment practices that are convenient, inexpensive and directly controllable.

Postgraduate Employability in the UK’s SMEs Literature Review - SMEs However, Branine (2008), found that the selection process is becoming more rigorous and sophisticated as the gap between larger and smaller enterprises closes in terms of recruiting graduates (including postgraduates).

Postgraduate Employability in the UK’s SMEs Literature Review - SMEs Artess et al. (2014) found that the reasons why Master’s postgraduates were recruited varied. They recommended that taught postgraduate employability and employer engagement be kept under review including monitoring the trends of supply and demand for Master’s postgraduates.

Postgraduate Employability in the UK’s SMEs Methodology The research is taking a mixed methods approach. This reflects a ‘pragmatic’ worldview on the part of the researcher. Therefore a mixed methods approach using ‘exploratory design’ is being used for the research. In exploratory design, qualitative research is followed by a quantitative study.

Postgraduate Employability in the UK’s SMEs The Qualitative Component During December 2016, a pilot study of twelve semi- structured interviews with UWL Master’s Business students was undertaken to elicit their views about the skills they were developing and whether they would work for SMEs. The ages of the students ranged from 21 to 47. Eight of the students had a gap between doing their Bachelor’s and their Master’s degrees, meaning that they had worked during that time, although all twelve had some work experience. Seven of the Master’s Business students interviewed were working for large businesses, and only one for an SME. Did this experience influence their thinking towards SMEs?

Postgraduate Employability in the UK’s SMEs The Qualitative Component (Continued) It was confirmed that all twelve students were studying to gain business knowledge, though what aspect of that knowledge they valued varied from student to student. Eleven of the students felt that their critical thinking or analytical skills had been improved by doing the Master’s degree. Ten of the students felt that their managerial skills had also been improved by doing the Master’s degree. Therefore the majority saw themselves developing some of the postgraduate qualities identified by Connor et al. (2010).

Postgraduate Employability in the UK’s SMEs The Qualitative Component (Continued) However, eight of the students saw their studies as more than just improving their knowledge, but more specifically developing their careers. Eleven of the students would consider working for SMEs. Only one student would refuse. Seven of the students would also consider setting up their own businesses. Therefore, the majority of students were open to working for SMEs or setting up their own businesses regardless of their current work background.

Postgraduate Employability in the UK’s SMEs The Qualitative Component (Continued) For the main study, up to 45 semi-structured interviews are currently being undertaken. Up to 20 semi-structured interviews with the owners or representatives of SMEs. Up to 20 semi-structured interviews with Masters postgraduate students. Up to 5 with the representatives of professional recruitment agencies. The information generated will help inform the quantitative study.

Postgraduate Employability in the UK’s SMEs The Quantitative Component From Winter 2017, pilot studies will be undertaken, by surveying SMEs and Masters postgraduate students. During February 2018, the main surveys will be undertaken. The first survey will be of 2,000 SMEs, and the second will be of 500 Masters postgraduate students. It is hoped that the response rate for both surveys will be up to 30%.

Postgraduate Employability in the UK’s SMEs Bibliography Artess, J. Ball, C. Forbes, P. Hughes T. (2014) ‘Taught Postgraduate Employability and Employer Engagement: Masters With a Purpose’, HECSU, pp 1 – 71 Available at < http://hecsu.ac.uk/assets/assets/documents/HECSU_Masters_with_a_ purpose_15_May_14.pdf > Barrett, R. Neeson, R. Billington, L. (2007) ‘Finding the “right staff” in small firms’, Education & Training, Vol. 49, No. 8/9, pp. 686 – 697 Department for Business, Energy and Industrial Strategy (2016) ‘Business Population Estimates For The UK And Regions 2016: Statistical Release’, Available at < https://www.gov.uk/government/uploads/system/uploads/attachment _data/file/559219/bpe_2016_statistical_release.pdf > Branine, M. (2008) ‘Graduate recruitment and selection in the UK: A study of the recent changes in methods and expectations’, Career Development International, Vol. 1, No. 6, pp. 497 – 513

Postgraduate Employability in the UK’s SMEs Bibliography (Continued) Clarke, G. and Lunt, I. (2014) ‘International Comparisons in Postgraduate Education: Quality, Access and Employment Outcomes’, HEFCE, pp 1 – 216 Available at < http://www.hefce.ac.uk/media/hefce/content/pubs/indirreports/2014 /international,comparisons,in,PG,education/International%20comparis ons%20in%20postgraduate%20education%20- %20quality,%20access%20and%20employment%20outcomes.pdf > Connor, H. Forbes, P. Docherty, D. (2010) ‘Talent Fishing – What Businesses Want from Postgraduates, A CIHE Report for Department of Business Innovation and Skills’, CIHE, pp 1 - 16 Available at < https://www2.le.ac/departments/gradschool/about/external/publicati ons/talent-fishing.pdf > HEFCE (2013) ‘Postgraduate education in England and Northern Ireland’, Available at < http://www.hefce.ac.uk/media/hefce/content/pubs/2013/201314/Pos tgraduate%20in%20England%20and%20Northern%20Ireland%20Over view%20report%202013.pdf >

Postgraduate Employability in the UK’s SMEs Bibliography (Continued) HESA (2017) ‘Table A – HE students by level of study and mode of study 2015/16’ Available at < https://www.hesa.ac.uk/data-and- analysis/publications/student-2015-16 > Matlay, H. (1999) ‘Employee relations in small firms. A micro-business perspective’, Employee Relations, Vol. 21 No. 3, pp. 285 – 295 Scott, B. (2014) ‘Graduate Attributes and Talent Perceptions: Reflections on the First Year of Graduate Employment’, International Journal of Employment Studies, Vol. 22, No. 1, pp. 39 – 59