EMPLOYABILITY FOR THE FUTURE – THE EMPLOYERS’ PERSPECTIVES Carl Gilleard Chief Executive, AGR

Background to AGR Mission: To set the agenda for change in graduate recruitment and development Not-for-profit membership organisation 800 plus members -blue-chip companies -public sector -charities -universities -supply firms Recruit 30,000 graduates into graduate level jobs annually Services include: -research -training - conferences -information and advice -networking -representation

Membership includes ASDAAtkinsBarclays BP InternationalCabinet OfficeCaterpillar Clifford ChanceDanoneDiageo Enterprise Rent-A-CarGlaxoSmithKlineGoogle Hilton HotelsInnocentJP Morgan Kerry FoodsKierLloyd’s Register Marks & SpencerMcKinsey & CompanyMetropolitan Police MitsubishiNational GridNorwich Union Oxfam GBPricewaterhouseCoopersRolls-Royce Scottish & NewcastleShellSkanska UK Standard LifeTeach FirstTesco Thomas CookVirgin TransatlanticWincanton Logistics Sheffield Hallam University

In the world of work – Change is the only constant and the only certainty is uncertainty

The changing world of work Globalisation Technology Demography Environment Business and people expectations

The changing business world Increasingly diverse business sectors - global - local - public, private, not-for-profit - large, medium, small, sole traders Customer driven Switch from manufacturing to service Increasingly competitive

“India wants your lunch and China wants your dinner” Professor Richard Scase

What we do How we do it When we do it Where we do it The speed at which change occurs and how we cope with it The demand for skills, knowledge and understanding The knowledge economy demands a better educated, more highly skilled and flexible workforce Changes at work will impact on:

The war for top talent will continue unabated Work performance will be judged on results, not time spent Roles will be defined by behaviours and outcomes rather than tasks Greater emphasis on project working and networking Many workers will have more than one boss Some will have more than one employer More of us will work remotely The working environment in the future

The end of a ‘job for life’ Start later, end later Most will have several careers Many graduates will go into ‘non-graduate’ jobs Flatter structures, fewer promotions More flexibility and less certainty Careers in the future

The new language of careers FROMTO ClarityFog LaddersBridges EmployerCustomer CareerPortfolio ProgressionPersonal growth Rising income and securityRemaining employable TrainingLife long learning BossBosses / self employed Time spentResults Job descriptionProject working

“No such thing as a career path. It’s crazy paving and you have to lay it yourself!” If Only I’d Known

“A degree is merely a license to hunt” If Only I’d Known

Much of it online – marketing, applications, selection Borderless Competition is the name of the game Employer expectations will continue to rise Qualifications will open the door to opportunities Skills will let you in Recruitment in the future

Some jobs will demand specific degrees, many won’t A good degree plus Skills (technical/generic) Personal attributes Work experience Impressive applications What will employers look for in graduates?

“Hire for attitude first, and specific skills second” Jonathan Winter and Tony DiRonualdo Manifesto for the New Age Workforce

Which generic skills?  Team working  Oral communication  Computer literacy  Flexibility  Problem solving  Risk taking/enterprise  Numeracy  Commercial awareness  Analysis and decision making skills  Planning and organisation  Leadership  Cultural sensitivity  Managed own learning  Project management  Written communication skills  Second language  Customer Focus

Which personal attributes?  Commitment and drive  Passion  Character/personality  Curiosity and creativity  Motivation and enthusiasm  Integrity  Mobility And …  SELF CONFIDENCE  SELF AWARENESS  SELF ESTEEM  SELF EFFICACY

“Have you got Oomph?”

Managing expectations Mismatch between what is on offer and what is sought Comparability of qualifications Mobility Work/life balance The desire to succeed Global competition The key challenges ahead

“The labour market has changed beyond recognition in the last decade; in a word it has gone global. If businesses can’t find the skills or work attitudes that they need in a national workplace, they can perfectly well recruit elsewhere. They don’t have to hire people from the UK education system. And they don’t have to locate their activities in the UK.” Richard Lambert Director General of the CBI

14.7% 5.1% 15.5% -3.4% -6.5% 12.7% 5.2% 16.4% 14.6% -10%-5%0% 5% 10%15%20% Graduate Vacancies – trends ( ) The current graduate employment scene – first the good news

Applications per graduate vacancy received by AGR employers in % 29% 25% 20% 6% 4% 0%5%10%15%20%25%30%35% 1-10 applications per graduate vacancy applications per graduate vacancy applications per graduate vacancy applications per graduate vacancy applications per graduate vacancy More than 150 applications per graduate vacancy Mean: 29.2 applications

Recruitment shortfall in % 24.4% 7.7% 2.2% 8.8% 3.3% 2.2% 0% 10% 20% 30% 40% 50% 60% 1-5 vacancies 6-10 vacancies vacancies vacancies vacancies vacancies More than 100 vacancies Average vacancies per company that experienced a recruitment shortfall were left unfilled Yes 43.5% No 56.5% Then the not so good news

Potential shortfalls in 2008 No 75.1% Yes 29.4% 70.6% 55.9% 52.4% 43.4% 33.8% 25.5% 16.5% 13.8% 0.7% 21.4% 0%10%20%30%40%50%60% Graduates' perceptions of the industry sector Not enough applicants with the right skills Challenges in specific geographical regions Not enough applicants with the right qualifications Limited resources to market graduate vacancies properly Late change in the business's requirements Graduate starting salaries not competitive enough Candidate drop-out because selection and assessment Graduate training and development programme Other Yes 67.1% No 32.9% And even worse news 55.9%

What do you do with a BA in English? What is my life going to be? Four years at college And plenty of knowledge Have earned me this useless degree. I can’t pay the bills yet Cause I have no skills yet The world is a big scary place. But somehow I can’t shake The feeling I might make A difference to the human race. Avenue Q Some final thoughts

“To be employed is to be at risk To be employable is to be secure”

The ability to get a job Requiring a set of skills specific to applying for and succeeding in securing a job/career (research, making choices, self-marketing, communicating, convincing) To do it well The skills to succeed in a job (self-efficacy, technical skills, soft skills, flexibility, willingness to learn and take control) Then to get another job Moving on when the time is right or managing change when the time is wrong (career management, decision making, positioning, networking, coping with change, self-efficacy) And another Understanding that change is the only constant and seeing change as an opportunity rather than a threat (career management, positive attitude, including I CAN) A practical definition of employability

QUESTIONS?