UNIVERSITY OF DERBY BUXTON Are graduates more productive? Sarah Rawlinson University of Derby

UNIVERSITY OF DERBY BUXTON Context of the study The Department for Education and Skills (DfES) study on Education and Skills: The Economic Benefit (2003) suggests that there are higher returns for individuals who have a university degree and that highly educated people are more productive. The report claims that businesses can benefit in the forms of higher profits by making use of this higher productivity.

UNIVERSITY OF DERBY BUXTON Context of the study Research Questions How do we measure this productivity? How do we attribute this productivity to graduates only? Do employers see the benefits of employing graduates? Case Study The spa, beauty and hairdressing sector. Little or no experience of higher education. Graduates entering the industry.

UNIVERSITY OF DERBY BUXTON Context of the study The changing nature of work Flatter organisational structures, as a result of downsizing and delayering, has led to the empowerment of individuals and greater autonomy and ownership of the work process. This change has placed greater emphasis on the knowledge and skills of individuals and has resulted in the need for a more educated workforce. (Harvey 2000)

UNIVERSITY OF DERBY BUXTON Context of the study Measuring Performance The balanced score card approach Kaplan and Norton (1992) The framework of intangible valuation areas (FIVA) Green and Ryan (2005)

UNIVERSITY OF DERBY BUXTON Pilot Study Aim Identify whether graduates in spa, beauty therapy and hairdressing were more productive than non graduates. Objectives Investigate the employment opportunities for graduates from spa, hairdressing and beauty therapy programmes. Identify the benefits graduates brought to the organisations that employed them.

UNIVERSITY OF DERBY BUXTON Research Approach An exploratory research approach was used to gain an understanding of the job roles graduates were performing and the types of organisations that had employed them. This approach provided an opportunity to investigate the context within which the wider study would take place and explore the activities that would need to form part of the measurement tool.

UNIVERSITY OF DERBY BUXTON Research Method Five organisations took part in the pilot study. Colleges and universities offering higher education programmes were approached by the Hair and Beauty Industry Authority to identify organisations that may take part in the study. Semi structured telephone interviews were used in all but one organisation.

UNIVERSITY OF DERBY BUXTON Findings The Pilot Study found: Students were all employed in larger organisations; All carried out treatments or services as part of their role; None of the organisations set out to employ a graduate but would consider doing so in the future.

UNIVERSITY OF DERBY BUXTON Findings Employers suggested that they could not identify tangible benefits to employing a graduate but cited the following intangible benefits: commitment to the industry; a good understanding of the industry; good management skills, spent time planning ahead and making improvements to the business; confident, reliable and used their own initiative; demonstrated leadership skills.

UNIVERSITY OF DERBY BUXTON Findings The pilot study suggests that: Graduates are demonstrating greater autonomy and ownership of the work process; Graduates are growing jobs within organisational structures; Graduates first job is not in traditional graduate positions but in positions that initially provide low-level challenges. Identified by Harvey (2000)

UNIVERSITY OF DERBY BUXTON Findings Harvey (2000) suggests that the changing nature of work is benefiting non-traditional graduates. This change has placed greater emphasis on the knowledge and skills of individuals and has resulted in the need for a more educated workforce.

UNIVERSITY OF DERBY BUXTON Conclusions This pilot study has identified that graduates in this industry are providing intangible assets that do not show on the organisations bottom line. The benefits that graduates bring to the industry are not easily measured by the organisation.

UNIVERSITY OF DERBY BUXTON Conclusions Many businesses do not know the true value of their intangible assets (Green and Ryan, 2005). There is a need to align an organisations business strategy and their intangible assets through a graduate impact framework (GIF) developed for this industry.

UNIVERSITY OF DERBY BUXTON References Green, A. and Ryan, J.C.H. (2005) A framework of intangible valuation areas (FIVA). Aligning business strategy and intangible assets. Journal of Intellectual Capital. Vol. 6 No. 1 pp Harvey, L. (2000) New realities the relationship between higher education and employment. Tertiary Education and Management. Vol. 6 No. 1 pp 3-17 Kaplan, R.S. and Norton, D.P. (1992) The balanced scorecard – measures that drive performance. Harvard Business Review. January – February pp71-79