Graduates won't abandon principles despite tough jobs market

http://www.guardian.co.uk/money/2012/aug/22/graduates-principles-tough-jobs-market

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This year's graduates are shunning decent salaries, bonus potential and employee benefits in favour of more altruistic aims, according to research.

Graduates are placing less importance on overall earnings and benefits than in 2011, with fewer than one in 10 (8%) saying a basic salary is in their top three considerations when applying for a job. This contrasts with almost half (45%) in 2011, according to research from management consulting firm Hay Group, exclusive to the Guardian.

Instead, graduates are increasingly interested in their ability to make a difference, with 51% naming this as a key factor in their job choice compared to just 4% in 2011.

"There is a perception that all graduate jobs are difficult to get, so you may as well strive for one that will make you feel happy and satisfied, rather than one that makes you feel bad, like working for an 'evil corporate'," said Tanya de Grunwald, author of How to Get a Graduate Job in a Recession. "Graduates are not prepared to abandon their principles just because the economy is in a terrible state."

Martin Allison applied to the Marks & Spencer IT graduate scheme while studying a business studies degree at Glasgow Caledonian University. "You're given exposure to all aspects of the business as well as the chance to be involved in meaningful projects," he said. "Obviously not everything changes the world, but often you'll get a real sense of pride knowing that something you've done has a bearing."

But the research, a snapshot of sentiment based on interviews with 600 graduates who have applied for a scheme, indicates that finding work is more difficult than it was last year.

Just 29% of respondents said they had won a place on a graduate scheme, meaning that for every three or four graduate scheme applications only one is successful.

Christopher Smith of Hay Group said: "There is clearly a gap between graduates' perceptions of the job market and the reality. Although the latest labour market statistics showed unemployment has started to drop and pay has increased slightly, there is still a very gloomy perception of the UK job market.

"Our research suggests this is starting to filter down and is affecting graduates' confidence."

De Grunwald described the mood among recent graduates as "pretty grim". She said: "I am concerned it is forcing them to make bad decisions – in particular, too many are signing up for expensive master's degrees simply to delay joining the workforce for another year, but without really knowing whether the qualification is a wise investment or truly valued by employers in their chosen field."

A July 2012 study by High Fliers Research showed that applications to graduate employers are 25% higher than three years ago, as advertised positions attract graduates from previous years as well as the latest cohort. The study showed there is an average of 73 students for each job, rising to 142 in the investment banking world and 154 in the retail sector.

For Tessa Watts, finding a graduate job is proving a challenge. Since graduating with a law degree from the University of Exeter in 2011 she has applied to a number of graduate training schemes at major law firms without success.

"I do feel like it's only a matter of time before I get on a scheme, but law firms can cherry-pick at the moment: one big international firm recently selected just 15 graduates from 2,500 applications," she said. "I'm really pleased even if I make it to the first round."

Watts recently had four rejections in a single day. "It can be dispiriting and demoralising. You have to be the one person who shines out from 100 applications or more. I'm not sure what I would do if I didn't have a fantastic support network of family and friends. None of my closest friends who studied law have remained in the sector, they have switched careers already."

However de Grunwald said there is work for graduates beyond the traditional milkround employers. "Graduates who take the time to do a bit more sleuthing will find vacancies that their friends will never even know about. Think about it – would you rather go for a job that 1,000 people have applied for, or 10?"