Recent findings highlight a concerning trend with graduates and apprentices leaving their jobs for better pay. The evolving economic landscape has significantly influenced employment dynamics among entry-level professionals.
- The Institute of Student Employers (ISE) reveals a surge in job departures driven primarily by dissatisfaction with current salaries.
- Reports indicate that over half of employers cite financial reasons as the primary driver for this workplace shift, a jump from previous years.
- There is a notable migration towards higher-paying industries, with fewer graduates entering traditionally lower-paid public sector roles.
- Employers are increasingly struggling to retain diverse employees, particularly among Black heritage hires and female workers, amid these transitions.
The Institute of Student Employers (ISE) reported a marked increase in graduates and apprentices leaving their current roles in search of higher pay. This trend reflects the broader economic challenges faced by entry-level professionals as living costs continue to rise.
Employers have observed a notable 11% increase over the past year in graduates leaving positions for financial reasons. This change highlights a significant shift from previous years where progression opportunities were the main motivation for job changes.
A key finding from the ISE’s survey is the preference among graduates for higher-paying sectors, such as finance, over traditionally lower-paying roles typically found in the public sector.
While initial salaries for graduates and apprentices have indeed risen, this increase has not extended to retention rates beyond the third year of employment. Many continue to seek opportunities elsewhere to match their salary expectations.
Employers report particular difficulties in retaining Black heritage hires and women. Conversely, there has been a slight increase in the retention rate of apprentices, potentially due to a less secure job market perception among younger workers.
Notably, non-graduate employment rates have not rebounded post-pandemic despite the employment rate for graduates improving. Internships and practical work experiences have proven beneficial, with a higher retention rate reported for former interns.
According to Stephen Isherwood, joint CEO of ISE, the competitive nature of the job market necessitates employers to exert more effort in talent retention as inflation-strapped salaries drive more employees towards better-paid opportunities.
The evolving employment landscape underscores a need for strategic retention efforts as economic pressures continue influencing job mobility.
