YOUNG JOBSEEKERS ARE STILL DAZZLED BY BIG NAME EMPLOYERS
Graduates may be missing out on a whole host of job opportunities by snubbing smaller companies to chase after jobs at the big firms, according to new research by Santander UK.
The study showed that just one in eight students would want to work for an SME (small to medium sized firm, with less than 250 staff) as their top career choice.
Considering SMEs make up 59% of private sector jobs, this study reveals that graduates could be missing out on vital jobs if they choose to only focus on the giant employers in their field.
The study also showed that one in four students are unaware of the jobs on offer at smaller firms. Luis Juste, director of Santander Universities UK, said that more should be done to educate graduates on the career opportunities in smaller firms:
“It’s great to see that working for an SME is the number one career choice for one in eight of those polled, but we believe this could, and should, be significantly higher.”
But twice as many graduates end of working for an SME, with one in four recent graduates currently employed by a smaller firm.
Graduates living in London, where many of the bigger employers are based, are the least keen to work for a small firm – only 8% said it would be their first choice. Graduates in Northern Ireland were the most keen, with one in five saying they would choose a small employer.
The study was based on interviews with 2,000 students and graduates across the UK – and the results were announced as the banking giant said it would be expanding its internship programme, helping to fund 1,500 paid student internships at SMEs to help promote the positives of working in smaller firms.
As we reported earlier this month, there are 43 applicants for every place on the big graduate schemes. In contrast, SMEs frequently tell Graduate Fog they are struggling to find enough good quality candidates. Is it time for job-seeking graduates to adjust their expectations and consider all their options?
*ARE YOU APPLYING TO BIG FIRMS, SMALL FIRMS – OR BOTH?
Are you holding out for a job with a big-name graduate employers? Or are you applying to smaller firms? What are the pros and cons of starting your career with a small firm, versus a big firm? Tell us in the Comments below!
Of course the other advantage of working for smaller firms is that the graduate will probably have more autonomy.
Finally and article on GF that doesn’t blame the employers! Thank you.
One way to find job opportunities with SMEs is to identify your target employers (eg “logistics companies”, Gloucestershire) and list the website details of all companies appearing under that search term. Focus (most of) your efforts on the employer websites with a web page publishing details of vacancies in the company.
Surprisingly few job applicants try this route even though it’s a very effective way of getting onto the interview shortlist.
hi guys
please help me
should i take a minimum wage (£6.09) paying job, with just part time hours where i am self employed even though i am working for someone else. i have a huge problem with the self employed part and find it so risky and don’t understand why the company is doing that. the role is for receptionist/administrator. personally i don’t know any receptionist who works as self employed. i didn’t think i’d get the job so i am so flattered because it’s the first offer in a rather long time. on the other hand, what is being offered is rubbish, i think. i found the company as really mean and uptight, who will not pay a penny for the training i need, only lunch expenses. i’m really stressing out about it because the job was slightly falsely advertised, i found out all the payment aspects at the interview but was too scared to complain then.what shall i do as i have to reply to the company? thank you.
Hi lostgraduate
What this company proposes to do – employing you part-time, working fixed hours for a set rate of pay that you didn’t “negotiate” – doesn’t comply with tax regulations. If HRMC found out about it your employer would be in trouble and you’d face hassle you don’t need.
You’d already got lots of doubts about this employer. I think you should listen to your instincts.
@lostgraduate
You’re better than those exploitative working arrangements.
I have a similar story, when I was looking for a job I applied for one and was told, before the interview, that I was pretty much a shoo-in. However, I found this slightly odd and unnerving. I started researching the company and found that all their employees are self-employed commission only door-to-door sellers. There were stories of people working for the employer for 70+ hours and earning as little as £10. It also said that they would accept anyone, as they have such a high turnover of staff (unsurprisingly!)
I rang them on the day of the interview and said that I had changed my mind about the interview and that I’m going to give it a miss. They said “Awwh, well that really is a shame. Perhaps we’ll call you at a later date to check you’ve changed your mind?” at which point I said something I never thought I’d say “Don’t call me, I’ll call you if I change my mind.”
It was quite liberating. I didn’t find another job for another 6-months, but in hindsight I am glad I didn’t get sucked in to that world of exploitation. I wouldn’t be where I am today if I did.
@lostgraduate
Well one of the measures of self employment is that you provide your own tools, set your own hours (providing the job is done) and can sub contract work substitute. You also need to have a variety of clients (not just one) in order to get around IR35 implications.
Providing the company realise those issues then the ball really is in your court.
Tell it to ’em straight. You can’t be a self employed receptionist – unless you’ve got your own reception desk and phone system. LOL!!!
@Peter F
If SME’s were really interested in recruiting graduates, they would be a modicum of commitment, such as providing Sponsorship and Placements for Students at College and University. If Business Managers within UK SME’s are not interested then……. d’oooh …..they should not be surprised that graduates should give SME’s the proverbial cold shoulder.
thanks everyone for your comments!!
@CostaDel you said exactly what i was looking for, the word ”exploitative”. this is what this felt like. it’s not commission based at all, however the job was completely falsely advertised. i didn’t think i’d get it as the interview was not that good. it’s so frustrating applying for job after job, and then to be offered one like THIS, and honestly, I am not being fussy or picky, i genuinely think this is such a stingy and poor offer to make to someone, bearing in mind that i am a graduate and i do want to do well. the self-employment aspect was very complicated. i turned it down. i have followed my gut instinct, hopefully i made the right decision and i will find a job soon. i could cry.
@lostgraduate
If it’s any comfort, I’m sure you made the right decision, even though jobs are in such short supply. That employer sounded really shifty.
I think of lot of graduates really are missing a trick. I joined a startup company 18 months ago and we have gone from 3 to 14. We offer paid internships for some of our roles and 100% of those which have come to an end have been offered a job. It’s not guaranteed of course but I see it as a win-win. The company is able to offer a genuine opportunity to an intern which in turn gives the company itself a little more run way to get to the point where they are revenue generating and need and can afford to pay a proper salary.
Having said that the quality of applications varies enormously with a low being those who don’t even know what we do and quote us as being such a long established company….the clue is in the word ‘startup’.
So my advise from someone who has looked at several hundred cvs in the last year, is to check out startup companies, especially those which have secured some funding. They are evolving companies who will be needing staff but need to keep costs down initially to give the business a chance. They are not all out there to exploit you!
Oh, and do a bit of research if you expect employers to take your application seriously.
@Tracy: “They are evolving companies who will be needing staff but need to keep costs down initially to give the business a chance. They are not all out there to exploit you!”
Although I agree that smaller companies are a fantastic way to gain experience, I am absolutely sick to death of hearing the same old drivel from start ups about paying people.
You say that many start ups pay, but I couldn’t agree less. Over the past three years I have spoke to hundreds of start up companies, and the conversation goes like this: “Oh yeah, we offer internships. But because we’re a start up, they’re unpaid.” Then they tell me about how they’re at a vital stage in the development in their business, and they need a panel of interns to get them off the ground.
What a load of sh*t.
The attitude that “I (as a director) am not being paid, so why should I pay interns?” absolutely stinks. There are plenty of reasons why your staff get paid before a director and it’s to do with the inherent legal responsibilities and levels of risk that our employment law has set. If you’re a director, the risk is high but so is the reward. As a worker, the risk is low and the (minimum) return is also low.
Directors use the term “start up” as if it’s an excuse to ignore highly established employment legislation and it annoys me that they’re so deluded to think they’re right not to pay others simply because they’re not being paid themselves. I empathise with the situation, but that’s the risk of being a director.
Perhaps you’ve had positive experience with start ups. But my experience of hundreds of start ups I’ve spoken to is they generally believe the world owes them all the free time to get their business off the ground and they won’t pay a penny for it.
My experience with start ups is nothing but negative.
@Costadel
It’s a shame to hear about your experience which has obviously given you a negative impression of startup companies. All I’m saying is don’t discount startup companies because there are a lot of genuine opportunities out there. I agree that internships should be paid and we as a company would not consider asking anyone to work for free. I’m sure there are some companies out there which would but many are not like that so give a range of companies a fair go and not just the corporates! That’s all I’m saying:)
Hi Tracy, I don’t disagree with your substantive points that start ups are a great place to obtain experience. Small companies and start ups are places where people have to pitch in for all sorts of different activities. The potential to develop personally and professionally is massive.
But, I am sick to death of hearing directors use “start up” as if it is synonymous to “no payment offered”and an excuse not to pay. I’ve spoke to three this morning in a local business meeting, and all of them have said they don’t pay (as if I needed a reminder!).