Graduate turnover is a significant challenge for many employers, with retention rates dropping in recent years. Studies show that after three years, only 70 per cent of graduates remain with their original employer, a fall of nearly 10 per cent from a decade ago. Poor pay, limited career progression, and a misaligned company culture are among the prime reasons for this high rate of attrition. Four-tenths of graduate employees report dissatisfaction with pay, and nearly one in three regret joining a company due to unmet expectations regarding culture and support systems.
To counter these alarming trends, companies must strategically design graduate development programmes that foster engagement and loyalty. In this article, we’ll outline five top tips to create programmes that encourage graduates to stay.
Personalise the Learning Journey
Fresh from the rigours of academic study, graduate employees often thrive when provided with tailored learning opportunities. University education has drastically changed in recent years with the growth of online and remote learning, so many in Gen Z (born c. 1998 -2015) favour hybrid and self-directed learning environments, combining digital tools with in-person sessions. Consider implementing customised career development plans that align individual aspirations with organisational goals. For example, platforms for continuous skills-building and optional rotation programmes can help graduates to explore different roles within the company and give them a tangible taste of the opportunities that await them.
Invest in Mentorship and Support
Research suggests that 83 per cent of graduates value mentorship, but only half have access to it. Establishing a structured mentorship programme connects graduates with experienced professionals who can guide them in their learning and help them to embed theory into practice. Regular one-to-ones to discuss career growth, mental wellbeing, and workload management ensure that graduates feel supported, reducing the risk of early burnout or cultural disconnection.
Foster a Positive Organisational Culture
A mismatched workplace culture is a key reason for early staff turnover. During recruitment, deliver transparency about the company’s values and working environment; during onboarding, provide opportunities for graduates to integrate socially, such as team-building activities or networking events. Emphasising inclusivity and belonging can significantly boost retention, particularly among minority groups who may otherwise feel overlooked and underrepresented.
Provide Competitive Compensation and Benefits
While development opportunities are critical to graduate employee retention, 40 per cent of recent university leavers cite pay dissatisfaction as a reason for seeking new opportunities. To address this problem, ensure salaries are competitive within your industry and clearly communicate pathways for bonuses and promotions. Additional perks such as flexible working, health benefits, and wellness initiatives, can also help to enhance the overall employee experience and reduce turnover.
Regularly Seek Feedback and Adapt
It is important to remember that graduates’ needs and expectations rapidly evolve. Creating mechanisms to gather feedback at every stage of their development, such as pulse surveys or focus groups, can inform your programme design and enable you to adapt it to evolving needs, thereby ensuring it remains relevant and appealing. Involving graduates in decision-making processes also fosters a sense of ownership and loyalty to your organisation.
Find Out How We Can Help
Graduate development programmes that go beyond skills training to cultivate long-term engagement and loyalty establish a supportive, growth-oriented environment that benefits both employees and the organisation, and ensures a rich leadership talent pool.
At Grahame Robb Associates, our experts can help you to design graduate development programmes that boost retention and reduce the costs and inconvenience of staff turnover. For more information, please get in touch today.
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