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THE IMPACT of GRADUATE PLACEMENTS on BUSINESSES in the SOUTH WEST of ENGLAND: a Longitudinal Study to Run Alongside the Graduates for Business Project

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THE IMPACT of GRADUATE PLACEMENTS on BUSINESSES in the SOUTH WEST of ENGLAND: a Longitudinal Study to Run Alongside the Graduates for Business Project THE IMPACT OF GRADUATE PLACEMENTS ON BUSINESSES IN THE SOUTH WEST OF ENGLAND: a longitudinal study to run alongside the Graduates for Business Project Final Report November 2009 Gaby Atfield Kate Purcell Terence Hogarth CONTENTS EXECUTIVE SUMMARY ....................................................................................................... I 1. BACKGROUND AND INTRODUCTION TO THE PROJECT........................................ 1 1.1 The Graduates for Business Programme ................................................... 1 1.2 The Impact Study ......................................................................................... 2 1.2.1. Overall aims and objectives on behalf of SWRDA and HERDA .................. 2 1.2.2. Objectives for the research team ................................................................ 2 1.2.3. The Research Methods .............................................................................. 3 1.3 HE expansion and employment: the historical and political context of higher education in the UK.......................................................................... 4 1.3.1 Changing perceptions of the relationship between higher education and employment................................................................................................ 4 1.3.2. Changing perceptions of graduate skills mismatches.................................. 6 2. THE STRUCTURE OF THE REGIONAL ECONOMY AND THE GRADUATE LABOUR MARKET IN THE SOUTH WEST ................................................................ 7 2.1 The South West Economy ........................................................................... 7 2.2 Previous research findings on graduate employment in the South West ..................................................................................................................... 10 2.3 The value of work experience placements to students, graduates and employers ................................................................................................... 12 2.4 Recent trends in employer engagement with HE..................................... 14 3. THE G4B PLACEMENTS ........................................................................................... 17 3.1 Types of placement.................................................................................... 17 3.2 Differences between the scope and complexity of work experience allocated to graduates and undergraduates on the G4B programme .... 22 3.3 Reasons employers provided placement opportunities.......................... 23 3.3.1. Seeing the value of work experience for graduates and students ............. 23 3.3.2. Seeing the value of work experience for the employer.............................. 25 3.3.3 Other motivations ..................................................................................... 26 3.4. Reasons graduates and students took on placements ........................... 27 3.4.1 Experience and clarification of career ideas.............................................. 27 3.4.2. Financial reward ....................................................................................... 30 3.4.3. Other motivations mention by those on placements.................................. 33 4. CHARACTERISTICS OF PLACEMENTS................................................................... 37 4.1 What did those on placement do? ............................................................ 37 5. COSTS AND BENEFITS TO THE EMPLOYER OF PLACEMENTS........................... 43 5.1 Benefits to the employer............................................................................ 45 5.1.1. Benefits related to the work undertaken by the person on placement ...... 45 5.1.2 Benefits related to the outlook of the graduate or student on placement... 47 5.1.3 Benefits relating to improved skills, knowledge or experience of existing employees ................................................................................................ 47 5.1.4. Other benefits to the employer.................................................................. 48 5.2 Costs to the employer................................................................................ 50 6. COSTS AND BENEFITS TO GRADUATE OR STUDENT OF PLACEMENTS........... 55 6.1 Benefits to the graduate or student .......................................................... 55 6.1.1. Experience and the development of skills................................................. 55 6.1.3. Information to help in making career decisions ......................................... 59 6.1 4. Personal development.............................................................................. 59 6.2 Costs to the graduate or student .............................................................. 60 6.2.1 Disappointment or disillusionment ............................................................ 60 6.2.2 Financial costs......................................................................................... 61 7. THE ROLE OF HEIS................................................................................................... 65 7.1 Benefits to HEIs.......................................................................................... 66 7.2 Costs to HEIs.............................................................................................. 67 7.2.1. Costs related to establishing and monitoring placements ......................... 67 7.2.2. Costs related to administering the G4B project......................................... 68 7.2.3. Networking costs ...................................................................................... 68 8. THE FUTURE: BUILDING ON EXISTING ACTIVITY ................................................. 73 9. RECOMMENDATIONS AND GOOD PRACTICE........................................................ 79 9.1. General recommendations ........................................................................ 80 9.1.1. A successful placement does not feel exploitative .................................... 80 9.1.2. A successful placement is long enough for the graduate or student to find out about the company ............................................................................. 82 9.2. Recommendations for employers............................................................. 84 9.2.1. A successful placement is planned........................................................... 84 9.2.2. A successful placement involves matching not just skills, but also objectives ................................................................................................................. 85 9.2.3. A successful placement makes an identifiable contribution to the company ................................................................................................................. 86 9.2.4 A successful placement includes feedback and follow-up......................... 88 9.2.5. A successful placement builds relationships ............................................. 88 9.3. Recommendations for graduates and undergraduates........................... 89 9.3.1. A successful placement starts before you enter the workplace ................. 89 9.3.2. A successful placement involves taking responsibility............................... 90 9.4. Recommendations for HEIs....................................................................... 91 9.4.1. A successful placement has clarity about the costs (as well as the benefits) of taking part............................................................................................. 91 9.4.2. A successful placement minimises bureaucracy but involves good record- keeping..................................................................................................... 92 9.4.3. A successful placement builds a lasting relationship with local employers 93 9.4.4 A successful placement includes appropriate training, including preparation before the placement period and on the job training as part of the experience................................................................................................ 94 9.5. Recommendations for funders.................................................................. 97 9.5.1. Continuity of G4B staff in HEIs is important .............................................. 97 9.5.2. Having a track record of placement activity makes subsequent activity easier ....................................................................................................... 97 9.5.3. A coherent branding and marketing campaign instils confidence.............. 97 9.5.4. Facilitating networking between HEIs would encourage the sharing of good practice..................................................................................................... 98 10. CONCLUSION.......................................................................................................... 101 REFERENCES ................................................................................................................ 103 APPENDIX 1: EMPLOYERS’ INTERVIEW SCHEDULE .................................................. 111 APPENDIX 2: GRADUATES AND STUDENTS’ INTERVIEW SCHEDULE ..................... 117 APPENDIX 3: CHARACTERISTICS OF EMPLOYERS AND GRADUATES AND UNDERGRADUATES INTERVIEWED .................................................... 125 Figures and tables Table 1: Recruitment Activity amongst Employers by Region...................................... 8 Table 2: Recruitment Activity amongst Employers by Local Learning and
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