Graduates lured with 'golden hellos'

Up to half of IT recruiters offer 'golden hellos' to graduates, as companies up the stakes in the war for talent.

According to the latest survey from the Association of Graduate Recruiters, 20 per cent of all companies are prepared to offer cash payments to new recruits.

A similar benchmarking study conducted by IT services company ICL suggests that 50 per cent of the IT sector offers cash inducements to entice top graduates on board.

The survey makes good reading for the new kids on the recruitment block. "There are lots of players sucking in IT graduates," said Carl Gilleard, chief executive of the AGR. "If you're a graduate with the right skills, you have choices."

Management consultancy Accenture was among the trend setters last year, offering £10,000 to its graduate intake - very attractive to students up to their necks in debt.

Ben Johnston, head of Accenture graduate recruitment, said that the company received twice the usual number of applications. Accenture has increased their graduate intake to 600 this year compared to 370 last year and the company has filled almost all of these positions already.

He confirmed that, although money is not the sole motivator for graduates, it is important. "With the increase in student debt, it will be one of the first things candidates look at," he said.

Prevailing market conditions have had a significant impact on the job-seeking process for candidates fresh out of university, however. Unlike last year, they no longer have the upper hand in the process, as recruiters become more risk-averse.

Graduates claim that career prospects, not salary, are the main priority. Those joining Cisco Systems, for example, are put on a temporary contract until they complete their Cisco certification initial training. The course is a combination of technical networking and management skills.

"Companies are increasingly conscious of their return on investment," explained Gilleard.

With average salaries for graduate recruits reaching £18,330 this year, he estimated that the difference in cost between the best recruiters, who retain 80 per cent of their graduates, and the worst, who might only retain 20 per cent, can be as much as £3m over five years for every 100 graduates recruited.

It's a situation that forces forward-looking employers to target students at an earlier stage, with branding exercises to increase companies' appeal.

Also published in Computing