There's little doubt that the U.S. has been experiencing an unprecedented labor shortage. Even as some industries experience massive layoffs, others have difficulty finding employees to fill crucial roles. In this struggle, many are turning to a more reliable source of new talent: recent college graduates. In this competitive talent landscape, 56 percent of companies plan to hire recent graduates in significant numbers.
Focusing on new grads and early career professionals can be an excellent talent acquisition strategy, as both have much to offer the workforce. However, hiring professionals should be prepared to retool their recruitment marketing and workplace practices to accommodate them. Learn what candidates in these groups are looking for and what hiring professionals can do to attract and retain them.
Although some hiring professionals focus on the inexperience of new grads, hiring them can be a valuable part of a strategy. First of all, it's highly cost-effective. Since those just starting in the field typically earn lower salaries than their more experienced counterparts, having recent graduates on the team can lower overall payroll expenses.
Additionally, employees who are fresh out of college can bring new energy and enthusiasm to the workplace. They are typically well-versed in the most innovative technology and are often adaptable and receptive to new things. For example, half of the class of 2024 has indicated that they plan to develop new skills in light of the emergence of generative artificial intelligence.
Finally, hiring recent graduates often presents the opportunity to develop mentorship programs. These programs typically pair new hires with less experienced employees. This can help new grads build leadership and professional skills faster and pick up on productivity habits, allowing the team to become more efficient.
Additionally, mentorship programs can help bridge the generational divide between baby boomers, Gen X employees, and Gen Z grads, who are increasing in numbers in the workforce. As digital natives, these new grads can help older employees adapt to new workplace technologies and provide an opportunity for reverse mentoring that enhances overall employee growth.
If a hiring professional wants to engage with top graduates, they should go where they are most likely to find them: educational institutions. Many students in their senior year are concerned about where they will work after graduation.
Proactive engagement with graduates in the early stages of their job search will help them get a sense of their future career options and give hiring professionals a chance to find and recruit top talent before other companies can. In many cases, this can be as simple as calling a college's career center and planning a few events for seniors throughout their last year on campus.
Employing skills-based hiring practices is crucial as hiring professionals engage with soon-to-be graduates. This can be especially true for those unsure whether a candidate's degree program has taught sufficient skills for the job.
Hiring professionals need not be concerned about adopting this philosophy. It's a growing trend, as nearly one in three companies plans to eliminate degree requirements and embrace a more skills-based approach.
Work sample tests can assess new-grad competencies, while behavioral interview questions allow for evaluating real-world problem-solving skills. This approach can assist hiring professionals in getting a sense of which skills new grads will come into the workforce with and which they may have to develop training programs for. 
To attract top Gen Z talent, hiring professionals must prioritize flexibility. In this generation, 80 percent are at least somewhat worried about burnout in their professional careers, 89 percent see having flexible work options as necessary, and 37 percent see them as essential.
To achieve a more flexible workplace, consider offering part-time and contract work, freelance opportunities, internships, and apprenticeships. This not only allows employers to structure their workforces as needed but also allows new graduates to get acclimated and hone their skills in a less intense environment.
Employers can offer tangible benefits that prioritize employee well-being. After all, 62 percent of employees say that better work-life balance and personal well-being are important considerations when deciding whether to take a job with another organization.
Offering flexible working arrangements that help employees achieve balance can positively impact turnover. Additionally, caring about employee well-being can save organizations $322 billion in turnover costs and lost productivity, up to 75 percent of medical expenses, and up to 20 percent of payroll.
When there's less burnout and more flexibility, employees can be more engaged in and enthusiastic about their work. This can lead to greater productivity, innovation, and proactivity in developing new skills. It also makes employees more willing to recommend their employer as a great workplace, enhancing the employer brand.
Research shows that 63 percent of employees who left jobs in 2021 did so because of inadequate pay and benefits. This trend has undoubtedly held firm as Gen Z enters the workforce. Of the students currently carrying student loan debt, 70 percent say that pay and benefits will influence the jobs they say "yes" to.
This makes student loan repayment assistance a critical part of the employee value proposition for employers wishing to attract top talent. Because new graduates value both financial security and the opportunity to gain new skills, they also see tuition reimbursement for graduate degrees and certification programs as an attractive benefit.
Some graduates will forgo their desired jobs for more stability and security. For this reason, fair and competitive compensation should be a priority for all hiring professionals, including internships. All employers should ensure strict compliance with the Fair Labor Standards Act, especially regarding whether a company has been using interns instead of permanent employees.
It's essential that hiring professionals who want to attract top graduates understand how Gen Z's values have evolved. Psychological safety, community involvement, diversity, equity, and inclusion initiatives are essential to fostering a positive and inclusive workplace culture.
Gen Z graduates want to work for employers who align with their personal values. In fact, 65 percent agree that they will not even apply to jobs if the employer's values don't align with their own.
Employers must also demonstrate a commitment to providing Gen Z graduates with meaningful work. Gallup research has found that even a 10 percent increase in employees' connection to the organization's mission and purpose can lead to an 8.1 percent decrease in turnover and a 4.4 percent increase in profitability.
73 percent of Gen Z graduates say that career success means doing work they're passionate about. 49 percent say the same about having the opportunity to impact society positively. As an employer, this makes it even more important to show graduates that the work they'll be doing will move the organization forward and create a better world.
Additionally, employers will need to prioritize showcasing their growth and advancement opportunities. 63 percent of Gen Z employees say that a successful career means having the opportunity to develop advanced skills, and 87 percent see employer-sponsored learning and development opportunities as important or even essential to them.
In response to this sentiment, employers may consider advertising learning opportunities in the form of internship and development programs focusing on upskilling and hands-on learning and highlighting career advancement potential within the organization. Not only does this help attract top graduates and early career professionals, but it can also help the organization fill critical skills gaps.
Including new graduates and diverse entry-level job seekers as part of a robust and effective talent acquisition strategy can help organizations improve vitality in workplace culture, bridge the generational divide, and stay adaptable to marketplace shifts. It has benefits for all employees and the company as a whole.
While it certainly can help hiring professionals fill skills gaps and improve productivity in the short term, seeking out new graduates also has long-term benefits in shaping the future workforce. It can increase innovation across markets and usher in a culture of balance where meaningful work and well-being can coexist.
Focusing efforts on the new generation is key for those looking to create a new future. Implementing these strategies will attract and retain entry-level talent who can take a company—and work as society knows it—to a new level.
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Including new graduates and diverse entry-level job seekers as part of a robust and effective talent acquisition strategy can help organizations improve workplace culture, bridge the generational divide, and stay adaptable to marketplace shifts. Recruitics is ready to help you transform your recruitment strategy, get in touch today!
