The majority of Irish employers are struggling to retain graduates, interns and apprentices, according to a new report from Aon and HPC.

Business leaders at 34 large companies from 15 industries that employ approximately 150,000 across Ireland were surveyed for the report, which shows 44% of firms see retention as the most critical challenge facing their early careers programme.

Salary expectations, a lack of career paths, a desire for graduates to travel in the wake of Covid-19, and an unwillingness for some graduates to move internationally to progress professionally were cited as the four main reasons for the difficulty in retaining new staff.

Commenting on the results of the survey, Siobhan Kelly, director of human capital solutions at Aon Ireland, said: “Early careers individuals, when properly supported and nurtured, can serve as the building blocks of a next generational workforce.

"Our experience, knowledge and data tell us that while pay continues to be a key differentiator in retaining early careers talent, it is no longer enough.

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“To stand out from competitors in the context of full employment and ever-increasing uncertainty, employers need to first gain a clear understanding of why people are joining their organisation.

"This includes spending time on understanding and being clear on your employee value proposition (EVP). A strong EVP is a key driver of candidate attraction and employee engagement, which in turn drives retention."

When asked how important early careers programmes are to an organisation's talent strategy, 30% rated them as highly important, with a further 50% rating them as important.

Some 88% said the main purpose of these programmes was to attract high-calibre people who can contribute to their organisation, followed by an acceleration of the development of critical skills and knowledge (77%) and identification and development of future leaders (56%).

However, companies that are trying to win the race for talent are trying to do so primarily through pay, with 71% listing salary and total rewards as their greatest financial outlay, followed by formal development offerings (56%) and the selection and assessment processes (38%).

Furthermore, almost 20% of respondents said that competition around salaries was the biggest challenge they face in relation to their early career programmes.

Regardless, one in five respondents have not reviewed their total reward packages, including salary, for early career hires in 2022. 

Aon and HCP said many organisations are using outdated hiring and development activities in their early careers programme, which could have knock-on effects for diversity and quality of hires.

While 90% of programmes use a CV to support decision-making, only 10% of organisations fully integrate the knowledge, skills and attitudes they identified as key to success into their psychometric assessments.

The research also shows that a third of talent acquisition professionals are not competent in using and explaining psychometric results to the business.

The report identified a discrepancy between the choice of development activities and their perceived effectiveness.

Projects, which are used by 79% of respondents, ranked eight out of 10 in terms of their effectiveness, while presentations by senior leaders are thought of as the most effective development activity despite only being used by two-thirds of organisations.

Only 18% of companies are seriously considering change though, but more than 50% of leaders have said they are equivocal about the need to change.

Kevin Hannigan, client director at HPC Global, said: “With retention the top issue for employers today, it’s clear that business and HR leaders need to re-assess how they present their organisation and ensure that early career talent has a consistent experience at all stages of their early career programmes.

"With development offerings, programme structure and salary all known to be important to early career professionals, transparency around these elements will help to ensure that candidates do not rethink their decision at offer stage, or even after joining, all of which would impact retention."

He added: "Given the challenges that organisations are facing in retaining early careers talent and the critical importance of these programmes to their organisation’s talent strategy, it’s surprising that half of the organisations surveyed are equivocal about the need to change.

"By ensuring their offering is fit for purpose, employers can help first-time employees to thrive in this new world of work and forge their careers in an environment dominated by hybrid working.”

Photo: Siobhan Kelly. (Pic: Shane O'Neill/Coalesce)