By Benjamin Finbow (24-25)

Reports suggests that nearly a quarter of all UK employees will have left their roles voluntarily by the end of 2025. This reads more than just a statistic, this is a costly drain of resources and finances, let alone the affect that this has on a teams morale, for graduates who often see their graduate scheme as a strategic step into the professional world, the retention risk is even higher. 

Hiring graduates into your company is a huge investment! On average companies spend upwards of £5000 on a graduate, before a single day of training or the managers’ lost time is factored in. Immense resources are poured into developing this young talent pipeline through these graduate schemes, yet so often these graduates do not stay beyond their graduate scheme.

So, what’s going wrong?

If companies are offering competitive salaries, what makes these early in career, talented individuals, look to leave so early?

This study looked to answer this very question, by sitting down with 12 graduates on graduate schemes across different business sectors, including finance, defence, automotive and recruitment to understand their experiences as to why they would stay. 

The findings were clear and powerful. A good salary was an important factor for many of the graduates; however it is rarely the main reason that they stay.  The real drivers of why people stay tended to be far more human centric. Below are the main experiences that the graduates reported. 

1. The psychological contract: a broken promise makes for broken trust

Before the graduate even signs the physical contract, an unspoken agreement is formed. In the academic world this is called the “psychological contract”, but this can just be thought of as a collection of promises and expectations set during the interview process. 

According to the graduates in this study, this is where the companies first go wrong, recruiters often find themselves over promising on exciting career development, hands-on-training and a fantastic work-life balance. However, once the graduate is in the position and these promises aren’t met, the trust in the graduate scheme is ruined – the psychological contract, broken. 

The study heard directly from graduates whose trust was broken: 

• One participant spoke to how they were promised a 6-month training program with rotations throughout the business, just to be told when they arrived that it was 2 months with no rotations at all. 
• Another was lured in by the recruiter on the promise of upwards of £100,000 in commission, only to be told when they arrived that no-one has ever made that much in their first year. 

When the psychological contract is broken, it’s not just disappointment for the graduate, it feels like a breach of their trust in the company. Once the trust is gone, good luck getting it back! 

• Where am I going here? 

You might think that career planning is an issue for people in their 30s and 40s, however, this study found how important career development planning is from day one for the graduates, they don’t just want a job – they need clear guidelines and a trajectory! 

Non-negotiable: A clear career path 

The graduates who were happiest on their schemes and most likely to stay were those who could see a clear path forward in their careers. One of the participants spoke excitedly about a linear progression from “assistant to underwriter to senior underwriter”. Another participant appreciated the clearness of their company policy, “Five years until you get a promotion, if you don’t get it then you’re not going to get it ever” – while harsh this did provide clear trajectory. 

In complete contrast, graduates at companies without a clear structure felt lost and ready to leave. They expressed fears of being “stuck in middle management”, or felt their career would be “stunted” if they stayed too long. One summed up their future slightly bleakly “I don’t really know, I guess I just won’t be a graduate at the end of the 18 months”. 

Learning cannot be an afterthought 

Aligned with a clear career path is the need for quality training to help the gradates progress. The most positive experience came from companies that truly invested in learning. One graduate described their scheme as “one continuous cycle of learning”, where the company would pay for “any course, be it sporting , professional or literally any scope of things”. 

However, many participants reported a frustrating conflict. They were told training was essential but were given no time during the workday to get it done. Instead, they were expected to learn on their own time, which meant that the training either wasn’t done or it was done with very minimal effort. 

• The old saying rings true: You don’t quit a job, you quit your boss 

The single biggest influence on a graduates day-to-day experience is their direct line manager. This relationship, more than any company policy, determines whether the graduate feels supported, valued and engaged.

A good manager is a game changer: 

• Hold regular meetings and be invested in the success of your graduate 
• Provide actionable feedback that actually helps the graduate improve 
• Make them feel valued! Listen to what they have to say 
  

Conversely, a poor or absent manager was a major cause for graduate dissatisfaction.  One participant revealed “We’re supposed to have a weekly or bi-weekly meeting, my manager hasn’t set one up this year”, with another participant saying “You just have to assume you’ve done a good job” because feedback was non-existent. 

So, how do you keep your graduates?

1. Draw a clear map – graduates need to see the journey ahead.
   
   Don’t let them try and figure it out and don’t leave it to chance. Create clear career ladders that show exactly what it takes to get to the next level. In addition to this, add a competency framework that outlines the specific skills they need to develop 
   
2. Protect their time to learn – not just a login to an eLearning platform!
   
    Block out time in their calendars specifically for training and development. Treat it as a core part of their job, not an extra task to be squeezed in at home. 
   
3. Train your managers!
   
   The most impactful change you can make is to train your manager. Teach them how to give useful feedback, how to mentor and how to support someone at the beginning of their career. Even, consider reverse mentoring to make the graduates feel heard and allow them to share their expectations with the graduate schemes.  

Graduate schemes are a brilliant investment in your talent of tomorrow, don’t waste them!