The AAGE Employer Survey 2019 - October 2018 - Australian Association of Graduate ...
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The AAGE Employer Survey 2019 Contents Introduction 6 Research objectives 7 Research methodology 7 Participating employers 8 Employer industries 10 Executive summary 12 Recruitment strategy 14 Employer snapshot 16 Intern recruitment by industry 22 Graduate recruitment 25 Graduate salaries and benefits 29 Marketing channels 33 Marketing and selection spend 40 Assessment processes 43 Employer expectations and challenges 49 Engaging graduates before they commence 51 Graduate Development Programs 52 Graduate retention 58 2
The AAGE Employer Survey 2019 The 2019 AAGE Employer Survey is produced by: Australian Association of Graduate Employers Ltd. Camberwell PS, PO Box 1217, Camberwell, VIC 3124, Australia T: +61 3 9352 5062 E: info@aage.com.au W: www.aage.com.au All information contained in this report is believed to be correct and unbiased, but the publisher does not accept responsibility for any loss arising from decisions made upon this information. © The Australian Association of Graduate Employers 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. 3
The AAGE Employer Survey 2019 The AAGE Surveys The Australian Association of Graduate Employers (AAGE) conducts research into the behaviours and activities of the employers, candidates and employees involved in the annual graduate recruitment process. This research leads to four key surveys: The AAGE Employer Survey This is the definitive study of employers and their graduate recruitment activities. Launched in 2002, with data gathered through an online questionnaire, the survey is produced to provide readers with the very latest statistics and market information on a range of issues including: • Vacancy and salary levels for graduates starting the following year • Selection processes used by recruiters • Marketing activities and expenditure • Retention and development programs The AAGE Candidate Survey Launched in 2007, the survey is completed by undergraduates and graduates who have participated in the recruitment process and have received an offer to join an employer the following year. The resulting analysis provides valuable insight into a range of issues including: • Demographic profile of successful candidates • Sources of information used to research careers and employers • Key factors influencing candidates when choosing employers • Candidates’ opinions on the best employers in each industry The AAGE Graduate Survey Launched in 2009, with data collected via an anonymous online questionnaire, the survey is completed by full-time employees who are currently part of an employer’s graduate program. The information gathered provides invaluable feedback on graduates’ experiences including: • Induction and development programs • Expectations versus reality • Mentors, buddies and managers • Expected tenure and future plans The AAGE Intern Survey Launched in 2012 to survey students who have completed a paid or unpaid internship within an AAGE Member organisation. In this case, ‘interns’ are students who have taken part in a formal work experience program including vacation work, clerkship, internship, practicum, industry placement and work integrated learning. The survey provides feedback on: • Attitudes and opinions about experiences in the intern program • Intern salaries and job seeking habits • Views on employers 4
The AAGE Employer Survey 2019 How to Use the AAGE Surveys The AAGE Surveys provide a wealth of information which can provide you with considerable insight into the Australian graduate recruitment market. To assist in best utilising this data, we have provided a number of suggestions about how you can use the survey reports. Understand your market The graduate recruitment landscape is constantly evolving. These reports provide you with the most up-to-date market data and can assist you in better understanding your competitors and target audience. The reports are important reading for all those involved in graduate recruitment and can be particularly useful in introducing new team members to the market. Setting Key Performance Indicators The various statistics in the reports may give you some ideas for setting key performance indicators (KPIs) for your own graduate recruitment program. Some examples of commonly used KPIs include: cost per hire; applications per vacancy; marketing cost per hire; acceptance rates; selection timelines; retention rates; employer of choice rating; graduate engagement levels. Benchmarking Every report provides analysis that you can use to benchmark your organisation’s recruitment activities against others in the market. By comparing your own organisation’s data or KPIs to those in the reports, you can develop a more accurate picture of where your organisation stands in the graduate recruitment market, within your industry or in the minds of your target audience. Planning and Best Practice Information provided in the survey reports can assist you with planning your activities in a range of areas, including marketing campaigns, selection processes, induction and development programs. The insights contained in the analysis may also help you to identify best practice across the graduate recruitment market. The reports also incorporate feedback from employers, graduates and candidates that can assist you in understanding key issues affecting the industry. Engagement A critical measure for any graduate program is the engagement of the candidates who participate. At the recruitment stage you may want to measure the factors that influence candidates’ decisions to apply to different employers. You may also want to understand the effectiveness of your own promotional campaign. Once graduates have joined your organisation, you may want to measure their commitment to a long-term career. Internal Communication A key component of a successful graduate recruitment campaign and development program is the commitment of people at all levels in your organisation. Support can be via finances, staffing or other resources and having robust data analysis is an important step in garnering this support. These surveys can generate discussion with key stakeholders about your graduate recruitment program – whether you feel the recruitment activities are positively or negatively assessed by the survey analysis, this information could be used to drive continued support for a successful program or to generate support for a changed or improved approach. 5
The AAGE Employer Survey 2019 Introduction Welcome to the AAGE Employer Survey 2019, the definitive study of graduate employers and their graduate recruitment activities. The survey is the leading source of information about graduate salaries and vacancy levels in Australia and New Zealand. It provides up-to-the-minute insights into the latest graduate market conditions, along with benchmarking of recruitment practices. This report examines the vacancies and salaries on offer, as well as the marketing channels used by recruiters. It also explores the selection and assessment processes utilised by employers and the number of graduates retained by each organisation. History of the survey In 2002, the AAGE’s then Vice President, Katrina Harrington (née Moriarty), was conducting a research project for her Masters of Business, whilst working in a graduate recruitment role. Focusing her research on graduate recruitment and selection, Katrina conducted a survey of Australian graduate recruitment practices using the AAGE’s member network. The results provided valuable information to survey participants about trends and perceptions in graduate recruitment and selection. Katrina subsequently became the AAGE President 2003-2004 and the AAGE partnered with Pinpoint HRM (then Catch 22) to coordinate a broader survey based on her initial questionnaire. Will Spensley of Catch 22 was both delighted to be involved in the project and instrumental in bringing it to reality. The result was the inaugural AAGE Graduate Recruitment Survey 2003. The report proved to be so popular that the AAGE have continued to conduct an annual survey ever since, and for the 2019 edition, it has been run in partnership with McCrindle. 6
The AAGE Employer Survey 2019 Research objectives The Australian Association of Graduate Employers (AAGE) commissioned McCrindle in July 2018 to prepare the Employer Survey report. This research aims to understand employers’ selection processes, marketing activities and expenditure on development programs. Research methodology McCrindle adapted the AAGE’s previous iteration of the Employer Survey and gathered responses through an online survey between 5th September 2018 and 8th October 2018. The survey is distributed by the AAGE to employers who complete the survey themselves. The results consist of 164 attempted responses and 121 completed responses from 111 participating organisations. This report displays and analyses completed responses only. Terminology Respondents are referred to as “employers”, “businesses” or “organisations” throughout the report. Graphs and rounding Data labels on the graphs in this report have been rounded and may, therefore, sum to 99% or 101%. Any calculations where two data points have been added are based on raw data (not the rounded data labels on the graph) which have then been rounded once combined. Some graphs are displayed with one decimal place to highlight additional nuances in the data. Excluded data Industry breakdown tables do not include data from these industries: Education; Logistics and Supply Chain Management; Utilities and Water. Each of these industries only has one participating employer and therefore publication of these responses would reveal these employers' individual data. However, the data provided by these organisations is included in the calculation of the overall averages. Segmentation Insights into organisation type, recruitment, business size, candidate type and employers are displayed in breakout boxes such as these. 7
The AAGE Employer Survey 2019 Participating employers A total of 111 employers participated in this survey Accenture Australia Carlton & United Breweries Department of Mines, Industry Regulation and The Adecco Group Caterpillar Safety (WA) AECOM Australia Clean Energy Regulator Department of the Prime Minister and Cabinet Allens Coles Department of Treasury Allianz Australia Commonwealth Bank of (WA) Australia AMP Services Department of Transport Commonwealth and Main Roads (Qld) ANZ Banking Group (Aust) Superannuation Corporation (CSC) Department of Veterans' APA Group Affairs (DVA) Deloitte Ashurst Dimension Data Australia Department for Industry and Attorney-General's Skills (SA) eNett International Department Department of EY Aurecon Australasia Communications and the Arts FDM Group Australia Post Department of Communities Fujitsu Australian Bureau of (Housing) (WA) Statistics Gallagher Bassett Services Department of Finance Australian Nuclear Science GHD and Technology Department of Finance (WA) Organisation (ANSTO) HKA Department of Home Affairs Australian Securities & Holcim Australia Investments Commission Department of Industry, Innovation and Science Honeywell Australian Taxation Office Department of Jobs and IAG BAE Systems Australia Small Business icare NSW Bankwest Department of Justice and Imperial Tobacco Australia Regulation (VIC) BDO Incitec Pivot Caltex IRESS 8
The AAGE Employer Survey 2019 Ixom Origin Energy Stockland Johnson & Johnson Pitcher Partners Advisors Suncorp KBR Public Transport Authority Swagelok Eastern Australia and New Zealand King & Wood Mallesons PwC Tasmanian Networks KordaMentha QBE Australia & New Zealand Teach For Australia Laing O'Rourke Queensland Audit Office Technology One Landgate Queensland Government TEG Leidos Chief Information Office Toll Lendlease Queensland Treasury Transdev Lockheed Martin Australia REA Group Transport for NSW L'Oreal Reece Group VicRoads Mars Australia Reserve Bank of Australia Victorian Public Service McConnell Dowell ResMed Graduate Recruitment and Development Scheme (VPS McGrathNicol Rio Tinto GRADS) MinterEllison Lawyers RSM Australia Water Corporation Monadelphous Group SA Power Networks Westpac Group National Australia Bank Saab Australia White & Case NEC Australia Santos Woodside Energy NSW Public Service ShineWing Australia WorkSafe Victoria Commission South32 9
The AAGE Employer Survey 2019 Employer industries The graph below shows the industries of the participating employers. Employer Industries Australian Government 16% State Government 13% Banking, financial services or insurance 13% IT hardware or software 11% Accounting and professional services 9% Fast Moving Consumer Goods 4.8% Law 4.8% Manufacturing and Industry 3.9% Construction and Industry 2.9% Consulting 2.9% Engineering Consulting 2.9% Roads and Transport 2.9% Engineering 1.9% Engineering Contractors 1.9% Mining 1.9% Oil and gas 1.9% Retail 1.9% Education 1.0% Logistics / Supply Chain Management 1.0% Utilities 1.0% Water 1.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% All values in this graph are rounded to the nearest whole number percentage. 10
The AAGE Employer Survey 2019 11
The AAGE Employer Survey 2019 Executive summary Employers in the 2019 Employer Survey are Communication, teamwork and likely to be private sector organisations (63%) interpersonal skills are essential with 1,000 employees or more in Australia (75%). Businesses primarily seek graduates The top three most important (very/quite) skills (99%) and interns (62%) who are citizens or to employers are amongst the skills which are permanent residents of Australia or New least lacking in graduates. Zealand. Assessment processes are likely to conclude within four months from application to - Communication skills (100% important offer (85%). At the time of this study, more than cf. 11% lacking in graduates) half (57%) of employers have filled all their - Teamwork (97% important cf. 5% graduate vacancies for 2019 with more than lacking in graduates) three in four (76%) offering permanent/ongoing employment. - Interpersonal skills (96% important cf. 5% lacking in graduates). Employers are looking for future leaders Conversely, the skills most lacking in graduates also correspond to the skills most likely to be Employers are likely to hire graduates for a considered unimportant or not assessed by leadership development program, with almost employers in the recruitment phase. Two in five half (46%) of employers stating this is their main employers (40%) think that candidates do not reason for recruitment. A further one in four have an understanding of the organisation but (27%) hire graduates for entry level work with 24% of employers do not see it as important or the possibility of becoming future leaders and do not assess it altogether. This trend is also managers. Employers feel the main challenges evident for graduates’ commercial awareness arising from recruitment are diversity targets skills (35% cf. 52%). (66%), competition for graduates (54%) and accurate forecasting of graduate roles needed Employers’ most effective (46%). promotional channels are online The recruitment process is Employers are likely to visit up to nine comprehensive and holistic universities (70%) during their recruitment phase. Of the different channel types, graduate Employers use a variety of activities to assess recruitment websites (87%) are the most the candidate in both individual and group effective (very/quite) promotional channels for settings, including behavioural based their 2019 recruitment. interviews (90%), group interviews (71%), aptitude testing (69%) and group exercises Candidates will experience holistic (68%). Further to this, standardised background provision and care checks (65%) and reference checks (60%) are common recruitment activities. Recruitment The top benefits an employer’s organisation elements that are likely to be outsourced offers its 2019 graduates include employee include psychometric assessments (63%) and assistance programs (93%), flexible work video interviews (46%). arrangements (87%) and laptop/iPad/netbook (68%). Furthermore, graduates are allocated “buddies” (93%) and a formal mentor (79%) to assist in their roles’ social aspect. Nine in ten (90%) employers also have a formal graduate 12
The AAGE Employer Survey 2019 development program to aid them in compensation, while one in five employers professional growth. (19%) spend $500 or less on this kind of support. Graduates’ technical and professional training is succinct Employers are likely to keep in contact following the graduate’s Graduates are likely to receive up to ten days acceptance and commencement worth of technical training (59%) and professional training (57%) during their first year The most common way employers maintain of employment. During this time, more than contact between a graduate accepting the job half of participating organisations (54%) will offer to when they begin include invitations to spend between $1,001 to $7,500 in total on social events (66%), training for each graduate. Employers are less newsletters/communications from managers likely to spend monetary resources on (56%) and introductions to buddies (48%). A professional qualifications for graduates, with very small number of employers do not three in ten (30%) not offering this kind of maintain contact in this time (4%). 13
The AAGE Employer Survey 2019 Recruitment strategy The most common reason employers hire graduates is to recruit future managers and leaders. When employers were asked to state their roles, leadership in future roles and to build a main reason for recruiting graduates, the most modern and diverse workforce. popular response was to hire future leaders and managers (46%). This is followed by one in Organisation type insights four organisations (27%) which hire graduates to do entry level work with the possibility of Public sector employers (34%) are more likely becoming future managers and leaders. than private sector employers (23%) to recruit Employers are least likely to hire graduates to graduates to do entry level work with the fill in-demand roles (17%). possibility of becoming future managers and leaders. One in ten organisations (11%) specified “Other” for their motivation for hiring graduates, with responses primarily stating a mix of the aforementioned leadership and in-demand Which of the following describes the main reason for recruiting graduates into your organisation? Our graduates are hired to be part of a leadership development program. The expectation is that all of 46% these graduates will become future managers and leaders. Our graduates are hired to do entry-level work. Some of these graduates may become future 27% managers and leaders. Our graduates are hired to fill roles that require in- 17% demand or technical skills. Our graduates are hired to fill ad hoc vacancies that 0% occur from time to time within our organisation. Other (please specify) 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 14
The AAGE Employer Survey 2019 Half of employers recruit for IT/Telecommunications jobs. Employers were asked to nominate the types of roles available for graduates in the 2019 intake. They most commonly recruit roles for IT/Telecommunications (50%), Finance/Economics (45%) and Accounting/Audit (38%) in 2019. Which of the following job types are you recruiting for your organisation for 2019? Please select all that apply. IT, telecommunications 50% Finance, economics 45% Accounting or audit 38% Human resources,learning & development, psychology 34% Analyst 32% Engineering - Mechanical 31% Engineering - Electrical/electronic 30% Marketing 26% Legal work 25% Engineering - Software 21% Engineering - Civil 21% Policy development and/or implementation 19% Engineering - Chemical 19% Communications, PR, public affairs 19% Consulting, advisory, risk management 17% Government - State 14% Environmental science 14% Government - Australian 12% General management 12% Sales 11% Research & development 11% Actuarial work 11% Service delivery for government 9% Taxation 8% Geology 8% Purchasing / procurement 6% Logistics / Transport 6% Investment banking 6% Insurance 6% Engineering - Mining 6% Property 5% Health 5% Banking (retail) 5% Retail management 4% Engineering - Manufacturing 4% Education 3% Agricultural work 3% Social work 2% Food tech / Food science 2% Government - Local 0% 0% 20% 40% 60% 15
The AAGE Employer Survey 2019 Employer snapshot Most participating employers are likely to be private sector businesses. Three in five employers (63%) describe their Just 11% of participating organisations employ business type as private whilst more than a more than 15,000 employees in Australia. The third of employers are in the public sector AAGE Employer Survey 2019 was not (37%). Contributing organisations are most completed by any organisations with 20 likely to employ 1001 to 2000 people (27%). employees or less. Which of the following best describes your organisation type? Private Sector 63% Public Sector 37% Not for Profit 1% 0% 10% 20% 30% 40% 50% 60% 70% In total, how many people are currently employed by your organisation in Australia? No staff in this country 0% 1 - 20 0% 21 - 100 3% 101 - 250 4% 251 - 500 11% 501 - 1,000 8% 1,001 - 2,000 27% 2,001 - 3,000 10% 3,001 - 5,000 12% 5,001 - 7,500 7% 7,501 - 10,000 5% 10,001 - 15,000 3% 15,001+ 11% 0% 5% 10% 15% 20% 25% 30% 16
The AAGE Employer Survey 2019 Employers have a similar average number of recruitment and development staff. Employers were asked to estimate the number The average number of full time equivalent of staff that were specifically focused on the (FTE) staff employed to conduct the recruitment recruitment of entry level recruits and also the and development of entry level recruits are number of staff that were focused on the similar. Employers indicate an overall average development of entry level recruits. Employers of 2.40 FTE recruitment staff and 2.39 FTE were asked to report these staffing numbers as development staff. Full Time Equivalents (FTE) where a staff member who works full time all year round Almost three in ten employers (29%) have counts as 1.0, a full time staff member who experienced an increase in the number of works for half the year counts as 0.5, a part these staff over the last year. More than half of time staff member who works 2 days a week participating employers (56%), however, have for the whole year counts as 0.4 etc. not experienced growth in the number of graduate recruitment and development staff in the last 12 months. Number of FTE Staff Average (#) Staff for the recruitment of entry level recruits in 2018 2.40 Staff for the development of entry level recruits in 2018 2.39 Has the number of FTE staff increased or decreased this year (2018) compared to 2017? An increase in graduate recruitment and 29% development staff compared to 2017 The same number of graduate recruitment and 56% development staff compared to 2017 A decrease in graduate recruitment and 12% development staff compared to 2017 Unable to answer 4% 0% 10% 20% 30% 40% 50% 60% 17
The AAGE Employer Survey 2019 Salary information for graduate recruitment and development staff Employers were asked to disclose salary One in three (33%) provide salary information information for their graduate recruitment and for staff who focus solely on recruitment and development staff. The tables highlight the the remaining 9% gave information for staff that average salary based on the amounts only focus on development. provided by employers. The figures below are the base salary excluding superannuation. The salaries for managers who are recruitment staff are generally higher than development Nearly three in five participating employers staff. On the other hand, salaries for (57%) provided salary information for staff who consultants/coordinators and administrators are responsible for both recruitment and who are development staff are higher than development. recruitment staff. I am able to provide salary information for... Roles in my team who are responsible for both 57% recruitment and development of entry level recruits Roles in my team who are only responsible for 33% recruitment of entry level recruits Roles in my team who are only responsible for 9% development of entry level recruits 0% 10% 20% 30% 40% 50% 60% 70% Average staff salaries (excluding superannuation) $140,000 $120,986 $117,413 $120,000 $108,203 $106,826 $100,000 $87,061 $89,058 $80,665 $80,000 $67,141 $60,000 $40,000 $20,000 $- Manager with Direct Manager without Direct Consultant / Co- Administrator Reports Reports ordinator Recruitment Staff Development staff 18
The AAGE Employer Survey 2019 Employers are most likely to consider candidates who are Australian or NZ citizens/permanent residents. Employers are most likely to consider citizens and permanent residents and one in candidates who are either Australian or New six only accept Australian citizens (16%). Only Zealand citizens / permanent residents (46%). one in seven employers (13%) accept all One in four (24%) accept only Australian graduates including international students. With regards to the residency status of candidates, which of the following best describes the approach used by your organisation? We consider candidates who have Australian or NZ 46% citizenship or permanent residency We consider candidates who have Australian 24% citizenship or Australian permanent residency We only consider candidates who have Australian 16% citizenship We consider all candidates, including international 13% students 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 19
The AAGE Employer Survey 2019 Almost all employers seek graduates. Almost every participating employer recruits for Comparatively, employers are less likely to a graduate program (99%). This is followed by recruit candidates who are cadets/trainees three in five (62%) who seek to recruit (29%), apprentices (25%), co-op students (23%) interns/vacation students/seasonal clerks. and school leavers (13%). Which of the following types of candidate does your organisation hire? Please select all that apply. Graduates 99% Interns/Vacation students/Seasonal Clerks (students 62% who work for you during their university vacations) Cadets/Trainees (i.e. school leavers who work for 29% your organisation whilst they study at university) Apprentices 25% Co-op students (students who spend 6 to 12 months 23% working for you as part of their university course) School Leavers 13% Other (please specify) 1% Don't know 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20
The AAGE Employer Survey 2019 More than half of employers have filled their 2019 graduate positions. At the time the survey was conducted, nearly Employers are likely to offer three in five employers (57%) have filled their permanent/ongoing employment for graduates. graduate vacancies for 2019, whilst two in five Three in four employers (76%) provide this type (39%) have not. Just 4% of employers are not of employment while nearly one in five give recruiting graduates for 2019. offers for fixed term employment (18%). Has your organisation filled all its graduate vacancies for 2019? Yes 57% No 39% We did not recruit graduates for 2019 4% 0% 10% 20% 30% 40% 50% 60% What type of employment is offered to graduates joining your organisation's graduate program? Fixed term employment (e.g. 2 year fixed term 18% contract) for all graduates Permanent/Ongoing employment for all graduates 76% Fixed term contract or permanent employment 3% dependent on individual business unit's needs Don't know 0% Other (please specify) 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 21
The AAGE Employer Survey 2019 Intern recruitment by industry Graduate roles offered to interns. The table below provides insights into the graduate positions offered by employers in a number of graduate positions that were offered particular industry as well as the average to interns at the end of their 2017/2018 number of interns that accept these graduate internship. It highlights the average number of positions. Average graduate Average graduate positions offered to positions accepted by Offer acceptance rate Industry interns by each interns for each (%) employer (#) employer (#) Accounting & 145 121 83% Professional Services Australian 1 1 77% Government Banking, financial 15 14 93% services or insurance Construction and 13 12 98% Property Consulting 5 5 100% Engineering 5 5 100% Engineering 32 31 97% Consulting Engineering 20 15 74% Contractors Fast Moving 2 2 100% Consumer Goods IT hardware or 4 3 74% software Law 75 73 96% Manufacturing and 2 2 100% Industry Mining 11 10 91% Oil and Gas 35 33 94% Retail 3 3 100% Roads and Transport 15 10 65% State Government 1 1 100% Overall Average 22 19 87% All values in this table are rounded to the nearest whole number. Please note that the “Offer acceptance rate” column is calculated with the unrounded values, up to 2 decimal places. 22
The AAGE Employer Survey 2019 Recruitment statistics for 2017/2018 intern/vacation programs. The table shows the average recruitment The Consulting and Fast Moving Consumer statistics for each employer in a particular Goods industries are not included in this table industry for intern/vacation programs that took due to having incomplete/no responses. place between December 2017 and June 2018. Average Average Average Vacation Vacation Vacation Offer acceptance Industry Scheme Scheme offers Scheme offers rate (%) applications per accepted per per employer (#) employer (#) employer (#) Accounting & Professional 4,268 224 197 88% Services Australian 128 2 2 100% Government Banking, financial services 883 23 21 91% or insurance Engineering 10 1 1 100% Engineering 2,618 62 58 93% Consulting Engineering 884 23 19 84% Contractors IT hardware or 169 5 4 77% software Law 1,429 164 120 73% Manufacturing 267 10 10 100% and Industry Mining 1,500 67 67 100% Oil and Gas 1,924 83 79 95% Retail 3 3 3 100% Roads and 342 26 24 92% Transport State 13 1 1 100% Government Overall Average 816 40 34 86% All values in this table are rounded to the nearest whole number. Please note that the “Offer acceptance rate” column is calculated with the unrounded values, up to 2 decimal places. 23
The AAGE Employer Survey 2019 Recruitment statistics for 2018/2019 intern/vacation programs. The table shows the average recruitment The Consulting, Fast Moving Consumer Goods statistics for each employer in a particular and Roads and Transport industries are not industry for intern/vacation programs taking included in this table due to incomplete/no place between December 2018 and June 2019. responses. Average Average Average Vacation Vacation Vacation Offer acceptance Industry Scheme Scheme offers Scheme offers rate (%) applications per accepted per per employer (#) employer (#) employer (#) Accounting & Professional 4,201 248 215 87% Services Australian 70 2 2 97% Government Banking, financial services 1,115 26 24 93% or insurance Engineering 25 2 2 100% Engineering 3,000 73 63 86% Consulting Engineering 1,134 26 24 92% Contractors IT hardware or 20 1 1 80% software Law 1,674 178 100 56% Manufacturing 260 8 8 100% and Industry Mining 1,990 74 74 100% Oil and Gas 1,227 46 44 96% State 25 0 0 - Government Overall Average 792 39 32 84% All values in this table are rounded to the nearest whole number. Please note that the “Offer acceptance rate” column is calculated with the unrounded values, up to 2 decimal places. 24
The AAGE Employer Survey 2019 Graduate recruitment Overall recruitment results for the 2019 graduate intake. The table below shows the aggregated The percentages shown in the "Proportion of recruitment statistics for all the employers that Candidates" column below provide an industry- participated in the survey. For example, wide benchmark for the proportion of employers collectively received a total of candidates that progress through each stage of 200,525 applications for their 2019 graduate the selection process. program. Approximately 3% of the total applications result in candidates being offered a graduate position. Proportion of 2019 Graduate Positions Total (#) candidates Applications submitted 200,525 - Candidates invited to 1st round selection 73,547 37% of applicants 20% of first round Candidates invited to final round selection 14,816 participants 44% of final round Candidates offered a graduate position 6,543 participants Candidates who accept a graduate position 5,776 88% acceptance rate 8% of graduates who Candidates who renege a graduate position 471 accept offer 25
The AAGE Employer Survey 2019 2019 graduate intake by industry. The table below provides insight into the number of candidates that apply for each average number of applications received per graduate position. For example, each employer employer and positions filled per employer in the Accounting & Professional Services sorted by their respective industry. industry has, on average, 26 applications for each graduate job. The final column (Average applications per graduate position filled) highlights the average Average graduates Average applications Average applications recruited for 2019 Industry received per employer per graduate position intake per employer (#) (#) (#) Accounting & 5,949 225 26 Professional Services Australian 1,502 39 39 Government Banking, financial 2,442 57 43 services or insurance Construction and 1,566 41 38 Property Consulting 2,300 137 17 Engineering 460 13 37 Engineering 4,387 139 32 Consulting Engineering 805 31 26 Contractors Fast Moving 1,972 11 173 Consumer Goods IT hardware or 999 22 46 software Law 251 54 5 Manufacturing and 903 24 38 Industry Mining 2,673 44 61 Oil and Gas 1,955 61 32 Retail 2,590 74 35 Roads and Transport 835 16 54 State Government 1,198 32 38 Overall Average 1,940 59 33 All values in this table are rounded to the nearest whole number. Please note that the “Average applications per graduate position” column is calculated with the unrounded values, up to 2 decimal places. 26
The AAGE Employer Survey 2019 Median number of graduate positions. The graph below depicts the median number of graduates hired by each employer from 2008 to 2019. Median number of vacancies per employer (2008 to 2019) 30 25 24 23 22 21 21 20 20 18 18 18 18 16 15 13 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 27
The AAGE Employer Survey 2019 Graduate position offers. The table below shows the average number of graduate job offers per employer and accepted offers per employer by their respective industry for the 2019 graduate intake. Average candidates Average candidates offered a graduate who accept a Average acceptance Industry position per employer graduate position per rate (%) (#) employer (#) Accounting & 273 214 78% Professional Services Australian 45 40 89% Government Banking, financial 57 50 88% services or insurance Construction and 57 49 86% Property Consulting 134 131 98% Engineering 7 6 92% Engineering 165 138 84% Consulting Engineering 31 19 61% Contractors Fast Moving 13 11 86% Consumer Goods IT hardware or 26 21 84% software Law 102 72 71% Manufacturing and 3 3 100% Industry Mining 59 44 74% Oil and Gas 65 60 92% Retail 66 64 96% Roads and Transport 17 16 91% State Government 32 29 91% Overall Average 67 56 84% All values in this table are rounded to the nearest whole number. Please note that the “Average acceptance rate” column is calculated with the unrounded values, up to 2 decimal places. 28
The AAGE Employer Survey 2019 Graduate salaries and benefits Employers are likely to review graduates’ salaries by the conclusion of their first year. Half of employers (50%) will review graduates’ salaries at the conclusion of their first year, Recruitment insights whilst one in eleven (9%) will review their graduate salaries halfway through the year. Graduates hired to do entry level work are Employers are least likely to initiate a salary most likely to have their salaries reviewed at review at the conclusion of the graduates’ the conclusion of their first year (73%). second year (2%) or at the conclusion of each Graduates hired to be part of a leadership rotation (7%), and none are reviewed quarterly program (64%) and graduates hired for in- (0%). Almost one third (32%) of employers demand roles (53%) are comparatively lower. indicated “Other”, where responses consist primarily of “annually”, “yearly” and “18 months”. How often are graduate salaries reviewed during the graduate program? Quarterly 0% Half yearly 9% At the conclusion of their first year 50% At the conclusion of their second year 2% At the conclusion of each rotation 7% Other (please specify) 32% 0% 10% 20% 30% 40% 50% 60% 29
The AAGE Employer Survey 2019 Graduates’ starting salaries and graduate numbers. The table shows the average graduate starting The starting salaries shown in the table are salaries and the average number of graduates base salaries and exclude superannuation and for each employer in a particular industry for benefits. Responses which do not provide the 2018 and 2019 graduate intakes. information for both 2018 and 2019 are not included in the calculations. Average Average starting Average Average starting Industry graduates for salary for 2018 graduates for salary for 2019 2018 intake (#) graduate ($) 2019 intake (#) graduate ($) Accounting & Professional 212 $54,659 225 $55,551 Services Australian 35 $62,069 41 $63,160 Government Banking, financial services or 55 $65,173 57 $66,265 insurance Construction and 44 $71,600 41 $73,200 Property Consulting 126 $58,333 137 $60,000 Engineering 5 $68,000 4 $68,000 Engineering 161 $62,333 161 $63,333 Consulting Engineering 29 $67,000 31 $69,000 Contractors Fast Moving 14 $60,500 8 $60,500 Consumer Goods IT hardware or 23 $62,273 22 $64,091 software Law 56 $73,500 73 $75,252 Manufacturing 18 $65,367 30 $65,367 and Industry Mining 47 $84,000 44 $84,000 Oil and Gas 59 $91,000 61 $93,000 Retail 71 $66,000 74 $66,000 Roads and 21 $65,000 16 $66,000 Transport State 34 $62,539 40 $63,548 Government Overall Average 61 $64,455 66 $65,691 30
The AAGE Employer Survey 2019 Average graduate salary has risen steadily since 2003. The table below shows the progression of average graduate starting salaries over time, from 2003 to 2019. These figures are base salaries which exclude superannuation and benefits. Average graduate starting salary (2003 to 2019) $70,000 $65,691 $65,000 $64,455 $63,022 $60,714 $60,000 $58,000 $56,000 $56,150 $57,100 $55,000 $54,000 $51,750 $50,000 $51,350 $48,000 $45,700 $45,000 $43,000 $42,600 $41,600 $40,000 $39,800 $35,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 31
The AAGE Employer Survey 2019 Benefits revolve around assistance and flexibility. Employers are likely to offer assistance overall wellbeing of the graduate. Two in three programs such as counselling (93%) and (68%) will provide a laptop, iPad or netbook for flexible work arrangements (87%) to aid the their graduates. Which other benefits will your organisation provide for new graduates starting in 2019? Please select all that apply. Employee assistance program 93% Flexible work arrangements 87% Laptop, iPad or netbook 68% Specialised graduate program 57% Payment of course fees for further education, etc 50% Staff discounts 47% Paid study leave 46% Training for professional qualification 45% Free or subsidised sports & leisure facilities 39% Relocation package 33% Private health care - subsidised / discounted 30% Superannuation above SGC 26% Salary packaging (e.g. 'pick and mix') 23% Free or subsidised mobile phone 21% Unpaid study leave 21% Corporate credit card 18% Share options/schemes 18% Car parking 16% Paid overtime 16% Regional living allowance or bonus 13% Non-monetary relocation package 9% Free or subsidised public transport 8% Company car scheme 6% Shift allowance 4% Global induction/overseas training 3% Sign on bonus 3% Private healthcare - fully paid 2% Other (please specify) 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 32
The AAGE Employer Survey 2019 Marketing channels Most employers visit up to four universities in person as part of their recruitment campaign. Almost half of employers (46%) visit one to four Just one in ten participating employers (10%) universities, while another 24% visit five to nine. will not visit any universities as part of their One in five employers (20%) will visit ten or recruitment campaign. more universities as part of their recruitment campaign. How many different universities does your organisation physically visit as part of your recruitment campaign? 1 to 4 46% 5 to 9 24% 10 to 14 9% 15 to 19 4% 20 to 24 5% 25 or more 2% None 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 33
The AAGE Employer Survey 2019 Meeting potential graduates at careers fairs and presentations is an effective approach for some employers. Employers were asked to identify specific marketing channels that they utilised to recruit Recruitments insights graduates. More than two in three employers who recruit University careers fairs and presentations on graduates to be part of a leadership program campus score similarly (62% cf. 60% - very / (69%) or to fill in-demand roles (68%) feel quite effective). university careers fairs are effective However, employers are twice as likely to rate (very/quite). presentations on campus as very effective (27% cf. 13% university careers fairs). University careers fairs are less effective for employers seeking graduates to do entry level work, with only half of employers (50%) indicating that it was effective (very/quite). Has your organisation utilised any of the careers fairs and presentation channels below to recruit graduates in 2018? If so, what was the effectiveness of each channel? University careers fairs 13% 49% 13% 24% Presentations on campus 27% 32% 9% 31% The Big Meet Careers Fairs 13% 35% 10% 42% Industry specific fair (CPA, Engineers Australia, 9% 19% 7% 63% Chartered Accountants, Law) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 34
The AAGE Employer Survey 2019 Graduate recruitment websites are very effective. Employers were asked to identify specific more effective than emails/promotions (15%) or marketing channels that they utilised to recruit advertising on commercial websites (15%). graduates. Almost nine in ten employers (87%) find their Organisation type insights own graduate recruitment websites to be the most effective (very / quite effective) channel Both public (88%) and private (86%) for recruitment purposes. organisation employers feel graduate recruitment websites are effective (very/quite Employers rate their own websites as the most effective). Public sector employers however, effective marketing channel out of all of the are more likely to indicate this channel is very options included in the survey. Almost half of effective (51% cf. 43% respectively) employers (46%) see graduate recruitment websites as very effective, which is three times Has your organisation utilised any of the advertising channels below to recruit graduates in 2018? If so, what was the effectiveness of each channel? Graduate recruitment website 46% 41% 11% Advertising, banners or profiles on university 14% 57% 9% 19% websites Email mail outs & promotions from websites or 15% 55% 8% 21% University Careers Services Advertising, banners or profiles on commercial 15% 43% 10% 29% websites (e.g: Seek, CareerOne, Indeed) Graduate recruitment literature 6% 46% 10% 4% 34% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 35
The AAGE Employer Survey 2019 Job boards are an effective marketing channel for some employers. Employers were asked to identify specific marketing channels that they utilised to recruit Business type insights graduates. Public sector companies are most likely to feel Employers indicate GradConnection is the most GradConnection is very effective for graduate effectively (very / quite) utilised job board. recruitment. Over half of public companies Almost four in five employers (79%) who used (51%) state it is very effective whilst two in five GradConnection felt it was effective in private companies (40%) feel the same way. recruiting graduates. Just under half of employers (48%) felt the GradAustralia job board was effective (very/quite) for recruitment. Has your organisation utilised any of the graduate specific job boards below to recruit graduates in 2018? If so, what was the effectiveness of each channel? GradConnection 44% 35% 21% GradAustralia 18% 30% 4% 46% Graduate Opportunities 4% 4%4% 89% Lode 96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 36
The AAGE Employer Survey 2019 Employers only use specific social media channels for recruitment. Employers were asked to identify specific marketing channels that they utilised to recruit Candidate type insights graduates. Different social media platforms reach different Two in three employers (69%) find LinkedIn types of graduates more effectively. effective (very / quite) followed by Facebook (46%). These two channels are at least twice as Employers find LinkedIn is most effective effective compared to other social media. (very/quite) in reaching interns/vacation Employers feel YouTube (21%) and Whirlpool workers (75%) and graduates (68.4%). It is less (21%) are similar in terms of effectiveness. effective in recruiting apprentices (67.8%) Channels such as Snapchat are rarely used (96% - did not use) and Pinterest is not used at On the other hand, Facebook is the most all. effective in apprentices (61%) compared to interns/vacation workers (50%), graduates (46%) and cadets (42%). Has your organisation utilised any of the social media channels below to recruit graduates in 2018? If so, what was the effectiveness of each channel? LinkedIn 12% 57% 13% 17% Facebook 11% 35% 13% 41% YouTube 5% 16% 3% 76% Whirlpool 5% 16% 5% 74% Instagram 13% 8% 78% Twitter 11% 8% 4% 76% Pinterest 100% Snapchat 96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 37
The AAGE Employer Survey 2019 Employers only use specific print media channels for their graduate recruitment. Employers were asked to identify specific Trade journals/professional magazines (93%) marketing channels that they utilised to recruit and Graduate Opportunities (83%) are the least graduates. used directory resources utilised for recruitment. Print media is a less widely utilised marketing channel. At least half of employers indicate they did not use any of the resources Recruitment insights mentioned below for recruiting graduates. Employers seeking to hire candidates to be Two in five employers (42%) indicate the part of a leadership program think the “GradAustralia Top 100 Graduate Employers” is GradAustralia Top 100 directory is the most the most effective (very/quite) print media effective (very/quite). Over half (51%) of channel, followed by “GradConnection/AFR employers state it was effective in recruiting Top 100 Graduate Employers” where 39% of graduates compared to those hiring graduates employers describe it as effective. for entry level work (33%) and filling in-demand roles (37%). Has your organisation utilised any of the careers directories / magazines below to recruit graduates in 2018? If so, what was the effectiveness of each channel? GradAustralia Top 100 Graduate Employers 9% 33% 52% GradConnection/AFR Top 100 Graduate Employers 12% 27% 5% 55% Uni careers service guides, newsletters 21% 5% 69% Graduate Opportunities 12% 83% Trade journals or professional magazines 4% 93% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 38
The AAGE Employer Survey 2019 Sponsorship and promotion activities are used by some employers. Employers were asked to identify specific Over four in five employers do not utilise skills marketing channels that they utilised to recruit training events/business games (86%) and graduates. sponsorship of subject prizes (80%). One in three employers (33%) find the sponsorship of student societies effective Candidate recruitment insights (very/quite effective), although two thirds (65%) did not utilise this channel. Promotional Employers report that promotional gifts/giveaways are effective for three in ten gifts/giveaways/freebies are most effective employers (29%), although this strategy is also (very/quite) in recruiting apprentices (61%) most likely to be ineffective (very / quite) for compared to cadets (42%) and interns (38%). It employers (23%). is least effective for recruiting graduates (30%). Has your organisation utilised any of the sponsorship and other activities below to recruit graduates in 2018? If so, what was the effectiveness of each channel? Sponsorship of student societies 8% 25% 65% Promotional gifts/giveaways/freebies 4% 25% 19% 4% 47% Sponsorship of scholarships 5% 18% 4% 71% Skills training events/business games 9% 3% 86% Sponsorship of subject prizes 9% 8% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very effective Quite effective Quite ineffective Very ineffective Did not use 39
The AAGE Employer Survey 2019 Marketing and selection spend Employers generally spend lower amounts on marketing and higher amounts on selection. Over half of employers (56%) spend between process (22%) is twice as high as the number of $0 to $50,000 on marketing and attraction employers who spend this amount on whilst almost two in five (38%) spend the same marketing and attraction (10%). amount for their selection process. For their 2019 graduate intake, employers On the other hand, the number of employers spent in total, $8,166,908 on selection who spend $300,000 or more on the selection processes and $4,770,373 on marketing. What was your organisation's TOTAL spend on your 2019 intake of graduates? $0 to $50,000 38% 56% $50,001 to $100,000 10% 19% $100,001 to $150,000 8% 8% 6% $150,001 to $200,000 3% 3% $200,001 to $250,000 0% 13% $250,001 to $300,000 4% $300,001 or more 22% 10% 0% 10% 20% 30% 40% 50% 60% Selection Process Marketing & Attraction Total spend on marketing and selection processes $10,000,000 $8,166,908 $8,000,000 $6,000,000 $4,770,373 $4,000,000 $2,000,000 $0 Total spend on Selection Processes Total spend on Marketing & Attraction 40
The AAGE Employer Survey 2019 Average marketing spend by industry. The table below provides an in-depth look at marketing spend in each industry. The spend per graduate is based on the average number of graduates recruited for 2019. The average cost per hire is $3,066 ($1,035 in marketing spend and $2,031 in selection spend). Average candidates Average total Average marketing recruited for 2019 Industry marketing spend per spend per graduate intake per employer employer ($) position ($) (#) Accounting & $133,717 225 $595 Professional Services Australian $35,184 39 $910 Government Banking, financial $80,269 57 $1,408 services or insurance Construction and $29,600 41 $715 Property Consulting $38,000 137 $277 Engineering $11,000 13 $880 Engineering $80,000 139 $576 Consulting Engineering $31,147 31 $1,005 Contractors Fast Moving $25,900 11 $2,272 Consumer Goods IT hardware or $31,609 22 $1,443 software Law $110,000 54 $2,037 Manufacturing and $16,667 24 $709 Industry Mining $20,000 44 $455 Oil and Gas $72,500 61 $1,198 Retail $57,750 74 $784 Roads and Transport $25,667 16 $1,656 State Government $21,561 32 $678 Overall Average $47,231 59 $1,035 All values in this table are rounded to the nearest whole number. Please note that the “Average marketing spend per graduate position” column is calculated with the unrounded values, up to 2 decimal places. 41
The AAGE Employer Survey 2019 Average selection spend by industry. The table below provides an in-depth look at selection spend in each industry. The spend per graduate is based on the average number of graduates recruited for 2019. The average cost per hire is $3,066 ($1,035 in marketing spend and $2,031 in selection spend). Average candidates Average total Average selection recruited for 2019 Industry selection spend per spend per graduate intake per employer employer ($) position ($) (#) Accounting & $170,275 225 $758 Professional Services Australian $95,013 39 $2,458 Government Banking, financial $123,077 57 $2,159 services or insurance Construction and $38,700 41 $935 Property Consulting $6,333 137 $46 Engineering $13,750 13 $1,100 Engineering $27,500 139 $198 Consulting Engineering $20,405 31 $658 Contractors Fast Moving $85,000 11 $7,456 Consumer Goods IT hardware or $45,250 22 $2,065 software Law $122,500 54 $2,269 Manufacturing and $17,000 24 $723 Industry Mining $8,000 44 $182 Oil and Gas $132,500 61 $2,190 Retail $5,000 74 $68 Roads and Transport $129,000 16 $8,323 State Government $93,599 32 $2,945 Overall Average $80,068 59 $2,031 All values in this table are rounded to the nearest whole number. Please note that the “Average selection spend per graduate position” column is calculated with the unrounded values, up to 2 decimal places. 42
The AAGE Employer Survey 2019 Assessment processes The assessment process usually takes up to four months. Employers are likely to have an application process that takes between two and four Recruitment insights months (76%). The application process, however, is more likely to be four months or Graduates who are recruited to fill a specific longer (54%) than two months or less (46%). A role that require in demand or technical skills small number of employers have assessment are three times as likely to complete their processes longer than six months (5%). application process in up to a month (21%) compared to those who are hired to be part of After the final assessment phase, almost half of a leadership program (6%) or perform graduate employers (46%) make offers within 24 hours to tasks (7%). a week. The remaining half of graduates (54%), take between two weeks to over a month to make their offer. How long is your assessment process from application to offer? Up to 2 weeks 1% Up to a month 8% Up to 2 months 37% Up to 4 months 39% Up to 6 months 10% Longer than 6 months 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% How long do recruits have to wait between the final stage of their assessment process and receiving an offer? Up to 24 hours 8% Up to 3 days 24% Up to a week 14% Up to 2 weeks 25% Up to a month 22% More than a month 7% 0% 5% 10% 15% 20% 25% 30% 43
The AAGE Employer Survey 2019 Employers formally measure some parts of their selection process. The top three measures employers track include the number of applications received Organisation type insights (96%), number of candidates that progress Private sector employers are more likely than through each stage of selection (81%) and public sector employers to explore why their acceptance rate (79%). A handful of employers graduates decline their offer. They are (3%) do not use any measurement. comparatively more concerned with the motivations behind the declined offer (61% cf. 40% public sector employers) and the destination of the candidate who declined (39% cf. 20 public sector employers). Which of the following do you formally measure? Number of applications received 96% Number of candidates that progress through each 81% stage of the selection process Acceptance rate 79% Applications received from each university 68% Applications received from each marketing channel 59% Reasons why your candidates decline 54% Destination of candidates who decline your offer 32% Cost per hire 31% Return on Investment of each marketing channel 21% used Cost per application 15% We don't do any measurement 3% Other (please specify) 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 44
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