The current uncertainty around the global economic climate clearly has an impact on many of us working in the graduate recruitment world, but maintaining a sense of
perspective by drawing on the experience of recruiters who have been through recession before - in some cases more than once - is key. Tapping into this know-how illustrates that graduate recruitment should not be put on hold and that businesses must continue to identify and secure future managers and talent on an ongoing basis. By continuing to recruit, businesses will be safeguarding their future. Not doing so is likely to have a seriously negative impact on a business.
Decision time
In the past, companies have been forced into taking difficult - and radical - actions to cut costs in a slowing economy, but many have learnt from their mistakes. In 2001 when the internet bubble burst, Capgemini was one of the many IT organisations faced with some tough decisions when it came to managing outgoings. One of the decisions it made was to close its technology services graduate
programme. "At that time the programme was viewed by the management team as a cost centre: it was reducing profi tability," said John Gillard, Capgemini technology Services Graduate Programme Manager. "With the benefit of hindsight, perhaps a different decision could have been made. In the following years, the lack of new graduates joining the organisation had an adverse affect on career progression and, consequently, staff morale. With no graduate consultants to come up through the ranks, people felt as if they were being held back in junior roles."
In 2004, Capgemini reopened the technology graduate scheme, but with one signifi cant change: it was created as a 'business unit', meaning it was given revenue and cost targets, just like any other business unit within Capgemini. It meant that the
CEO of Capgemini Technology Services (TS) had a keen interest in making sure that the graduate scheme succeeded. "From this point forward the TS management has supported the programme, which in addition to being profi table is also still offering graduates the opportunity to become technology consultants," said Gillard.
Since 2004, the Capgemini graduate business unit has forged strong relationships with delivery teams. Throughout the year the graduates produce targeted newsletters for managers sharing success stories, and also invite senior managers to
contribute articles about their perception of the market and how graduates fit in. In addition the unit regularly sends out emails and holds networking evenings and teleconferences ensuring that managers at all levels are aware of what's going on in the graduate programme. "At times, it does feel like I am painting the
Forth Bridge," said Gillard. "However, I do believe that by securing
relationships during the good times one can depend on their support if bad times come."
The long haul
Not being tempted to view graduate recruitment as a short term activity also strikes a strong chord with Sonja Stockton, Head of Student Recruitment at PricewaterhouseCoopers LLP (PwC), who says that companies need to look five years down the line at what their business will need when the economic cycle has ridden out. It is a lesson the company learnt following the last economic
downturn. "In the early part of this decade many firms, including ours, reduced their intake and the results were only felt when the economy had fully recovered, when the demands on our profession were high and the supply of qualified graduates low."
PwC also reduced its level of roadshow activity at universities, but it was careful to maintain a certain level of contact with them. "These relationships take years to build and that decision has paid great dividends in the long term, so long as you are transparent about recruitment levels," said Stockton. Since the last downturn PwC has grown as a business, which Stockton says has helped to even out the peaks and troughs some sectors experience in a downturn. As a result, the company's
workforce has been geared to being more mobile. "We launched a graduate generalist programme, encouraging students to move between business units, service lines or locations across the UK and overseas, while still retaining a specialist route for those who wish to specialise early on."
Flexible friends
A fl exible approach has also been key to helping Enterprise Rent-A-Car in tough economic times, allowing it to seamlessly switch resource to an income stream rather than a cost centre thanks to its elasticity. At the heart of this is the company's approach to career development and progression which sees 99% of its employees come through the Management Trainee Programme.
"A fundamental part of the Management Trainee Programme is that employees work their way through a variety of positions to become rounded in general business operations," said Donna Miller, European HR Director. It means that Enterprise employees may choose to stay in operations, or they can specialise in key business areas such as recruiting, fi nance, vehicle acquisition, HR etc. "However, when the economy turns south, we know we can rely on these same employees to drive business growth and continue our push for success," says Miller. In short, the company is able to switch its recruitment professionals to revenue generating roles when recruitment slows down, turning a cost into a profit and keeping employees engaged. "The trick, however, is to make the process flexible, so when the good times return you can switch the employees back to their core roles."
Keep on moving
Such lessons means there is an air of cautious optimism as companies prepare to weather the storm. PwC plans to maintain its recruitment levels at about 1000 students and has streamlined its selection process. "For example, we've introduced a telephone interview pilot for interns to reduce costs for applicants and our firm in the early stages of the application process," said Stockton.
Enterprise Rent-A-Car has slowed down its recruitment process a bit, but Miller is keen to point out that the company hasn't stopped activity. "Poorly thought out recruitment freezes hinder an organisation's ability to turn the switch back on when the good times return, as they undoubtedly will. It's a knee jerk reaction which can have dire consequences on the business as a whole." Stockton concludes that the companies that will ride out a recession are those that continue to provide a distinctive and relevant offering to students despite the conditions. "We focused
this year's recruitment campaign on employability skills, and we've found students are listening to our advice more closely than ever, and applications have increased by 50%. In a downturn, the competition for the best just gets more focused and we're keeping our eye on the long term horizon."
AGR's Briefing, Riding the Recession, is available for all members on the AGR web site (www.agr.org.uk). It offers suggestions for practical, cost effective and innovative steps that you can take to improve your effi ciency in the areas of marketing and attraction, assessment and selection, and help demonstrate the value of the graduate recruitment function to your colleagues in the business.
