- 37 percent of employers see retention as the top challenge facing their early careers programme
- More than 3 in 4 (77 percent) organisations increased pay and benefits for graduates, interns and apprentices in the past year
DUBLIN, 17 October 2023 – A new report published today by leading global professional services firm Aon plc (NYSE: AON) and people development expert HPC Global Limited has revealed that most Irish employers have yet to ascertain the benefit of AI in supporting the recruitment of early careers professionals.
“The 2023 Irish Early Careers Report” surveyed 35 large companies from more than 17 industries that together employ approximately 65,000 people across Ireland. It reveals that 4 in 5 HR professionals at large enterprises are uncertain the impact AI will have on early careers programmes. Only 17 percent believe the technology will have a positive role in recruiting graduates, interns and apprentices.
Driving long-term retention
Retaining early careers professionals post-programme is the biggest challenge facing early careers programmes, cited by 37 percent of HR professionals. This figure has fallen marginally on last year’s results (40 percent), indicating that retention is still a major challenge, employers appear to be turning to evaluating their Employee Value Proposition (EVP) to address the high rates of attrition.
Reviewing hybrid working arrangements is one key recommendation outlined in the report to support retention. While the shift to hybrid working arrangements offers greater flexibility, it is important that it is balanced with the benefits of learning in person from peers to facilitate the long-term development and engagement of early talent.
Competing for Talent
With unemployment near a historic low, employers are competing across a range of dimensions to attract talent. Research shows that over 3 in 4 (77 percent) organisations increased the pay and benefits for graduates, interns and apprentices in the past year in response to the rising cost of living. Pay increases alone are not sufficient in competing for talent. When ranking Employee Value Proposition (EVP), the key factors that support candidate attraction and employee engagement, pay was only ranked as the fourth most important factor by employers.
Nearly half of employers (49 percent) rank career development opportunities as the most important part of their EVP to attract early careers talent, indicating the importance of creating clear paths for progression within organisations. Programme structure (46 percent), branding (37 percent), and salary and benefits (34 percent) complete the top EVP factors organisations rely on to attract high-calibre talent.
Building the Skills for the Future
Addressing the current and future skills gap can enable employers to benefit from the opportunities created by new technologies. Research shows that employers prioritise transferable skills in recruitment that can enable young professionals to effectively respond to change. Management/leadership, communication, presentation skills, critical thinking and commercial acumen are the top skills demanded by employers.
The report finds that continuous professional development is key to developing in-demand skills among early careers talent. Mentoring, formal workshops, self-directed learning, and projects are the top four learning approaches used by employers. This multi-faceted approach to skills development taken by most employers helps meet individual learning needs and contributes to improved skills outcomes.
When evaluating the skills critical to business success HR professionals primarily leverage internal methods such as interviews with stakeholders (66 percent), past experience (51 percent), and job analysis (43 percent). As new technologies reshape the skills market, benchmarking against external areas such as skills research and talent market analysis is becoming increasingly important to ensure organisations are equipped for the future. Only 34% of organisations are currently using external research to inform their skill needs.
Commenting on the results of the survey, Dean Callaghan, managing director of Human Capital Solutions, Aon Ireland, said: “The recruitment of early careers talent including graduates, interns and apprentices is critical to the future success of every business. These individuals make an impact where it matters most, from shaping company culture to providing the next generation of company leaders. As technology revolutionises the world of work and business, employers face important choices in how to hire and train this talent to build more resilient workforces for the future.
“While most HR leaders are uncertain on how to harness the benefits of AI, it is clear that businesses will need to place greater emphasis on understanding and unlocking the potential of AI to retain early careers talent. AI can and will play an increasingly important role in shaping early careers programmes. Addressing the skills gap will enable employers to fully benefit from the productivity gain of AI and other technologies. Developing transferable skills and upskilling can ensure that the next generation of early careers talent is well positioned to drive organisational success.
“At Aon Ireland, we’re proud to support organisations across the country in making better decisions and ensuring that the young talent hired today has the skills and potential to thrive through future changes and drive business growth. By implementing the key recommendations in today’s report, employers across Ireland can maximise the value of early careers talent and build a resilient workforce fit for the future.”
Kevin Hannigan, Client Director, HPC Global Ltd, said: “The world of work is evolving at pace, with employers facing a range of challenges from an exceptionally tight labour market to rising costs. Research from the 2023 Irish Early Careers Report, published today, provide important insights for companies in how to respond to these challenges in managing the recruitment and development of early careers professionals.
With the market for talent never more competitive, and retention a major challenge, HR leaders will need to look beyond pay in attracting and retaining talent. While our research reveals that offering clear pathways to progression is identified as one of the most important features of attracting top talent, employers generally are taking a more holistic approach to attracting talent, with a wide range of factors including salary and benefits considered significant.”
Methodology
From May to July 2023, Aon Ireland and HPC Global Limited conducted survey research into the state of early career programmes at organisations across Ireland. The research received responses from 35 large companies from more than 17 industries, which together employ approximately 65,000 people across Ireland.
To download “The 2023 Irish Early Careers Report,” visit https://aon.io/45tgdCH
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
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About HPC Global Limited
HPC provides a competitive advantage for businesses through bespoke people development solutions. For 40 years, we have partnered with senior leaders and L&D teams to identify the challenges they face and deliver tailored solutions for individuals and teams, managers and leaders across a diverse range of sectors and global locations.
We design and deliver the following tailored solutions: Leadership Development, Management Development, Graduate Development, High Potential Development, Capability Development, Executive Coaching, Leadership Team Coaching.
To learn more, visit wearehpc.com. Stay connected with HPC through LinkedIn for ongoing insights and observations on the world of L&D. Or start a conversation with us by email at [email protected].
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