As industries face a talent shortage, recent graduates have become highly sought after across all sectors, job functions and organisational types. Attracting and retaining this new generation of workers has emerged as a pressing concern for managers and HR departments alike. This trend, which is expected to continue until at least 2030 due to demographic factors, coincides with a significant shift in how young professionals view their careers and their relationship with work.
While there is a plethora of advice on improving employer branding, few studies have directly compared the perspectives of young graduates with those of recruiters. Do companies really understand the expectations of this generation, often referred to as “NewGen”?
All the companies we surveyed acknowledge that the younger generation’s relationship with work differs from that of previous generations. Our study surveyed business school students for their views on companies and interviewed recent graduates from engineering and management schools regarding their career ambitions and engagement.
A positive image of companies – with some caveats
Despite some media narratives, 92% of students maintain a positive view of companies and eight recruiters out of 10 accurately assess this sentiment.
However, differences do exist in how each group perceives specific aspects of corporate life. For instance, recruiters tend to believe that students have a more idealised view of companies than they actually do. Specifically, recruiters think students see companies as being more diverse, fair, socially innovative, and less complicated than students themselves perceive. On the flip side, students find companies more exciting and fulfilling than recruiters realise.
Recruiters also have a strong grasp of the role students believe companies should play in addressing global and societal challenges. However, they often underestimate how much young people prioritise ethical governance, particularly in areas such as executive compensation, human rights and tax practices.
The career goals of young graduates have also evolved. Skill acquisition and personal growth remain their top priorities, which recruiters generally understand. But since 2019, contributing to society has become the second-most important objective for young professionals – a shift many recruiters have yet to fully grasp.
Interestingly, while 28% of recruiters think that young graduates prioritise high income, only 13% of young people identify it as their main career goal.
Misinterpreted ambitions
The study also revealed that recruiters tend to misinterpret the new generation’s professional ambitions. We identified three distinct profiles among recent graduates:
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The competitors: Individuals focused on rapid and ambitious career advancement who seek managerial roles, responsibility and high pay.
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The committed: Those driven by global issues and motivated by the greater interest of society and a company’s culture and values.
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The entrepreneurs: Innovators who thrive on challenges, autonomy, project management and freedom in their work.
Only 19% of recruiters believe that most young people identify with the “committed” profile, even though 38% of graduates do. Conversely, while 59% of recruiters think most young people align with the “entrepreneur” profile, only 35% of graduates do.
The study also highlights a disconnect in how companies evaluate factors influencing workplace engagement. Young graduates place a higher value on the nature of their assignments and opportunities for ongoing training than many companies realise. Meanwhile, companies often overestimate factors like work environment and salary as drivers of commitment.
Better at attracting than retaining talent
Regarding work organisation and modalities, flexible hours and asynchronous work are indeed the most important factors for young graduates, as correctly assessed by recruiters. However, having the option to condense work into a four-day week, which is highly important for 26% of young people, is underestimated by companies. The appeal of working fewer hours in exchange for prorated pay – allowing more time for family, leisure activities or volunteer work – is also highly valued by the new generation. Employers slightly overestimate the importance young people place on being able to choose their place of work every day.
Overall, companies seem to have a fairly good understanding of young people’s vision and aspirations, and their employer brands are successful in attracting candidates. However, employers appear to less effectively understand the needs of young employees once they are hired, and to be less clear-sighted when it comes to retaining and engaging them.
Young employees in their first job often point to organisational complexity and hierarchy, which they do not always see as effective. An increase in processes, reports and meetings is a significant factor contributing to their disengagement. They also highlight a lack of autonomy and responsibility, along with a local management perceived as having little room to manoeuvre, and are left feeling “restricted” by an organisation’s layered structure.
While companies are generally attuned to the aspirations of young graduates, they must focus on supporting them during their early career experiences. Addressing their feedback – often marked by fresh, though sometimes naïve, observations of workplace inefficiencies – will be crucial in re-engaging this valuable workforce.
