1.0 Executive summary

The report is an evaluation and analysis of the effects of hiring fresh graduates. The report analyses current research and literature to evaluate the positive and negative impacts of recruiting new graduates in People Accountancy’s workforce. The report finds out that hiring fresh graduates can benefit the company because new graduates can bring new knowledge, ideas, and skills to the company. Fresh graduates are also cheaper to maintain in terms of salaries, and the graduates are continuously learning new things. The report finds the negative impacts of hiring fresh graduates to be; training is time-consuming and costly, and graduates lack the required experience and skills. The report concludes that the benefits of hiring new graduates outweigh the negative impacts. The report also suggests new recommendations for People Accountancy to ensure continued business success.

2.0 Introduction

The report evaluates the effects of hiring new graduates in People Accountancy. The report also provides recommendations to People Accountancy on what strategies and policies need to be adopted to ensure continued business success.

A job market is a tough place for fresh graduates because there is a high supply of talent, while the job opportunities are minimal. One has to compete with other new graduates and thousands of other job-seekers who are more experienced than them. Research shows that about 30% of fresh graduates secure a job within three to twelve months; only 3% can secure a job through college placements.

Companies hesitate to hire fresh graduates because they believe that most graduates lack the necessary skills and experience needed in the job market. Other employers believe that fresh graduates are not entirely professional, their communication skills are poor, and their career interests are fluctuating. However, hiring fresh graduates can be beneficial to employers because the graduates are up to date with new technologies, they have new perspectives and views, and employers can offer them lower salaries as compared to the experienced individuals.

Fresh graduates also have a burning drive to continue learning new things and innovate new ways of doing stuff (Ataya, 2015). They quickly adapt to any organizational culture and are rarely shy about seeking clarifications and new knowledge. Therefore, People Accountancy should encourage the hiring of new graduates. Additionally, older generations should not view new graduates as a threat.

3.0 Discussion

The report highlights the effects of hiring new graduates in People Accountancy. The company currently prefers hiring of experienced professionals rather than young people fresh from colleges. New graduates account for less than 10% of the new employees hired. The small percentage can be accounted for by the company’s keenness in recruiting experienced professionals. Hiring fresh graduates is deemed to be time-consuming and expensive in terms of on-boarding; therefore, increasing the firm’s cost of production (Nagano, 2014). However, hiring fresh graduates can be beneficial to the firm in that, they are affordable, their knowledge and technical skills are up to date, and that fresh graduates are highly enthusiastic about acquiring new skills and ideas.

3.1 Positive impacts of hiring fresh graduates

One of the main benefits of hiring fresh graduates is that the company can cut off some expenses like huge salaries because new graduates are cheaper in terms of salary expectations. Most young people who are fresh from college have little to no professional experience; therefore, they do not expect huge starting salaries (Nagano, 2014). New graduates can quickly settle for lower wages in exchange for training and professional experience. A survey conducted by MENA revealed that most fresh graduates do not expect a salary higher than US$ 500 per month during their first job. However, this does not imply that the company should pay graduates meager wages or salaries below the recommended market rate. People Accountancy can hire talented fresh graduates at an entry-level price and invest in them till they gain enough professional experience. The cost of production will be significantly slashed off.

Fresh graduates also bring new perspectives and innovative ideas to the company. Most colleges stress on innovations and equipping graduates with the latest knowledge and ideas. Therefore, hiring fresh graduates can help introduce a new perspective in the firm, the latest business models, the most recent industry principles, and success stories (Zarei & Wong, 2014). Fresh graduates can also help point out flaws and provide solutions to existing company problems because they have current knowledge about the industry.

Young people fresh from universities are tech-savvy and are at par with the latest technology. Fresh graduates can easily navigate through new innovative technologies using various devices. Most of them have been born and raised in a time where computer dependency is high; therefore, the majority are equipped with the necessary computer skills that the company needs. A significant percentage of the current workforce was trained or began their when most offices did not primarily depend on computers. Hiring fresh graduates, therefore, helps boost technological innovations in the company (Ataya, 2015), and reduces the cost of training older employees about new technologies.

Fresh graduates are highly enthusiastic and more serious towards as compared to experienced or old employees. Most of them are determined to prove themselves and make a great impression on their employers. As such, fresh graduates are always willing to work extra hours and undertake more projects to attract the attention of their supervisors and the people around them (Zarei & Wong, 2014). Additionally, fresh graduates are a blank canvas; they can quickly adapt to the company’s culture without difficulties of unlearning old ways. The company can, therefore, shape them into what it desires and the company’s way of doing things.

3.2 Negative impacts of hiring fresh graduates

Hiring fresh graduates can also impact the company negatively in various ways. Most of the graduates lack experience and the required skills needed for a particular job. They, therefore, need some training and guidance, which can be expensive and time-consuming. Fresh graduates are not entirely familiar with the practical industry trends, and consequently, they need extra advice and training before they can deliver quality service to the company (Ataya, 2015). Additional training could mean extra investment in new staff, and the company may take some time before recovering the costs.

The majority of fresh graduates are less engaged, thus leading to lower productivity, increased safety incidents, higher rates of absenteeism, decreased morale, and poor customer service. Disengaged employees can, therefore, reduce the company’s profits significantly. Most fresh graduates are narcissistic, and they often succumb to arrogance. The graduates are overconfident with their skills and capabilities; therefore, they may have trouble taking directions, learning from older employees, or admitting mistakes. Such traits could also destroy the company’s reputation.

Being young and new in the job market, the interests of fresh graduates are fluctuating. They will prefer to keep experimenting and trying new jobs; therefore, they are not reliable in the long-run (Nagano, 2014). If fresh graduates get better salaries or working conditions, they will not hesitate to shift to the new area. Others may have issues adjusting to a new working environment, thus creating a wrong impression. Constant shifting to other jobs and areas make hiring fresh graduates hard and time-consuming because a company will need to replace the outgoing employees. Therefore, the company can incur considerable costs of hiring and training.

4.0 Conclusion

Hiring fresh graduates can be beneficial and at the same time damaging to a firm. Hiring new graduates can help a company reduce costs because they do not demand huge salaries. Fresh graduates are also tech-savvy and at par with modern technological innovations. Recent graduates also bring new perceptions and ideas to the company. They are also hard-working and enthusiastic about learning and acquiring new skills. However, training and on-boarding fresh graduates are time-consuming and expensive. Fresh graduates also have fluctuated professional interests; therefore, it can be costly for the company to invest in them for long-term benefits.

5.0 Recommendations

The following strategies are suggested to ensure the continued business success of People Accountancy. People Accountancy should make room for Millennials by hiring more fresh graduates. The company should embrace the creative and innovative ideas brought on table by fresh graduates. As mentioned earlier, hiring fresh graduates can benefit People Accountancy through various aspects.

People Accountancy puts a high value on the type of employees the company hires; therefore, other personnel areas need to be reconstructed to utilize talents and sieve out unproductive workforce efficiently. People Accountancy should restructure its workforce to accommodate more diversity and include remote workers. The company should also embrace new technological innovations in order to gain a competitive edge. People Accountancy should also find more ways to engage customers and charge the right amount of charges for its services.

6.0 References

Ataya Lama, (2015, August 23) Five Reasons To Give Fresh Grads A Chance At Your Enterprise. Retrieved from https://www.entrepreneur.com/article/249841

Nagano, H. (2014). Trends in corporate hiring of recent graduates: Focus on developments since the global financial crisis. Japan Labor Review, 11(2), 23-36.

Zarei, M. H., & Wong, K. Y. (2014). Making the recruitment decision for fresh university graduates: a study of employment in an industrial organization. International Journal of Management and Decision Making, 13(4), 380-402.

Impacts of Hiring Fresh Graduates