Memorandum submitted by The INSTITUTE FOR EMPLOYMENT
STUDIES (IES)
The Institute for Employment Studies is an independent,
apolitical, international centre of research and consultancy in human resource
issues. It works closely with employers in the manufacturing, service and
public sectors, government departments, agencies, and professional and employee
bodies. For over 35 years the Institute has been a focus of knowledge and
practical experience in employment and training policy, the operation of labour
markets and human resource planning and development. IES is a not-for-profit
organisation which has over 60 multidisciplinary staff and international
associates. IES expertise is available to all organisations through research,
consultancy, publications and the Internet.
IES aims to help bring about sustainable improvements in
employment policy and human resource management. IES achieves this by
increasing the understanding and improving the practice of key decision makers
in policy bodies and employing organisations.
Since it was established in 1969 the Institute has been a
focus of knowledge and practical experience in employment and training policy,
the operation of labour markets, and human resource planning and development.
IES is a not-for-profit organisation that has over 60 multidisciplinary staff
and international associates. IES expertise is available to all organisations
through research, consultancy and publications.
Higher level skills are also an important element of our research
in the area of higher education and the Institute has a long tradition of
studies into the flows to, through, and from higher education; the higher
education experience; and graduate and post-graduate labour market entry. In
recent years we have conducted a range of regional studies into graduate labour
markets throughout Britain.
Together these studies have enabled IES to gain a unique
perspective of the changing nature of the graduate population, of their
experiences at university, their expectations for the labour market and career
outcomes.
The IES response on the House of Commons enquiry into HE
will focus on five of the sub-themes identified under the heading of the 'role
of universities in the next five to ten years'. These sub-themes are:
■ Widening
participation in higher education and its social consequences (section 2).
■ What
do students want from higher education? (and do they get it?) (section 3).
■ Demand
for graduates in a high-skilled economy (section 4).
■ What
do employers want from higher education? (section 4).
A selected bibliography is provided in section 5.
Our response is based upon a selection of research
undertaken by IES over the last few years. The main points from our response,
together with the relevant references, are summarised below.
1. Although higher education has expanded rapidly
over the last two decades it has failed to encourage significant increases in
representation by individuals from lower
socio-economic groups (Connor et al,
2001a).
2. Decisions
to enter higher education are usually made early, ie by Y11/S4. Key
influences on these decisions are high exam expectations and parental/school expectations,
usually related to social class (Connor
et al, 1999).
3. Minority
ethnic groups are more likely to participate in higher education than the
white population but there is wide variation between ethnic groups (Connor et al, 2004). Also, there is a
high level of clustering (eg around post-92 universities in London).
4. Different
minority ethnic groups have different trajectories into higher education,
eg in terms of A'level success (ibid).
5. Ethnicity
and participation needs to be considered in a wider context eg family
support and expectations (ibid).
6. The level of higher education participation
among lower socio-economic groups
is adversely affected by the desire to
earn money at an early age and concerns of student debt (Connor et al, 2001a). This is understandable as students from lower
socio-economic groups are likely to incur higher debt (Finch et al. 2006).
7. Participation among lower socio-economic groups is promoted by intermediaries, eg
friends and family or school tutors (Connor
et al, 2001a).
8. However, looking at the longer-term, graduates
from lower socio-economic groups
appear to do less well in the labour market than their higher socio-economic
counterparts.
9. Research
from IES (Connor et al, 2001a)
suggests a number of policy recommendations
that should be considered to widen participation in higher education among
those from lower socio-economic groups:
□ the benefits of higher education need to be better and
more widely communicated;
□ mentoring and 'HE champions' should be used to promote
contact between higher education and school pupils;
□ relevant and timely information on student finances
and support is needed.
10. Among people from minority ethnic groups, Connor et
al (2004) propose a number of recommendations aimed at improving participation, including a
need to:
□ reduce
the attainment gap (especially among black pupils) at A'level;
□ monitor
the impact of changes to student financial arrangements on participation among
different minority ethnic groups;
□ improve
the statistical monitoring of participation, more generally and by detailed
minority ethic groups;
□ recognise
and understand how some minority ethnic groups have higher participation than
white people.
11. Career
benefits are crucial: four out of the five top reasons for wanting to go to
university are career related; the other key reason to enter university is
interest in the subject (Connor et al, 1999).
12. There
are gender differences: among school pupils, girls are more likely to cite
subject interest as a reason for wanting to enter higher education while boys
were more likely to emphasise financial and career motivations (ibid).
13. There
are ethnicity difference: among university students from minority ethnic
groups, aspirational and expectational reasons for entering higher education
are more significant than among white students (Connor et al, 2004).
14. There
are differences by social class: students from lower social classes are
more likely than students from higher socio-economic groups to suggest that the
career benefits of higher education were key motivators for participation (Connor et al, 2001a).
15. Higher
education students are usually satisfied with their choices and experiences (Connor et al, 2001b). Male students and students from 'traditional'
entry backgrounds are the most satisfied.
16. There is room for improved information, advice and guidance and
careers support targeted at new graduates in the labour market.
■ Graduates do better than non-graduates
in the labour market in terms of earnings, employment rate and the quality of
employment (Bates et al, 2006; Tyers et al, 2006).
■ There
is evidence that the nature of graduate
jobs is changing and an increased proportion of graduates appear to be
employed in more associate professional or technical occupations (Bates et al, 2006; Tyers et al, 2006).
■ The
demand for graduates remains strong
(Wilson et al, 2005) although their
economic contribution is of greater consequence for some sectors (eg high
technology manufacturing) than others (eg service sector) (Jagger et al, 2005).
■ There
is evidence from SMEs in Wales that employers often seek graduates as a degree qualification acts as a signal for
potential rather than for specific subject knowledge (Tyers et al, 2006).
■ Large employers predominantly seek
graduates with leadership potential
eg 'intellectual ability' (linked to strategic thinking), 'interpersonal
skills' (linked to motivational ability) and 'drive'. However, there may be a
shortage of graduates with technical and numeric expertise (Barber et al, 2005).
■ Employment success depends on a number of
factors
eg subject choice and willingness to travel for work (Pollard et al, 2004).
Interest in the economic performance of graduates has been
fuelled by continued expansion in the higher education sector. Graduate numbers
have more than doubled since the 1980s, indeed earlier this year it was
reported that first year enrolments to HE exceeded one million (HESA Press Release
83), and as a group they have
become far more diverse. Women now make up well over half of those graduating
in the UK, and the aggregate participation rate amongst young people from
minority ethnic backgrounds exceeds the average and together they are better
represented in HE than in the working population (Connor et al, 2004). This growth
has been stimulated by a range of
factors including demographics, the mainstreaming of higher education through the use of participation targets, and rising levels
of educational attainment (ibid).
Although it should be noted that there remains a wide disparity in
participation across social groups, with lower socio-economic groups
significantly under-represented in higher education (Connor et al, 2001a).
Finally, in terms of the modes
of study, most of the expansion has been among students doing full-time
undergraduate degrees. The number of part-time undergraduates has increased
only very slightly. The numbers involved in more vocational sub-degree
programmes, such as HNCs and HNDs have declined, while take up of the new
vocationally-oriented (two-year) foundation degrees have so far been fairly low.
Decisions about going into
higher education are usually taken early and expectations regarding the
benefits of university may evolve across an individual's educational career. In
terms of when key decisions are made, Connor et al. (1999) suggests that in
many cases, students' career plans (in particular decisions about further study)
are largely formulated by Y11/S4; ie
long before they have to apply for higher education. The key influences on
their plans were found to include: expected attainment levels at GCSE/Scottish
Standard grade, earlier school experiences, access to careers advice, and
expectations from school and home. Those most likely to participate in higher
education were those with high exam expectations: Scottish students, those from
higher social class groups and some ethnic minorities.
Other research by IES (Connor
et al, 2004) found that minority ethnic people are more likely to enter
higher education than are people from the white population. However, the
minority ethnic population does not participate in higher education in a
uniform way. The minority ethnic undergraduate student body is highly
heterogeneous. Across individual minority ethnic groups, participation rates
vary considerably, and their representation varies between universities,
subjects, geographic regions, and course types.
Minority ethnic students are clustered at certain
institutions, eg the post-1992 universities in London. Their representation
among undergraduates at many universities is low (under ten per cent at around
half of them) and mostly low in pre-1992 universities. This pattern relates to
locality (eg with a high representation in London as many students stay
locally), and differences between universities in their entry requirements and
range of courses and subjects on offer (ibid).
Minority ethnic young people are equally as likely as the white
population to gain entry qualifications to go to university by age 19 (which
contrasts with the situation at 16, at GCSE level) but the type of highest
qualification held and their schooling post-16 vary significantly. Minority
ethnic degree entrants have lower entry qualifications on average, fewer take
the traditional 'A' level route, and more are likely to come into HE from FE
than are white entrants. These overall results mask divergences between groups:
■ Indian
and Chinese groups are the most likely to take the traditional 'A' level
highway to HE and are better qualified as HE entrants.
■ Pakistani
and Bangladeshi groups do not gain as high 'A' level qualifications as do
Indian or Chinese, but perform better than black students.
■ Black
groups, particularly Black Caribbean, are generally older on entry, with a
wider range of entry qualifications than the average.
These are generalisations, but serve to illustrate the
distinct trajectories prior to HE, which influence HE participation levels and
patterns, and can have an effect on subsequent progress and graduate outcomes (ibid).
An important conclusion from the research undertaken by
Connor et al (2004) is that the
influence of ethnicity on decisions about higher education entry is powerful,
but not equally so for all minority ethnic groups. Being a member of a
particular ethnic group is one of a variety of factors affecting
decision-making about going on to higher education, some of which interact with
each other. In particular, it is likely that strong positive parental support
and commitment to education mitigates some negative effects, such as being in a
lower socio-economic class. This would explain why minority ethnic groups
disproportionately enter full-time degree courses, despite having lower than
average class profiles.
IES research on higher education participation among lower
social groups (Connor et al 2001a) found that the primary discouraging factors to participation
in higher education among people from lower social classes were employment and
finance related. The main reasons why people from lower social class groups had
decided against going into higher education, though qualified to get a place,
were twofold:
■ they
wanted to start employment, earn money and be independent at an earlier age (39
per cent);
■ they
were worried about the cost of studying (28 per cent).
Concerns about the costs of study were expressed by both
potential and current higher education students from lower social class groups,
but the majority felt that the investment was worthwhile in the long run. These
concerns are, perhaps, understandable as students from lower socio-economic
groups are more likely to incur higher levels of debt (Finch et al. 2006). However,
finance was just one of a range of issues of concern expressed by respondents
when discussing their decisions to enter higher education. Others include being
able to cope with academic pressures and workload, gaining the entry qualifications,
the application process itself, and personal issues such as childcare.
The research found that intermediaries were key to
promoting participation in higher education by lower social classes (ibid). These intermediaries may either
come from informal relationships (eg parents or friends) or formal ones (eg
school tutors). Prior education and family background can influence decisions
about higher education entry in numerous ways. Various people have important
roles to play in the decision process. In particular for lower social class
potential entrants, FE college tutors could be a key group of positive
'influencers' on potential students, as were friends and family members with
current/recent higher education experience.
The IES study concluded that while there was plenty of
information about higher education available to potential entrants who are on higher
education qualifying courses, it is often seen as being too general and overly
complex. The main gaps in information content are on the financial aspects of higher
education study and its likely benefits in terms of employment and financial
returns.
There is a wide variation in the amount and detail of
information on higher education costs and funding/support that is received by
potential students prior to entry. Three-quarters of the full-time students in
the survey, and slightly more from lower social class backgrounds, did not feel
that they had sufficient information (when deciding about going to university)
about how much it was likely to cost to be a student.
Pollard et al
(2004) has found that nearly two years after graduating the less advantaged
individuals (from lower socio-economic groups and with lower family incomes)
found it the most difficult to move to permanent work. Those earning the higher
salaries, and in what they perceived to be good quality jobs, tended to be
male, from higher socio-economic groups and from families with higher incomes
(ie 'traditional' graduates). Those in poor quality jobs tended to be the less
advantaged (from lower socio-economic groups and with lower family incomes),
and to have been less successful in higher education. They were also less
likely to think about jobs and careers and take action whilst in higher
education.
Finally, we conclude by outlining the key policy
implications and recommendations that were drawn from the IES research into
higher education participation among minority ethnic groups and among those in
lower socio-economic groups.
The research findings from the IES study by Connor et al (2001a) on higher education
participation among lower socio-economic groups suggests a number of policy
implications:
■ The
benefits of higher education study should be better and more widely
communicated. In particular, outcomes associated with improved employability
and finance need to be given more prominence, though it is recognised that this
is an area of variability across the student body, especially in the first
years after graduation. For example, colleges and schools could make better use
of past students' achievements and progress through higher education. This is
relevant for young students, especially in pre-16 education, also for mature
students.
■ Mentors
or 'HE champions' should be more widely used to help those potential students
who have little contact with people who have recent higher education
experience. These could be former school/college students, recent graduates, or
teaching/careers staff. Current students from a wide range of backgrounds could
be encouraged to visit schools and colleges in low participation neighbourhoods
to discuss with potential students their hopes and fears, and explore how they
can be addressed. Examples of current good practice of the use of mentors or
'champions' should be more widely disseminated.
■ More
relevant and timely information on student finance is needed, as well as
greater financial assistance made more accessible to those students in greatest
need. Affording the costs of HE, while not by itself the single prohibitive
factor, is a discouragement. The research clearly shows that more needs to be
done to support potential students from low income families. In particular,
they could be helped by better guidance on the financial support available and
the likely net costs of different options for them, according to their
different circumstances. This information should be presented in a more
user-friendly way and available earlier in the decision-making process.
Connor et al
(2004) has highlighted the considerable diversity in the higher education
participation of minority ethnic students, which means that a detailed
understanding of minority ethnic patterns and their various causes is important
in developing future policy. Various recommendations are made on the need to be
more focused in policy approaches and in further research.
■ More
needs to be done to raise earlier attainment and to close the 'A' level gap,
especially for some black students.
■ A
better understanding is needed of the influences (positive and negative) of
parents in the decision-making process about HE and their interaction with
other interventions (eg careers guidance).
■ Further
work needs to be done on improving statistical measures of HE participation for
sub-groups, including ethnic groups, and we recommend greater use of Census
data.
■ Although
student finance was not any greater deterrent for minority ethnic than white students
overall, it is important to monitor the impact of the proposed changes on
individual ethnic groups (and sub-groups).
■ Further
research and analysis is needed into retention and degree performance of
minority ethnic student groups, and the significance of various factors
(including student satisfaction, and family/parental support to students).
■ Further
research is required on graduate career choices, including minority ethnic
students' preference for further study, on the effectiveness of the various
diversity programmes of universities and employers, and other measures designed
to improve graduate employability.
■ Finally,
there is a tendency to focus mostly on relative disadvantage. Some minority
ethnic students are doing much better than comparative white groups. This
should be given greater recognition.
1. Although higher education has expanded rapidly
over the last two decades it has failed to encourage significant increases in
representation by individuals from lower
socio-economic groups (Connor et al,
2001a).
2. Decisions
to enter higher education are usually made early, ie by Y11/S4. Key
influences on these decisions are high exam expectations and parental/school
expectations, usually related to social class (Connor et al, 1999).
3. Minority
ethnic groups are more likely to participate in higher education than the
White population but there is wide variation between ethnic groups (Connor et al, 2004). Also, there is a
high level of clustering (eg around post-1992 universities in London).
4. Different
minority ethnic groups have different trajectories into higher education,
eg in terms of A'level success (ibid).
5. Ethnicity
and participation needs to be considered in a wider context eg family
support and expectations (ibid).
6. The level of higher education participation
among lower socio-economic groups is
adversely affected by the desire to earn money at an early age and concerns of
student debt (Connor et al, 2001a). This
is understandable as students from lower socio-economic groups are likely to
incur higher debt (Finch et al. 2006).
7. Participation among lower socio-economic groups is promoted by intermediaries, eg
friends and family or school tutors (Connor
et al, 2001a).
8. However, looking at the longer-term, graduates
from lower socio-economic groups
appear to do less well in the labour market than their higher socio-economic
counterparts.
9. Research
from IES (Connor et al, 2001a)
suggests a number of policy recommendations
that should be considered to widen participation in higher education among
those from lower socio-economic groups:
□ The benefits of higher education need to be better and
more widely communicated.
□ Mentoring and 'HE champions' should be used to promote
contact between higher education and school pupils.
□ Relevant and timely information on student finances
and support is needed.
10. Among people from minority ethnic groups, Connor et
al (2004) propose a number of recommendations aimed at improving participation, including a
need to:
□ reduce
the attainment gap (especially among black pupils) at A'level;
□ monitor
the impact of changes to student financial arrangements on participation among different minority
ethnic groups;
□ improve
the statistical monitoring of participation, more generally, by detailed
minority ethic groups;
□
recognise and understand how some minority ethnic groups have higher participation
than white people.
A survey of year 11 students reported in Connor et al (1999) identified that the five
key reasons young people wanted to enter university are to:
■ study
a subject of interest to them
■ have
a professional career
■ improve
their job prospects
■ gain
entrance to a well paid career and to have a professional career.
Although in each of these cases, between 78 and 83 per
cent of the sample suggested that the reason was extremely or very important
there were differences by gender. Girls were more likely to focus on subject
interests, while boys looked towards financial and career motivations. Career
motivations were also of greater importance to minority ethnic students than to
white students.
Differences in the motivations to enter higher education
by minority ethnic groups were also observed in Connor
et al (2004). The research found that
aspirations and expectations of the value of, and benefits from, higher
qualifications are a more significant positive 'driver' for minority ethnic
than for white students, especially most Asian groups. This combines with
greater parental and family influence to play a more significant role in
encouraging higher education participation among minority ethnic than white young
people, and also in choices of what and where to study in higher education.
Among students from lower socio-economic backgrounds, a
belief that a higher qualification will bring improved job and career
prospects, and also improved earnings and job security were key motivators for
entering higher education (Connor et al, 2001a). Students from lower socio-economic
backgrounds take account of a wider range of issues than their counterparts in
higher social class groups when taking the decision to enter higher education,
and they tend to place more emphasis on the expected beneficial outcomes of higher
education than do students from higher socio-economic groups.
Satisfaction with the decision to enter higher education
and choice of institutions were the subject of a follow up study to Connor (1999): Making the Right Choice? (Connor et al, 2001b). The research found
that, overall, the majority (around 80 per cent) of university students were satisfied
with their choice of institution and course. However:
■ Students
who failed to get their preferred choice of institution had slightly lower
satisfaction levels, as did students who switched institutions and courses and
those who had left higher education altogether.
■ Students
were most satisfied with aspects relating to their studies, ie the learning
experience, teaching and study facilities; and less so with non-academic
aspects. The main area of dissatisfaction was cost-of-living in the area. This
concern was highest in the South, and in Scotland and Northern Ireland. Other
main areas of dissatisfaction were sports/social facilities and personal
support from tutors.
■ Male
students and students from traditional higher education entry backgrounds were,
on the whole, more satisfied with their choices of course and institution than
others. Also, students studying at pre-1992 universities were, on the whole,
more satisfied than those at newer universities on average. The differences by
university type are, in part, explained by different subject balances and
clusterings of different student groups.
The research found that it was
students from some of the non-traditional entry groups (eg mature, ethnic
minority, vocational entry qualifications, low family income) were:
■ more
likely to leave higher education before completion of their courses, or change
institution;
■ less
likely to be satisfied with their choice of institution and course;
■ more
likely to feel they made the wrong choice of institution;
■ more
likely to feel that better information pre-entry would have helped them to make
better choices.
There was, however, no singular
set of findings that enabled a particular student group to be identified
clearly as being more dissatisfied. In aggregate, institutional differences
were evident but these are linked to economic, social and educational
variables, and the diverse pattern across higher education.
Evidence from new graduates from the IES Right Choice? study (Connor et al, 2001b) suggests that most
paint a very positive picture of their choices of, experiences in, and after
higher education. Higher education had helped them with their future prospects.
Even though many anticipated, and left, with sizeable levels of debt, the vast
majority felt that the benefits they gained (and would continue to reap) from
higher education outweighed the costs. They would, however, have welcomed more
advice as to the nature and financing of these costs. The majority of early
leavers, who did not complete their degrees, were still positive about the
value of their time in higher education; the experience had encouraged them to
continue to learn (and many successfully returned to higher education or some
other form of study), increased their self-confidence, and increased their
(perceived) attractiveness to employers.
However, traditional graduates (younger, white, middle
class) tended to have the best outcomes, while those from less traditional
backgrounds achieved lower results and were more likely
to have weaker labour market outcomes and lower satisfaction (also see section 4.5.1).
While most were satisfied with
their choices, experiences and outcomes, further improvements in careers advice
and support would add value for future students. All students need to take
well informed decisions, consider the full range of options both within and out
of higher education, undertake more visits to higher education institutions,
and to talk to more students in higher education. Prior to entry they need
better information as to the likely costs, managing their expenditure, sources
of funding, and the pros and cons of paid work during term-time and vacations.
Once in higher education, students need an early
understanding of the value and importance of work experience. They also need to
consider their choice of career, the ways to access their chosen career, and
the importance of lifelong learning. Advice should be particularly targeted at
non-traditional students, and the least mobile, as they are most likely to end
up in poor quality jobs.
The Right Choice?
study concludes that good practice in retaining and advising potential early
leavers should be disseminated widely. It should focus on the identification of
those most at risk of leaving, encouraging them to seek advice early, helping
those who wish to remain to do so, or to transfer them to a more suitable
course/institution (or to manage their exit from higher education).
Finally, careers support after leaving is especially
important for those moving into lower quality jobs. This is a particular
challenge for graduates returning home after their studies and who are often
unclear as to what support may be available locally, eg through their local
higher education institutions and careers services.
It may be constructive to ask whether or not student
expectations of higher education are fulfilled immediately after their
graduation and in the longer-term? The evidence suggests that graduates have a
realistic understanding of the labour market (see,
for example, Perryman et al, 2002;
Pollard et al, 2004 and Pollard et al, 2005). In these studies,
the majority of recent graduates did not expect to enter graduate level work
straight after graduating but expect to have achieved this eventually, eg three
years on. There is a realisation for many that they will need to progress
through a number of short-term (not necessarily defined by contract length)
'stepping stone' jobs to develop relevant work experience that will increase the
currency of their degree qualification before developing a clear career path (Pollard et al,
2004). These expectations are matched by the reality of the UK's labour
market, in which the majority of graduates who do not find higher level jobs
immediately after graduating do enter such jobs eventually. Indeed, the Student
Income and Expenditure Survey (Finch et al. 2006) suggests that students in the
highest socio-economic groups then to have the highest salary expectations. The
realistic expectations are found to be accompanied by expectations of modest
salaries, expectations of working in smaller companies, and a desire to work
for employers offering interesting and challenging work, and training and
development opportunities.
There is a danger that, for some, they can become stuck in
jobs that were only meant to be for the short-term, to allow breathing space
and delay career decisions, and to begin to pay of student debts. It would
appear that graduateness could
depreciate the longer individuals stay in these roles (Pollard et al. 2004). Those most active
in job search while studying were the most successful in the labour market.
Family and friends were particularly important for careers guidance after
graduation. Thus, those from families and communities with little experience of
higher education may get less broad-ranging advice.
1. Career
benefits are crucial: four out of the five top reasons for wanting to go to
university are career related; the other key reason to enter university is
interest in the subject (Connor et al,
1999).
2. There
are gender differences: among school pupils, girls are more likely to cite
subject interest as a reason for wanting to enter higher education while boys
were more likely to emphasise financial and career motivations (ibid).
3. There
are ethnicity differences: among university students from minority ethnic
groups, aspirational and expectational reasons for entering higher education
are more significant than among white students (Connor et al, 2004).
4. There
are differences by social class. students from lower social classes are
more likely to suggest that the career benefits of higher education were key
motivators for participation than students from higher socio-economic groups (Connor et al, 2001a).
5. Higher
education students are usually satisfied with their choices and experiences (Connor et al, 2001b). Male students and students from 'traditional'
entry backgrounds are the most satisfied.
6. There is room for improved information, advice and guidance and
careers support targeted at new graduates in labour market.
Much of the research from IES has consistently indicated
that graduates have better labour market prospects than their non-graduates
peers, ie those qualified to enter
higher education but chose not to do so (Bates et al, 2006; Tyers et al, 2006).
The vast majority of graduates working in the UK work in higher level
occupations, with just under a half of graduates working in professional
occupations. An additional fifth work as managers or senior officials, and a
further fifth work as associate professional or technical workers (Bates et al, 2006).
Among recent graduates, however, are some signs that the
nature of graduate jobs is changing. Over the last decade there has been a
relative shift in graduate employment, from professional to associate
professional and technical occupations (ibid). This may either reflect a
growth in graduate numbers that has exceeded the growth in demand for
professional workers, or alternatively, an upgrading in associate professional
and technical jobs, for example, the professionalisation of jobs such as occupational
therapists and nursing. However, the picture is somewhat complicated by changes
in the classification of occupations over this period.
Macroeconomic forecasts confirm that the quantitative
availability of graduates and those with high level skills appears to be
broadly adequate for current needs, although the mix is inadequate for certain
sectors such as advanced engineering and biotechnology. Recent IES research has
found that, high-level education is important for productivity in high
technology manufacturing and some, but not all, of the service sectors (Jagger et al, 2005).
Although holding a degree still commands a wage premium, there are some signs
of over-supply as the premium attached to a degree shows some signs of
diminishing[1].
However, the demand for graduate and higher level skills is set to rise (Wilson et al, 2005). and there is evidence that the
proportion of the workforce with higher level skills in the UK may be
inadequate to meet future needs. While the numbers in higher education in the
UK are high relative to some competitors, they are low compared to others (eg Ireland and Finland); in other
competitor economies the proportion of high-skilled individuals is rising fast
and, in numerical terms, outstrips or will soon exceed that of the UK (eg India and China).
Research conducted with SMEs
employing graduates in Wales found that less than half of these employers are
looking for graduates in specific disciplines, the majority simply using a
degree as an indicator of more generic skills (Tyers et al, 2006). We should note, however, that this does not
mean that subject choice is unimportant as those employers who do require
specific skills or knowledge may be prepared to pay a premium for it (eg see
section 4.5.2).
The research found that half of
all employers surveyed, including three-quarters of those with no recent
experience of working with graduates, saw some benefits to employing graduates.
However, employers who currently, or had recently, employed graduate staff were
far more positive about their potential benefits, including the positive benefit
of graduates adding IT skills and bringing innovative or creative thinking to
their workplace.
In the same way that graduates do not form a homogenous
group, neither do graduate employers. A review of the graduate recruitment programmes in
large enterprises found that employers predominately seek graduates with
leadership potential, defined across three clusters of competencies (Barber et al, 2005):
■ intellectual
ability, linked to analytical skills and strategic thinking;
■ interpersonal
skills, seen as linked both to influencing skills and the future ability to
manage and motivate staff;
■ drive to achieve results, seen as linked to personal effectiveness.
Although leadership skills were the most widely sought,
some of the organisations that were surveyed in this study wanted high-quality
technical graduates, especially scientists and engineers, IT graduates or
simply graduates with high levels of numeracy, and had serious concerns about
supply in the UK. They did not always fill all their vacancies and some saw
other parts of the world (at times beyond western Europe) as outstripping the UK in both numbers and quality.
Overwhelming, graduates value
their time in higher education and even those who leave early gain benefits in
terms of a continued interest in learning, and increased self confidence (Pollard et al, 2004). Graduates
feel higher education improves their long term prospects: setting them up for a
good career, increasing their attractiveness to employers, and equipping them
with skills and qualities that employers value. However, benefits of higher
education are not evenly distributed, and it is traditional graduates that are
most positive about their higher education experience. However, the research
suggests that the initial success of recent graduates in the labour market
depends upon a number of highly inter-related factors, including the
socio-economic background of those graduates, their willingness to relocate for
work and the subject from which they graduated.
Our research would indicate that traditional students gain
the most from higher education. They gain better degree classifications, have
higher satisfaction ratings of their higher education experience, and better
labour market outcomes in terms of higher average salaries, higher level
occupations and perceived to have better quality jobs (jobs that have high
entry requirements, offer skills development, and are well regarded positions).
Conversely, those from lower socio-economic groups find it harder to move on
from stepping stone jobs. It would appear then that higher education and the
labour market may still be oriented to traditional students and not really
meeting the needs of, and recognising the potential of, diverse students confidence
(ibid).
Employment outcomes are still contingent on choice of
degree subject made by graduates. Graduates who have studied professional
subjects such as veterinary science, education and medicine are consistently
more likely to enter (and enter quickly) into a graduate level occupation than
those who have studied more general arts and humanities type courses. Indeed,
those following professional courses are most positive about the value of their
higher education and are the most satisfied with their careers. Whereas, arts
and humanities students are among the least satisfied in relation to career opportunities, have lower average earnings,
and are the most likely to anticipate changing career direction in the medium
term. This group will need support to build relevant work experience, and to
identify and access suitable careers.
Professional or vocational subjects have more clearly
defined career paths and visible entry points to the labour market, and for
many this accelerates the transition from higher education. It may appear that
this group need little careers support, however, there is a danger that those following
such routes may become aware that they are no longer interested or suited to
that career but be unable to move away from the field. These graduates will
need help to adapt their skills and experiences to alternative careers.
The graduates who show themselves to be hypermobile, in terms of their
willingness to move away from home to study and then again to find work, are
also the most likely to be employed in higher level jobs, to have above average
salaries, and to be in perceived high quality jobs. They operate in a national
or international labour market - moving to the location that offers the best
jobs. These graduates, once again, tend to have traditional backgrounds, are
more likely to come from higher socio-economic groups, to be male and to be
younger; they are also the most highly qualified, with high entry
qualifications and good degree classifications.[2]
A key location for migration, either expected or actual,
among these hypermobile graduates is London and the South East. This is not
surprising as our research shows this area has the highest concentration of
graduate workers, the highest concentration of advertised vacancies (in
publications targeted at graduates), and is the most popular destination for
those intending to move away after their studies (eg see Pollard et al, 2004).
Those that fare less well in the labour market are
graduates who have limited mobility, and particularly those who return to their
home region after their studies. This group are often returning to live with
their parents to save money, may have relatively poorer degree outcomes, and
have limited links with local careers services. There is a very real danger
that this group can become trapped in unsuitable temporary jobs, making more
applications for graduate level jobs but with less success.
1. Graduates
do better than non-graduates in the labour market in terms of earnings,
employment rate and the quality of employment (Bates et al, 2006; Tyers et al, 2006).
2. There is evidence that the nature of graduate jobs is changing and an increased
proportion of graduates appear to be employed in more associate professional or
technical occupations (Bates et al, 2006;
Tyers et al, 2006).
3. The demand
for graduates remains strong (Wilson
et al, 2005) although their economic contribution if greater consequence
for some sectors (eg high technology manufacturing) than others (eg service
sector) (Jagger et al, 2005).
4. There is evidence from SMEs in Wales that
employers often seek graduates as a degree
qualification acts as a signal for potential rather than for specific
subject knowledge (Tyers et al, 2006).
5. Large
employers predominantly seek graduates with leadership potential eg
'intellectual ability' (linked to strategic thinking), 'interpersonal skills'
(linked to motivational ability) and 'drive' . However, there may be a shortage
of graduates with technical and numeric expertise (Barber et al, 2005).
6. Employment
success depends on a number of factors - eg subject choice and willingness
to travel for work (Pollard et al, 2004).
Barber L,
Hill D, Hirsh W, Tyers C (2005) Fishing for Talent in a Wider Pool: Trends and
Dilemmas in Corporate Graduate Recruitment, IES Report 421
Barber L,
Pollard E, Millmore B, Gerova V (2004) Higher
Degrees of Freedom: the Value of Postgraduate Study, IES Report 410
Bates P,
Tyers C, Connor H and Loukas G (2006), Labour Market for Graduates in Scotland.
Futureskills Scotland
Connor H,
Tyers C, Modood T, Hillage J (2004) Why
the Difference? A closer look at higher education minority ethnic students and
graduates, DfES Research Report RR552
Connor H,
Hirsh W, Barber L (2003) Your Graduates and You: Effective Strategies for
Graduate Recruitment and Development, IES Report 400
Connor H,
Dewson S, with Tyers C, Eccles J, Regan J, Aston J. (2001a) Social Class and
Higher Education: issues affecting decisions on participation by lower social
class groups, DfEE Research Report RR267, 2001.
Connor H,
Pearson R, Pollard E, Tyers C, Willison R. (2001b) Right Choice?: a
follow-up to 'Making the Right Choice', Universities UK.
Connor H, Burton R, Pearson R, Pollard E, Regan J. (1999) Making
the Right Choice: How Students Choose Universities and Colleges
Finch S,
Jones A, Parfrement J, Cebulla A (NatCen), Connor H, Hillage J, Pollard E,
Tyers C, Hunt W, Loukas G (IES). (2006) Student Income and Expenditure Survey
2004/05, DfES Research Report RR725, 2006.
Jagger N,
Nesta L, Gerova V, Patel P (2005), Sectors Matter: The Skills Determinants of
International Sectoral Productivity, an IES and SPRU report for the SSDA
Lain D,
Maginn A (2003) Labour Market Involvement
in Quality Assurance in Vocationally/Professionally Oriented Higher Education
in Europe: Final Report, England, IES Report 411
Perryman S
(2003) The IES Annual Graduate Review
2003 update: Business as usual? Trends in student and graduate numbers, IES
Report 399
Perryman S,
Pollard E, Hillage J, Barber L (2003) Choices
and Transitions: A Study of the Graduate Labour Market in the South West
HERDA-SW report, March 2003
Pollard E, Williams M, Hill D, Hillage J (2005) Graduate
Employment Choices in the East Midlands,. East Midlands Development Agency,
2005.
Pollard E,
Pearson R, Willison R (2004) Next
Choices: Career Choices Beyond University, IES Report 405
Regan J,
Barber L (2001) Graduate Recruitment in an Uncertain Labour Market, Association
of Graduate Recruiters (AGR)
Tyers C,
Connor H, Bates P, Pollard E, Hunt W (2006) Graduate
Employment and Employability in Wales, HEFCW.
December 2006
[1]
Centre for Economics in Education, cited in Skills in England 2004 (Wilson et al.
2005).
[2] The importance of migration is explored in numerous
studies, including: Pollard et al. 2005; Pollard et al. 2004; Perryman et al.
2003; Bates et al. 2006 and Tyers et al. 2006.
