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Graduates looking for that all-important first job continue to face difficulties in 2010. Data gathered by the FT reveal that 11.9 per cent of recent business school leavers looking for employment failed to find work within three months of graduation. This represents an increase of almost 2 percentage points on 2009.
The economic downturn has led to reductions in the number of positions for new graduates. At the same time, rising unemployment means that competition for jobs has increased.
But Carl Gilleard, the chief executive of the UK-based Association of Graduate Recruiters (AGR), believes things may be starting to improve. “There are some positive signs in the private sector. Recruitment in the banking and insurance sectors is picking up – even the construction industry appears to be taking on more grads than in 2009.”
Nonetheless, the AGR is predicting an annual contraction of 7 per cent in the creation of new graduate jobs in the UK for 2010, following a 9 per cent reduction in 2009.
According to a 2009 survey by Execunet, executives now stay with an organisation for an average of 3.3 years before moving on. But research by Monika Hamori, professor of human resource management at IE Business School in Madrid, suggests this is not the best way to get ahead.
Using data taken from the career histories of the chief executives of the Financial Times Europe 500 and Standard & Poor’s 500, as well as 14,000 executives in financial services, Hamori found that steady career progression within the same firm was, statistically, a shorter route to the corner office than frequent job changes or sudden leaps.
The 1,000 chief executives of the largest corporations in Europe and the US have worked, on average, for just three employers each during their careers. Generally, the more bosses they had, the longer it took them to reach the top within a large corporation.
Hamori suggested: “One reason for this may be that employers are not only aware of what an insider has already accomplished, but also what s/he could potentially do if transferred to a new role. For that reason, insiders are more likely to receive larger promotions or be moved to a brand-new product area or functional role than outsiders. All of this is essential for a fast move to the top echelon.”