Those of us in large corporates or the professional sectors tend to see graduates as our main source of ’early in career’ talent. On the face of it this trend seems set to continue as, after a couple of tough years, graduate recruitment is expected to grow by 3.8% in the coming year, according to an Association of Graduate Recruiters (AGR) report.

Among those generally destined for university there is a strong awareness of the ’work benefits’ of a degree:

• Graduates earn more than non-graduates
• Have a lower risk of unemployment
• Are more likely to acquire high-level positions
• Have greater promotion prospects

As well as work benefits, graduates enjoy better health outcomes, their children reap the benefits from the educational success of their parents and they are shown to be more influential in the community by being active citizens who are more likely to vote and participate in voluntary activities.

However, among all this good news a number of warning alarms are starting to be heard. Graduate unemployment has soared to a 15-year high increasing by 75% since the start of the recession (compared to a 50% rise for the labour market generally). More worryingly, at least one in 10 of this summer’s graduates will fail to find a job six months after graduation (Higher Education Careers Services Unit).

Of all the graduate entry level roles, 33% are snapped up by graduates who have already worked for the company such as in work placements (AGR).

Edge, the educational charity, is warning of a systemic failure to “promote employability across higher education” leading to a “notable majority” of graduates being unable to function effectively in the workplace.

For years we’ve used a degree qualification as a filter for recruitment . In the 1980s/90s when just 8% of the workforce held a degree, this was probably sound decision making.

There is a whole raft of change afoot, causing young people and their families to consider whether a university degree really is the only viable career entry option.

In September 2011, more than 220,000 young people are expected to fail to secure a university place almost a third of those applying. On top of this, September 2012 will see the much-heralded increase in tuition fees. To date, 105 of 133 universities have declared their fees and the average annual fee now stands at £8,765.

Lower down the academic food chain, the government also plans to withdraw the Educational Maintenance Allowance (EMA) paid to children from lower income families to support them through further education. A recent survey suggests that 70% of this population would therefore drop out or not start their post-GCSE study.

So, where does all this change leave us as recruiters of early in career talent? Our approach needs to be twofold:

• Looking to challenge assumptions and embedded mind-sets our own and those of young people, their families and teachers
• Developing new programmes of action

First, we should challenge our own assumptions. For years we’ve used a degree qualification as a filter for recruitment in both volume and niche roles. In the 1980s/90s when just 8% of the workforce held a degree, this was probably sound decision making. But now that we are looking at more than 40% being degree holders, we need to ask whether this is still a distinguishing characteristic and a necessary attribute for successful job performance.

There is also now a PR job to be done with young people, their parents and teachers around attitudes surrounding gaining access to a “good job with prospects”. For many, a degree is still seen as the golden key and jobs that don’t require a degree have been somewhat downgraded. For many academically able students, careers advice that doesn’t include university is minimal. So we need to educate our target market about career opportunities that are not degree-dependent.

Success with this latter challenge relies on us having strong recruitment and development programmes at all levels. Encouragingly, companies are starting down these routes:

• Apprenticeships are again a flagship government policy ideal for tapping into the youngest talent and potentially now an option for those who may be hit by the removal of EMA
• School leaver (A-level) programmes that offer a structured career/ development route. Research by the AGR shows that around 25% of employers already have school leaver entrance schemes, with a further 18.5% considering them. For many employers, there is an opportunity to offer structured career paths that also support the option to study for further professional or vocational qualifications.
• Graduate programmes that recognise that a degree does not guarantee career success. They should offer development support around developing work skills that are seen to be lacking in some graduates.

As recruitment and development professionals we need to ensure that we map the road ahead and are ready and able to take advantage.