Survey shows only modest increases in graduate vacancies, salaries for next year
Results from a recent independent survey of graduate employers in South Africa show that employers are set to increase their vacancies by only 4.3% for start dates in 2008. In a similar fashion, over half of survey participants are only planning a ‘cost of living' rise in salaries for new graduates starting in their organisation in 2008.
The South African Graduate Recruiters Association (SAGRA) Graduate Recruitment Survey 2007 is based on responses from 54 of the largest graduate employers in South Africa.
The survey shows that while some industries – such as oil and petrochemical, commercial or retail banks, motor manufacturing, and chemical or pharmaceutical companies are planning to increase their vacancies by more than a third for next year, there are several industries including the legal sector, engineering or industrial and investment banking which expect no change or even a decrease in the number of graduate vacancies on offer. Accountancy or professional services firms, which provide over half of all vacancies in the survey, are set for a 4% increase in their vacancies for 2008.
Half of employers who took part in the survey confirmed that they had not filled all their vacancies for 2007 start dates by the time the survey took place in May 2007. The most common causes for this were a lack of applicants with the correct degree and applicants dropping out of an employer's selection process due to the length of time it took.
The key findings from The SAGRA Graduate Recruitment Survey 2007 are:
- Graduate vacancies are set to increase by 4.3% in 2008, compared to 2007.
- The accounting and professional services firms are the largest recruiters – just over half of all 2007 vacancies – and are set for a modest increase for 2008 start dates.
- By job function, the most vacancies in 2007 are in auditing (TIPP) with over half of total vacancies available in this career area.
- The median number of vacancies in 2007 is 22.
- The median graduate starting salary for 2007 is R82 500. However, the primary reason for this is due to such a large number of vacancies within the accounting arena and therefore is a lower figure compared to other industries in the marketplace.
- Just over half of employers expect a ‘cost of living' increase for 2008 salaries.
- When combined, employers participating in the survey spent in excess of R18 million on marketing activities in 2007. The largest proportions were spent on employers own recruitment literature and advertising in national newspapers.
- Behavioural-based interviews were the most popular selection technique for assessing candidates (92%). Aptitude testing was used by 70% of employers.
- The median number of applications per vacancy in 2006 was 33.
The SAGRA Graduate Recruitment Survey 2007 was carried out on behalf of The South African
Graduate Recruiters Association (SAGRA) by specialist student and graduate research company High Fliers Research. Research took place using an online questionnaire accessed via the SAGRA website. The questionnaire contained 31 questions about employers' graduate recruitment activities during the 2007 season, focusing on graduate vacancies and salaries, graduate recruitment marketing, graduate assessment and selection, graduate development and retention, and challenges in the marketplace.
