Small businesses are forced to deal with the tough task of hiring new employees early on during the startup phase. Finding the right talent can be challenging, and making a mistake here could have serious consequences in a number of areas throughout the company.
Due to the tight economy and a shortage of skilled labor, many firms are turning to college graduates as a means to fill open positions. If this is the case for your small business, it can pay to be prepared for incoming novice workers, and set up a system so that they’ll succeed – and your company’s financial plan will stay on track. Here are some tips and trends related to hiring recent college graduates:
The Benefits of Hiring College Graduates
Hiring recent college graduates can bring unique advantages to small businesses, including:
- Fresh perspectives. College graduates often bring innovative ideas and a fresh outlook to problem-solving, which can spark creativity and help small businesses adapt to changing markets.
- Tech savviness. With their education steeped in modern tools and technologies, graduates are typically adept at using software, digital platforms, and other tech resources critical for today’s businesses.
- Eagerness to learn. Graduates are often highly motivated and open to absorbing new knowledge, making them ideal candidates for training and growth within a company.
- Cost efficiency. New graduates generally command lower starting salaries compared to seasoned professionals, helping small businesses manage their payroll budgets more effectively.
- Long-term potential. Young professionals are in the early stages of their careers and can grow with the company, building loyalty and contributing to its success over time.
Job Prospects Improve for Rookies
Like with many segments of a small business, there are pros and cons to bringing in new college graduates. According to a survey conducted by CareerBuilder and CareerRookie.com, more companies are looking at this demographic when trying to fill open positions.
The survey found that 57% of businesses want to hire recent college graduates—an increase from the 53% noted in 2013’s survey and higher than the 44% reported in 2010. Even with these trends, many employers doubt that new college graduates are ready for the working world early on. Respondents expressed concerns that entry level jobs are becoming increasingly complicated, too few workers are taking part in internships and apprenticeships and technology is advancing too rapidly, among other reasons.
“Education plays a critical role in bridging the skills gap and fostering a capable and productive workforce,” said Brent Rasmussen, president of CareerBuilder North America. “The vast majority of employers feel that the skills and knowledge base students gain at academic institutions are aligned with their company needs, but nearly 1 in 4 sense a disconnect. As roles within organizations grow more complex and demand for certain degrees outpaces graduation rates, there is an opportunity for employers to work more closely with schools to help guide learning experiences for the next generation of workers.”
The Role of Internships
Internships play a critical role in bridging the gap between academic learning and workplace readiness. For small businesses, they offer several key benefits:
- Talent pipeline. Internships allow small businesses to evaluate potential hires in real-world scenarios, reducing the risk of mismatches during the hiring process.
- Training ground. Interns can familiarize themselves with company processes and culture, making a smoother transition into full-time roles.
- Resource efficiency. Interns can take on smaller tasks, freeing up full-time staff to focus on strategic priorities.
- Building relationships with universities. Partnering with local colleges to offer internship programs helps businesses establish a reputation as a supportive employer and gain access to top talent.
Plan Ahead To Hire Graduates
If you plan to bring in a number of new college graduates for your small business, you’ll have to plan ahead in order to best improve your financial plan and ensure that these staff members are prepared for the challenges that lie before them.
According to Paycor, a payroll services and human resources firm, the first step is to do some research. For example, analyze the roles that are available at your company. What positions need to be filled? Who is best qualified for these openings? Answers to these questions can help you identify the best possible candidates. In fact, many managers and other high-level administrators within your firm may have different opinions about the value of graduates for the small business. So, take the time now to figure out everyone’s state of mind and keep all current members of your team on the same page.
Most importantly, Paycor recommended that you have a strategy in place to train these new employees once they arrive. Missing a development plan can prevent proper growth and hamper the effectiveness of your organization. Possible solutions include job training, shadowing and flexible positions that allow candidates to try out different roles at your company. This way, you’ll be able to judge whether or not they are up to the task and what changes need to be made to ensure that the small business can handle an influx of recent college graduates.
Retention Strategies
To make the most of their investment in recent college graduates, small businesses should focus on retaining these employees by:
- Career growth opportunities. Offer clear paths for advancement, such as promotions, skill development programs, and leadership roles, to keep graduates motivated.
- Work-life balance. Flexible schedules, remote work options, and generous time-off policies appeal to younger workers and can enhance job satisfaction.
- Regular feedback and recognition. Establish systems for ongoing performance reviews and celebrate successes, big or small, to show employees their contributions matter.
- Mentorship programs. Pair recent graduates with experienced employees to help them navigate workplace challenges and accelerate their professional growth.
- Engaging workplace culture. Foster a supportive and inclusive work environment where employees feel valued and connected to the company’s mission.
Unlock Fresh Talent for Your Small Business With College Grads
Hiring college graduates can unlock significant benefits for small businesses, from injecting fresh ideas and technical expertise to building a loyal and dynamic workforce. By leveraging internships, providing clear paths for growth, and fostering an engaging company culture, small businesses can attract and retain top-tier talent.
Start building your team of future leaders today! Invest in recent college graduates, and your small business will gain the energy, creativity, and potential it needs to thrive in a competitive marketplace. Turn to First United Bank & Trust for assistance with business banking, loans, business debit cards, and more!