Broaden your hiring horizons: prioritise potential and skills

Graduates can’t be expected to possess the latest skillsets in an era of rapid digital transformation. However, organisations can adapt their graduate recruitment strategies to make graduate programmes more accessible for new candidates entering the workforce by hiring for potential and increasing investment in professional development. 

The long arm of digital disruption has left no area of recruitment untouched, and graduate hiring is no exception. According to a new survey from YouGov/Indeed, graduate programs that have served Australian employers well for decades are under increasing strain as a disconnect emerges between what employers are looking for in new recruits versus the preparedness of new graduates to enter the workforce.

Perception challenges are emerging on both sides of the coin. Employers battling with digital transformation feel there is a lack of suitable candidates with the right experience and technical skills, while graduates are likely to feel increasingly unprepared for the job landscape they’re entering. Something both parties agree upon is the gap between education outcomes and job preparedness: 61% of graduates think an undergraduate degree is no longer sufficient to obtain a good job, while 68% of employers say the same.  

Graduate hiring remains stable at present with 83% of Australian employers, on average, hiring graduates each year for the previous three years to 2023. But the risk of despondency is very real: our survey found that less than half of student respondents (43%) said they will pursue graduate work, down significantly from 70% in 2021. This drop in interest could begin to impact the quality and motivation of candidates in the market and lead to poorer outcomes for structured graduate programs – a danger that should not be downplayed amidst an economy-wide talent shortage. Over half (51%) of Australian employers are currently worried about finding the right staff to fill positions, while 45% of employers are concerned about retention.

The challenge lies with the pace of transformation. Rapid digitisation means that the average computer science student, for example, risks becoming obsolete by graduation as programming languages and frameworks swiftly change and evolve. Even if employers manage to find graduates possessing the latest skills, the danger of prizing technical skills over all else is there is no guarantee a new hire will continue to adapt, learn, and move upwards in the organisation. They may be proficient at their entry-level workload but will be a poor return on investment in the long run.

Hiring for potential is key

The answer is to hire for attitude, aptitude and potential. Employers can transform their graduate hiring practices by placing a greater emphasis on investing in candidates who have the potential to upskill through learning and development. This strategy should be paired with an increased investment in learning and development  to attract and retain quality employees.

Hiring for potential moves the focus away from purely technical skills towards other characteristics and soft skills that enable graduates to quickly get up to speed in key technical skills in the short term and make a meaningful contribution in the long term.

In other words, instead of looking for a unicorn candidate with cutting-edge skills in using the very latest desktop publishing software, widen your search to identify candidates with the potential to rapidly pick up those skills, then adapt to whatever comes next as the technology inevitably evolves.

How to hire for potential

“Hiring for potential” may sound a little vague and hard to pin down, but there are some very specific attributes to look for when assessing candidates. Put technical skill gaps aside and focus on identifying graduates with high levels of motivation, adaptability, open mindedness, and a willingness to learn. Over time, these attributes will allow the right candidate to surpass someone who simply ticks the right box when it comes to a technical skill. Look for collaborators and strong communicators to help ensure the success of strategic projects in the pipeline, while keeping an eye open for leadership potential.

Ask situational interview questions to gain an idea of how candidates will respond in certain scenarios. The questions should give employers a chance to evaluate candidates’ problem-solving and communication skills, their ability to self-manage, innovate and overcome challenges. Don’t hesitate to get specific: think of a hypothetical challenge that can arise in the role you are interviewing for and ask the candidates how they might handle the problem.

Another way to identify high-potential candidates is to consider their transferable skills. Again, this takes a shift in thinking away from what they don’t have to the skills they do possess. The challenge with graduate candidates is that they may not possess any work experience at all, meaning employers will have to cast the net a little wider when considering transferable skills. For example, perhaps the candidate demonstrated leadership by planning a bushwalking expedition with a group, a willingness to learn by teaching themselves how to code, or flexibility by taking on a new hobby outside of their comfort zone.   

Invest in continual learning and development

The YouGov/Indeed survey identified a gap between graduate expectations around learning and development versus the programs employers are offering. Many graduates anticipate the likelihood of having to change employers to upskill, but 71% of surveyed employers say their recruits have opportunities for professional development and training.

The survey suggests a lot more could be done to raise awareness of opportunities to upskill within organisations and help graduates understand that their learning journey – far from ending upon graduation – is only just beginning when they enter the workforce.

At present, only 66% of graduates believe that securing positions in graduate programmes will lead to long-term career placements and 52% are concerned about their long-term job security. More effort is needed to communicate with graduates about robust learning and development opportunities, genuine career pathways and financial/job security. In addition, greater investment in learning and development will boost talent attraction, engagement and retention, motivation, productivity, and increase the ability to promote from within.

Take a second look at your graduate talent pool

So, if you have recently dismissed the graduate talent currently available because they lack the specific skills your organisation currently needs, it may be worth taking a second look at those candidates. In all likelihood, several of those graduates possess the potential to learn fast and become valued assets for your organisation. If you would like learn more about graduate hiring and the research presented, you can download our report via the prompt below.