Are you a small or medium-sized business owner? You may be asking yourself the question: Why should SMEs employ graduates? The truth is there are many advantages to recruiting graduates for SMEs. Read on to find out more.

The Covid-19 pandemic had an immense impact on the UK economy.  Studies show that the GDP dropped by 9.7% in 2020, the largest decline in GDP since records began in 1948. All businesses were affected, but SMEs were some of the hardest hit. SMEs are Small and Medium-sized Enterprises, containing under 250 staff. As the economy begins to recover, we must find ways to boost employment and increase GDP. 

As they generate around 50% of the UK’s business revenue, it is no surprise that SMEs felt the effects of this economic damage. McKinsey & Company reported that between February 2020 and April 2021, 70-80% of SMEs across 32 countries lost between 30-50% of their revenues. One of the largest concerns for businesses, especially the more vulnerable SMEs, is the ability to continue supporting their staff.

Because of this economic difficulty, as an employer or owner of an SME, you might feel that it’s not the right time to consider taking on students and graduates. However, the opposite may be true. There are plenty of benefits to hiring graduates for SMEs. We’ve broken down some of the top reasons why SMEs should employ graduates below. 

Benefits of Employing Graduates for SMEs

Understandably, you may feel there are more barriers and risks to hiring graduates for an SME than for a large business. However, we want to highlight the many benefits that hiring a graduate workforce can bring to all businesses, especially to SMEs.

Fresh Perspective

In this new economy, many SMEs find they need short-term support in a variety of skill areas that the student and graduate market can provide. Graduates bring transferable soft skills such as good communication, problem-solving, and teamwork. These can be easily adapted to fit challenging scenarios within your business. Furthermore, you could benefit from the innovation and fresh talent brought by graduate employees in response to the changing economy.

Remote Work

Currently, many SMEs find that they don’t have the resources that large businesses do to support returning to an office environment safely. As a result, they are maintaining a remote working strategy and continuing to utilise technology for business. 

Remote working is desirable to students and graduates as they are more likely to favour flexible working. They have developed technological abilities throughout childhood and up to university. This, coupled with their capable use of digital communications, means they are much more comfortable working in a remote environment. Therefore, by hiring a graduate or student to work in your SME, you are taking on an employee who’s more equipped to deal with the current working climate. You can also be sure that they have experience working in non-conventional environments. Indeed, this adaptability is one of the main reasons why SMEs should hire graduates.

Cost-Effective

Another benefit for an SME taking on a graduate or student employee is that they are cost-effective. In a time of economic uncertainty, SMEs cannot afford to miss an opportunity to consider the most financially viable options when taking on new employees. The entry-level salary you will pay a graduate is significantly lower than if you were to hire a more experienced worker. 

By choosing to employ a graduate, you are investing in someone who may work with you for a large part of their career. In turn, this can generate much of your future business. Graduates are a great way to ensure the future potential of your business. According to the Institute of Student Employers, graduates contribute around £1 billion to the UK economy annually.

Help the Overall Economy

The advantages of hiring students and graduates reach beyond your SME and into the broader economy. By employing graduates and helping to minimise graduate unemployment, you are helping keep money in the local economy. You’re also helping to support its renewal as we continue to rebuild the economy. The good news is that graduate employment rates are already on the rise. High Fliers reports that “the number of graduate jobs on offer in 2022 is expected to increase by a further 15.7%”. This will be the largest annual increase in graduate hiring for over 15 years

Graduates are Easy to Hire

There are lots of ways that SME owners can access a large pool of talented graduates. This not only speeds up the recruitment process but also makes it more cost-effective. Your business can tap into this pool in many ways. Try attending careers fairs, establishing partnerships with educational institutions, and utilising trusted job boards for graduates. By streamlining the recruitment process, your business can save time and valuable resources.

Final Thoughts: Why Should SMEs Employ Graduates

As you can see, employing graduates can truly benefit your business, particularly SMEs. Developing a Student has a range of useful resources to coach your business on attracting graduates.

To further support the employment of young people in the current climate, the government has proposed several schemes to aid employers in providing work. Visit our page on Funding for Employers to find out more about the opportunities potentially available to you.

Attract the UK’s best talent by advertising student and graduate jobs on Developing a Student’s job board. Finally, don’t forget to subscribe to our newsletter to stay updated with all of the latest news and information from Developing a Student or contact us with any queries.