Early careers failing as 30% of recruits leave within three years

Early careers failings have been highlighted in a new report which shows one in three (29%) of graduates and apprentices leave within three years.

Released by UK-based people and learning consultancy The Smarty Train, the study also showed nearly three-quarters (74%) of organisations are unable to confidently demonstrate the true return on investment of their early careers initiatives. This is despite the vast majority (91%) knowing the data needed for ROI and the typical cost of graduate hire amounting to more than £3,200 per person.

The data, gathered from UK and global firms for the consultancy’s inaugural 2025 Early Careers Trends Report, revealed three further trends in UK provisions.

As well as attrition and ROI issues, it identified diversity, equality and inclusion (DE&I) as the key barrier to recruitment, with most early career leaders highlighting it as their top challenge.

Leaders also reported critical skills gaps within their teams, citing data analytics, strategic thinking, change management and influencing as the areas in which practitioners’ skills were lacking.

Finally, the report indicated that line managers of early careers need more support, with nearly half (46%) claiming there was room for improvement in the help given to line managers to train new graduate recruits.

The Smarty Train’s chief innovation officer Khairunnisa Mohamedali said: “As organisations across the UK and beyond contend with talent shortages, evolving workforce expectations, and fierce competition for top talent, uncovering that a third of the average early careers cohort leave before the three-year mark should ring alarm bells for industry leaders. This is made even more stark with the current tight labour market, meaning demand is outstripping supply.”

She said the benefits of investing in early careers development are clear: from addressing skills gaps and fostering diversity and inclusion, to enhancing employee engagement, retention, and building a talent pipeline that delivers true return on investment.

“We hope this first-of-its-kind report will not only inspire fresh ideas but equip leaders with practical steps to optimise their Early Careers functions,” Mohamedali added.

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