Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsEarly careersInflationGraduatesPay & benefits

Graduate turnover at 11-year high, driven by pay

by Ashleigh Webber 31 Mar 2022
by Ashleigh Webber 31 Mar 2022 More young people are leaving jobs because of pay, according to the ISE
Shutterstock
More young people are leaving jobs because of pay, according to the ISE
Shutterstock

Graduate turnover has reached its highest level in more than a decade, with the Institute of Student Employers (ISE) warning that stagnating salaries could accelerate the departure of early careers talent.

Organisations are retaining on average 72% of university graduates three years after they join, according to the ISE’s annual student development survey, down from 79% in 2011.

Asked their reasons for switching jobs, more young people are citing dissatisfaction with pay. Forty-per cent of graduates in 2022 said pay was behind their decision to leave, up from 28% in 2021.

The ISE this problem is likely to worsen as graduate salaries fail to keep pace with inflation. It said the average graduate salary is £28,563, rising to £40,000 after three years, but when compared with inflation graduates earn less now than they did in 2008/09.

Pay settlements are severely lagging behind inflation, with data from XpertHR showing that the median basic pay increase in the three months to the end of February was 3%. The consumer prices index measure of inflation was 6.2% in February.

“Young people aren’t staying in their jobs as long as they used to and this is a looming threat for employers this year,” said ISE chief executive Stephen Isherwood.

Graduate recruitment

Graduate jobs market to expand, report UK employers

Government launches ‘passport’ to help disabled graduates into employment

Competition for graduate jobs in 2021 hits record high

“Combined with high inflation and a reduction in spending power, dissatisfaction may create major retention challenges for student employers as workers move roles to seek a pay increase. This could lead to salary becoming the main driver when young people choose a career or employer.”

More graduates are also leaving their jobs to pursue a career change. Forty-four per cent of respondents to the 2022 survey cited this as a reason for their resignation, compared to 20% in 2021. Two in five said they quit their job because of location.

The legal sector saw the highest level of graduate turnover, with just 28% of its graduate intake retained after three years.  Employers in health and pharmaceuticals had the highest graduate retention rate, at 80%.

The ISE also looked at the retention of staff who joined an organisation straight after school or college, including apprentices, and found that retention had sunk to its lowest point since it started collecting this data in 2019. Just 71% of employees remained after three years, compared with 77% in 2019.

A third of organisations that responded to the survey noted a rise in gradute turnover, particularly ethnic minority groups and young people with mental health issues, with 63% introducing initiatives that they hope will improve retention this year.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Twenty-seven per cent found that graduates who had completed an internship with them were less likely to leave before three years.

Reward, compensation and benefits opportunities


Browse all comp and benefits jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Retaining talent: Cultivating a strong workplace culture (webinar)
next post
Building a culture of employee recognition (webinar)

You may also like

Immigration white paper: 10 key points and reaction

12 May 2025

Young people are less work-ready, say employers

7 May 2025

One in seven experience workplace abuse, finds major...

2 Apr 2025

Tech now offering fewer young people job opportunities

21 Mar 2025

Lower socio-economic background graduates ‘overlooked’ in hiring

7 Mar 2025

Foreign students without graduate job could be forced...

25 Feb 2025

Architects call for review of sponsored worker visa...

18 Feb 2025

RAD Awards 2025: R;pple and Havas People win...

30 Jan 2025

Employers support crackdown on unpaid internships

23 Jan 2025

Most Gen Z workers value company ethics as...

21 Jan 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+