The Institute of Student Employers said its research suggests those starting work favour pay over career progression
10:08, 24 Apr 2024
The cost-of-living crisis continues to bite for students, with a new report revealing that graduates and apprentices are increasingly quitting their jobs due to pay dissatisfaction.
The Institute of Student Employers (ISE) has found that those entering the workforce are prioritising salary over career progression. A survey of 177 employers showed that half reported graduates and apprentices leaving for better pay, a significant increase from 40% in 2023 and 2022, and just over a quarter in 2021 and 2020.
Prior to the financial squeeze, career advancement was a more common reason for graduates to switch jobs than the pursuit of higher pay, the ISE report highlighted. The research also pointed to a trend of more applications going to higher-paying sectors like finance, while interest in traditionally lower-paid public sector roles wanes.
Although starting salaries for graduates and apprentices have risen this year, pay levels for those with three years on the job have not budged, according to the ISE. Stephen Isherwood, joint chief executive of the ISE, commented: "The cost-of-living crisis still impacts students once they have found work. Increases in rent, travel and general living costs mean that salary levels are not keeping pace with inflation."
He added, "So, in a competitive market for talent, more people are leaving for better-paid opportunities. Employers are going to need to work harder to retain talent."