Employers could be missing out on highly skilled and motivated graduates because they are not offering high enough wages for new starters, a new study has revealed.
New research from graduate jobs board Milkround found that one in three new graduates from the so-called Generation Z fear they are losing out on entry-level roles to those who can afford to live with unpaid or poorly paid internships.
The research from Milkround showed that no matter their finances, Gen-Z graduates are ambitious and have high expectations of their future career paths. It found that 65% of graduates believed they will work in their dream industry and saw internships as being the first step to scaling the career ladder. Indeed, more than half – 55% – believed this will help them secure their dream job.
Based on the figures Milkround said, given that internships are the standard route into the workforce for graduates, that “there’s a question as to whether these programmes are creating an unlevel playing field for those who cannot financially support themselves through their first role”.
It warned that employers could be missing out on the best and most motivated person for their business and they should consider paying more cash to interns.
“With many internships remaining low-paid, it is understandable that 27% of graduates are concerned by the prospect of losing out to other job-seekers who may be in a more comfortable financial position,” said Georgina Brazier, jobs expert at Milkround.
“However, encouragingly we are seeing a growing number of companies across the UK offering financial support to interns in order to tackle this issue. From help with accommodation to covering travel costs, this support is helping to level the playing field amongst those entering the workforce.”
Milkround, which helps graduates connect with employers, added that it does not work with companies who offer unpaid internships.
Sign up to our newsletter to get the latest from Business Advice.