Just a few decades ago, one could very easily land a great job right out of college. With less than 5% of adults aged 25 years and older holding a bachelor’s degree or higher, a college degree helped people stand out from their peers; it was an affirmation that a person had the necessary skills and mindset to be a productive and competent employee. However, a recent report by the U.S. Census Bureau found that more than 40% of Americans in this age group now have some form of a college degree.
Since a college education has become so commonplace, it is often seen as a basic requirement for job entry. Today, you may want to hire candidates with much more than a degree – experience. While a seasoned employee can bring a lot to the table, there are also many benefits to hiring a recent grad. Learn about the pros and cons of each to determine which one is the right fit for your company.
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Should you hire recent college graduates or experienced workers?
There are both risks and benefits associated with hiring experienced workers and recent college graduates for your firm. New grads are often affordable, flexible and motivated, but it may cost your business more time and money to train them properly. On the other hand, experienced workers have the knowledge and expertise that new grads lack, but they can cost more and be resistant to change.
Before making any hiring decision, carefully consider the candidate as a whole and what that individual can contribute. In addition to identifying how well the employee will fit the job description, be sure to evaluate soft skills and culture fit.
Benefits and disadvantages of hiring recent college graduates
While hiring new grads can benefit your business, learning about the pros and cons before adding them to your payroll is crucial.
Here are some advantages of hiring a recent college graduate to work for your organization:
- Motivation for growth: Job seekers who are fresh out of college are often eager to jump into their careers and learn the tricks of the trade. This type of energy and motivation is not only great for building company morale, but it can also lead them to be more proactive in learning and taking on new projects.
- Up-to-date skills: New college grads are up to date on the current trends in their field. Since they just spent the past 4-6 years learning the newest guidelines and techniques, they can bring this knowledge to your company. This is especially important if rules and regulations fluctuate often in your industry.
- Lower wages: If you hire a new graduate, you can offer a much lower wage than you would with an experienced applicant. Most college graduates will be grateful to have the opportunity to gain experience in exchange for a lower starting salary. This is an excellent way for companies to save money on their employee compensation expenses.
- Trainable employees: Another advantage is that employees with little to no experience won’t have predeveloped habits that you need to reform. Instead, you can teach them to do things according to your company’s specific methods.
- Availability and flexibility: Although this isn’t true for all new grads – especially with many individuals going back to college later in life – many recent college graduates have flexible schedules and availability. Young job seekers are less likely to have as many responsibilities as older, more seasoned job seekers, which is ideal if you need them to work longer hours or potentially relocate.
Here are some disadvantages of hiring a recent college graduate to work for your organization:
- Lack of experience: Although new grads may come with college-learned knowledge, they lack the experience that their seasoned counterparts have acquired. This means you may need to spend more time training them and managing their performance when they first start. It’s important to note that this is often not too much of a burden if you have competent new hires, as they are able to learn and adapt quickly.
- Investment in training: Newly minted employees require a significant investment in training, especially if you operate in a field that requires extensive knowledge. If the new grad doesn’t work out, then your company may potentially lose thousands of dollars.
- Higher turnover: Job hopping has become a common behavior in young employees, especially for those just starting their careers. When you hire a recent grad, there is always the possibility that they are just using you to gain experience to get further in their career. This can result in a higher turnover rate for your company.
To calculate your employee turnover rate, you divide the number of employees who left your organization in a given time period by the average number of employees you have. You then multiply that number by 100.
Benefits and disadvantages of hiring experienced workers
Before you hire seasoned workers, it is just as essential to know the pros and cons of doing so.
These are some advantages of hiring an experienced professional to work for your organization:
- Know-how: Since seasoned workers come with years of experience, it is likely that you won’t need to spend as much time or money training them. This can result in immediate productivity for your business.
- Independent workers: Experienced professionals know how to operate in the workplace, which means they will likely require less hand-holding from management.
- Industry knowledge: Through their years of working in the industry, these employees have developed an arsenal of knowledge and expertise. In addition to utilizing these skills in the workplace, they can also help educate less experienced employees.
- Promotable employees: Experienced workers can quickly adapt to the position they are hired for, especially if it is a role that they have performed before. This often allows them the ability to quickly level up and possibly be promoted to a more senior position.
These are some of the potential downsides of introducing an experienced professional into your team:
- High cost: Those with experience expect and deserve to be paid for the years of sweat equity they invested in developing their skills. This means that you need to budget for a higher starting salary when hiring an experienced professional.
- Resistance to change: Some experienced employees who transition to your company may have difficulty adapting to new procedures and processes. “We’ve always done it this way” is a common phrase uttered by those resistant to change.
- Obsolete methods: Many employers assume that just because someone has great experience in a certain field that he or she will be best suited for the job. This isn’t always true. Some experienced workers may have outdated skills that need to be refreshed.
Alex Vanover contributed to the writing and research in this article.