Press Release
Leading employers push further investment into graduate programmes despite economic and political uncertainties. Meanwhile student job hunters focus on personal development, starting salaries, flexible working, long-term job security, and looking after their mental health.
Results from independent research of leading employers in South Africa show an increasing number of graduate programmes aimed at hiring larger cohorts of students. The SAGEA Employer Benchmarking Survey 2024 is based on responses from 78 of the leading employers in the country. While some economic uncertainty is being felt, early talent recruitment is employing a long-term strategy for graduate hires and are now offering more substantial programmes – the median number of positions on these programmes is 35, which remains significantly higher than three years ago. While these employers received hundreds of applications for each vacancy on offer, many said there continued to be a shortage of candidates with the right skill-set or qualifications. For example, with increasing demand for technically-literate graduates, recruiters caution these students need to also have excellent soft skills, such as resilience, communication skills, and a desire for continued learning.
The SAGEA Candidate Insights 2024 questioned 2,717 new or future employees about their job hunting and opinions about the job market. Candidates who started their job hunting in their first year at university were most likely to secure a graduate position with their employer of choice. By comparison, students who waited until their final year before starting their job search were less likely to have had such a coordinated job search and often received a job offer from employers who were not their top choice.
The research showed that candidates made an average of nine applications each, and most had secured multiple job offers. Even with this success, candidates are still very concerned with looking after their mental-health and well-being. As a result, many are prioritising employers who offer additional support and provide the opportunity to create strong social networks through work.
Highlights from The SAGEA Employer Benchmarking 2024 include:
- A third of employers were hiring graduates for leadership development programmes, where they will become future executives of the organisation. A similar number were recruiting to fill in-demand or technical roles, while the remainder confirmed graduates are hired for entry-level roles, and that some (but not all) will progress to manager level.
- The accounting and professional services firms were the largest recruiters, with two-fifths of all vacancies in 2024. Other major recruiters in 2024 were banking and finance organisations, fast-moving consumer goods companies and manufacturing, mining or energy organisations.
- By job function, the most vacancies were found in audit (previously TIPP), which accounted for two-fifths of total vacancies available in 2024.
- The median number of graduate vacancies in 2024 is 35, which is marginally lower than last year but still one of the higher levels recorded since the research began.
- The median graduate starting salary for 2024 was R250,000 which is marginally higher than last year but remains significantly higher than the salaries from three years ago.
- The highest starting salaries in 2024 were for retail banking, actuarial work, quantitative analysts, investment banking, investment analysts and industrial engineers – these roles had median starting salaries in excess of R450,000.
- The median number of applications received by employers was 3,500 which is a significant increase compared to last year.
- The median number of applications per vacancy was 106, which is a return to levels last seen in 2020.
- A fifth of those candidates who submitted applications were successful in reaching the next stage of the selection process. An average of ten per cent of candidates reneged on offers they had accepted.
Highlights from The SAGEA Candidate Insights 2024 include:
- The most popular destinations were auditing, legal, technology, and finance roles.
- The four universities with the highest attendance levels accounted for more than
two-fifths of all survey participants. - Candidates made an average of nine applications, which is the same as last year but noticeably higher than three years ago.
- Training and development, the organisation’s reputation and culture, and the long-term career prospects remain the primary factors when deciding where to apply.
- More than half of the candidates were going to be working in Johannesburg, while a sixth had secured positions in Cape Town.
- More than half of candidates felt there were a range of challenging aspects to starting a career including: staying fit and healthy; looking after their mental health and well-being; maintaining or creating a social life; and learning to manage their finances.
Executive Director for SAGEA, Cathy Sims commented:
“It is fantastic to see so many of the employers confirming a commitment to graduate recruitment. It is clear that the leading employers continue to recognise the value of hiring high-calibre graduates and the increase in programme size is a clear indication that organisations want graduates to play a key role in the future of their business.
There is a shortage of relevant skills in the market, so many employers are having to grow these capabilities from within by looking for candidates with the right potential or passion, even if they don’t currently possess the required skill-set.”
Notes for Editors
1. The SAGEA Employer Benchmarking 2024 and The SAGEA Candidate Insights 2024 were carried out on behalf of The South African Graduate Employers Association (SAGEA) by the specialist graduate research company, High Fliers Research Ltd. Research was online, and took place from February to June 2024.
2. The South African Graduate Employers Association (SAGEA) is a professional association that is the hub of graduate employment in South Africa. Through exclusive insights projects, ingenuity and connection to international organisations, SAGEA provides members with access to the latest graduate employment insights, trends, global best practice and resources to help them attract and retain the best talent for their businesses.
3. The employers who participated in one or both pieces of research include:
For further information or additional comments please contact:
Cathy Sims, Executive Director, South African Graduate Employers Association.
Telephone: 087 379 7163 Email: cathy.sims@sagea.org.za