Why SMEs Could Be The Key To Tackling The Graduate Jobs Crunch

• 78% of SMEs are ready to hire Gen Z, but they’re being overlooked in favour of big business
• HR firm calls for grads to recognise the benefits of SMEs as the job market squeeze tightens

A leading HR firm is calling for more graduates to consider roles with SMEs as vacancies for those leaving university hit an eight-year low. Research from HR and employment law experts Citation shows that Gen Z tend to favour large national or multinational businesses when it comes to looking for a role after finishing their studies. However, in doing so, they could be overlooking a wealth of career benefits offered by small and medium-sized businesses – and even the chance to avoid the current crunch in the grad recruitment market.

The survey of 1,000 Gen Z employees (aged 18 to 27) and 500 SME business owners in the UK showed that a quarter of respondents (25%) would prefer to work for a bigger company, with many citing more opportunities at these firms as a deciding factor. However, data shows that it is these companies which are increasing their use of AI at the fastest rate, with many using the technology to complete tasks normally carried out by entry-level employees.

Matt Stewart, Managing Director at Citation, said: “What we’re seeing is a bottleneck where graduates are all competing for a decreasing number of roles in big firms, while smaller businesses are crying out for talent. Grads might be stuck refreshing their LinkedIn, thinking the market is dead, when in reality there’s a huge opportunity out there – SMEs are the powerhouse of the UK economy and offer some of the best early career experiences available.”

The research also shows Gen Z employees would be pushing on an open door when it comes to recruitment with SMEs. Of the 500 small and medium-sized companies surveyed, 78% said they would hire Gen Z employees. The reasons behind this are clear; over half (55%) of firms agree Gen Z grads are confident with new tech and solutions, almost half (48%) say they value their fresh perspective in the workplace, and just under a third (32%) appreciate their desire to challenge the status quo.

The findings also challenge some common misconceptions about working with Gen Z employees. SMEs said their biggest worry is meeting Gen Z expectations when it comes to flexibility in the workplace. However, when asked about their priorities in a role, Gen Z rank flexibility around hours and location (31%) below salary and benefits (51%) and work-life balance (39%). They’re also keen to have easy access to training and development opportunities (24%).

Matt Stewart added: “Our research shows there are SME employers out there ready to take on young, fresh talent. And many of the things Gen Z value in a role align perfectly with what an SME can offer. Working for a smaller business, you don’t feel like a cog in a bigger machine; you’re able to effect greater change, be exposed to more personalised opportunities for hands-on training and development, and benefit from a smaller, more close-knit team environment. 

“For all these reasons, it’s clear that more grads should be considering roles with SME employers – particularly if they’re feeling the effects of the squeeze on the jobs market.” 

Citation is a leading health and safety, HR, and employment law provider. Its consultants help businesses across the UK to ensure they’re providing safe, healthy and compliant workplaces for all employees. For more information, visit: Citation | Research shows untapped potential for Gen Z and small businesses.

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