Why companies prefer new Grad than the old experienced employees?

Recent studies show that, the demand for fresh graduates on the job market is steadily going up. A lot of the big companies go for campus recruitments and hire the best of graduates, even before they have left college. So what could be some of the reasons companies prefer hiring graduates over employees who have more work experience?

Cost Factor: Lower costs are one of the main reasons a company prefers to hire a fresh graduate. It has been estimated that graduates cost 20 to 40% less than an experienced employee. Also, in the recruitment process, employers can save money by not going for a talent search program, but instead partnering with some local universities to find the talent match. Some employers also participate in school career fairs to scout out the potential employees. This in fact reduces even the interview costs, which you might have to bear, if you invite an outstation candidate.Click Here

Training: Sometimes, when you hire an employee with prior experience, a lot of effort goes towards making that person unlearn what he or she knows previously and then teaching him or her, your work culture. The advantage of hiring a fresh graduate is that you do not need to make that unlearn anything. He or she is like a blank slate that will learn everything from the start and grow with your organization. So, unless you want someone who will bring another company’s ideas and change your ways of working, a fresh graduate is a better choice.

Eager to Prove Themselves: Fresh graduates have a lot more enthusiasm towards learning something new and often want to prove themselves worthy of their position. Being fresh out of college, they are not afraid of challenges or asking questions and often come up with fresh new ideas, which a jaded professional might not have.

Specialization: Rather than hiring someone who knows how to do ten different things in an average manner, you just might want to have a person who does one specific task well. You can then get that person to specialize in that particular task and training graduates for this is easier than with an experienced employee.

Future Leadership: The graduates of today are the leaders of tomorrow. What companies want is to engage with them and shape their careers, so that they can become effective leaders, later on, in their careers.  They learn the company culture and grow to great heights under proper guidance and mentoring.

A fresh graduate brings new perspectives to the table and is often good at innovation and trying new things. Companies are waking up to this fact and searching for fresh graduates as more effective employees than experienced ones!