How First-Gen Graduates Are Reshaping Talent Strategies

If you’re in talent acquisition, talent management, or employee experience, no doubt you’ve witnessed a concerning trend:

The steady increase in the “quit rate” since 2009. More recently, the pandemic disrupted work as we knew it, prompting more retirements, career shifts, and a widespread preference for hybrid/remote work. As we step into 2024, it’s clear these changes are here to stay. Adapting now is critical, and First-Generation Professionals (FGPs) are primed to bridge critical gaps. ¹ .

Amid this shift, FGPs are gaining recognition.

Recent bipartisan initiatives by Senators Rev. Raphael Warnock and Roger Marshall amplified attention on first-gen college students and the legislation backing them. Influential figures such as Warnock, former First Lady Michelle Obama, former President Bill Clinton, Sen. Elizabeth Warren, Oprah Winfrey, and former Secretary of State Colin Powell advocate for increased college accessibility, particularly for low-income Americans².

In 2021, a staggering 4.164 million students — constituting 22.3 percent of all attending college — graduated, marking a 1.7 percent annual increase over a decade. Early indications suggest a substantial surge in college applicants for the 2024-25 academic year, with first-gen applicants showing a whopping 67 percent increase — nearly double the rate of continuing-generation applicants³.

Where are these graduates heading?

Currently, 60 percent of first-gen college students enter the workforce after graduation. This influx is pivotal as companies prepare to onboard a higher number of fresh graduates than ever before. According to one job outlook assessment, employers are gearing up to hire 14.7 percent more new college graduates from the Class of 2023 compared to 2022⁴.

Leading industries in hiring new graduates span technology, accounting and consulting, banking and finance, and aerospace and defense. Notably, the most popular degrees among these hires align closely with those preferred by first-gen students: finance, accounting, computer science, business administration, engineering, and economics. However, competition for these positions is set to intensify, especially as industries facing severe worker shortages may not match graduates’ preferences or degree requirements⁵.

But what happens once new graduates join the workforce?

Fifty-six percent of undergrads expect to leave their initial post-grad jobs within two years for better growth opportunities and pay. A mere 10 percent anticipate staying in the same role for more than six years. With the tightest labor market in three decades, ​​retaining talent is a daunting challenge⁶ .

Employee turnover is expected to spike by 50 to 75 percent compared to previous years, making it take 18 percent longer to fill vacant roles⁷.

So, how do companies cultivate a dedicated workforce in this competitive market?

FGPs are a strategic answer for talent retention and sustained growth.

Research highlights that within large companies, FGPs are 32 percent more likely to be loyal to their employers and are 40 percent more self-motivated than their counterparts. Investing in FGPs yields a remarkable return — their commitment builds a robust talent pipeline, fostering higher retention rates⁸.

FGPs, often propelled by financial stability, thrive in organizations nurturing their professional growth. When provided opportunities and support, they’re more likely to advance within the company, demonstrating commitment, reducing turnover, and preserving precious institutional knowledge. By focusing on FGPs and understanding their motivations, companies can surpass competitors, not just in attracting but also retaining invaluable talent.

How will FGPs shape your talent strategy?

• How has your workforce been impacted over the last few years?

• What talent is needed now? Or in the future?

• What percentage of new graduates will you hire each year to fill the gaps?

• Have you considered how many of those new graduates are also FGPs?

Survey: What best practices are you considering to address the unique needs of FGPs across key retention elements such as the ones below?

• Competitive Compensation and Benefits

• Career Development Opportunities

• Employee Well-being Programs

• Regular Feedback, Coaching, and Performance Reviews

• Support for Diversity, Equity, and Inclusion

• High-potential Identification

Resources

1

"The Great Resignation Didn't Started with the Pandemic". Harvard Business Review. Joseph Fuller and William Kerr. March 23, 2022 https://hbr.org/2022/03/the-great-resignation-didnt-start-with-the-pandemic

2

"Removing the Roadblocks That First-Generation Americans Face at Work." Harvard Business Review, 5 July 2023. https://hbr.org/2023/07/removing-the-roadblocks-that-first-generation-americans-face-at-work;"Senators Reverend Warnock, Marshall Introduce Bipartisan Resolution Celebrating First-Generation College Students." Reverend Raphael Warnock - U.S. Senator for Georgia website, 7 November 2023. https://www.warnock.senate.gov/newsroom/press-releases/senators-reverend-warnock-marshall-introduce-bipartisan-resolution-celebrating-first-generation-college-students/.

3

"College Graduation Statistics." Education Data Initiative, 25 September 2023. https://educationdata.org/number-of-college-graduates#:~:text=The%20total%20number%20of%20graduates,college%20students%20graduated%20in%202021.;College Applications For 2024 Show Strong Early Surge. Michael T. Nietzel. Forbes. November 27, 2023. https://www.forbes.com/sites/michaeltnietzel/2023/11/27/applications-to-college-for-2024-show-strong-early-surge/?sh=3c0d8903c3b3

4

"Class of 2023 rejoice: Companies are ramping up hiring of new college grads as experienced workers are harder to find amid the labor shortage". Business Insider. Juliana Kaplan and Madison Hoff. Nov 6, 2022 https://www.businessinsider.com/employment-trends-2023-labor-shortage-companies-hiring-college-graduates-2022-11;"First-generation Students and Job Success." National Association of Colleges and Employers, 1 November 2016. https://www.naceweb.org/job-market/special-populations/first-generation-students-and-job-success/;"Employers Project 14.7% Increase in Hiring for Class of 2023 College Graduates." Mimi Collins & Kevin Gray. NACE Center for Career Development and Talent Acquisition®. October 24, 2022. https://www.naceweb.org/job-market/trends-and-predictions/employers-project-14-point-7-percent-increase-in-hiring-for-class-of-2023-college-graduates/

5

"Attention, Class of 2022: These are the top 25 employers for recent grads", Taylor Nichols. OnlineU. June 27, 2022. https://www.onlineu.com/magazine/top-companies-hiring-college-graduates

6

"Most College Students Plan to Leave Their First Job Within 2 Years." The University Network, 20 May 2021. https://www.tun.com/blog/most-college-students-plan-to-leave-their-first-job-within-2-years/#:~:text=A%20recent%20College%20Pulse%20survey,the%20company%20or%20are%20promoted.;"Even A Sagging Economy Won’t Slow America’s Talent Crunch. Here’s How Companies Can Respond." Forbes, 20 March 2021. https://www.forbes.com/sites/allisondulinsalisbury/2023/03/20/even-a-sagging-economy-wont-slow-americas-talent-crunch-heres-how-companies-can-respond/?sh=7ff862d56765

7

"It's Time to Reimagine Employee Retention." Harvard Business Review, 4 July 2022. https://hbr.org/2022/07/its-time-to-reimagine-employee-retention

8

"Hiding in Plain Sight: First-Generation Professionals." Boston Consulting Group, April 2023. https://web-assets.bcg.com/49/9c/184a60f14ed9b17f8fabfd7c9d6c/hiding-in-plain-sight-first-generation-professionals-bcg-study.pdf