£10k 'hello' to new graduates

The right graduates can write off their debts

In a sign of the fierce competition to attract the best graduates, a management consultancy is paying its recruits £10,000 "golden hellos".

Andersen Consulting (AC) said it had planned to offer £2,000 but had upped the payment to help students clear their student debts.

AC's UK managing partner, Ian Watmore, told the Financial Times the payment for those arriving next month reflected the competition for talent among banks, professional services firms and hi-tech start-up companies.

Graduate recruiters say this is a crowded and increasingly international market, with employers always seeking an "edge" to make them stand out from the crowd.

Even so, only a fifth of the 229 members of the Association of Graduate Recruiters said in a recent survey that they were offering "golden hellos", with a further 8% planning to do so.

The association's chief executive, Carl Gilleard, said: "There is clearly in one section of the market a lot of competition for the best qualified, the most able graduates and this firm has taken one approach to resolving that."

Handcuffs

He noted that AC's £10,000 is in two tiers - £6,000 to begin with and the rest after a year's service, in an attempt not only to recruit but to keep people.

"They've effectively combined the golden hello with the golden handcuffs, which is probably wise."

Mr Gilleard wonders whether the strategy will work. He thinks graduates are becoming more accustomed to the idea of being in debt and that being able to pay off their student loans straight away might not be the attraction it might have been.

AC has embarked on a strategy it calls "war for talent" in an effort to retain staff.

Among other things, it is investing millions of dollars in e-commerce companies on behalf of its employees.

The chief executive officer, Joe Forehand, said he also intended to make partnerships in the firm more accessible to top-performers earlier in their careers.