Global Graduates into Global Leaders

Executive Summary

In partnership with:

We would like to thanks the following organisations for contributing to this report:
Employers Accenture Barclays Wealth BG Group BNP Paribas BP Centrica Cisco Systems EADS Enterprise Rent-a-Car HSBC Lloyds Register National Grid Nestle Prudential PWC Royal Bank of Scotland Shell Standard Bank Higher Education Institutions Plymouth University Regents College University College London University of Surrey Government & Policy Stakeholders Department for Business Innovation and Skills Higher Education Funding Council for England British Council Confederation of British Industry Other Key Stakeholders SHL

Produced by Dr Abigail Diamond and Liz Walkley at CFE, and Stephanie Scott-Davies at CIHE on behalf of AGR, CFE and CIHE

Why are global graduates needed?

The market for high-skilled graduates is becoming increasingly global. The UK has a strong record of educating international students to become global graduates of the future. Over three and a half million students worldwide study outside their country of citizenship.1 While the UK is a strong provider of quality higher education and is the second highest receiver of international students worldwide,2 it is only ranked 34th for external student mobility.3 UK students, unlike some European neighbours, are reluctant to take up transnational exchange opportunities such as Erasmus. During the 2009/10 academic year, more than 213,000 students received Erasmus grants but only 11,723 of them were UK students compared to with Spain (31,158), France (30,213) and Germany (28,854).4 With the increase in course fee levels, the implication of paying up to 4500 for a placement may discourage UK students from pursuing these options and adding to their debt. BRIC nations such as China and India5, however, have grown student mobility by around ten times over three decades, and their graduates are subsequently benefiting from an international education and immersion in another culture. Globalised businesses require talent to compete in global marketplaces and have higher expectations of graduate recruits than ever before. The UK can either sit back and wait for BRIC nations to develop the best global graduates or can start to address this issue now. In order to rise to the challenge, it is crucial that UK universities and employers collaborate to produce the best global talent, and indeed the next generation of global leaders. The UK must ensure that its graduates keep pace with global expectations. This means growing future global leaders through its schools, higher education and its employers. Enhancing global employability therefore needs to be high on the agenda of students, employers, universities and government. The question is how can the UK develop its own globally equipped graduates? The significant growth and development in emerging markets, particularly the BRIC nations, means that to compete effectively UK organisations must take the global view and seek out new opportunities in these markets. A diverse and internationally minded workforce is vital, and UK universities must continue to respond to this through the provision of internationally focussed programmes. Gregg Carnaffan, Emerging Talent Manager, HSBC To start to explore these questions CFE worked in partnership with AGR and CIHE to consult multinational employers, higher education institutions and representatives from government and public agencies. We set out to understand firstly what competencies a global graduate should possess, and secondly to explore initial thoughts as to how global graduates can be developed.
1 OECD, Education at a Glance, (2011) p.318. 2 Higher Education Statistics Agency, Statistics - Students and qualifiers at UK HE institutions, available online at: www.hesa.ac.uk/index.php/content/ view/1897/239/ In 2009/10 there were 405,805 international students 3 Number of UK students studying abroad, UNESCO, Higher Education Statistics, 2009, www.uis.unesco.org/Education/Pages/tertiary-education.aspx 4 Source: European Commission, Education and Culture Directorate General, 2011, accessible online at: http://ec.europa.eu/unitedkingdom/press/ frontpage/2011/1175_en.htm 5 Brazil, Russia, India and China.

What we know so far...

Employer expectations
Global employability skills, in the sense of being prepared for work on graduation, are expected by many employers, and thus increasingly need to take into account an international dimension.

What is a global graduate?

A global graduate is equipped with the skills and competencies to succeed in a global marketplace and enable them to perhaps one day become a global leader of a multinational organisation. I think were starting to see a particular generation where they think of themselves as quite literally world citizens. I dont mean conceptually. I mean they see the world as boundary less: that they are able to move, shift, work anywhere, and do anything. (Prudential) Global graduates require a blend of knowledge, competencies and corresponding attributes spanning global mindset, cultural agility and relationship management and must be able to apply them flexibly. Cross functional awareness and the ability to work in multidisciplinary teams can differentiate valued graduates. I think cultural dexterity is important: an ability not to impose ones own culture on another, to be sensitive to other cultures and how to do business in different environments. (PWC)

International Graduate Development Programme (IGDP) at BG Group

The IGDP is a structured two year programme, designed to give young professionals the opportunity to gain management skills and hands on experience in different locations. BG Group are a global organisation operating in 27 countries, with 20,000 employees worldwide. Their graduate development programme offers participants the chance to take responsibility and make decisions on real projects from early on in their career. Its design introduces an international dimension to development, reflective of BGs global presence. Candidates have the opportunity to do at least one international assignment during the programme and also work in one of BGs many international locations on completion. One graduate trainee on the IGDP reflected on the value of BGs global workforce: Its a truly multi-cultural company there are people from all around the world here and theres a great interaction between them. You can see there are people from everywhere - Oman, Egypt, the UK, Kazakhstan - and its good to have several nationalities in the same team.
Source: www.bg-group.com/Careers/graduates/life/Pages/SamiNasri.aspx

Global Graduate Programmes at BNP Paribas

BNP Paribas run global graduate programmes for 12 to 18 months the emphasis is on personal and professional development, relationship building and global networking. BNP Paribas operate a number of graduate programmes on a global basis. Graduates are recruited into a variety of internship and training programmes across the world. Graduate development forms an essential part of helping to build the business for the future. A dedicated global graduate website is provided to facilitate global connectivity among participants. The website encourages relationship building and knowledge exchange with future peers and colleagues anywhere across the globe. The programme concludes with an annual global graduate conference which provides a face to face opportunity to network. One Graduate trainee felt that the conference at the end of the programme was particularly valuable: We went to Paris last week to finish the graduate programme and all the 2010 global graduates gathered from across the world: New York, Milan, Singapore, Indonesia, Korea, Vietnam, China, Hong Kong, London, Bahrain and Paris. Wed all met in September last year and we all met up again. It was amazing.
Source: www.graduates.bnpparibas.com/meet-our-people.html

Over and above a sound platform of core graduate competencies (familiar skills and competencies such as teamwork, communication, presentation skills, time and self-management, and professionalism), critical competencies for global graduates include: A global mindset - the ability to see the world from a cosmopolitan6 viewpoint; to have an awareness of different cultures and values, and how ones own culture and values differ. Global knowledge alongside a global mindset is the need for knowledge of global business activity and specific background knowledge of the economics, history, and culture of different countries. Cultural agility the ability to understand the perspectives of individuals from different cultures and backgrounds and to empathise with these views, and respond to them. And also the ability to cope with and adapt to living in different environments. Advanced communication skills the ability to communicate effectively (speaking, listening and presenting) with others from around the world and, where required, communicate in the native language. Management of complex interpersonal relationships the ability to manage relationships with diverse teams and clients from across the globe and deal with inherent challenges (e.g. socio-cultural, political). Team-working and collaboration the ability to work collaboratively and empathetically with diverse teams from across the globe. Learning agility the ability to rapidly assimilate knowledge and develop understanding in order to rapidly respond and adapt to new challenges, circumstances and cultures. Adaptability, flexibility, resilience, drive and self-awareness these attributes underpin the above global competencies and are essential, enabling qualities.

6 See quote above from Prudential which talks about a cosmopolitan viewpoint; this relates to ideology originally from Ulrich Beck, A new cosmopolitanism is in the air, (2007), http://print.signandsight.com/features/1603.html and Cosmopolitan Vision, (2006).

Priority global competencies

Twelve leading employers, who collectively recruit over 3,500 graduates each year in the UK alone, ranked a list of global competencies by order of importance using a 10 point scale (Figure 1). Employers felt that the most important global competencies and attributes were: an ability to work collaboratively; communication skills (both speaking and listening); drive and resilience; and an ability to embrace multiple perspectives and challenge thinking (cultural agility). Interestingly multi-lingualism was not an important pre-requisite for most global graduate roles (it scored a mean ranking of 1.7) it was viewed as a complementary, not an essential skill.

Global Competencies An ability to work collaboratively with teams of people from a range of backgrounds and countries Excellent communication skills: both speaking and listening A high degree of drive and resilience An ability to embrace multiple perspectives and challenge thinking

Mean Ranking 8.2 7.5 5.6 5.4

A capacity to develop new skills and behaviours according to role requirements 4.6 A high degree of self-awareness An ability to negotiate and influence clients across the globe from different cultures An ability to form professional, global networks An openness to and respect of a range of perspectives from around the world Multi-cultural learning agility (e.g. able to learn in any culture or environment) Multi-lingualism Knowledge of foreign economies and own industry area overseas A willingness to play an active role in society at a local, national and international level. Figure 1: Ranking of competencies 4.4 4 3.9 3.6 2.4 1.7 1.7 0.5

An understanding of ones position and role within a global context or economy 1.6

Global Marine Careers at Lloyds Register

Lloyds Register offer a two year graduate programme, followed by a further two years on-the-job surveying to gain Chartered Engineer status. The programme is intended to be global in nature, to reflect Lloyds Registers global presence. The Lloyds Register graduate training scheme is deployed on a global basis and enables individuals to pursue a range of disciplines. Transfer abroad is expected during the course of the programme, with many UK graduates going through a series of rotations. During the scheme graduates can rotate across both Europe and the rest of the world, and are expected to be globally mobile. The global reach of the programme has been acknowledged by the company as highly successful, because of the depth and breadth of international experience offered to new graduate recruits. One graduate trainee reflected upon the value of multicultural teamwork while on the programme: One of the greatest experiences is having the chance to be part of a team with so many talented colleagues from around the world and sharing our experiences helps us to develop as professional engineers.
Source: www.lr.org/careers/marine_careers/Ourpeople/Mark.aspx

How can global graduates be developed?

Global graduates can be developed if schools, higher education institutions and employers are prepared to raise their aspirations and learn from organisations that have been pro-actively developing approaches to global graduate development. Achieving global graduate competence is not just about attaining qualifications and excelling in a knowledgebased or professional capacity. It is also about holistic development including outlook, values and character. Experiential learning is a valuable part of professional development alongside formal education. Placements, study trips, years out and even holidays can all contribute. An international dimension should feature in the school curriculum, degree programmes and graduate development programmes. Students too have a role to play in acquiring global competencies and choosing appropriate pathways to enable them to develop a global mindset. Experience of working outside their home country and immersion in a different culture can catapult a graduate into being considered for rewarding and challenging roles. However, many UK graduates are reluctant to accept the demands of mobility, whether within their home country or beyond and may even choose to study close to home.

Shell Graduate Engagement

Shell provides a five-year graduate development programme including rotation across the globe. Potential applicants are engaged at an early stage, and encouraged to develop international business and strategic leadership skills. One such example of interactive engagement is the Gourami Business Challenge - a one-week residential event, intended for students in their final year at university. Designed to offer applicants insight and experience into life at Shell, activities include strategic decision-making on the supply and marketing of products to customers, leading to the creation of a mock five-year business plan for Shell. A particular strength of the challenge is its ability to introduce real-life teamworking scenarios to the individual, offering first-hand work experience of an international business environment. It also provides structured feedback on performance and opens up the possibility of a fulltime job offer upon graduation for successful participants. One Gourami participant found the challenge particularly valuable: The experience gave me a very real life experience into the ways and workings of an oil company. Also it provided me with new insights into the different backgrounds and cultures of other participants. This was my biggest learning experience: to see how students from different backgrounds and cultures can work together and achieve a great result The experiences made me see how diverse Shell really is and how important it is to take into consideration what other parts of the business are doing.

Source: www.shell.co.uk/home/content/gbr/aboutshell/careers/students_and_graduates/meet_our_students_graduates/ gourami_profiles/gourami_profile_arnold_europe.html

What can businesses, universities and students do to help?

To develop the best global leaders it is crucial that schools, higher education, employers, students and government understand the challenges facing the UK around global talent development and then work collaboratively to address them and respond to the evolving requirements of workplaces in 2020. Government and educational institutions need to provide the right environments and opportunities for young people to flourish and enable them to develop not only sound employability skills, but global competencies and a global mindset. While we outline below some examples of approaches to global graduate development, it is important to recognise that these are the exception rather than the norm. There is still a long way to go to influence global employability more broadly and ensure learning is being shared and sufficiently integrated into day to day recruitment and talent development practices. The following questions require urgent attention and this report represents a call to action to each stakeholder group.

Some employers are working collaboratively with schools, colleges and higher education institutions to:
Facilitate opportunities for industry to introduce the idea of global business activity and global roles to young people as early as possible e.g. through talks and industry projects Enable inspirational role models (alumni or graduate trainees on international programmes) to engage with students and talk about what its really like to work for a global organisation Provide opportunities for students to experience immersion in the world of the global workplace through internships, enternships and placements

What more can UK schools and employers do together to inspire future global graduates and leaders? And how should they do this? 9

The most forward-thinking Higher Education Institutions are starting to think about global employability and some are embedding it in pedagogy and learning, by:
Broadening and enriching students learning experiences through encouraging them to take up a diverse range of extra-curricular activities, e.g. joining societies and taking part in multicultural events. Supporting students to develop a platform of highly agile learning skills which can be applied to different contexts and situations e.g. self-didactic learning, self-assessment, critical analysis. Providing viable opportunities for students to study part of their programme overseas or enabling students to work with project teams from across the globe and address problems with a global context.

How can government, public agencies, employers, and schools work with higher education institutions across the UK, to help embed global employability into all aspects of the learning experience? The best employers are proactively seeking to attract global talent by:
Looking for evidence in graduate applicants of potential capability to develop global competence as well as academic or personal achievement - e.g. through adopting psychometric testing approaches. Adopting exciting ways of interacting with potential talent and giving a real taste of global business activity through competitions, bootcamp style challenges and social media. Developing global graduate programmes and competency frameworks which incorporate a global dimension. And provide real-life global projects for the new graduate intake to work on, including assignments overseas. Encouraging and facilitating internal and external (global) networking with colleagues and clients across business functions and sites.

How can employers go further to embed a global dimension in graduate programmes and nurture their graduates to become their future generation of global leaders? And how can they adopt social media and new technologies to aid the development and coaching of global graduate trainees? 10

The most aspirational young people are starting their journey towards becoming global graduates by:
Seeking out opportunities to gain rich life experiences on a day-to-day basis and to develop life skills e.g. by gaining exposure to different cultures and societies or living overseas. Building aspirations for a globally oriented career whilst at school. Gaining sound work experience with a global organisation, preferably an international placement or an internship, or getting involved in entrepreneurial activity. Choosing to incorporate study overseas in their learning experience by taking part in a transnational programme or placement e.g. Erasmus.

How can employers and the education system best support young people to build their global aspirations and help them gain meaningful experiential learning?

Government has an important role to play in driving forward global employability and exploring opportunities to increase the development of global talent. The question is where should government focus its efforts?
Two suggested areas for government intervention are: Reviewing opportunities for international talent to benefit UKbased companies. For example, through broaching reciprocal internship arrangements with countries such as the US and India. Incentivising higher education institutions to offer affordable transnational exchange programmes and sandwich courses (such as Erasmus) and increase participation.

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Areas for further exploration

These findings are only just the beginning of the global graduate journey. Areas which we aim to explore going forward include: 1. Global graduate competency frameworks how do they fit with current competency frameworks and graduate development programmes? And what would an ideal global graduate competency framework and development programme look like?

2. The graduate perspective insights from graduate trainees and alumni who have experienced global graduate programmes or international immersion. What benefits have they gained? 3. The global leader perspective exploration of global role models and the journey taken from graduate trainee to leader. What insights can they offer new trainees?

For further information

If you are interested in becoming involved in or sponsoring these areas of research please contact Abigail Diamond at CFE. E: Abigail.diamond@cfe.org.uk W: www.cfe.org.uk T: 0116 229 3300 For more information on AGR W: www.agr.org.uk T: 01926 623 236 For more information on CIHE W: www.cihe.co.uk T: 0207 383 7667

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ISBN 1 874223 94 7 November 2011