Business at work
... for Peugeot. By visiting universities they actually get to meet potential employees and have a wide selection of graduates to choose from. A new scheme Peugeot started this year was to offer graduates in their final year a contract of employment so that they could keep hold of the best graduates. This shows Peugeot are responding to labour market information because they know there is a shortage of graduates at the present and as a solution are going out and looking for the graduates themselves. Another problem for Peugeot at the moment is the ‘graduate failure stay on rate’. The number of graduates leaving within a year of employment has risen from 10% to 21%. Peugeot have recognized that there is a problem and to try and decrease this percentage they are providing employees with training. They have found many graduates that have just come out of studying find it difficult to put what they have learned into practice. They are not overly confident in themselves. So by offering those more training might help to boost their confidence. Peugeot have found the flow of their workforce lie within the age range 30-44. External labour market information shows that there is available labour and skilled labour within this age range. This is beneficial to Peugeot because they prefer to recruit workers within this age range simply because these people tend to be more reliable as they have commitments which make them want to keep their job. In the West midlands there are currently skill shortages. Peugeot say although this seems like a major disadvantage it can actually advantage them. If people are low skilled then Peugeot can offer them a lower rate of pay, therefore saving money on wages. As Peugeot prefers to train their own workers to their own standards, it does not make a big difference if they are low skilled because Peugeot will provide them with all th...