Graduates and Apprentices Opt to Quit Jobs for Bigger Paychecks

Pay woes spark a mass exodus of early-career talent

When you’re just starting out, a decent salary feels like a promise that you’ll be taken seriously. The latest Institute of Student Employers (ISE) survey shows that many fresh grads and apprentices are ditching their first jobs just because the loaf is too thin and the bank account is still feeling the pinch.

Numbers that sting

Labelling it “better pay” is the top exit motive for 51% of employers this year—up from 40% in 2023 and well above the 25% figures from 2021‑2022.
The problem isn’t just money. Pay dissatisfaction now eclipses career progression as the second biggest reason for quitting.
Before the cost‑of‑living crisis hit, graduates were more likely to switch employers for career ladder moves than for higher salaries.

Sector stitch

Where are the gigs looking for a paycheck? The new Student Recruitment Survey points toward a shift toward finance and high‑pay tech roles, while positions in the public sector—famous for lower wages—have seen a sharp drop in applications.

The stagnant climb

Starting salaries have nudged up, but the climb has stalled once you get past the first few months. Three‑year salaries remain flat, and the retention curve is heading downward.

Three‑year retention fell from 83% in 2016 to 70% in 2023/24.
Retaining Black heritage hires and women has proven particularly challenging.
On the flip side, apprentice retention bounced up to 77% this year—likely because recent school and college graduates feel a bit “secure” in an uncertain job market.

Interns: the unsung hero of retention

Employers who offered work experience saw a higher stickiness: 32% of them could keep former interns for longer. Those who had done an internship brought sharper skills and a better attitude—plus, their portfolios make them easier to keep around.

What the CEO says

Stephen Isherwood, joint CEO of ISE, sums it up: “The cost‑of‑living crisis still hits once folks land a job. Rising rent, travel, and everyday expenses mean salaries aren’t keeping pace with inflation. In today’s talent race, people are hopping to higher‑pay spots, and employers must step up their game to hold onto the talent.”