Employer size and graduates' use of skills and knowledge at work: an analysis of graduates' early career outcomes

As graduate supply has outpaced demand and competition for traditionally graduate jobs has intensified, a substantial proportion of university graduates work in jobs that don’t require a degree and may experience lower job quality compared to well-matched counterparts. The ability to use skills and knowledge at work – crucial components of job quality – may alleviate some of the negative impacts of working in such jobs and has significant employee and employer benefits. Small- and medium-sized enterprises (SMEs) are often considered an underused source of demand for graduate labour and a solution to ease the competition for graduate jobs. While evidence shows that SMEs can benefit from recruiting graduates, it is unclear whether SMEs restrict graduates’ opportunities for skill utilisation. Regression analysis of over 3,700 UK graduates from the Futuretrack survey suggests that SME employers do not impede graduates’ skill utilisation and may even enhance the use of disciplinary knowledge at work for overqualified graduates. These findings highlight the potential for SME employers in supporting graduate employees' utilisation of disciplinary knowledge and degree skills, contributing to graduates’ positive experiences of work.