The Hidden Costs of Treating Graduates as Cheap Labour
Many organisations bring graduates into the business with good intentions, but then make a critical mistake.
They treat graduates as low-cost capacity, not as future capability.
What follows is rarely visible on a cost line, but it shows up everywhere else:
- High attrition as graduates disengage or leave within 12–18 months
- Rework and productivity loss due to poor supervision and unclear accountability
- Erosion of culture when young professionals feel exploited rather than developed
- Management overload as line leaders absorb unplanned coaching and correction
- A weak talent pipeline that fails to produce competent, confident professionals
Graduates who are underpaid, under-mentored, and underutilised don’t save money.
They quietly increase operational risk and cost.
Organisations that get this right do something different.
They separate development from delivery, and structure graduate programmes so learning, productivity, and accountability are intentionally designed and not left to chance.
If your organisation is using graduates to “plug gaps” rather than build capability, it may be time to rethink the model.
If you’d like to explore how structured outsourcing and workforce models can reduce risk while improving productivity, connect with Duja Consulting.
