Graduate Recruitment: Psychological Contracts and the Balance of Power

Evidence regarding current practice and labour market trends in graduate recruitment is reviewed. It is concluded that graduate recruitment is now a sellers' market, with the consequence that the balance of power has shifted from organisations to applicants. The implications for recruitment practices are drawn, and a new model of selection is proposed. Instead of the traditional psychometric model in which it was assumed that the organisation took the decision whether or not to employ the applicant on the basis of an assessment, it is suggested that the recruitment and selection procedure be construed as a sequence of episodes in which both parties communicate and modify their expectations, either remaining in, or exiting from, the relationship.