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Reports the results of empirical research into the graduate recruitment and selection practices adopted by SMEs, and the skills being sought by employers in that sector. Describes in detail the research methods, which included interviews with large organisations to determine, alongside existing research, the extent of characteristics of SME graduate recruitment which might be particular to that sector. Findings and interpretations suggest that, in common with large organisations, SMEs value what are now termed transferable skills, although there are some differences of emphasis between the two sectors. There appears to be greater difference in the selection methods employed, though this is not as great or significant as might be expected or predicted. An important difference between the two sectors suggested by the research is the expectations placed on graduate recruits by employers in the two sectors. Unlike large employers which are more likely to provide graduate development programmes, SMEs expect an immediate contribution from graduate recruits. The implications of these similarities and differences will be explored in the final article of this series.

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