The research found by taking a narrow view of top graduate talent, employers are failing to tap into the wealth of other capable candidates with excellent potential.
It states it's clear there is a talent shortage in the UK, but graduate recruiters are adding to this problem by chasing after the same graduate pool and discounting capable candidates.
Behaviour traits
The study looked at trends among almost 200,000 graduates since 2006, analysing their behaviour and associated performance. It said a new way of measuring graduate employability is needed.
The study showed top-talent graduates are defined if they display above average ability for eight characteristics, four of which are execution capabilities: enterprising and performing, analysing and interpreting, creating and conceptualising, and organising and execution.
The other four are engagement capabilities: leading and deciding, supporting and cooperating, interacting and presenting, and adapting and coping.
SHL said these eight behaviours drive effective performance and are a measure of graduate employability.
The study said the odds of finding top graduate talent that demonstrates the eight behavioural traits are just one in 15. However, there are nearly four times more graduates that exhibit strong execution capabilities or engagement behaviours.
War on talent
SHL chief science and analytics officer Eugene Burke said there has been a disparity for many years between what graduates offer and what employers are looking for.
"Recruiters are heavily focused on the best and brightest graduates and do not necessarily understand what is best for their organisation. This is creating unprecedented levels of competition in the graduate war on talent," said Burke.
Burke said employers should look at building up graduates to be the right talent for the company rather than buying in top talent.
"Recruiters must scrutinise whether they need the brightest graduates to fulfil future roles in the company, or even those that possess all of the behavioural traits which define top talent.
"Given that one in 15 graduates are classified as top talent, we urge recruiters to reconsider their hiring strategy, reducing their emphasis on buying in this rare talent at a higher cost. Instead employers should focus on building talent acknowledging they will need to develop graduates existing capabilities from the outset through learning and development programmes."
SHL said by looking at different behaviours and skills when assessing graduates, employers can better align selection criteria with the needs of specific roles and the strategy of the business.
It said this will enable employers to hire the right candidates and retain them more successfully, improving the ROI and effectiveness of the graduate programme.
