Employing and progressing young people: five opportunities for businesses
Synopsis
The UK economy is currently struggling to create enough jobs to make a real impact on
employment levels. This problem is particularly acute for young people, with nearly one million not
in education, employment or training. Some argue this is storing up problems for when the upturn
occurs, with many of these young people unlikely to be job ready. This paper looks at some of
these issues and opportunities for businesses and how they can benefit from the untapped
potential these people represent.
Introduction
There are currently almost one million 16-24-year-olds out of work in Britain. With the economic
climate still tough and businesses struggling to recruit staff with the skills they need, today’s young
people provide a huge pool of talent which can help businesses build and develop the workforce of
the future. The question is, are employers tapping into this potential and is the government doing
enough to support businesses and unemployed people?
Since the economic downturn, youth unemployment and the skills gap more generally has become
a high priority for government. There has been a great deal of commitment to improving workplace
skills recently, from Apprenticeships and the recently announced traineeships, through to wage
incentives and the Youth Contract. The Apprenticeship Grant for Employers of 16-24-year-olds
also aims to target employers who are new to Apprenticeships and provides incentives for them to
offer young people employment through this route. However, unemployment, and in particular
youth unemployment, remains high. Also, general maths and English in the UK remains poor, with
a 2011 Government study suggesting 24 per cent of adults had the number skills of a child aged
nine or younger.
Some of these initiatives are starting to secure traction amongst businesses and a poll taken
during a recent webinar with learndirect and Personnel Today showed the majority of employers
(46%) already employ apprentices, whilst another 34% were considering it. But there’s still a lot
more to be done. In particular, despite the government focus on younger people, the take up of 1618 Apprenticeships remains fairly low.
Careers advice, particularly in schools, also remains patchy in regards to suggesting alternative
paths to students beyond the traditional route of A levels and university which aren’t the right
option for all young people. We need to ensure not just businesses, but the young people, their
parents and other influencers understand the value of vocational qualifications and don’t see them
as a second class option.
A number of other factors such as the recent increase in university tuition fees and graduates
struggling to find jobs due to a lack of practical experience means more young people than ever
are now looking for alternative ways to gain the right skills and meaningful qualifications needed to
kick start their careers.
Unlocking the potential of young people
Young people, although often perceived to lack the necessary attitudes, behaviours and
communication skills for the workplace, can be a real asset to a company. Taking on a young
person offers businesses an opportunity to develop a talent pipeline for the future if the recruitment
and development of that person is managed correctly.
Employing and progressing young people: five opportunities for businesses – learndirect whitepaper
However, while young people may possess the enthusiasm and energy to help a business thrive,
they often lack the practical experience employers are calling out for. This is where vocational
qualifications can play such an important part. Whereas university degrees provide young people
with the theory behind their chosen career, they often enter the workforce unprepared for the dayto-day reality of working life.
A recent report by the Commission on Adult Vocational Teaching and Learning (CAVTL) ‘It’s all
about work’ stressed the importance of the vocational route and stated it should have a “clear line
of sight to work”. The Commission, which has drawn on evidence and expertise from across all
parts of the skills system, including students, employers and employees, found the best provision
is “collaborative” with a “two way street” between training providers and employers. In addition to
identifying the distinctive features of excellent teaching and learning, it also makes a series of
recommendations to government which include: developing the role of technology in vocational
education and training (VET); reinstating employers’ presence and influence across VET; and
developing a ‘core and tailored’ approach to the design of vocational qualifications.
The benefits of vocational education
Apprenticeships for example allow young people to gain real on-the-job experience which earning
money and gaining a well-rounded qualification at the end of it. For the employers it provides a
really flexible and cost effective way of bringing young people into the business, offering benefits
for both employer and employee alike.
The benefits of Apprenticeships for employers include: helping companies to fill skills shortages;
grow their business; and have a positive impact on employee retention. This was mirrored by a poll
taken during the learndirect and Personnel Today webinar, where 44% of employers agreed
employees are more likely to stay with the company for longer if they’ve been through an
Apprenticeship with them. For Kids Unlimited, a nationwide nursery chain which has a strong
commitment to training and development, their retention has increased by 11% in the last two
years, thanks in large part to their Apprenticeship programme.
The recently announced traineeships will also offer another option for young people to get the all
important practical experience and are a step in the right direction for tackling youth
unemployment. Almost like a “try-before-you-buy” option, they will allow employers to get a feel for
the individual and whether they suit the organisation. Similarly the young person will be able to get
a taster for a particular job and sector without the long term commitment of time and money
required by a university education.
What is holding us back?
Despite the increased awareness, benefits and government support for training younger people on
the job and the concerns about the cost and quality of a university education, recent research by
the CIPD suggested Apprenticeships are still viewed as inferior to a university degree.
Businesses themselves are also facing barriers when it comes to training and development. In the
current economic climate a lot of employers are thinking more about short-term survival than they
are about long-term investment in skills.
This creates further concerns over the time and effort needed to train and develop young people
versus recruiting people with existing skills and experience into the company. This is especially the
case in sectors such as retail or contact centres where training has to be delivered without a great
upheaval to the day-to-day running of the business.
Employing and progressing young people: five opportunities for businesses – learndirect whitepaper
Many businesses also worry whether the young people they recruit will have the right attitudes,
behaviours and general employability skills. Past UKCES (2011) research with employers about
youth unemployment calls for more pre employment training to help build a higher calibre of
candidate, make them more prepared for interview and improving their expectations of a job.
How do we tackle this?
Despite these worries, if the training and development is fully thought through and implemented
correctly, businesses can really reap the benefits. One of the main ways of doing this, which was
outlined in the CAVTL report, is ensuring a collaborative effort between providers and employers.
When this is done well it can help address many, if not all the concerns raised above. This begins
at the very start of the process when the programme of learning is put together. This is where it’s
key for employers to be clear in what they want to achieve and to make sure the learning works for
their business. What we need, and what the government is keen to achieve, is to ensure it is the
employer driving the process from the start, rather than them being forced into a one-size-fits-all
programme of learning which isn’t right for their organisation.
One of the worries about the attitudes and behaviours of young people can also be addressed by
this collaborative work ethic. When employers have real input in shaping the training for their staff,
the ethics and values of that organisation become embedded in the qualification itself and the
competencies within it. For young people entering the workplace for the first time, this offers
employers a real opportunity to build a loyal future workforce. The recruitment stage is also an
opportunity for employers to ensure they are recruiting young people with the behaviours needed
for their business.
Once the programme of training is up and running it’s important to provide the necessary support
at the start of the qualification, both for the employer and for the individual. Apprenticeships offer a
different way of learning to the experience gained in a traditional classroom, empowering learners
to manage their own learning and development. It’s particularly important to build a culture in the
company where young people or apprentices are viewed and treated equally as full time staff.
The explosion of technology over the last few years also serves to make life easier for businesses,
especially when it comes to fitting any training around work patterns. For this new generation of
workers, technology is already firmly embedded in their day-to-day lives and this therefore offers
them a familiar way of learning. It also allows managers to keep track of their progress and quickly
and easily identify and deal with any issues which arise. When combined with the practical
experience of a vocational qualification, this can be a really powerful addition.
What next?
It’s clear improving skills of young people in the UK today needs to play an important part in
helping to tackle the huge issue of youth unemployment. For businesses, employing young people
is only the beginning. There is an incredible amount of talent out there which, given the proper
nurturing and encouragement can provide the quality of future workforce needed to help build the
economy. What we need is a truly collaborative effort between employers, individuals,
government and training providers to really maximise the impact of the support and training
available – creating an environment both now and in the future of continuous learning and
development, keeping companies productive and the economy competitive.
Employing and progressing young people: five opportunities for businesses – learndirect whitepaper
The opportunities
At learndirect we believe this untapped potential can really bring benefits to businesses. By really
understanding the changing policy landscape, as many larger firms already do, businesses can
add new skills to their organisation and begin to develop a talent pool for both the medium term, for
when the UK economy begins to grow again, and the longer term, to continue to compete in a
hectic world of globalisation. learndirect sees five opportunities for businesses today:
•
Get involved in Apprenticeships: Government funding for Apprenticeships is increasing
and steps are being taken to remove the bureaucracy previously associated with
Apprenticeships and to involve employers in their design and delivery. Form a partnership
with a good quality training provider and employees will be supported through their
programmes with any impact on the business minimised
•
Take advantage of wage incentives: Until April 2015, as part of the Youth Contract,
employers are able to take advantage of wage incentives worth up to £2,275 each where
they employ a young person through Jobcentre Plus or from the Work Programme. Further
wage incentives are available to support new Apprenticeship pathways for 16-24 year olds
in England to encourage small employers who have not previously taken on apprentices to
benefit from them.
•
Help shape the skills delivered in your area: Local Enterprise Partnerships (LEPs) play a
central role in determining local economic priorities and undertaking activities to drive
economic growth and the creation of local jobs. LEPs have been given a new role in
setting skills strategies for their areas. Most LEPs have sector-groups or forums which
reflect the priority sectors in each locality. Why not get involved in these groups and help
shape the skills priorities in your locality.
•
Offer work experience: Offer up quality work experience placements for students at local
schools, colleges and training providers. You will be giving a young person the skills and a
real opportunity to get the necessary experience to move onto an Apprenticeship or a job.
In return you will start to develop a local talent pool to recruit from in the future.
•
Contribute to careers advice: Help to shape the information children, young people and
adults receive so they really understand the world of work and the skills needed for various
roles. Get involved in local job fairs and visits to schools to talk about the options and
pathways to a career in your industry.
Employing and progressing young people: five opportunities for businesses – learndirect whitepaper