Why your business should hire young people
And how to ensure it is a win-win strategy
The youth of today are the workforce and earner-spenders of tomorrow. It is in the interest of all businesses, not just the big corporates, to invest in them to ensure their own future success. There is also the compelling fact that for a stable future economy in South Africa, it is essential we improve the life chances of South Africa’s large youth population of which approximately 9.1 million are Not in Education, Employment or Training (NEET).
That said, not all businesses offer employment that is suitable for young people, and no business will hire employees simply for the sake of it (read here to see how you can still help to ensure that young people get prepared for the workplace). Some employers do, however, have work that is suitable for young people but are discouraged from hiring them by negative perceptions, which can perpetuate the situation that is giving rise to these perceptions in the first place.
“Many businesses, especially small business, shy away from employing young job-seekers because of the challenges they present. It is often believed that young talent lack loyalty to the organisation, are unmotivated, difficult to manage and want more for doing less, over and above lacking skills and experience.”
– Kay Vittee, CEO of Quest Staffing Solutions 1 To read Kay Vitee’s full article click here.
Most employers agree, however, that there is a business case for employing young people.
This business case builds upon the following fundamental fact:
It is true that South Africa’s education system is challenged and does not always do justice to young people’s potential or cater to the needs of businesses, but negative perceptions about young people are generalisations that do not take into account the potential, determination and talent of individual youth. Any new staff member presents the risk of being a burden on the business, and this applies similarly to young people. Experience of employing talented young people, however, often changes employers’ negative perceptions.
A useful report summary (and a must-read for employers) presents five key reasons why businesses should invest in young people based on the views and experience of almost 800 employers: 2 Chartered Institute of Personnel and Development. 2012. The business case for employer investment in young people. Access here.
- Growing talent and workforce planning: Growing the ‘talent-pipeline’ helps to secure future growth and gives a competitive edge.
- Young people’s unique skills, attitudes and motivation: Employers said that young people had a willingness to learn (47%), fresh ideas and new approaches (43%) and motivation, energy and optimism (42%). Where young people are qualified, they may bring more up-to-date skills and education into the organisation. Young people tend to be uniquely geared towards technology and social media.
- Workforce diversity: Employers recognise they need to bring in young people to ensure that the diversity of their workforce also reflects their customer base. A more diverse workforce offers different perspectives, skills, values and experiences.
- Employer brand: Employers bring young people into their organisations to engage with their community, which strengthens their employer brand.
- Cost-effectiveness: It is more cost-effective to grow your own workforce, rather than trying to buy in skills and talent later on. Several international studies3Unfortunately studies on the business value that skilling workers through apprenticeships will contribute to businesses is not currently available in South Africa, although the merSETA is currently conducting such a study for the motor industry. show the returns on investment of apprenticeships to the employer4Malatest, R, Mcdonald, H, & Gong, L. Return on Apprenticeship from the Employer’s Perspective: A Comparative Study. Access here. and another study5Chartered Institute of Personnel and Development. 2012. The business case for employer investment in young people. Access here. demonstrated that employers are able to recoup their costs within one or two years after the training has been completed (to read more about systems and incentives for businesses for offering apprenticeships and learnerships click here). Internships can provide the opportunity to effectively identify and develop talent; they come at lower salary costs to the employer and are relatively low risk because there is generally no obligation to offer permanent employment (to read about the different employment options for young people, click here).
There is of course the fear that after some investment there will be a high turnover among young recruits. Eventually most employees will move on for the sake of developing their careers, but there is evidence that many young people are very loyal to the business that gave them ‘a chance’.6UK Commission for Employment and Skills. 2012. Why businesses should invest in young people. Access here. Also keep in mind that when young people leave, the business has added to the pool of workers from which business in a particular sector can benefit in the future, thus the more businesses take on young people, the greater the advantage for the entire sector (so be sure to also become an advocate for giving opportunities to young people!). In terms of the social contribution that adds to the employer brand, the business has helped young people to get that all important first foot into the economy.
“We encourage businesses to overcome their doubts about employing young people and invest in the future if the sector is to succeed as a whole. In addition, the attitude and support of the employer to the apprentice is critically important. By giving a young person opportunities to apply their skills they will ultimately become better and more productive technicians much earlier.”
– Dr Paul Spear, resident scientist at the Institute of the Motor Industry (IMI) in the UK, addressing the South African motor industry during a conference in Johannesburg in 2015.
Read here to see in what capacity you can hire young people for more formal, longer-term opportunities (internships, apprenticeships and learnerships) and to understand the differences between these options.
Read here to understand what national systems are in place to support businesses to hire young people and to support national skills development.
There is thus much to gain by employing youth. Here are the top five strategies, recommended by South African businesses that we interviewed, for employing young people for win-win scenarios:

Do clever recruitment
The conundrum many companies face at the outset is how to recruit effectively when the pool of unemployed youth is as deep as it is in South Africa. Also, many young people have come through an education system that has failed to develop their full potential. To get around this problem, many employers develop recruitment criteria that are incredibly specific and overly focused on academic/theoretical achievement, setting entry bars that are prohibitively high and one dimensional.
The employers we talked to pointed out that academic/theoretical achievement does not necessarily mean work-readiness and isn’t a guarantee as to whether or not someone will thrive in their work environment. They draw on creative recruitment strategies that aim to seek out talent and potential, and to assess the less obvious qualities of young people (for example, ability to learn quickly, enthusiasm, creativity, taking initiative, and being able to self-start, commitment to teamwork, etc.). You can read some of their strategies here.

Be reasonable and fair when remunerating or
covering costs
Because learnerships and apprenticeships are subsidised so that participants who were unemployed can be absorbed into the workforce, minimum pay scales have been established by the Department of Labour.
In the case of internships the rules on remuneration are less clear, and generally up to the business to decide. However, it is necessary and reasonable to provide young employees with some form of compensation to cover basic costs such as rent, transport and meals. It is also a developmental opportunity: by paying interns stipends, you give them a sense of what paid employment involves while fostering and nurturing an employee identity. This is important to help a learner or a student to transition into the role of employee.
Reasonable remuneration was an important aspect in the approach of each of the companies we interviewed. Their advice:
Aim to remunerate your interns for costs incurred on the job (with transport being the main consideration) first, and then decide on what you would deem an acceptable additional wage. The companies we spoke to decided their additional wage based on industry standard, and thus pay their interns standard basic starting packages (without benefits).
You can read about the legalities of hosting interns here.

Coach and challenge
Once you have recruited young people with talent and potential, another common practice to make sure they deliver their best, is to provide or facilitate their access to work-readiness training covering for example: work ethic, attitude, professional behaviour, adaptability, etc. Click here for some options.
In the case of internships (or any inexperienced staff who are not participating in a learnership or apprenticeship), the companies we spoke with offer coaching and tailored skills training. Click here to see how they approach it.
Remember that talented young people are keen to learn and are energised for the workplace. Take advantage of that by ensuring they function as part of teams and are given opportunities to contribute meaningfully. Expect a lot from young employees; give them an opportunity to rise to the challenge.
“Keep in mind that young employees are doing entry-level jobs – work which is often unexciting or unstimulating that will cause them to seek new opportunities elsewhere. To retain your young talent, provide them with opportunities that challenge them; where they can learn and grow. Although tedious work is part of every job description and necessary to the functioning of a business, balance it with work that employees find meaningful. New recruits care about their career development and if they are not moving forward in their current organisation, they will seek it by moving elsewhere.”
– Kay Vittee, CEO of Quest Staffing Solutions

Provide psychosocial support
In South Africa most employers will, at some stage, employ young people from communities that bear the brunt of South Africa’s unemployment problem and who face exceptionally difficult situations in their personal lives. It is thus important to create an empathetic work environment. All the employers we talked to pair interns and entry-level young people with an experienced staff member in a mentoring relationship.
At the companies that we interviewed, mentors are expected to facilitate learning through experience. Although mentors are not counsellors, they are the first port of call if issues in their personal life threaten their learning and work experience. In larger companies, HR managers also play an important role in terms of supporting both entry-level employees and a mentoring programme. Some programmes also build in mechanisms for peer-to-peer support.
Click here for examples of how companies are providing psychosocial support to young people.

Keep contact
Although most employers cannot offer a 100% absorption rate into the organisation for interns, offering some long-term opportunities is motivational, and retaining contact with an alumni network might lead to future benefit.
“Social capital is crucial to access opportunity.”
– Thero Setiloane, CEO of Business Leadership South Africa
The employers that we interviewed also said that with each intake of interns they are filling a pool into which they will cast their net first whenever they recruit. In other words, it is important to think about internship programmes as a long-term company strategy rather than as an isolated programme.
In summary, how can we help young people do good on the big transitions that set the stage for the rest of their lives?

Do clever recruitment: There is more to being a great employee than doing well at school or university. Make sure that you know how to identify great potential.

Cover their basic costs: Be reasonable – everyone has basic expenses.

Provide support: Mentoring works wonders – and it is easy to implement.

Coach and challenge: Help them get it right – do some tailored skills training and if you challenge and engage them at the same time, it will be worth your while.

Keep contact: When interns leave (either because you cannot absorb them into your business or because they want to move on), keep them in your network. You never know what opportunities the future holds (for you or them).
South Africa’s large youth population
According to Stats SA (2016) youth make up about 36% of South Africa’s total population.
Percentage distribution of youth by province 2014
Using the expanded definition of unemployment, the youth unemployment rate is approximately 75%.
If you are interested in more statistics illustrating the situation of young people in South Africa, here are some publications and articles that you can read:
For short summaries:
- Shocking stats for SA youth
- The Great Reversal: Stats SA claims black youth are less skilled than their parents
- Youth: An opportunity to interrupt the intergenerational transmission of poverty (poster)
For full reports:
Business thrives where societies thrive
The French economist Thomas Piketty has helped clarify the historically fractious relationship between economic growth and social development. Without economic growth, social development will fail because public goods must be financed through taxation. Without social development, economic growth will flounder because there will be insufficient human capital to push an advanced economy and because social instability will undermine business confidence and investment.
Business thrives where societies thrive. Stability of communities influences the stability of markets and the growth of market opportunities. South Africa’s youth unemployment rate (expanded definition) of approximately 75% for young people between 15 and 34 years old, does not bode well for stable communities or markets – not to speak of the human potential going to waste that could be driving the economy forward.
The all important first foot into the economy
Prior work experience significantly alters whether or not an individual can successfully gain employment. Research1 has found that individuals who have never held a job before are 35% more likely to be unemployed than those who have had prior work experience.
1. Altman, M. & Marock, C. 2008. Identifying appropriate interventions to support the transition from schooling to the workplace. Human Sciences Research Council & Centre for Poverty Employment and Growth.
Unemployed youth
According to Stats SA, using the expanded definition of unemployment, the youth unemployment rate is approximately 75%. According to the South African Child Gauge report, 60% of young people are neither in employment, nor are they participating in education or training opportunities (NEET).
If you are interested in more statistics illustrating the situation of youth in South Africa, here are some publications and articles you can read:
For short summaries:
- Shocking stats for SA youth
- The Great Reversal: Stats SA claims black youth are less skilled than their parents
- Youth: An opportunity to interrupt the intergenerational transmission of poverty (poster)
For full reports:
An education system that has failed
For example, a recent review of the quality of education in South African schools found that after about seven years at school, 53% of rural 13 year olds and 29% of 13 year olds in general are still functionally illiterate (i.e. they cannot read for meaning).
Read the full report here.
Work-readiness skills
There is no fixed list of work-readiness skills. It might, for example, include any of the following and in South Africa it can also integrate a number of important life skills (examples below) that are supportive to the development of employability skills:
- Strong work ethic
- Interpersonal skills
- Communication skills (verbal and written)
- Planning and prioritisation
- Digital English
- Ability to work in a team
- Problem-solving skills
- Initiative and creativity
- Analytical/Quantitative skills
- Flexibility/Adaptability
- Computer skills
- Organising skills and detail-orientation
- Etc.
Life:
- Personal identity
- Goal setting
- Decision-making
- Problem-solving
- Coping with stress and emotions
- Interpersonal relationships
- Empathy (concern for others)
- Critical and creative thinking
- Time management
- Money management
- Pursuing opportunity
- Etc.
One of the key factors contributing to Harambee’s remarkable success in placing young people in employment is the training and support candidates receive. Based on input from partner companies, Harambee creates ‘bridges’ that are simulated work environments in which candidates receive on-the-job training and experience. Each bridge has very specific skills training components tailored to the needs of the company that will be recruiting from the pool of candidates being trained.
Sutherland told us that the skills training component of their programme is essential as it prepares interns for entry into the industry as a whole, even if they are not employed by Sutherland. To that end, Sutherland runs an internal academy in which interns receive classroom training from staff members before they are placed to work on specific projects. This training entails:
- Theoretical instruction
- Technical drawing training
- Completion of in-class practical drawing work.
PERI also has a tailored training component in their Experiential Learning programme. This programme recruits and places students who require practical exposure in order to complete their tertiary studies. PERI’s training programme is based on input from students’ educational institutions and is pitched so that students can draw on what they have already learnt in classroom settings.
At Khulisa Management Services the interns are expected to provide high-level contributions on important projects. Feedback from a past intern:
“Everything that we did was integrated into the actual work that needed to be done. It was on-the-job training – we did not waste time trying to do things that we might, in theory, need to do one day. It was about developing our skills, not about furthering our education. The internship programme was completely integrated into the way that the organisation functions. Managing or dealing with interns was not an ‘extra’ task to anyone, it was part of their normal work. Understanding that interns are still learning, need guidance and supervision, and may make mistakes was not an irritation to anyone, it was expected and accepted. Because our work was linked to the actual work of the organisation and their reputation, timeous, high-quality feedback was the norm.”
References
- Children’s Institute. 2015. The South African Child Gauge: Youth: An opportunity to interrupt the intergenerational transmission of poverty.
- To read Kay Vitee’s full article click here.
- UK Commission for Employment and Skills. 2012. Why businesses should invest in young people. Access here.
- Chartered Institute of Personnel and Development. 2012. The business case for employer investment in young people. Access here.
- Unfortunately studies on the business value that skilling workers through apprenticeships will contribute to businesses is not currently available in South Africa, although the merSETA is currently conducting such a study for the motor industry.
- Malatest, R, Mcdonald, H, & Gong, L. Return on Apprenticeship from the Employer’s Perspective: A Comparative Study. Access here.
- Chartered Institute of Personnel and Development. 2012. The business case for employer investment in young people. Access here.
- UK Commission for Employment and Skills. 2012. Why businesses should invest in young people. Access here.
- Eby L.T., Allen, T.D., Evans, S. C., Ng, T. & DuBois, D. 2009. Does Mentoring Matter? A Multidisciplinary Meta-Analysis Comparing Mentored and Non-Mentored Individuals. Access here.