Bright young things
We’re just sending out the latest edition of our exclusive magazine for SageCover members, Solutions. It’s full of loads of business advice as well as technical tips for Sage software. SageCover customers can log in to see your Solutions magazine now. Why not find out more about the benefits of our SageCover membership, and in the meantime here is a sneak peak from the latest copy.
The government’s £1 billion plan to get young people back into the work place
The Government has recently announced its £1 billion plan to get young people into the workplace. But are job subsidies and cash bonuses enough of an incentive for small businesses to take on unskilled labour? We investigate this in the latest Solutions magazine for our SageCover members – here’s a taster of what we found out…
One in five 16 to 24 year olds are not in full-time work, education or training. That’s a record 1.02 million who are currently unemployed.
Under pressure to tackle such numbers, at the end of last year deputy prime minister Nick Clegg revealed plans for the Government’s Youth Contract. Beginning in April, the scheme marks a £1 billion investment to create up to 410,000 subsidised work and training placements around the UK. The aim is to improve future prospects, raise levels of social mobility and stimulate economic growth.
It’s a grand plan but what will this mean for business? Will it really encourage employers to back 16 to 24 year olds, many with little or no experience in the workplace?
How it will work
Firstly, what’s on offer? Businesses with a maximum of 50 employees will be offered cash bonuses up to £1,500 for taking on an apprentice aged between the age of 16 and 24. The plans also include 160,000 job subsidies, worth up to £2, 275 each, for businesses who employ an 18 to 24 year old from the Work Programme.
In addition, companies will be offered cash incentives to create work experience places for 18 to 24 year olds, including graduates.
It’s also just been announced that charities and businesses will be able to bid for contracts worth up to £2,200 to take young people on. They will receive an initial payment and more money when the youngsters show progress. It’s hoped that at least 55,000 16 and 17-year-olds not in education, employment or training, also known as Neets, with no GCSEs at grades C or above, are expected to benefit.
The benefits of the young
Taking on a young person may not be the hassle it first appears – in fact, it can make real business sense.
A young person could fill any skill gaps in a company and also be trained in any specific skills required; it can often prove more cost effective to train a person from scratch than to hire skilled staff.
Also, many have a better grasp of technology and social networking sites than older employees. They can improve productivity and, because they are often keen and loyal to the company that has invested in them, their talent can inspire motivation and invigorate others.
Sage@School
Meanwhile Sage is leading the way in helping GCSE and A-level students gain valuable business skills and improve employment opportunities with Sage@School, its new initiative. This training programme uses Sage accounts software as a learning tool, teaching young people key aspects about cash flow, finance processes and budget management.
It’s clear that giving a helping hand to a young person to enter the job market can be financially advantageous to business. More importantly, it’s an investment in the economy and in our collective future.
Melissa Beckett, SageCover Team
