Why investing in young talent is crucial to the future of your workforce

By Hannah Wright, Director, Sage People

COVID-19 has affected us all, but there is no denying the lasting effects of the pandemic on the younger generation. With many businesses experiencing an uncertain future as well as cashflow disruption, 2020 hiring for graduate co-ops and apprenticeship programs came to a screeching halt. Unfortunately, between reduced hiring and limited staff resources for training, the unemployment rate for 15 – 24-year-olds has more than quintupled since the start of the pandemic.

Fortunately, despite these troubling numbers there are now reasons to be more optimistic for the future. Businesses are currently stabilizing and adjusting based on the new normal, and various governments across the globe are creating incentives for businesses to help the younger generation join the workforce. Not only is this beneficial for younger Canadians trying to gain valuable experience, it has a positive and transformational impact on businesses as well.

Fresh minds equate to innovation

Beyond temporary governmental incentives, there are several reasons why hiring young people makes sense for businesses. New and young employees provide new energy and fresh perspectives while freeing up some of the bandwidth for more senior staff. Along with this fresh perspective, they also bring important skills such as technological capabilities and understandings.

As the younger generation is typically more skilled in technology, their presence also bodes well for championing new and emerging technologies within the organization. This generation is not just able to pick up technologies quickly but can also promote the importance of such tools within the organization. Globally, 88 percent of Gen Z employees believe that AI can improve their job, for example – an important factor in the shift to digitization in the new world after COVID.

The appeal of these latest technologies for younger generations can help businesses take advantage. With change consistently accelerating and changing client needs, these younger workers can help businesses stay ahead of the curve.

The introduction of new young minds also has a positive impact on workplace innovation. As these young employees’ champion and introduce new technologies, they in turn create an environment that is attractive to other young, future employees, putting the company in a position where innovation and generating new ideas is constantly top of mind.

Attracting top young talent

Attracting top young talent in the current job market can be difficult. Within the accounting industry, Canadian industry experts believe that young professionals are looking for more collaborative organizations that are open to continually advancing technology and analytics. To be more attractive than the competition, People departments need to take a pulse of what is important to these young generations and capture their interest accordingly.

Consider top companies such as Google and Apple, which have been successful in attracting the newest generation through perks like flexibility, remote working, and unlimited holiday time. Similarly, successful, forward-thinking firms also recognize that factors beyond pay are important incentives for young people. They typically look for “intrinsic motivators” such as an exciting, collaborative work environment or a day off to support a charity of importance.

Of course, intrinsic motivators aren’t “one size fits all”, and interests differ depending on the person, so it’s important for HR teams to offer multiple benefit packages and career plans that will attract diverse talent. While this is important to everyone, it is especially important to young employees that are just starting out in their careers.

To obtain this level of understanding, a joined-up approach to company data is required. As the employee data becomes plentiful on the cloud, relevant employee data becomes more easily accessible and can be translated into meaningful action

The solution for disruption

As the world is still in the midst of defining a new normal, it can be challenging for companies to predict the change in customer needs and operations. As such, companies will need to be flexible to best adapt to this environment. If companies only have vision for how things used to be, these challenges will persist. That’s why introducing young people to a company is so important – young employees are not only agile but also hold the key to unlocking new success through technical skills and innovation.

Despite the challenges faced by today’s small and medium businesses, a focus on hiring young people may be exactly what is needed to survive and thrive in the future.

About the author: Hannah Wright is Director of Product Marketing at Sage. Hannah began her career in talent acquisition, gaining first-hand insight into the opportunities and challenges HR and People teams face. Today, she’s responsible for Sage People product content, supporting HR leaders as they look to tech to solve some of the challenges of today’s world.