15/03/2011
The Recruitment and Employment Confederation (REC) is urging the government to support proposals to help SMEs recruit more younger people, reports HR Zone.
Despite February's encouraging increase in level of job demand, The Report on Jobs, published by the REC and KPMG, found that businesses are naturally favouring "experience over potential."
The report found that 80 per cent of those aged 16 to 24 years are in some form of employment, but recruiters want to see that figure increase. To do so, recruiters say there is an urgent need to "do something positive to support job creation among small-to-medium enterprises," HR Zone says.
They are suggesting the government give young workers a National Insurance holiday for one year, benefiting the individual and providing a financial hiring incentive to SMEs.
Kevin Green, REC chief executive said to HR Magazine: "The REC is calling on the Government to unleash the job creation potential of SMEs and tackle youth unemployment in its forthcoming enterprise budget.''
"A National Insurance holiday of at least one year for ever young person employed by a smaller company is an obvious win-win for both businesses and job seekers."
Though young people may not possess the vast experience of a more mature individual, training schemes and mentoring can ensure they are sufficiently equipped with skills and knowledge to undertake their duties in no time.
Another way for small businesses to find the funds for recruitment, is to make use of sales finance initiatives, such as invoice discounting, which can help generate some cash in the short term.
Elizabeth Smythe