YOUNG EMPLOYEES 'NOT EQUIPPED FOR BUSINESS'
10th August 2006
Top UK businesses believe young employees need to bridge the business skills gap before entering the workplace, according to a new survey from Young Enterprise.
Many young employees come to the workplace with few business skills, too much text book theory and too high an estimation of their abilities-all at a significant cost to business. These are the key findings of a new survey© commissioned by Young Enterprise, the UK's largest business and enterprise education charity, and carried out among HR Directors of UK companies.
As graduates and school leavers rush to complete job applications this summer, the survey identifies a number of skills gaps among the intake of employees under the age of 22, which impact on companies' annual training budgets:
68% respondents believe that many young employees are not equipped for business
Over three quarters (76%) believe that young employees can often have a higher estimation of their abilities than is the reality
63% believe that too much emphasis is placed on theory at school and university
58% believe that young employees have not been trained to think laterally
84% recommend that young people gain more experience of the business world while at school or college and 70% recommend supplementing coursework with business training.
In terms of specific skills gaps, businesses went on to identify the three key areas for concern: project management (50%) financial skills (45%) and leadership (49%). Over one third (35%) of respondents also believed that time management skills are lacking, while one third cited poor presentation and reporting skills.
The fact that businesses have identified these gaps is not necessarily reflected in their training spend. Only 17% of respondents say that project management training is undertaken in a young employee's first year, 23% cite financial skills training, and 26% focus on leadership training. In contrast, two thirds (60%) of respondents say that team work training will be scheduled in a young employer's first year, but only 11% cite this as a skills gap.
Michael Savory, Chief Executive of Young Enterprise says "Team working is a required skill from day one of a young person's employment and one that our Summer Schools for 14-16 year olds are focusing on. Young Enterprise is able to offer students essential enterprise experience in the summer holidays as well as in term time".
The survey goes on to highlight key business attribute gaps which can affect the performance of young employees: While nearly half (48%) respondents say that their young workforce do not shy away from competing, 43% say that young employees lack entrepreneurial flair, 36% say that they cannot deal with criticism and 33% say that they cannot deal with setbacks.
Commenting on the findings, leading business entrepreneur Sir Alan Sugar comments: "We live in a fast moving world and the earlier that young people grasp the essential skills for business, the better. Initiatives such as Young Enterprise summer schools can play an important role in this, and business should focus more attention on supporting them".
Andy Powell, Chief Executive of Edge, an independent education foundation dedicated to promoting practical and vocational learning, adds: "One of the main drivers behind our support for Young Enterprise is our belief in learning by doing, and the practical development of skills through programmes like the Enterprise Summer Schools initiative. It is only through learning by doing that people truly find out for themselves what they are good at and what they want to do in life, whilst gaining all those skills and abilities that have been highlighted through this survey as currently lacking in young people as they enter the world of work."
Michael Savory, Chief Executive, Young Enterprise, concludes: "Each year, training young people in key business skills costs British Business between £600 and £700 per employee, and delays the usefulness of that employee to them. Young Enterprise Pilot Summer Schools, which are running in 23 locations this Summer, provide one innovative solution to this. By supporting business education programmes such as Enterprise Summer Schools, businesses can help more young people develop key business skills from an earlier age, and have them better equipped to contribute on appointment."
Young Enterprise is the UK's largest business and enterprise education charity. Each year through a range of programmes it reaches more than 320,000 young people aged from 4 years through to 25+.
Throughout summer 2006, with funding support from central government, Young Enterprise will be running 23 pilot summer schools to give 14-16 year olds the chance to learn about business and commerce, directly from business volunteers. The schools will also focus on individual development of attitudes and qualities for enterprise such as problem solving, decision-making and management skills. In line with Young Enterprise's ethos, learning by doing will be at the core of all activity.
The pilot schools are being delivered by Young Enterprise, in conjunction with other delivery organisations such as Business Dynamics, Business Link, ShellLivewire, EBP's and local Chambers of Commerce. More than 100 businesses will be involved providing volunteer advisors and support including HSBC, Cadbury Schweppes, Procter and Gamble, Boots, IBM, Northern Bank, Severn Trent Water, and BT as well as many local entrepreneurs and smaller businesses. In addition other organisations such as the Army and Emergency Services Network will be participating.
This year, over a thousand students will join in Enterprise Summer Schools across the country, taking part in sessions including outdoor activities, conflict resolution and workplace visits.
Young Enterprise is supported by the government and the business community, financially and through the provision and encouragement of volunteers.
To find out more visit www.young-enterprise.org.uk
