There has been a lot of news recently about the growing number of young people not in employment, education or training, or ‘NEETs’. Recent figures suggest that there are almost 1m NEETs aged 16-24 in the UK, across all levels of educational attainment.
Last month, we heard the news that graduate job vacancies were 45% lower in January than the same time last year, while a report this week from the Drive Forward Foundation highlighted the way young people coming out of care struggle to access the job market, despite employers saying they are willing to hire care leavers.
The rise of NEETs strikes at the heart of many of the issues organisations and our society are facing. From the emergence of AI to the growing strain on the social contract, many young people feel they’ve done everything ‘right’ and yet can’t find a stable job, let alone a rewarding career, at the end of it.
To fix this, we need a joined-up approach with government, employers and young people all pulling in the same direction
Doing the right thing is a dividing line
I wrote last week about how the decisions boards make today will shape the future of our Service Nation, and how their approach to customers will dictate the success of their organisations. With the nature of work in such a state of flux across every sector, it is clear how much is at stake – these decisions will shape the future of our society as a whole.
AI is becoming a dividing line in all sorts of ways. How organisations deploy it, and the values that underpin leaders’ decisions, really matter. No one can accurately predict the long-term (or even medium-term) impact of AI on the workforce, but it already feels like the younger generation may be feeling the brunt of many of the initial changes.
Our recent Breakthrough Research on AI shows that consumers will become increasingly conscious of the need for responsible AI use and of the organisations that do the right thing more broadly. We know that this requires a new set of skills and capabilities in the post-AI revolution. We also know that to drive employee engagement, we need to have strong dialogue about how AI is being implemented and where we are seeing opportunities and challenges.
A new ‘psychological’ contract
From the conversations I have with employers and young people alike, it seems we need a new kind of ‘psychological’ contract between employers and employees.
Where I think there is an expectations gap is around what the world of work looks like and how to prepare for it. When I was starting out, there was a clear understanding that if you went the extra mile for your employer, they would do the same for you. What was, and I believe is still the case, of working for an organisation that has a strong sense of purpose and a values-driven culture. Another key part of my graduate scheme was to get to understand the whole business. This was for me an invaluable way of joining the dots and making me feel included and part of the whole organisation.
One thing to consider is giving entry-level and less experienced hires, whether on a formal graduate scheme, a school-leaver programme, or an apprenticeship, an opportunity to see different parts of your organisation through a 12–18-month rotation. The opportunity to gain a more holistic view of the business and its purpose.
Put that all together, and you can start to see the outlines of a real opportunity to build service-driven organisations: take a chance on young people, and set out clear expectations from day one. Motivate them by being passionate about your organisation’s purpose and bringing them with you on that journey. Invest in giving them the skills they will need to succeed in the current role, and to grow into the future. They won’t all stay the course, but those that do will repay that faith in spades, becoming the future leaders of business.
Of course, the government has a part to play too. It’s important that they listen to and address employers’ concerns about education and barriers to hiring young people. Including the additional costs, we are all carrying through increased NI.
With the right approach from all sides, we can choose a way forward where today’s school and university leavers have a bright future ahead of them, helping build a service economy that drives growth.
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