Data from the Institute of Statistics, Social and Economic Research (ISSER) at the University of Ghana shows that only 10 per cent of graduates find jobs after their first year of completing school and that it can take up to 10 years for a big job. number of graduates to secure employment due to various challenges ranging from lack of employable skills, unavailability of funding capital for entrepreneurship, poor attitudes of graduates towards job opportunities, as well as low ability to the industry to absorb large numbers. This was revealed by Mr. Kofi Asare, education consultant at the 2017 MasterCard Foundation Annual Learning Summit in Accra.
Regardless of the reasons for the low level of employment of recent graduates, it also suggests that companies in Ghana are failing to identify fresh new batches of future corporate leaders and change makers. Of course it is often a big business decision, trying to decide between hiring a recent graduate or looking for a more experienced veteran of the workforce, there are many pros and cons to consider, but weighing the negatives, The positive aspects of hiring recent graduates can lead to a wide range of business advantages, and no matter what the needs are, giving recent graduates their first opportunity at employment could prove to be an extremely wise long-term decision for a company.
It’s also worth noting that most industry players are already in the game of employing these recent graduates through the Graduate Management Trainees program; what most of the graduates consider an unfair tactic regarding some of the criteria used.
If you think hiring recent graduates is such an easy task, then you better check your notes because one of the central “boardroom” arguments that comes up in these types of exercises is who decides to hire or recruit recent graduates: the human resource manager or finance or even both? In general, it will say human resources, but could there be other reasons?
Decisions by some HR professionals about the employment of recent graduates that are HR development and capability are made as follows:
That recent graduates feel comfortable with new technology – Without a doubt, one of the biggest advantages of hiring a graduate is their ability to navigate through new and innovative technology, especially state-of-the-art computers and all of your essential work-related applications. Because a portion of today’s workforce began their careers before computer technology took over the business world, many people unfortunately don’t have the ability to follow many computer processes and applications. Growing up in a generation that relies more than ever on computer technology, recent graduates will be able to quickly learn all of a company’s computer applications.
Recent graduates think long term – Although jobs need to be filled relatively quickly, a company must still consider the long-term capabilities of its newest possible employee. Undoubtedly, due to its new momentum, students and college graduates are eager to scale all their various business management matters. When thinking about your company’s long-term needs, hiring recent graduates with a lot of drive and potential could definitely be a much smarter business decision. With the ability to be trained and oriented towards specific management roles, recent graduates generally offer more flexibility than more experienced professionals.
Many recent graduates are fast learners with adaptability: Without taking the old saying “you can’t teach an old dog new tricks” too literally, these graduates definitely have the ability to absorb, understand and execute new instructions and training at a much higher rate than older members of the force. labor. Also, because they are fast learners with the ability to multitask, recent graduates prove to be a better hire for a wide range of business options. Eager and looking to quickly please their superiors, recent graduates also offer companies the willingness to do many types of odd office jobs. On top of that, recent graduates are often more willing to help other co-workers when needed.
Recent graduates identify with new and innovative ideas and fresh perspectives – Graduates can inject new ideas and apply current thinking from academia. They are interested in understanding the way things are done and are not afraid to ask “why?” This can be helpful to a business when looking at old methods and developing efficiencies where possible. New to the corporate world, recent graduates have not become accustomed or cemented to a particular way of doing things from previous roles. As such, they can bring a fresh, innovative new perspective to your organization as they also increase diversity within teamwork.
If none of the above reasons have convinced you, consider what Finance professionals also consider to be some of their decision tools for such employment:
Recent graduates have lower salary expectations – Without a doubt, it is an objective of any business to save costs and be profitable. Yes, experience will have to be paid for, and since it’s lack of experience that sparked all this discussion in the first place, recent graduates are a cheaper alternative to more experienced employees because, due to their lack of experience, a company may offer a lower employee compensation package. Now, this does not mean that a company should pay recent graduates extremely low wages (ie wages that fall dramatically below market rates). However, it provides the opportunity for companies to hire a talented employee at an entry-level price and invest in developing that employee into a high-performing star within their organization.
Companies end up saving on annual staff costs – One of the main functions of a company is to make a profit through any specific trade, services or goods that they offer. Probably the biggest advantage that the employment of such graduates gives to a company is the lower cost of the employers annual staff cost. Since established workers naturally require a higher salary, many employers may be reluctant to look for an older candidate and opt for recent graduates with potential.
Proven return on investment – It is believed that the ideas and skills of recent graduates can make a big difference in the results of a company. For example, according to research by the Association of Graduate Recruiters (AGR), graduates contribute approximately £1 billion of value added to the UK economy annually.
value speed – Graduates learn faster and provide more immediate financial returns. They are more enthusiastic and willing to take on challenges. Graduates understand and have the ability to adapt to change.
tax savings – The employment of these graduates is associated with some tax benefits or savings as stipulated in the Income Tax Law of 2015, (Law 896). Finance managers with their cost minimization campaign will want to take advantage of Section 8 of the Sixth Annex of Law 896, which says that when calculating the income of a company for conducting business during an evaluation year, the company is entitled to a deduction additional. for wages and salaries paid during the year to a recent graduate of a recognized tertiary institution in Ghana. For this purpose, the Act defines “recent graduate” as a person who has graduated from a tertiary institution for the first time, whether or not that person was previously employed.
This means that, if 1% of a company’s workforce is made up of recent graduates, said company is entitled to deduct 10% of the wages and salaries paid to recent graduates as an additional deduction and if it is greater than 1% but less than 5% of the workforce, then 30% of their wages and salaries is deductible. Also 50% of your wages and salaries is deductible if more than 5% of the workforce are recent graduates. Just do the math and you’ll be surprised!
conclusion
In general, it is obvious that the employment of recent graduates reduces graduate employment, improves organizational efficiency and financial performance, it is also evident that no “man” makes the decision to employ recent graduates and such decisions are made taking into account human development and financial strategy. of the entity in question, making it more of a corporate decision than a human resources or finance decision.
In fact, there are several aligned reasons why companies in Ghana hardly hire recent graduates ranging from mismatch of industry expectations and what tertiary institutions offer to lack of employable skills etc. But until we develop sustainable business policy and infrastructure, the government and other stakeholders will continue to rely on the private sector to absorb these graduates.