Create Youth Employment And Get Enhanced BEE Recognition Levels Through YES

More than one in every three young people in South Africa are unemployed. The Youth Employment Service (Y.E.S) Initiative is the product of the private sector engaging with government to find workable solutions to this youth unemployment dilemma. As a business, it can also help you improve your BEE contribution levels.

Youth unemployment status quo in South Africa

The Youth Unemployment Rate in South Africa was 46.5% in the first quarter of 2023. The psychological toll and the economic fall out of this level of the unemployment rate is something this country can ill-afford and the youth are only likely to suffer more as they are usually the most vulnerable to labour market inequalities.

• Ongoing economic challenges, including slow economic growth, income inequality, and a legacy of apartheid policies. These structural issues have made it difficult to create enough jobs to accommodate the growing young workforce in the country.
• There is labour demand and supply mismatch in South African labour market, where young people do not have the relevant skills and qualifications that employers are seeking
• Many employers seek candidates with work experience, which is often challenging for young people who are just starting their careers.
• Periods of economic downturn and global economic instability exacerbates youth unemployment as businesses may reduce hiring or lay off workers.

The consequences of youth unemployment are far-reaching and can include social unrest, increased crime rates, and a sense of hopelessness among young people. Addressing youth unemployment requires a comprehensive approach such as targeted job creation initiatives

How does YES work?

The Youth Employment Service (or simply “YES”) Programme was introduced into the BEE Codes in 2018 to address youth unemployment challenges in South Africa. Through the YES Programme, prospective measured entities are able to obtain up to 2 enhancement levels on their BEE scorecard through the creation of youth employment.

Youth placement through YES could be a strategy to unlocking ‘future talent’ pipeline for businesses who have the capacity to create jobs or have additional vacancies which they can fill within their organizations. However, for some organisations who want to help create youth employment, and do not have the capacity to take on additional headcount, they can capacitate organisations that cannot afford the labour costs, while assisting the youth to gain the necessary workplace experience. This could be a small business or start-up, or could even be a non-profit organisation. These organisations are called Host organisations, where the YES candidates will be “hosted” for the duration of the 12 months work experience that is required by the BEE legislation.

The program's focus on providing practical work experience and skills development opportunities can also help bridge the gap between skills demand and supply in the labour market, thus contributing to reducing overall youth unemployment rates. The YES initiative relies on various stakeholders to work together to ensure the successful implementation of the program and its sustainability

Benefits of participating in YES

In addition to youth development, participating in the YES Programme is extremely attractive for corporates who want to improve their BEE scorecard.

• YES initiative enables up to two levels of enhanced BEE status recognition, if youth job creation targets are met.
• The initiative allows corporates to contribute to addressing youth unemployment.
• Businesses can use YES as a strategy to build a future talent pipeline

Conclusion

We call upon you to consider investing towards youth job creation and achieve enhancement levels towards your BEE scorecard. Your YES investment will also contribute to addressing youth unemployment in South Africa, and youth will have the opportunity to develop skills and gain experience – becoming more employable and being afforded an increased opportunity to become productive contributors in our economy.

Transcend has facilitated over 1000 YES initiatives with over 350 verified host companies.

Click on this link here to find out more about Transcend’s approach and should you need assistance with the implementation of your YES initiative please do not hesitate to get in touch with us.