Data from the Institute of Statistics, Social and Economic Research (ISSER) of the University of Ghana show that only 10 percent of candidates find jobs after their first school year and that it can take up to 10 years for a large number of graduates to secure employment at due to various challenges that ranged from the lack of usable skills, the inaccessibility of finance capital to entrepreneurship, poor attitudes of job candidates and the low capacity of the industry to absorb the huge numbers. This was revealed by Mr Kofi Asare, an education consultant at the MasterCard Foundation annual learning meeting in Accra in 2017.
Regardless of the reasons for the employment of low fresh graduates, it also suggests that companies in Ghana do not identify new and fresh batches of future business leaders and change makers. Of course, often a big business decision trying to decide between hiring a recent graduate or pursuing a more experienced workforce veteran, there are many pros and cons to consider, but offsetting the negatives, positive things about hiring fresh candidates can lead to a A wide range of business benefits and whatever the need to provide a fresh candidate their first job opportunity could prove to be an extremely wise long-term decision for a business.
It is also worth noting that most business players are already in the game with these fresh graduates employment through the Graduate Management Trainees program; which most candidates consider to be an unreasonable tactic with regard to some of the criterion used.
If you either think hiring fresh candidates is such an easy task, then you were best to revise your notes because one of the key “boardroom” arguments that arise in this kind of exercises is who decides to or recruiting fresh candidates – HR Manager or the finance or even both? In general, you would say HR, but could there be other reasons?
Some HR professional decisions to hire fresh graduates who are human resource development are elaborated as follows:
That fresh candidates are at a comfort level with new technology – Undoubtedly, one of the biggest benefits of hiring a candidate is his / her ability to navigate through new, innovative technology, especially new age computers and all their important work-related applications. Because part of the current workforce began their careers before computer technology took over the business world, unfortunately, a lot of individuals do not have the ability to follow many computer processes and applications. By being brought up in a generation that is more reliant on computer technology than ever, graduates will soon be able to learn all the computing applications of all companies.
Healthy candidates think long term – Although job positions need to be filled relatively quickly, a company should still consider the long-term opportunities for their newest possible employee. Undoubtedly, due to their new drive, students and college degrees are eager to climb all of their various business management issues. Thinking about the company’s long-term needs, hiring fresh candidates with a lot of momentum and potential can certainly be a much smarter business decision. With the ability to be trained and guided toward specific leadership roles, fresh graduates usually offer more flexibility than more experienced professionals.
Many fresh graduates are fast students with adaptability – When not taking the old adage, “you can’t teach an old dog new tricks” too literally, such candidates certainly have the ability to absorb, understand and execute new instructions and training at a much higher rate than older employees. Because they are fast learners with the ability to multitask, new graduates prove to be a better employment opportunity for a wide range of business opportunities. Eager and looking to quickly please their superiors, fresh graduates also offer companies the willingness to perform a lot of odd type of job jobs. Moreover, healthy candidates are usually more willing to help other colleagues when needed.
Fresh candidates are identified with new, innovative ideas and fresh perspectives – Candidates can add new ideas and apply current ideas from the academy. They are eager to understand how things are done, and are not afraid to ask “why?” This can prove useful for a business when analyzing old methods and developing efficiencies where possible. New in business, fresh graduates have not become accustomed to or cemented in a particular way of doing things from past roles. As such, they can bring an innovative, fresh new perspective to your organization as they also increase diversity within team work.
If none of the above reasons have convinced you, consider what economics professionals also consider as some of their decision-making tools for such hiring:
Graduates have lower salary expectations – Without a doubt, it is a goal for any business to save on costs and be profitable. Yes, you will have to pay for experience – and since it is a lack of experience that triggered this whole discussion in the first place, recent graduates are a cheaper alternative to more experienced employees because, because of their lack of experience, a company can offer a lower compensation package for employees. Now, this does not mean that a company has to pay newly graduated extremely low wages (ie wages that fall drastically below market rates). However, it provides the opportunity for businesses to hire a talented employee to a starting level and invest in developing that employee to become a top performing star in your organization.
Companies end up saving on annual staff costs – One of the main functions of a business is to make a profit through whatever trade, services or goods they offer. The biggest benefit that hiring such candidates provides a business is probably the lower cost of employers’ annual staffing costs. Since already established workers naturally demand a higher salary, many employers may be reluctant to pursue an older candidate and select new candidates with potentials.
Proven return on investment – It is believed that new candidates ideas and skills can make a huge difference to a company’s bottom line. For example, according to research by the Association of Graduate Recruiters (AGR), graduates contribute approximately £ 1 billion of added value to the UK economy on an annual basis.
Speed to value – Candidates learn faster and produce more immediate financial returns. They are more enthusiastic and willing to take on challenges. Candidates understand and have the ability to adapt to changes.
tax Savings – Hiring these candidates is associated with some tax benefits or savings as described in the Income Tax Act 2015 (Law 896). Finance executives with their cost minimization would like to benefit from Section 8 of Schedule Six to Act 896, which states that in calculating the income of a company by operating for one year with the assessment, the company is entitled to an additional deduction for pay and wages paid during the year to a new graduate from a recognized Ghanaian tertiary institution. To this end, the law defines “newly graduated” a person who has first graduated from a tertiary institution, regardless of whether that person was previously employed.
This means that if 1% of a company’s workforce consists of fresh graduates, that company is entitled to deduct 10% of the salaries and salaries paid to the fresh graduates as an additional deduction and if is more than 1% but less than 5% of the workforce, then 30% of their wages and wages are tax deductible. Also, 50% of their wages and salaries are tax deductible if more than 5% of the workforce are fresh candidates. Just do the calculation and you will be surprised!
Generally, obvious fresh candidates employment reduces candidate employment, improves organizational efficiency and financial performance, it is also evident that no “one man” makes a decision to hire fresh candidates, and such decisions have been taken into account for human development and financial strategy of the entity in question, making it more of a business decision than an HR or finance decision.
In fact, there are several reasons why companies in Ghana hardly recruit new graduates, ranging from inconsistencies between industry expectations and what the tertiary institutions offer for lack of usable skills, etc., but until we develop a sustainable entrepreneurial policy and infrastructure, the government and other Stakeholders will continue to rely on the private sector to absorb these candidates.