15 July marks World Youth Skills Day, which is a day to celebrate the importance of equipping young people with the skills they need for employment and entrepreneurship.
While hiring young people is often viewed as a way of creating opportunities and supporting career development, it can also deliver a range of financial benefits for employers.
Rising employment costs have created a challenging environment for employers wanting to hire young people.
With National Insurance Contributions (NICs) and the National Living Wage (NLW) on the up, it can seem challenging to know whether it is more financially viable to hire based on experience or to hire younger staff.
Having a clear sense of the value of those starting their careers is beneficial, especially if this is paired with strong accounting support.
Reducing recruitment costs
Recruiting experienced employees can be expensive. In many sectors, employers are competing for a limited pool of skilled candidates, leading to rising salary expectations and increased recruitment fees.
Hiring younger workers allows businesses to develop talent internally rather than paying a premium for experience gained elsewhere.
While training and support are required, the overall cost of recruiting and developing a young employee can often be lower than repeatedly hiring experienced professionals from an increasingly competitive market.
Additionally, when hiring and training someone who has never worked in the sector, the worry of bad habits picked up elsewhere is gone, as you can bend them to fit in line with your company’s standards.
Over time, this can help businesses create a more sustainable and cost-effective talent pool.
Apprenticeship funding
Apprenticeships remain one of the most financially attractive routes for employers looking to recruit new talent.
Government funding can help cover training costs and businesses that pay the Apprenticeship Levy can use those funds to support apprenticeship programmes.
This means employers can invest in developing skilled employees while keeping training costs under control.
Apprentices also contribute to the business while they learn, allowing organisations to benefit from productive team members while helping them gain valuable qualifications and practical experience.
The Youth Jobs grant
Employers hiring young people may benefit from the Youth Jobs Grant Scheme, launched on 30 June 2026.
It offers employers across Great Britain a £3,000 grant for each eligible recruit, supporting up to 60,000 youth job opportunities over three years.
Funding is paid in two stages: £1,800 after six weeks and £1,200 after 18 weeks, subject to HMRC Real Time Information checks.
The scheme is open to employers of all sizes and sectors that operate in Great Britain, are registered with HMRC, have traded for at least six months and pass due diligence checks.
It applies to recruits aged 18 to 24 who have been unemployed and claiming Universal Credit for at least six months.
The grant can help reduce recruitment, onboarding and training costs while supporting a young person into sustained employment.
How can we help?
Investing in young people is an investment in the future of your business.
Our experienced accountants can help you identify funding linked to hiring young people and assess the financial benefits for your business.
We can also support workforce budgeting and help you reinvest savings into business growth.
For support, get in touch today!
