HARAMBEE YOUTH EMPLOYMENT ACCELERATOR Employer-founded initiative - - PowerPoint PPT Presentation

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HARAMBEE YOUTH EMPLOYMENT ACCELERATOR

• Employer-founded initiative to facilitate successful

employment and retention of young unemployed work seekers to grow the entry level labour pool in South Africa

WHAT IS HARAMBEE?

• 10,000 placed by end of 2014 (>8000 completed)
• Beat industry retention averages for >1 year (on track)
• Place, retain and progress first-time work seekers

WHAT IS OUR TARGET?

“A young South African who gets and keeps a first job for 12 months or more, has an 85% chance of being employed for the rest of their lives.” (DBSA, 2010)

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HARAMBEE PERFORMANCE SCORECARD

A national presence serving all 9 provinces On track to complete 10 000 placements by end of 2014

150 750 4500 6000 7800 10000 2000 4000 6000 8000 10000 Dec-11 Dec-12 Dec-13Mar-14 Jul-14 Oct-14

Johannesburg Cape Town Durban Port Elizabeth Expanded reach to employers and candidates Number of partner employers Number of candidates sourced Number of candidates assessed Retention at 12- month mark Performance to date 75 employers in 7 sectors >250 000 > 77 000 with over 350 000 tests Meeting or beating industry benchmarks

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HARAMBEE’S EMPLOYER PARTNERS

Financial services Business Process Outsourcing Retail Hospitality Logistics/infrastructure SMMEs Business Services / Consulting

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HARAMBEE HAS BUILT A STRONG BRAND IN ITS TARGETED CANDIDATE POOL

Source: Yellowwood “BUILDING BRANDS IN A RAPIDLY CHANGING MARKET:” – May 2014

HARAMBEE RANKED 7TH FAVOURITE BRAND AMONGST SOUTH AFRICA’S LOWER-INCOME EARNERS

“They are committed” “They help to make a difference to the youth”

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HARAMBEE VALUE PROPOSITION

ASSESS SCREEN

SOURCE

BRIDGE PLACE RETAIN

DEMAND CONTRACTING

Profile employers and work

• pportunities

Target youth at risk of long- term unemployment Source and create access difficult to reach candidates Match potential, behavioural attributes and competence Fit-for-purpose work- readiness competence and behaviour interventions Facilitate placement Support and track retention

FOR EMPLOYERS: develop a pool of work ready entry level recruits able to integrate into and perform in the workplace, retaining employment and with the ability to progress FOR YOUNG WORK-SEEKERS: facilitate the absorption and retention of poor youth, at risk of long term unemployment into sustained employment in the formal economy.

HARAMBEE VALUE PROPOSITION HOW WE DO IT – 7 STEP PROCESS TO BRIDGING DEMAND AND SUPPLY DATA DRIVEN SYSTEMS AND INSIGHTS

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RECENT INNOVATIONS AT HARAMBEE

BUSINESS CONSULTING & DATA ANALYTICS OFFERING Accuracy, attention to detail, analytical problem solving, quality assurance, professionalism HARAMBEE VALUE CHAIN NOW SUPPORTS CANDIDATES WITH DISABILITIES SMME SERVICE OFFERING INCLUDING HR TOOLKIT MINING PILOT: FITNESS “BOOTCAMP” 77% medical assessment pass rate vs 8% benchmark NEW RETAIL AND HOSPITALITY BRIDGE Irregular hours, on- feet, customer service simulation NEW SUITE OF SOLUTIONS FOR PRE-TECHNICAL ROLES Machine operators, forklift drivers and lab assistants

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LEARNINGS ABOUT PERFORMANCE IN THE WORLD OF WORK

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ATTRITION IS HIGHEST DURING THE FESTIVE SEASON, ESPECIALLY IN RETAIL / HOSPITALITY

17% 18% 7% 4% 7% 6% 4% 5% 2% 2% 7% 24% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month of resignation – ~60% of attrition occurs in December - February

This insight applies, regardless of when candidates started work

Source: Harambee Knowledge Team Analysis

POSSIBLE DRIVERS OF HIGH ATTRITION:

• Casual/temp contracts for

seasonal work

• Long, irregular hours over

the festive season, including transport challenges

• Compounded by perceptions
• f hospitality / retail as a short-

term job rather than the start

• f a long-term career

SETTLING EMPLOYEES IN BEFORE THE HIGH RISK PERIOD IS CRITICAL

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INITIAL TRANSPORT COSTS AS A BARRIER

Source: Harambee Knowledge Team Analysis

Initial transport costs pose challenges

A one-ride return trip to work will cost ~R25, a two-ride ride journey will be >R40. Taxi costs double after 8pm

11% 3% 3% 2% 3% 79% 0% 20% 40% 60% 80% >40% 31-40% 21-30% 11-20% 1-10% 0%

Interest charges on loans

Borrow 57% Someone else pays 41% Savings 2% Work 2 jobs <1%

How candidates cover expenses before their first paycheck

Rands per day to live on Monthly earnings R2,000 R2,500 Daily Transport Costs 25 49 66 35 42 59 50 32 48

Assumes candidates work 21 days / month and 30 day month

Importance of catchment areas

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85% 72% 0.4 0.5 0.6 0.7 0.8 0.9 1 0% 5% 10%15%20%25%30%35%40%45%50% Retention Share of monthly take-home pay spent on transport

Relationship: share of pay spent

• n transport and retention

Retention for those who spent less than % share of monthly salary on transport Retention for those who spent more than % share

• f monthly salary on transport

Note: Average monthly transport costs calculated as = [365/(12x7)] x (Average number of days worked per week) x (Average daily transport costs) 20% 24% 27% 24% 0% 5% 10% 15% 20% 25% 30%

Financial Services Business Process Outsourcing Retail and hospitality Overall

Average: share of pay spent on transport

Source: Harambee Knowledge Team Analysis

TRANSPORT COSTS CAN BE A KEY DRIVER FOR RETENTION

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WORK SEEKER POTENTIAL AND SKILLS

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EMPLOYERS WHO SCREEN CANDIDATES OUT ON NUMERACY MAY MISS HIGH POTENTIAL TALENT

Source: Harambee Knowledge Team Analysis

Learning potential score 1 2 3 4 5 6 7 8 9 10 Numeracy score 1

3 5 14 4 34 45 12 3 1

2

9 25 42 33 135 144 66 16 5

3

8 9 74 64 261 228 142 39 12 6

4

10 8 49 50 186 239 188 47 19 1

5

3 19 24 91 140 124 52 18 7

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1 1 2 10 26 45 55 32 22 1

7

3 8 14 19 10 6

8

2 6 5 5 3 3

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1 3

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Comparison of learning potential and numeracy scores 75% have “low” numeracy scores 84% have the required learning potential for most entry level jobs The correlation between learning potential and numeracy scores is weak, at 32% 61% of assessed sample candidates have high learning potential, but have low numeracy scores

Sample size: 2,998

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CANDIDATE PROFILE AND LEARNINGS

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MOST OF OUR CANDIDATES ARE LIVING IN POVERTY, WITH NO LINK TO THE FORMAL ECONOMY

Source: Harambee Knowledge Team Analysis

60% rely on government support, 19% of households have no grant / employment income The average income earner supports > 4.6 other persons 40% of candidates have children of their own 16% live in informal dwelling/shacks, squatter settlements or shelters

Professional, 14% Manager, 6% General worker, 28% Security Guard, 10% Domestic Work, 26% Self Employed, 16%

Scenarios - monthly income (for income earners) Estimated income per person* 1000 250 2000 499 3000 748 4000 997 5000 1 246

* Taking into account grant income, estimated salary level and assuming income is disbursed equally among household members

Where household employment exists, >80% is low-paid or vulnerable employment

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Few candidates have friends from further studies who could help them find work Our candidates cannot rely on previous work colleagues to help them find a job Candidates’ school-friends are likely to be unemployed Candidates live in households with no / limited access to the formal economy

Yes 52% No 48%

Ever had a job

22% 26% 27% 8% 17% Less than 3 months 3-6 months 6-9 months 9-12 months More than 1 year

Length of prior work experience

1% 2% 2% 3% 3% 7% 10% 13% 60% Did not finish matric Certificate Other Degree NCV N-Level Diploma Short Course Matric

Highest qualification of candidates

7% 9% 31% 53% Model C government school Other Rural government school Township government school

Type of school attended by candidates

1 in 3 candidates live in households where none of the adults have passed matric 15% of candidates are the oldest person in their household 60% of candidates have not studied since matric

Almost 85% attended a township / rural government school

CANDIDATES NEED NETWORKS TO ACCESS THE ECONOMY

Source: Harambee Knowledge Team Analysis