15 July is World Youth Skills Day, highlighting the importance of helping young people build the skills they need for work and entrepreneurship.
For many businesses, hiring young people is seen as a way to support the next generation and create career opportunities.
However, there are also clear financial advantages that make it an attractive recruitment strategy.
With employment costs continuing to increase, employers are under pressure to balance budgets while attracting the right talent.
As National Insurance Contributions (NICs) and the National Living Wage (NLW) rise, some businesses may wonder whether recruiting experienced employees offers the best return on investment or whether bringing in younger workers could deliver greater long-term value.
Recognising the benefits of developing early-career talent can help employers make more informed recruitment decisions, particularly when combined with specialist accounting advice.
Attracting experienced candidates can be costly. In many industries, competition for skilled professionals remains high, pushing salaries upwards and increasing recruitment fees.
Hiring young people can offer a more affordable alternative, giving businesses the chance to train and develop talent in-house rather than paying a premium for experience gained elsewhere.
While there is an upfront investment in training and support, developing a young employee is often more cost-effective than repeatedly recruiting experienced professionals from a limited talent pool.
There is also the advantage of shaping employees from the outset. Those entering a sector for the first time are less likely to bring habits or ways of working from previous roles, making it easier to train them in line with your business’s culture, processes and expectations.
Over the longer term, this approach can help create a skilled workforce while keeping recruitment costs under control.
For employers looking to invest in future talent, apprenticeships continue to offer a valuable and cost-effective route into recruitment.
Government support can help cover training costs and businesses that pay the Apprenticeship Levy can use their funds to support apprenticeship programmes.
This allows employers to grow their own talent pipeline without placing unnecessary strain on training budgets.
At the same time, apprentices contribute to day-to-day operations while gaining new skills, qualifications and practical experience, creating value for both the individual and the business.
Employers taking on young people may also be able to access funding through the Youth Jobs Grant Scheme, introduced on 30 June 2026.
The scheme offers a £3,000 grant for each eligible recruit and is expected to support up to 60,000 youth job opportunities across Great Britain over the next three years.
Payments are made in two instalments, with £1,800 available after six weeks and the remaining £1,200 paid after 18 weeks, subject to HMRC Real Time Information checks.
The grant is available to employers of all sizes and sectors across Great Britain that are registered with HMRC, have been trading for at least six months and successfully complete due diligence requirements.
Eligible recruits must be aged between 18 and 24 and have been unemployed while claiming Universal Credit for at least six months.
For businesses, the funding can help offset recruitment, onboarding and training costs while supporting a young person into meaningful, long-term employment.
Bringing young people into your business can deliver both immediate and long-term benefits.
Our experienced accountants can help you understand the financial impact of hiring young workers, identify available funding opportunities and ensure you make the most of any support on offer.
We can also assist with workforce planning, budgeting and cash flow management so your business is well placed to reinvest savings and support future growth.
For support with introducing young people into your workforce, get in touch today!
