Employment Of Recent Graduates By Companies In Ghana – HR Or Finance Decision Or Both?
Data from the University of Ghana’s Institute of Statistics, Social and Economic Research (ISSER) show that only 10 per cent of graduates find work after their first year of completing school and that it can take up to 10 years for a big job. number of graduates to secure employment due to various challenges ranging from lack of employable skills, unavailability of funding capital for entrepreneurship, poor graduate attitudes towards job opportunities, as well as low ability to industry to absorb the huge amounts. This was revealed by Mr. Kofi Asare, Education Consultant at the MasterCard Foundation Annual Learning Summit 2017 in Accra.
Regardless of the reasons behind the low employment level of recent graduates, it also suggests that companies in Ghana are failing to identify fresh new batches of future corporate leaders and change makers. Of course, it’s often a big business decision, trying to decide between hiring a recent grad or looking for a more experienced workforce veteran, there are many pros and cons to consider, but outweighing the negatives, The positive aspects of hiring recent graduates can lead to a wide range of business advantages, and no matter what the needs, giving recent graduates their first employment opportunity could prove to be an extremely wise long-term decision for a company.
It’s also worth noting that most industry players are already in the game of employing these recent graduates through the Graduate Management Trainees program; which most graduates consider an unfair tactic regarding some of the criteria used.
If you think hiring recent grads is such an easy task, then you better review your notes because one of the central “board room” arguments that arises in these types of exercises is who decides to hire or recruit recent grads: the HR or finance manager or even both? Generally it will say HR, but could there be other reasons?
The decisions of some HR professionals about the employment of recent graduates who are HR capacity and development are made as follows:
Getting new graduates comfortable with new technology – Without a doubt, one of the biggest advantages of hiring a graduate is their ability to navigate through new and innovative technology, especially state-of-the-art computers and all your essential work-related applications. Because a portion of today’s workforce began their careers before computer technology took over the business world, many people unfortunately do not have the ability to follow many computer processes and applications. Growing up in a generation that is more dependent on computer technology than ever before, recent graduates will be able to quickly learn all of a company’s computer applications.
Recent graduates think long term – Although jobs need to be filled relatively quickly, a company must still consider the long-term capabilities of its newest possible employee. Undoubtedly, due to its new momentum, students and college graduates are eager to escalate all their various business management affairs. When thinking about the long-term needs of your company, hiring recent graduates with a lot of drive and potential could definitely be a much smarter business move. With the ability to be trained and oriented toward specific management roles, recent graduates typically offer more flexibility than more seasoned professionals.
Many recent graduates are fast learners with adaptability: Without taking the old saying “you can’t teach an old dog new tricks” too literally, these graduates definitely have the ability to absorb, understand and execute new instructions and training at a much higher rate than older members of the force. labor. Also, because they are quick learners with the ability to multitask, recent graduates prove to be a better hiring choice for a wide range of business options. Eager and quick to please their superiors, recent graduates also offer companies a willingness to do many kinds of odd office work. On top of that, recent graduates are often more willing to help out other coworkers when needed.
Recent graduates identify with new, innovative ideas and fresh perspectives – Graduates can inject new ideas and apply current thinking from academia. They are interested in understanding the way things are done and are not afraid to ask “why?” This can be useful for a company when looking at old methods and developing efficiencies where possible. New to the corporate world, recent graduates have not become accustomed or cemented to a particular way of doing things from previous roles. As such, they can bring a fresh and innovative new perspective to your organization, as they also increase diversity within teamwork.
If none of the reasons above have convinced you, consider what Finance professionals also consider to be some of their decision tools for such a job:
Recent graduates have lower salary expectations – Without a doubt, it is an objective of any business to save on costs and be profitable. Yes, you will have to pay for experience, and since it’s the lack of experience that sparked all this debate in the first place, recent graduates are a cheaper alternative to more experienced employees because, due to their lack of experience, a company may offer a lower employee compensation package. Now, this does not mean that a company should pay recent graduates extremely low wages (ie, wages that fall drastically below market rates). However, it provides the opportunity for companies to hire a talented employee at an entry-level price and invest in developing that employee to become a high-performing star within their organization.
Companies end up saving on annual personnel costs – One of the primary functions of a business is to make a profit through any specific trades, services, or goods that they offer. Probably the biggest advantage that employing such graduates gives a company is the lower cost of employers’ annual personnel cost. Since established workers naturally require a higher salary, many employers may be reluctant to look for an older candidate and opt for recent graduates with potential.
Proven return on investment – It is believed that the ideas and skills of recent graduates can make a big difference in the results of a company. For example, according to research by the Association of Graduate Recruiters (AGR), graduates contribute approximately £1 billion of added value to the UK economy annually.
Value speed – Graduates learn faster and provide more immediate financial returns. They are more enthusiastic and willing to take on challenges. Graduates understand and have the ability to adapt to change.
tax savings – The employment of these graduates is associated with some tax benefits or savings as stipulated in the Income Tax Law of 2015, (Law 896). Finance managers with their cost minimization campaign will want to take advantage of Section 8 of Annex Six of Law 896 which says that when calculating a company’s income from conducting business during an assessment year, the company is entitled to a deduction additional. for wages and salaries paid during the year to a recent graduate of a recognized Ghanaian tertiary institution. For this purpose, the Act defines “recent graduate” as a person who has graduated from a tertiary institution for the first time, whether or not that person was previously employed.
This means that, if 1% of a company’s workforce is made up of recent graduates, said company is entitled to deduct as an additional deduction 10% of the wages and salaries paid to recent graduates and if it is greater than 1% but less than 5% of the workforce, then 30% of their wages and salaries is deductible. Also 50% of their wages and salaries is deductible if more than 5% of the workforce are recent graduates. Just do the math and you will be surprised!
Conclusion
In general, it is obvious that employment of recent graduates reduces graduate employment, improves organizational efficiency and financial performance, it is also evident that no “man” makes the decision to employ recent graduates and such decisions are made taking into account human development and financial strategy. of the entity in question, making it more of a corporate decision than a HR or finance decision.
In fact, there are several reasons lined up why companies in Ghana hardly hire fresh graduates ranging from mismatch of industry expectations and what tertiary institutions offer to lack of employable skills etc. but Until we develop a sustainable business policy and infrastructure, the government and other stakeholders will continue to rely on the private sector to absorb these graduates.