Feeling the pressure to accelerate your company's digital growth? Don't look to a generic playbook for help. We've got a better solution.
Team update: A lot has happened since this blog - all great things! We’re now in the United States and our new product launched in November 2021, helping teams in fast-growing organisations find and hire their best-fit junior and mid-level talent in Sales, Marketing, Operations, and Customer Success. Try it here for free. This means some of our articles before this date may have product shots that look a little different. That’s all from us, enjoy the blog.
Peter Thiel famously said that all successful startups are sitting on a secret. Ours? The power of young people.
I spent the better part of the last decade building THE ICONIC; which is where I discovered this secret. The business entered a local retail market in 2011 that only believed in eCommerce as an online realisation of a terrible bargain bin. THE ICONIC rejected this status quo and created a new vision that transformed online shopping for Australians.
But how did that all happen? It wasn’t through complex strategies. Or luck. It was through energy, drive, fresh thinking, and embracing new digital paths to growth. All of that came from a bunch of 20-somethings, excited and united by a shared vision.
In 2020, we find ourselves perched delicately on a raging wave of change. One that is catapulting businesses and industries into the digital economy, faster than even the most aggressive predictions. And there’s a growing gap between the businesses who survive and those who thrive in this change - and young talent has a lot to do with it.
Many employers have already embraced this secret. If you haven’t yet - welcome to the party!
2. What Covid-19 really means for the next generation
We know the grim effects of the pandemic and its resulting recession will be broadly felt. For young people in particular, we must act now to avoid a long term impact on their future prospects.
Here’s what they’re up against.
Youth unemployment is now 14.3%, more than double the rate of unemployment (6.8%). Graduate programs have been slashed and casual jobs have plummeted. To avoid long-term unemployment or scarringas a result of Covid-19, young people need to move swiftly into the labour market. Importantly, they need meaningful work that allows them to build their skills and prove themselves to their employer.
In the case that they do find a job - which is tough as there are 106 jobseekers for every entry-level role right now - they face significant earnings losses that take years to rebuild. Recent EY research found that 70% to 90% of an individual's total lifetime income growth occurs in the first 10 years after they enter the workforce. An incredible statistic. Layer that insight with the fact that wage growth in Australia slumped to its lowest rate in 23 years in the June 2020 quarter and the outlook isn’t great for our next generation.
3. Young people as a catalyst to innovation and growth
There is a silver lining to this equation - we need young people in our teams now, more than ever.
President Obama once observed “When you engage young people, and take them seriously, what they can do is remarkable.” His campaigning and administration was famous for its successful engagement of young people; revolutionising American politics for the digital age.
This is an insight we see mirrored daily in feedback surveys from managers of Hatch placements.
“Exceptionally talented, they take on defined projects and deliver outcomes for what would otherwise be impossible to do.” - Heath , Manager at Westpac
“They show initiative, are happy to take on more work, ask questions when they don’t understand and are keen to learn as much as possible.” - Ana, Manager at WooliesX
They’re sharp and able to autonomously dig into problems, even if it’s the first time they’re seeing it.” - Daniel, Manager at Ikaros
Having matched over 1,000 young people to Australian employers, we’ve observed a few key themes around their impact:
As digital natives, they drive growth and innovation, by finding solutions that match the pace of change and technological disruption we’re all experiencing. WooliesX is doing a fantastic job of engaging new thinking right across their organisation.
The diversity of their backgrounds has enabled companies to create a more inclusive and high-performing workforce. This rings true for JP Morgan who’ve leveraged Hatch to reach a broader talent pool, with a focus on gender and thinking style diversity. 56% of the Hatch students placed there have been female, and 80% of placements have been in software engineering and analyst roles.
They present an opportunity to upskill and reskill your existing employees through mutual learning that drives teams forward.
Their contributions are value-adding to teams. We frequently see 3-6 month Hatch placements convert to full-time roles. Once these teams have experienced the tangible benefits of their young team member, it’s hard to go back.
There’s no playbook for how to navigate the pandemic and the recovery, so companies must empower their employees to try new approaches and learn. Young people are a catalyst for this; they bring fresh perspectives to your existing challenges free from status quo thinking. Now it's your time to give them a try.
4. Why the time is now
You'll save money. In a time when cost consciousness matters, the JobMaker hiring credits give you substantial wage savings to make the business case for hiring a young person stack up. You can do the calculation here.
You'll get much needed help. There’s no doubt everyone running a team is stretched right now; finding your way through a fast-changing environment and avoiding Zoom fatigue! Bringing in young talent can help alleviate that stretch and introduce critical new skills to your team.
You'll accelerate your digital growth. Digital laggards will be substantially disadvantaged in the recovery from this recession. All companies will continue to see a dramatic uptick in the use of digital services and channels; from their social media to their customer support. Young people can be instrumental in accelerating your response to evolving customer needs with their instinct and ability to solve problems with digital tools.
You'll be supporting economic recovery. From a macroeconomic perspective, creating roles for young people now will contribute to a virtuous cycle of employment, confidence and consumer demand. JobMaker directs money to employers who’ll create jobs, setting up a critical pipeline to develop the skills and capabilities of young people across a range of industries to support Australia’s overall economic recovery.
5. Creating meaningful opportunity for the next generation
How did you get your foot in the door when you started your career?
Now imagine if that opportunity hadn’t existed - or any others like it. My first few jobs: a barista, an in-person salesman, and an event coordinator. All of them formative learning experiences, and all of them would have been impacted by Covid-19.
For young people entering the workforce for the first time, it's more than just a job and income. It’s independence, economic security, and an opportunity they can harness to set themselves up for the future. Whether they’re your child, a relative, mentee or someone you pass on the street - those are things you’d want for any young person.
Let's sure up our future. Businesses who do their bit to create a new role for a young person are collectively building the opportunity for Australia to be a leader in the new economy - one characterised by digital information, by values-driven decisions, and by critical thinking. Covid put a pause on many things, now it’s time to press play on innovation and adapt to the digital economy.
