The number of organisations who employ young people (aged 16-24) has risen to almost eight in ten (79 per cent), compared to less than three quarters (73 per cent) last year. New data from the CIPD, the professional body for HR and people development, launched during National Apprenticeship Week, also highlights that small and medium sized employers (SMEs) are lagging behind larger organisations when it comes to offering opportunities and engaging with young people

Employers are recognising the importance of bringing in young talent, but SMEs are falling behind larger organisations, according to new CIPD research.

The number of organisations who employ young people (aged 16-24) has risen to almost eight in ten (79 per cent), compared to less than three quarters (73 per cent) last year. New data from the CIPD, the professional body for HR and people development, launched during National Apprenticeship Week, also highlights that small and medium sized employers (SMEs) are lagging behind larger organisations when it comes to offering opportunities and engaging with young people.

The survey conducted as part of the CIPD’s Learning to Work programme, found that less than six in ten (58 per cent) of SMEs currently employ anyone aged 16-24, compared to more than nine in ten large organisations (93 per cent). Although the percentage of employers that currently offer entry-level opportunities aimed at young people has substantially increased over the last 12 months, up to 76 per cent from 65 per cent in 2013, SMEs are offering far fewer opportunities. The findings show that:

• The number of employers that report offering apprenticeships has risen dramatically to almost half (47 per cent), compared to less than a third (31 per cent) at the end of 2013. However, SMEs are less than half as likely to offer apprenticeships, with only 26 per cent reporting that they do compared to 62 per cent of larger organisations.

• Work experience is the most popular entry-level opportunity offered by employers; 64 per cent of larger organisations currently offer placements compared to 39 per cent of SMEs.

• The number of graduate schemes offered by SME employers is currently very low, with only 11 per cent of SMEs stating that they offer them, compared to 51 per cent of large employers.

• SMEs are also less likely to engage with local schools and colleges. Currently, more than two-thirds (70 per cent) of large employers work with local schools by doing things like arranging work place visits, offering work experience or providing volunteers to give talks in local schools, whereas just over a third (38 per cent) of SMEs do the same.

Katerina Rüdiger, head of volunteering and employability campaigns at the CIPD, said: “As employment levels continue to improve it’s encouraging to see that more organisations are employing young people and developing their own talent pipelines by doing so. Large employers in particular are more likely to offer a range of entry level opportunities compared to this time last year, including apprenticeships, graduate schemes and work experience placements. Many are also taking other steps to help young people, such as engaging with local schools and colleges, which shows a genuine commitment to supporting education to work transitions.

“However, as a high proportion of jobs in the UK are created by SMEs, it’s essential that they are also equipped to bring in and nurture younger workers and have the information they need to create a clear youth engagement strategy. Only once they too are engaged with tackling youth unemployment can we be confident that the problem has been truly cracked.”

Doug Shaw, director at What Goes Around Limited, said: “Big businesses are often in a better position to provide opportunities and support to young people as they enter the labour market. However, after taking time to talk to young people it became clear that even as a small business, I too can play a role in helping them. I’ve recently started offering student work placements and also signed up to Inspiring the Future, a fantastic initiative which allows schools and colleges to invite volunteers in to give careers talks and CV and interview advice sessions.”