In order to survive, businesses need to constantly look ahead to predict and adapt to what the future may hold. And in terms of leadership planning, companies need to know how to identify young people whom they should invest in to carry on the organization’s legacy. But finding the right people may mean letting go of preconceived notions and unconscious biases of who may fit the bill. The oft-overlooked underserved, or “opportunity,” youth could be the best candidates.
Opportunity youth are people ages 16 to 24 who are neither students nor employees, and a disproportionate number of them are racial and ethnic minorities. Nonprofit research institute Measure of America reported that Native American youth have the highest rate of disconnection from school and work (25.8 percent), followed by black (17.2 percent), Latino (13.7 percent), white (9.2 percent) and Asian (6.6 percent) youth. Foster care youth are particularly underserved: From age 18 to 20, 24 percent of them have no income, and they remain below the poverty threshold well into their twenties.
This subgroup comes with several qualities that set them apart from their young peers.
For instance, although companies need to invest in young professionals, one major obstacle is that their priorities don’t always mesh with those of young workers. Millennials at the lower end of the age group are infamous for their high turnover rate as they search for a role that fulfills their professional and financial aspirations, while companies are increasingly less willing to dedicate resources to training and mentorship, especially to such a risky investment. But opportunity youth are decidedly “unmillennial” when it comes to company loyalty and retention. And that is not their only valuable trait.
Employees from underserved populations are also extremely engaged and hardworking, Fast Company reported. After being wholly disconnected from educational and career opportunities, they latch on tightly to a shot at a good job and the resulting positive impact on their lives.
In 2007 Gap Inc launched This Way Ahead, a life skills and on-the-job training program for opportunity youth. Through a recent study of the program’s impact, Gap found that the participants stay with the company twice as long as their peers on average and are more engaged than their coworkers.
And the financial payoff of an investment in opportunity youth is great. Their long-term commitment not only saves corporations the cost of high employee turnover, about 21 percent of an employee’s salary, but also ensures that they’ll stay long enough to contribute to the performance of the company that nurtured their career.
By hiring opportunity youth, therefore increasing workplace diversity, companies generally see an increase in revenue. Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Additionally, government workforce funding and tax credits also make investing in opportunity youth financially attractive. In the past 22 years, CVS Health has used a $1.7 million grant from the U.S. Department of Labor to train about 1,656 underserved youth (among other groups).
Opportunity youth are not different from other people their age. They are naturally fluent in tech and social media and can help companies quickly adapt to the inevitable rapid technological change. But because they’ve been so disconnected from educational and professional opportunities, companies need to give them a boost to transition them into the corporate workplace. Perhaps this means opportunity youth need more training and attention when they first begin their roles, but many companies also have lauded the fact that they can be molded to suit their individual needs. A round of training is often all it takes to bring young, eager, fast learners up to speed.
By actively recruiting underserved youth, who are often overlooked through traditional hiring processes, companies are setting themselves up for a successful future. This group has an incredible aptitude for professional development and leadership, high diversity and unmatched loyalty among the rest of the youth population, all of which can help companies transform with rapidly changing times.