HARAMBEE YOUTH EMPLOYMENT ACCELERATOR Employer-founded initiative - PowerPoint PPT Presentation

HARAMBEE YOUTH EMPLOYMENT ACCELERATOR • Employer-founded initiative to facilitate successful WHAT IS employment and retention of young unemployed work HARAMBEE? seekers to grow the entry level labour pool in South Africa • WHAT IS 10,000 placed by end of 2014 (>8000 completed) OUR • Beat industry retention averages for >1 year (on track) TARGET? • Place, retain and progress first-time work seekers “A young South African who gets and keeps a first job for 12 months or more, has an 85% chance of being employed for the rest of their lives.” (DBSA, 2010) 2

HARAMBEE PERFORMANCE SCORECARD On track to complete 10 000 A national presence serving placements by end of 2014 all 9 provinces 10000 8000 Johannesburg 6000 10000 4000 7800 Durban 4500 6000 2000 750 150 Cape 0 Port Elizabeth Town Dec-11 Dec-12 Dec-13Mar-14 Jul-14 Oct-14 Expanded reach Number of partner Number of Number of Retention at 12- to employers and employers candidates candidates month mark candidates sourced assessed Performance to 75 employers in 7 >250 000 > 77 000 with over Meeting or beating date sectors 350 000 tests industry benchmarks 3

HARAMBEE’S EMPLOYER PARTNERS Financial services Business Services / Consulting Business Process Outsourcing SMMEs Retail Hospitality Logistics/infrastructure 4

HARAMBEE HAS BUILT A STRONG BRAND IN ITS TARGETED CANDIDATE POOL “They are HARAMBEE committed” RANKED 7 TH FAVOURITE BRAND AMONGST “They help to SOUTH AFRICA’S make a LOWER-INCOME difference to EARNERS the youth” 5 Source: Yellowwood “ BUILDING BRANDS IN A RAPIDLY CHANGING MARKET :” – May 2014

HARAMBEE VALUE PROPOSITION HARAMBEE VALUE PROPOSITION FOR EMPLOYERS: develop a pool of work ready entry level recruits able to integrate into and perform in the workplace, retaining employment and with the ability to progress FOR YOUNG WORK-SEEKERS: facilitate the absorption and retention of poor youth, at risk of long term unemployment into sustained employment in the formal economy. HOW WE DO IT – 7 STEP PROCESS TO BRIDGING DEMAND AND SUPPLY DEMAND SOURCE SCREEN ASSESS BRIDGE PLACE RETAIN CONTRACTING Profile Source and Target youth Match Fit-for-purpose Facilitate Support and employers and create access at risk of long- potential, work- placement track retention work difficult to term behavioural readiness opportunities reach unemployment attributes and competence candidates competence and behaviour interventions DATA DRIVEN SYSTEMS AND INSIGHTS 6

RECENT INNOVATIONS AT HARAMBEE NEW SUITE OF NEW RETAIL AND SOLUTIONS FOR HOSPITALITY PRE-TECHNICAL BRIDGE ROLES Irregular hours, on- Machine operators, feet, customer forklift drivers and lab service simulation assistants MINING PILOT: FITNESS SMME SERVICE “BOOTCAMP” OFFERING 77% medical INCLUDING HR assessment pass TOOLKIT rate vs 8% benchmark BUSINESS CONSULTING & DATA HARAMBEE VALUE ANALYTICS OFFERING CHAIN NOW Accuracy, attention to detail, analytical SUPPORTS problem solving, quality assurance, CANDIDATES WITH professionalism DISABILITIES 7

LEARNINGS ABOUT PERFORMANCE IN THE WORLD OF WORK 10

ATTRITION IS HIGHEST DURING THE FESTIVE SEASON, ESPECIALLY IN RETAIL / HOSPITALITY SETTLING EMPLOYEES IN BEFORE THE HIGH RISK PERIOD IS CRITICAL POSSIBLE DRIVERS OF HIGH Month of resignation – ~60% of ATTRITION: attrition occurs in December - February • 24% Casual/temp contracts for seasonal work 17% 18% • Long, irregular hours over the festive season, including transport challenges 7% 7% 7% 6% 5% 4% 4% • Compounded by perceptions 2% 2% of hospitality / retail as a short- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec term job rather than the start of a long-term career This insight applies, regardless of when candidates started work 11 Source: Harambee Knowledge Team Analysis

INITIAL TRANSPORT COSTS AS A BARRIER Initial transport costs pose challenges How candidates cover expenses before Interest charges on loans their first paycheck Work 2 jobs 0% 79% Savings <1% 2% 1-10% 3% 11-20% 2% Someone 21-30% 3% else pays 41% 31-40% 3% Borrow 57% >40% 11% 0% 20% 40% 60% 80% Importance of catchment areas Monthly earnings Rands per day to live on A one-ride return trip to work will cost R2,000 R2,500 ~R25, a two-ride ride journey will be >R40. Taxi costs double after 8pm Transport 25 49 66 Costs Daily 35 42 59 50 32 48 Assumes candidates work 21 days / month and 30 day month 12 Source: Harambee Knowledge Team Analysis

TRANSPORT COSTS CAN BE A KEY DRIVER FOR RETENTION Average: share of pay spent on Relationship: share of pay spent transport on transport and retention Retention for those who spent less than % share of monthly salary on transport Retention for those who spent more than % share Overall 24% of monthly salary on transport 1 0.9 85% Retail and hospitality 27% 0.8 Retention 0.7 72% Business Process 24% Outsourcing 0.6 0.5 0.4 Financial Services 20% 0% 5% 10%15%20%25%30%35%40%45%50% Share of monthly take-home pay spent on transport 0% 5% 10% 15% 20% 25% 30% Note: Average monthly transport costs calculated as = [365/(12x7)] x (Average number of days worked per week) x (Average daily transport costs) 13 Source: Harambee Knowledge Team Analysis

WORK SEEKER POTENTIAL AND SKILLS 14

EMPLOYERS WHO SCREEN CANDIDATES OUT ON NUMERACY MAY MISS HIGH POTENTIAL TALENT Comparison of learning potential and numeracy scores The correlation between Learning potential score learning potential 1 2 3 4 5 6 7 8 9 10 and 1 3 5 14 4 34 45 12 3 1 75% have numeracy “low” scores is 2 9 25 42 33 135 144 66 16 5 weak, at numeracy 3 8 9 74 64 261 228 142 39 12 6 Numeracy score 32% scores 4 10 8 49 50 186 239 188 47 19 1 5 3 19 24 91 140 124 52 18 7 6 1 1 2 10 26 45 55 32 22 1 7 3 8 14 19 10 6 61% of assessed sample 8 2 6 5 5 3 3 candidates have high 9 1 3 learning potential, but have low numeracy 10 1 scores 84% have the required learning potential for most entry level jobs Sample size: 2,998 15 Source: Harambee Knowledge Team Analysis

CANDIDATE PROFILE AND LEARNINGS 16

MOST OF OUR CANDIDATES ARE LIVING IN POVERTY, WITH NO LINK TO THE FORMAL ECONOMY 60% rely on government support, 19% of households have no grant / employment income The average income earner supports > 4.6 other persons 40% of candidates have children of their own 16% live in informal dwelling/shacks, squatter settlements or shelters Where household employment exists, Scenarios - monthly >80% is low-paid or vulnerable Estimated income income (for income per person* employment earners) Professional, 14% 1000 250 Self Employed, Manager, 6% 16% 2000 499 3000 748 Domestic General Work, 26% 4000 997 worker, 28% 5000 1 246 * Taking into account grant income, estimated salary level and assuming income is disbursed equally among household Security members Guard, 10% 17 Source: Harambee Knowledge Team Analysis

CANDIDATES NEED NETWORKS TO ACCESS THE ECONOMY Candidates live in households with no / Our candidates cannot rely on previous work limited access to the formal economy colleagues to help them find a job Length of prior work Ever had a job experience 1 in 3 candidates live in households where none of the adults have passed matric More than 1 year 17% No 9-12 months 15% of candidates are the oldest person in 8% Yes 48% their household 6-9 months 27% 52% 3-6 months 26% Less than 3 months 22% Candidates’ school-friends are Few candidates have friends from further likely to be unemployed studies who could help them find work Type of school attended by candidates Highest qualification of candidates Matric 60% Township government school 53% Short Course 13% Diploma 10% 60% of Rural government school 31% N-Level 7% candidates have NCV 3% not studied since Other Almost 85% attended 9% Degree 3% a township / rural matric Other 2% government school Certificate 2% Model C government school 7% Did not finish matric 1% 18 Source: Harambee Knowledge Team Analysis