Today, half the people on the planet are under the age of 30. Millennials are the first “always connected” generation and the best-educated people in history, but are affected by high unemployment rates, according to the International Labour Organization (ILO).
At the same time, organizations around the world are increasingly reliant on advanced technical skills in the emerging digital economy. By 2020, economies will face a shortage of the skilled talent needed to drive prosperity and social security. Forty million high-skilled workers – especially with science, technology, engineering, and math knowledge – are needed globally, according to McKinsey.
What role can the private sector play in solving these issues?
The situation presents organizations of all kinds with a major challenge, but also with a huge opportunity. Although there are many public and private sector initiatives supporting employment-related education, companies also must take seriously their social responsibility here. By supporting students and recent graduates on their way into employment and bridging the gap from academic into professional life, companies can impact the lives of 1 million people each year.
A best-in-class practice is the creation of a training and development institute (TDI) that puts the upskilling of local talent at the core of the growth strategy. The concept supports local unemployed youth by offering a host of programs tailored to bring business skills to those who already understand a region’s culture and society.
A unique approach to inspire youth and jointly tackle today’s challenges
TDI’s approach not only trains and enables the most talented local millennials, but also supports them in entering a corporate workforce or establishing their own businesses. For example, our program, designed for the Middle East and North Africa (MENA) region, has already helped more than 1,070 talented university graduates across 12 countries shape their careers, with 98% of participants placed into employment, largely in our ecosystem, after completion of the training program. Technology has the power to transform the lives of many people worldwide, and building strong public-private partnerships is key to ultimately shaping a better future for individuals, companies, and economies at scale.
True to a corporate vision of higher purpose, TDIs can help the world run better and improve people’s lives and expand that mission into additional fast-growth markets with significant skills shortages such as Brazil and Mexico. Moreover, its best practices have been adopted to support skills for Africa and a U.S. nonprofit organization that supports veterans.
As efficient solutions to the youth unemployment challenge are needed globally, this knowledge transfer inspires organizations across the globe to start looking into ideas and solving one of the most pressing issues of our time.
The urgency of the youth unemployment is a challenge, as indicated by the World Economic Forum. But a TDI centered on public-private partnerships canempower youth, create jobs, and, ultimately, drive economic growth in regions that need it.
By hosting these programs, the SAP Training and Development Institute has built skills and knowledge reflecting an in-country value of over US$110m to date. Read more about the SAP Training and Development Institute.