Absorption: A Crucial Approach to Reducing Youth Unemployment
Absorption is emerging as a crucial strategy to address South Africa’s high youth unemployment rate, especially through the framework of Broad-Based Black Economic Empowerment (B-BBEE). By incorporating unemployed learners into long-term employment after completing learnership programs, Absorption promotes sustainable job creation while benefiting companies through valuable B-BBEE scorecard points.
Understanding Absorption in the B-BBEE Context
Absorption refers to integrating learners or apprentices who have completed their learnership programs into permanent, long-term employment. This initiative is a key element of the B-BBEE strategy, aimed at empowering previously disadvantaged individuals and creating sustainable employment opportunities.
Rajan Naidoo, Managing Director of EduPower Skills Academy, explains that with the 2019 amendment to the B-BBEE Codes of Good Practice, the Absorption initiative goes beyond just offering jobs. Companies sponsoring learnerships and then absorbing these learners into their workforce not only earn up to five bonus points on their B-BBEE scorecards but also gain access to a pool of trained talent. These initiatives foster workforce diversity and provide opportunities for people with disabilities.
How Absorption Works
To qualify for Absorption points, companies must:
- Sponsor learnerships for unemployed individuals: These learnerships help participants gain both practical experience and formal qualifications.
- Provide long-term employment after graduation: After completing their learnerships, participants are integrated into the company’s workforce in roles related to their qualifications. This ensures that the investment in training translates into tangible employment opportunities.
EduPower, for example, has successfully implemented an Absorption program within its Business Process Outsourcing (BPO) environment, which has low barriers to entry and is inclusive for individuals who may not have completed Grade 12 or who have disabilities. Many of their graduates have transitioned into full-time positions, while others have even pursued self-employment.
Best Practices for Implementing Absorption
Naidoo highlights that companies looking to adopt Absorption should first focus on creating a human-centric culture that supports learner development. Companies should allocate not just funds but also resources to nurture learners, offering mentorship and work-readiness programs to ensure they are prepared for full-time employment.
A key part of this process involves addressing issues such as time management and absenteeism, which may hinder a learner’s ability to transition successfully into the workforce. By fostering a supportive and development-focused environment, companies can help learners improve their employability and long-term prospects.
Challenges and Future of Absorption
Looking ahead, Naidoo raises concerns about the transition to the Quality Council for Trades and Occupations (QCTO) framework. Companies may face difficulties earning Absorption points under this new system, as well as concerns about whether QCTO qualifications will be suitable for lower-level unemployed candidates. However, despite these challenges, Absorption remains a critical tool for tackling unemployment and driving economic growth.
Conclusion
Absorption offers far more than just employment opportunities—it provides young South Africans with a sustainable career path, giving them the skills, experience, and support needed for long-term growth. By integrating learnerships and Absorption into their B-BBEE strategies, companies can make a meaningful impact on both individual lives and the broader economy, fostering inclusivity and driving prosperity for the nation.
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