2024 the year of the young? Companies will bet on “alumni”
Rising employment costs make entrepreneurs more and more willing to recruit young people who are still studying. However, labour market experts note that students are no longer treated as cheap labour. Companies invest in their development, because nowadays it is easier to raise an employee than to hire an experienced specialist.
Record low unemployment, an ageing society and the resulting decline in the number of people of working age have meant that we have been dealing with an employee’s market for some time now. However, entrepreneurs do not have so many reasons to be optimistic. As much as a twofold increase in the minimum wage in 2024 will be a considerable burden for many companies. It will also contribute to wage pressure from employees, who will not be affected by the systemic increases. Forced to look for savings, entrepreneurs are already reaching out for a generation that has just entered the labor market. The cost of maintaining an employee who is under 26 years of age is much lower.
– In 2024, the maintenance of one employee earning the national minimum wage will cost about PLN 62,000 per year. No wonder that employers are looking for solutions that will allow not only for the development of the company, but above all for reducing employment costs. In the case of many positions to be filled, which in the context of competence requirements are consistent with the qualifications of young people, employers will bet on them, because the income of a person up to 26 years of age is exempt from income tax up to an amount that does not exceed PLN 85,528 in a tax year – explains Marcin Chęsiak, Sales Director at LeasingTeam Group. “ In addition, in the case of employing students on the basis of a civil law contract, the employer does not have to pay health and social security contributions for them ,” adds Oliwia Szopa, lawyer, trainee attorney-at-law at LeasingTeam Group.
It is worth investing in employees
According to data from the Central Statistical Office of June 2023, two sectors of the economy are most dominated by young people: information and communication (including IT) and accommodation and catering. In the former, the median age is 35 years, and in the second, it is 37. A lot of young people are also employed in industry, trade and services. It can be seen that more and more people, mainly due to the rising cost of living, are trying to combine education with work. The matter has definitely been facilitated by the spread of remote or hybrid work. Interestingly, a certain pattern that has been common over the years is also changing. In the past, a young person took a job that allowed him to combine his professional duties with study, stayed in the company for one or two years at the most and looked for a better-paid job. Today, students can choose from a wide range of offers, and companies no longer treat them as temporary workers. According to experts, this trend will intensify in the coming years. Employers will strive to keep young people as long as possible and offer them a real path of development from the very beginning.
“In the face of rising labour costs, supervisors will want to make full use of the resources of young employees, scaling their potential and developing their skills, for example through training cycles. Thanks to this, they will be sure that despite the increase in costs after the employee is over 26 years of age, it is worth keeping them in a given position. Especially since such a person already knows the company’s organizational processes perfectly and has the ability to achieve specific business goals – explains Marcin Chęsiak, Sales Director at LeasingTeam Group.
The modern labour market is constantly evolving, posing new challenges to employers related to attracting and retaining employees. Investing in young employees in today’s world simply pays off – not only does it allow you to reduce labor costs here and now, but it also brings long-term savings to the company. Such activities improve the efficiency of the entire team, build employee loyalty and increase the attractiveness of the organization as an employer.
“The costs associated with time-consuming, not always successful recruitment or the very introduction of new employees from outside to the organization are undoubtedly much greater than the investment in the development of the current employees. No wonder that more and more companies, especially international corporations, invest in young people and develop their competences. Integrated with the company and knowing its needs, with the support of those more experienced, they can provide a solid foundation for the stability and development of the company – sums up Marcin Chęsiak, Sales Director at LeasingTeam Group.
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