The Youth Employment Service (Y.E.S) initiative is a transformative program in South Africa aimed at tackling youth unemployment by creating job opportunities and improving employability. Launched in March 2018 by President Cyril Ramaphosa, the Y.E.S initiative is a partnership between government, business, and labor, designed to give young South Africans aged 18 to 35 a platform to gain work experience, enhance their skills, and build their career paths.
The initiative is integrated into the Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice, allowing businesses that participate in Y.E.S to improve their BEE score by up to two levels. This dual focus on youth empowerment and economic transformation makes the Y.E.S initiative a critical component of South Africa’s socio-economic development strategy.
What is the Purpose of the Y.E.S Initiative?
The primary purpose of the Y.E.S initiative is to address South Africa’s high youth unemployment rate by:
- Creating Employment Opportunities: By incentivising businesses to create one-year work opportunities for unemployed youth, the initiative bridges the gap between education and employment.
- Enhancing Employability: The Y.E.S program equips young people with practical work experience and skills, increasing their chances of securing permanent employment.
- Driving Economic Transformation: The initiative supports B-BBEE transformation goals by empowering previously disadvantaged groups, thereby promoting inclusivity in the workforce.
Through structured work placements, young participants develop essential workplace skills, including problem-solving, communication, and technical expertise, making them more competitive in the job market.
How Does the Y.E.S Initiative Work?
The Y.E.S initiative is a voluntary program for businesses that want to contribute to youth empowerment while enhancing their BEE compliance. Participating companies are required to:
- Create New Job Opportunities: Businesses must create fixed-term job placements for unemployed youth aged 18 to 35. These opportunities must be additional positions that do not replace existing roles.
- Provide Work Experience and Training: The program mandates that youth receive meaningful work experience and on-the-job training to enhance their employability.
- Register on the Y.E.S Platform: Companies must register on the Y.E.S digital platform, which monitors and verifies placements, training, and participant progress.
In return, businesses that meet the Y.E.S compliance requirements are eligible for a B-BBEE level upgrade. Depending on the number of youth employed and the duration of placements, companies can improve their BEE status by one or two levels.
Benefits of the Y.E.S Initiative
1. Youth Empowerment and Skills Development
The Y.E.S initiative provides youth with valuable work experience, helping them build critical workplace skills that enhance their employability. Through mentorship and training, participants develop essential skills such as communication, teamwork, and problem-solving, preparing them for long-term careers.
2. Economic Growth and Social Transformation
By reducing youth unemployment, the initiative contributes to economic growth and social stability. Employing young people boosts household incomes and stimulates local economies, leading to positive social transformation.
3. BEE Level Enhancement for Businesses
One of the most attractive benefits for businesses is the potential to improve their BEE score by participating in the Y.E.S initiative. Companies that meet the required targets can enhance their BEE compliance by up to two levels, gaining a competitive advantage in government tenders and procurement processes.
4. Tax Incentives and Financial Savings
Companies that participate in the Y.E.S initiative can benefit from tax incentives for providing accredited training and mentorship. Additionally, the initiative allows businesses to claim 50% of training expenses as informal skills development expenditure on the B-BBEE Scorecard.
5. Positive Corporate Image and Social Responsibility
Businesses that participate in Y.E.S demonstrate corporate social responsibility and a commitment to youth empowerment. This enhances their reputation and brand loyalty, positioning them as socially responsible employers.
Y.E.S Initiative Requirements for Buisnesses
To qualify for the Y.E.S initiative and earn BEE level enhancements, businesses must:
- Create a Minimum Number of Jobs: The number of job opportunities required depends on the size of the company and its annual revenue.
- Comply with Quality Work Experience Standards: Jobs must provide meaningful work experience that contributes to the professional development of the youth.
- Register on the Y.E.S Digital Platform: This platform tracks progress, ensures compliance, and verifies the implementation of work experience programs.
- Submit Annual Reports: Companies must submit annual reports detailing job placements, training activities, and participant development.
Challenges and Considerations
While the Y.E.S initiative offers significant benefits, businesses should be aware of the challenges:
- Resource Allocation: Companies must allocate adequate resources for training, mentorship, and supervision.
- Long-Term Employment Prospects: The initiative provides fixed-term job placements, and businesses should explore ways to transition youth into permanent roles for long-term impact.
- Compliance and Reporting: Companies must strictly adhere to compliance requirements and submit accurate reports to avoid penalties.
Conclusion
The Y.E.S initiative is a powerful tool for driving social and economic transformation in South Africa. By creating employment opportunities for young people, it bridges the gap between education and employment, empowering youth to become active contributors to the economy. For businesses, the initiative provides tangible BEE benefits, tax incentives, and a positive corporate image, making it a win-win solution for all stakeholders.
If your business wants to participate in the Y.E.S initiative and maximise its BEE benefits, Pioneer Consulting is here to help. Contact us today to get expert guidance on registering for the Y.E.S program, structuring compliant job placements, and enhancing your BEE score.
FAQs
What is a Y.E.S initiative?
The Y.E.S (Youth Employment Service) initiative is a South African program designed to create job opportunities for unemployed youth aged 18 to 35. It encourages businesses to provide one-year work placements to enhance the employability of young people while improving their BEE compliance.
How much does Y.E.S for youth pay?
Salaries for Y.E.S participants are determined by the host company but must meet the minimum wage requirements set by South African labor laws. On average, participants earn between R3,500 and R5,000 per month, depending on the industry and job role.
What is the purpose of the Y.E.S program?
The primary purpose of the Y.E.S program is to reduce youth unemployment by creating meaningful work experiences and equipping young South Africans with the skills needed to enter the job market. The initiative also promotes economic transformation by aligning with B-BBEE objectives.
Who qualifies for the Y.E.S programme?
To qualify for the Y.E.S program, participants must:
- Be South African citizens aged 18 to 35.
- Be unemployed and actively seeking work experience.
- Have a valid South African ID and meet the specific requirements of the host company.