Why hiring a Gen Z employee may be a good financial decision for your business

15 July marks World Youth Skills Day, a celebration of the importance of giving young people the skills they need to succeed in employment and entrepreneurship.

Employing young people is often seen as a way to create opportunities and support future careers. However, it can also bring significant financial advantages for businesses.

With employment costs continuing to rise, many employers face difficult decisions when it comes to recruitment.

As National Insurance Contributions (NICs) and the National Living Wage (NLW) increase, businesses may question whether hiring experienced professionals offers better value than bringing younger employees into the workforce.

Understanding the long-term value young people can bring to your organisation can help you make informed decisions, particularly when backed by expert accounting advice.

Reducing recruitment costs

Recruiting experienced staff can come at a premium. Across many industries, employers are competing for a limited number of skilled candidates, pushing up both salary expectations and recruitment expenses.

Hiring younger employees allows businesses to develop talent from within rather than paying higher costs for experience gained elsewhere.

Although training and development are needed, the overall investment in recruiting and nurturing a young employee can often be lower than sourcing experienced workers in a highly competitive market.

There is also the added benefit of starting with a clean slate. Employees who are new to the industry have not developed habits from previous workplaces, making it easier to train them in line with your business’s processes, values and expectations.

Over time, this approach can help create a skilled, loyal and cost-effective workforce.

Apprenticeship funding

Apprenticeships continue to be one of the most attractive routes for employers looking to bring in new talent.

Government funding can help cover training expenses and businesses that contribute to the Apprenticeship Levy can use those funds to support apprenticeship programmes.

This allows organisations to invest in future skills while keeping training budgets manageable.

At the same time, apprentices contribute to day-to-day operations as they learn, helping businesses benefit from productive employees while supporting them to gain valuable qualifications and hands-on experience.

The Youth Jobs Grant

Businesses recruiting young people may be eligible for support through the Youth Jobs Grant Scheme, which launched on 30 June 2026.

The initiative provides employers across Great Britain with a £3,000 grant for every eligible recruit and is expected to support up to 60,000 youth employment opportunities over the next three years.

Payments are made in two stages, with £1,800 available after six weeks and a further £1,200 after 18 weeks, subject to HMRC Real Time Information checks.

The scheme is open to employers of all sizes and sectors operating in Great Britain, provided they are registered with HMRC, have been trading for at least six months and complete due diligence checks.

Eligible recruits must be aged between 18 and 24 and have been unemployed while claiming Universal Credit for a minimum of six months.

For employers, the grant can help offset recruitment, onboarding and training costs while supporting a young person into long-term employment.

How can we help?

Investing in young people is also an investment in the future success of your business.

Our experienced accountants can help you identify funding opportunities linked to employing young people and evaluate the financial impact for your organisation.

We can also assist with workforce planning, budgeting and making the most of any savings to support future growth.

Get in touch today for support with introducing Gen Z into your workforce.