In recent days, the Nicaraguan Foundation for the Economic and Social Development (FUNIDES) submitted the results of a study carried out to determine the competencies Nicaraguan employers demand from employees younger than 24 years old.
In Nicaragua, employability for young adults under 24 years of age poses a serious challenge for companies given that applicants lack the required competencies to fulfill the position requirements. The Nicaraguan Human Resources Association participated in the study and provided insightful statistics in regards to employability and skills domains for young adults.
- 93 companies took part in the study
- These companies represent a total of 17,000 employees
- 23.52% (4000 employees) are 24 years old or under
- 75% (3000) possess the competencies required and are currently working
The International Labor Organization (ILO) states that the easiness with which young adults enter the labor market suggests the relevance of the competencies they acquire during their education. This reference highlights that either the educational system does not cater to the labor market demands or is not providing competencies from one level of education to the other. Somehow, university education is bridging the gap between the technical and cognitive competencies. However, it is leaving aside the emotional and linguistic competencies in dire need for young adults to be hired or opt for higher ranked positions within the companies.
Companies are proctoring their screening tests to applicants and investing more time in the hiring process due to the distrust in the educational system to train young adults in the competencies needed. This process then becomes arduous and time-consuming for both the applicant and the company. Thus, representing an economic inefficiency that needs stronger measures in the public policies related to education, relevance, and credibility of the qualifications of the labor market within the age range. “An employee is a company asset, and compensation is an investment in that asset.” (Jacob Baadsgaard) Companies want to hire staff that grows within the businesses and becomes an asset instead of adding up to their turnover statistics due to the lack of socio-emotional competencies that are key not only to performing the job but also to keeping it.
General managers within the 93 companies surveyed in the study agree that when hiring young staff, they focus on the following competencies:
- Follow company standards of conduct
- Show enthusiasm and proactivity towards tasks performed
- Listen and tender respect to superiors
- Demonstrate ability to collaborate and work in teams
All socio-emotional skills ranked higher than technical and cognitive competencies. Also, they are the harder ones to find among applicants; although these may vary from company’s levels of performance or educational background. In essence, this lack of competencies goes hand in hand with incapacity the educational system to cater the demands of the labor market and becomes a true challenge to Nicaraguan’s educational system to make the changes and address the cognitive, technical and socio-emotional competencies within their programs. As Nicaraguan economy increases, there are higher demands for a better-prepared labor force, thus if not ready, this lack will transform into an obstacle that Nicaraguans need to overcome if foreign investment is attracted to the country.