Thank you.
Good afternoon, Mr. Chairman and members of the finance committee.
Thank you so much for inviting me to appear before this committee on youth employment.
I'd like to begin my presentation by sharing three key findings from an August 2013 Ipsos Reid poll of recent university and college graduates that RBC commissioned. In it, 73% of graduates surveyed said that a lack of job experience was a barrier to them finding their first job; 77% said that lack of connections and a network was a barrier to finding their first job; and among those who found work, nearly half of recent graduates indicated that having applicable job experience helped them in starting their career.
These facts clearly show that making the transition from a formal education to finding meaningful work and making a contribution in the workforce present many challenges to young people today. Resolving this challenge will require a concerted effort by many of us to commit to youth employment.
At RBC we believe in investing in today's youth. RBC's five-year, $100-million Believe in Kids pledge supports a wide range of programs for developing well-rounded kids and youth in Canada. We have a strong record for hiring youth. We hire more than 2,400 youth annually into permanent positions, and we provide more than 900 internship, co-op, and summer experiences every year.
Today I am proud to present a new program that complements what we already do to address youth employment, which is a year-long paid internship opportunity RBC has created for recent graduates, called the RBC career launch program. We believe this intensive program will help solve the no-experience, no-job cycle that's facing so many young graduates today.
First I'd like to outline the structure and format of the career launch program, and then I'll describe three key ways it will help recent graduates find meaningful employment.
RBC is offering 100 paid internships to recent college and university graduates aged 24 and under, from any program or discipline. In our first year we have positions in four provinces and 13 cities across Canada. The internship is 12 months long and designed around three rotations. First, a six-month rotation is intended to provide a core customer sales and service experience in our retail banking branch network. Next, a three-month rotation is a unique part of our program. Participants, as contract employees of RBC, will be assigned and dedicated to a local Canadian charity chosen by RBC. Finally, a three-month rotation provides hands-on experience in a professional corporate environment.
Participants in the program will work on a variety of project-based assignments and gain exposure to the wide variety of roles in our functional group, such as finance, HR, and operations, roles that exist in large corporations today.
Now that I've explained the structure and format of career launch, let's look at how we attempted to solve the education-to-employment challenge I outlined earlier. It does so in three ways. First, it helps participants gain business skills such as collaboration, communication, and critical thinking. It accomplishes this through work experiences that demand these skills, as well as providing dedicated mentorship and support. Second, it gives them access to a network and an ability to build relationships with seasoned and influential professionals. Third, it gives them exposure to and practical hands-on work experience in retail banking, in the not-for-profit sector, and in a large corporate setting.
Ultimately participants in this program will be able to point to a meaningful experience that's comprehensive, that helps them personally to make decisions about their careers, and that is attractive to future employers.
Our enthusiasm for the program was definitely shared by Canada's youth. We received nearly 5,000 applications over a two-week period, and through a robust selection process we hired 100 recent graduates who started with us on January 27.
In summary, the RBC career launch program helps resolve a key challenge facing recent graduates—finding their first meaningful employment. We certainly realize that 100 internships alone won't solve the challenge, but it was important for us to take the first step in getting there. We encourage other organizations in the public and private sectors to join us in this endeavour to instill confidence and enthusiasm for young graduates entering the workforce.
We would be happy to share all elements of the program publicly.
We look forward to making a positive impact on youth employment in Canada and to supporting tomorrow's leaders.
I thank you again sincerely for the opportunity to speak with you today.