guide to apprenticeships Employers

Employers guide to apprenticeships

D2 SEB Derby & Derbyshire Skills and Employment Board

Proud to be supported by the National Apprenticeship Service 1

Contents

Please select the page you wish to view What are apprenticeships?

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Functions for all employers

What is a traineeship?

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Case studies 9

What are higher apprenticeships? 5 Changes to apprenticeships

Our members and supporters

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Introduction The benefits of apprenticeships and traineeships are becoming increasingly obvious to more and more businesses. It’s a fact that apprenticeships develop a motivated, skilled and highly qualified workforce. Businesses that offer apprenticeships view them as beneficial to their long-term development. According to the British Chambers of Commerce, most employ an apprentice to improve the skills base within their business. With the expansion of higher and degree apprenticeships businesses can now access the higher-level technical skills vital to business performance and growth. Employers have the opportunity to attract new talent, offer progression and develop a motivated, skilled and highly qualified workforce. Also, by offering traineeships, businesses have the opportunity to build a pool of high-quality future recruits for their sector, while helping young people take their first steps toward employment.

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MILLION

Apprenticeships were started in England during the last parliament.

15%

Employers think that qualified apprentices are 15% more employable than those with other qualifications.

1,300

Businesses are now involved in designing the new apprenticeship standards.

50%

of employers said that traineeships provide a valuable route into employment for young people.

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75%

of apprentice employers say the programme has helped cut recruitment coasts. 80% say that apprenticeships will play a bigger part in their future recruitment policy.

89%

of apprentice employers say they make their business more productive. The average apprenticeship completer increases the business productivity by £214 per week.

94%

of employers consider traineeships to be an effective way of increasing young people’s chances of finding paid jobs and apprenticeships.

What are apprenticeships? An apprenticeship is first and foremost a job with substantial training and the development of transferable skills. It is a way for people of all ages to earn while they learn, gaining real skills, knowledge and a real future. Hiring apprentices is a productive and effective way for businesses to grow their own talent by developing a motivated, skilled and qualified workforce. Apprenticeships are available to businesses of all sizes and sectors in England, and can last anything from 12 months to 5 years. There are various levels of apprenticeship available:

Intermediate

Advanced (Level 3*)

(Level 4, 5, 6 & 7*)

Duration 12 - 18 months



Common place for school leavers to start, especially if they did not achieve above a grade C or 4 or 5 in their Maths and English GCSE’s

With a grade C or 4 or 5 or above in Maths and English GCSE’s you may be eligible to start at an advanced level. Candidates could potentially progress from an Intermediate Apprenticeship onto an Advanced.

With A levels or a Level 3 qualification you should be eligible for most Higher and Degree level apprenticeships.

(Level 2*)

Higher

Please note: The above is to be used as a guide and is not absolute. Entry onto specific levels may be judged on an individual basis. Entry requirements can also vary depending on the qualification been undertaken.

Please note: Level 2 is equivalent to GCSE. Level 3 is equivalent to A level. Level 4 is equivalent to a Higher National Certificate (HNC) or the first year of a degree. Level 5 – 6 is equivalent to a full degree. Level 7 is equivalent to a masters degree.

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What are the responsibilities of the employer? As the employer you must give your apprentice an induction into their role and provide onthe-job training. You are responsible for paying your apprentice’s wages and issuing their contract of employment. As an employee, the apprentice receives the same benefits as other employees. By employing an apprentice, you have certain requirements to meet: • Issuing a contract of employment and paying at least the Apprenticeship National Minimum Wage. • The minimum hours of employment for an apprentice should be at least 30 hours per week • All apprentices must have an Apprenticeship Agreement between the employer and the apprentice. • Provide apprentices with the same benefits as other employees.

The government are committed to 3 million quality apprenticeship starts in England over this parliament

What is a traineeship? A traineeship is an education and training programme with work experience that unlocks the potential of young people, aged 16 to 24, and prepares them for their future careers by helping them to become ‘work ready’. Traineeships last up to a maximum of six months and include:

Aa A meaningful, high quality, work experience placement of at least 100 hours with an employer.

Work preparation training delivered by a training organisation which can include CV writing, interview preparation and interpersonal skills.

English and maths qualifications if required.

In addition to these basic elements, you and the training provider can add other features to meet the needs of your business and the local labour market. This could include a relevant, industry specific vocational qualification. All training costs are met by government funding.

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What are the responsibilities of the employer? You will need to commit to a high quality work experience placement, lasting at least 100 hours over a maximum of 6 months. This should include: • Pre-agreed content and objectives between your company, the training organisation and the trainee, where they learn through doing and working. • Trainees should receive support and training from an identified mentor in the business, receiving regular constructive feedback. • Ideally an interview for a position or apprenticeship, or an exit interview with written feedback. • Employers are not required to pay trainees but are encouraged to support them with expenses such as transport and meals where possible.

What are higher apprenticeships? Higher apprenticeships are the best combination of on the job training and studying for a higher level qualification providing the high level skills businesses need in an increasingly competitive global market. First and foremost, though, an apprenticeship is a job with substantial training and the development of transferable skills. It is a way to earn and learn, whilst gaining a real qualification and future. Like intermediate (Level 2) and advanced apprenticeships (Level 3), higher apprenticeships combine on the job training while studying towards a high level qualification. Higher apprenticeships are available at a range of levels (Level 4 through to and including Level 7), from the equivalent of a foundation degree to a bachelor’s degree and even up to a master’s degree level in some occupations.

Benefits to the Employer

Higher level skills are vital to business performance and UK economic growth – through higher apprenticeships businesses can fill higher level skills gaps.

Employers acknowledged that hiring and training higher apprentices outweighs the recruitment cost incurred when a recruiting an experienced hire.

Recruit from a wider talent pool with new skills sets and able to develop specific knowledge and competencies that meet the unique needs of the business.

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Improve retention of staff and to fit them within the organisational culture and overall skills strategies.

Changes to apprenticeships Trailblazers standards Apprenticeship standards designed by employers, working with professional bodies where relevant, will replace existing frameworks. • Standards will be clear and concise, written by employers and no more than a few pages’ long • All apprenticeships will last a minimum of 12 months • All apprenticeships will have an end-point assessment • Apprenticeships will be graded for the first time • Apprenticeships will meet relevant professional registration /license to practice requirements. The price for the apprenticeship standard must be agreed between the lead provider and the employer; the price must include the ‘End Point Assessment’ mandatory element. The Government will apply a limit on the amount of government or digital funds that can be used for a single apprenticeship training and support

Who provides the off the job training? The Skills Funding Agency has approved many training providers, further education colleges or higher education institutions to deliver the formal, off-the-job and some on-thejob training required in the higher apprenticeship. As well as delivering agreed elements of the apprentice’s training, training providers will manage the relationship with the National Apprenticeships Service (NAS), securing government funding and other support for the employer and their apprentices. Employers are encouraged to speak to their preferred training provider to find out whether they will be providing the higher apprenticeship or use the Apprenticeship Service, when launched in Spring 2017.

The Apprenticeship Levy: what you need to know In Spring 2017 the Government funds for apprenticeship training in England for all employers is changing, with the introduction of the Apprenticeship Levy for all UK employers based on the employers annual pay bill. The levy will support all post-16 apprenticeships in England. It will provide funding that each employer can use to meet their individual needs. The funding will be directly controlled by employers via the digital apprenticeships voucher, and firms that are committed to training will be able to get back more than they put in.

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Levy-paying employers

Non-levy-paying employers

In addition to the functions available to all employers, from May 2017 levy-paying employers will be able to access funding for apprenticeships through their Apprenticeship Service account, the account will also allow employers to:

By 2020, all employers will be able to use the Apprenticeship Service to pay for training and assessment for apprenticeships. until then, non-levy-paying employers will be able to continue to negotiate and agree their apprenticeship programme with their chosen training provider.

• negotiate and pay for apprenticeship training and assessment. • manage their funding and apprentices, view their levy balance and plan their spending • stop or pause payments (for example if their apprentice stops their training, takes a break from training or the employer hasn’t received the service agreed with the provider).

90% of non-levy-paying employers’ apprenticeship training and assessment costs in England will be paid for by the government. The government will ask these employers to make a 10% contribution to the cost, paid directly to the provider, and the government covers the rest. This cost will be spread over the lifetime of the apprenticeship. The government is offering additional support to organisations with fewer than 50 employees by paying 100% of training and assessment costs for their apprentices aged 16-18 and for those aged 19-24 formerly in care or with a local authority education, health and care plan.

To access their funding, levy-paying employers will need to set up an account on the Apprenticeship Service from January using their Government gateway ID and PAYE scheme details, which company payroll teams should have.

Co-Investment There are two types of employers who will be benefit from government support towards the cost of their apprenticeships training:

1. 2.

Employers who haven’t paid the levy and want to purchase apprenticeship training from a provider. A levy-paying employer who with insufficient funds in their digital account to pay for the cost of training and assessment they want to purchase.

The proposal is that:

90%

10%

The government pays 90% of the costs of training and assessment.

The employer will be responsible for paying 10% of the costs.

For employers to receive the government funding to support the apprentice, the employer has to make the co investment as a cash contribution towards the cost of training.

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Functions for all employers The following functions of the Apprenticeship Service are already available on GOV.UK to all employers:

Click here

Estimate apprenticeship funding, employers can estimate their levy contribution, begin to plan their training requirements and estimate their financial spending.

Click here

Find apprenticeship training gives employers easy-to-digest information on the choices available them. Employers can search for and find an appropriate standard or framework, a quality-assured training provider, and compare one provider with another.

Click here

Recruit an apprentice, training providers can post vacancies for apprenticeships and traineeships on behalf of employers. This will be opened up to employers at a later date.

For more information Contact the National Apprenticeship Service for advice or help on: 08000 150 600 or search for apprenticeships or traineeships on GOV.UK

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Case studies One to One Support Services

Derbyshire

What are the benefits to your business by taking on an apprentice? We recognise by investing in apprenticeships allows us to nurture and grow our own talent ensuring we have a committed and competent workforce. Recruiting apprentices enables us to fill the skills gaps that exist within our current workforce as apprentices begin to learn sector specific skills from day one; developing specialist knowledge that has a positive affect ensuring we provide high quality care to our customers in line with their preferences and needs. Would you recruit an apprentice? Yes without hesitation and we have already taken the decision to recruit a further one next Yes, we currently employ 26 apprentices across our office and care staff. Do you recommend other employers to consider apprenticeships in their recruitment strategy? Yes, apprentices definitely make our workforce more productive and we have a more motivated and satisfied workforce. Recruiting apprentices enables us to grow and develop skilled workers that we and the sector needs for the future

Brighter Directions

Chesterfield, Derbyshire

What are the benefits to your business by taking on an apprentice? Tonnes! As an SME regional employer recruitment has and will probably always be our biggest challenge. The most important reason we recruit apprenticeships is the talent pool of young people coming out of school who have a clean slate – and what I mean by that is they have no previous experience to taint their preconceptions of our industry. We can work with them and build their skills, knowledge and experience from day 1 and nurture their natural skills and strengths into what we as a company want from them, while at the same time addressing a new generational market that understands things like entrepreneurship and technology. Would you recruit an apprentice? Yes – and we do. We aim to recruit a new apprentice into the business every year. Employers (SME’s like us) can gain contributions (financial) via funds towards the costs of recruiting an apprentice, as well as added benefits such as reduced payroll costs (£wages) which means you have a full time effective member of staff, at a reduced rate, so that you can use to invest further in them, internal mentoring/ external courses etc. Do you recommend other employers to consider apprenticeships in their recruitment strategy? Certainly! In fact it’s something I encourage most of our smaller clients who don’t necessarily know about apprenticeships and the benefits they bring to a business… Free recruitment/ candidate selection and qualification by a training provider (unlike when they recruit through agencies) because the specification, qualification and candidate profiling is already completed for you, before they come for interview, so you are assured when they arrive you are gaining the most suitable candidates for your needs and apprenticeship role.

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Federal-Mogul Motorparts

High Peak, Derbyshire

What are the benefits to your business by taking on an apprentice? The benefits our business sees are being able to take individuals on who have limited prior experience who can then be trained in the way our business operates. The apprentices get a good grounding of training in their first year by going to the training provider we use, SETA, they then get to rotate around various sections of the Plant getting hands on experience with different machinery and tools and working on different breakdowns or maintenance as it arises. Would you recruit an apprentice? It is so important for our business to continue with the apprenticeship scheme, we have an average length of service of 26-30 years which naturally means we have an ageing workforce. We therefore need well trained, experienced Trades people who have worked alongside our plant and equipment and most importantly had the opportunity to work alongside our current knowledgeable Trades people who have grown up with the Plant. Do you recommend other employers to consider apprenticeships in their recruitment strategy? We have a plan in place to recruit a further 2 or 3 apprentices in 2017 and we would recommend to all employers to consider apprenticeships in their recruitment strategy. We see this as a huge part of our company success, it is key to our people development, succession management, ability to retain skills and knowledge within the Plant and our commitment to the local community and the younger generation.

Greenbank Group

Swadlincote, Derbyshire

What are the benefits to your business by taking on an apprentice? Greenbank has supported the apprenticeship programme for a number of years. The scheme allows us to give new employees a good grounding in our own procedures, whilst they learn technical knowledge at College. The split of working and day release allows them to put into practice what they are learning at College and this tends to generate enthusiasm for the role as they see their own knowledge and skills developing. Would you recruit an apprentice? Yes we have an ongoing apprenticeship programme in both our factory and our Drawing Office and at the point of advertising any new vacancies we always consider whether the role could be filled by an apprentice. Do you recommend other employers to consider apprenticeships in their recruitment strategy? Definitely. With the right support from your training provider and the right planning, apprenticeships are the ideal way to fill some of the skills gaps within an organisation. We hear more and more how difficult it is to recruit into certain sectors. As employers, we need to support apprenticeships to try and tackle some of the shortages.

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Pentaxia

Derby

What are the benefits to your business by taking on an apprentice? We can tailor make the course of learning to our business needs, dictating the type of person we take on, so ensuring hopefully a social fit as well. They will be accustomed the way the business operates, have been taught the required skills, to our standards, and should be capable of making a contribution to the business as they progress through the learning process. Would you recruit an apprentice? Yes, we are already looking at this year’s intake. Do you recommend other employers to consider apprenticeships in their recruitment strategy? Yes, I would recommend any company to consider apprentices as a recruitment strategy. A lot of companies get hung up on the idea that apprenticeships are for youngsters who go into the low end of engineering. This is not the case, as you can have apprentices at more mature ages, going into a range of roles and at different levels of education.

Signal House Group Ltd

Alfreton, Derbyshire

What are the benefits to your business by taking on an apprentice? There is a major shortage of skilled personnel across the whole of the manufacturing sector. This has come from the decline in manufacturing & construction in the 1970’s and the YTS / YT programmes of the 1980’s. If we need skilled people we have to ‘grow our own’ and have now been employing apprentices since 1989. The advantage of our home grown talent is that they are familiar with our methods, our culture and our market place. By employing young people after full time education you tend to create a loyalty culture and they remain with the company for many years. Four of our early years apprentices have now qualified for a 25 year long service award with the company and many more will follow in years to come. Would you recruit an apprentice? We do, every year. Although the number varies dependant on our needs and the state of our market we have a comprehensive apprenticeship programme covering technical, craft level and administration apprentices. Do you recommend other employers to consider apprenticeships in their recruitment strategy? Yes if they want to move their businesses forward in the future and not run out of people to carry out the essential functions. However it is a medium to long term strategy and one where has to invest some time and money into creating a useful resource for the long term future of a business. By working with schools, colleges and training providers enhances an employer’s holistic approach to business and they in turn will generate good will from the wider business and general community.

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D2 SEB Derby & Derbyshire Skills and Employment Board

Derby & Derbyshire Skills and Employment Board (D2 SEB) is the leading voice for improving employment and skills opportunities for the D2 area. Led by local employers, we are working together to make sure young people in Derby and Derbyshire have the right skills to match the needs of local employers, both now and in the future.

Our dedicated board members …

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