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The Apprenticeship Journey
Contents
Foreword 2 Executive Summary
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Section 1: The English apprenticeship system
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Section 2: The apprentice’s journey
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Section 3: The employer’s journey
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Section 4: Improving the journey for the apprentice
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Section 5: Improving the journey for the small business
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Conclusions 30 Annex A: Apprenticeships abroad
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Annex B: FSB statistics
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Notes 42
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Foreword
To improve national economic performance and the career prospects of our young people we need to be ambitious and grow the apprentice programme, embedding it as a core part of the education and skills system in England. Apprenticeships are critical for increasing skill levels, developing sustainable employment and careers, and to help businesses develop and grow. This paper looks at the journey that new apprentices and employers take and the changes needed to make the apprenticeship programme easier to use, more accessible and attractive to the employer. The Federation of Small Businesses (FSB) wants to see small businesses make full use of this valuable resource to enhance and grow their business and for young people to see this as a viable career option to gain new skills. Apprenticeships bring considerable benefits to businesses and apprentices alike. The Government expects to invest around £1.5 billion1 in apprenticeships for the year 2012-13. The economic case for this investment is clear: apprenticeships produce economic returns estimated at around £18 for every £1 of public funding2. Despite this evidence, too few small businesses take on apprentices and many young people leave school with no clear vision of how or where to start their working career. The most important task is to define once and for all what an apprenticeship is, who it is for, and what it should do. This definition must be embedded in policymakers’ thinking, and not be altered to suit political needs. Businesses need an apprenticeship system that is not subject to constant tinkering. To do this, businesses need to be at the heart of the system. The key is to route government funding for apprenticeships through businesses because this will provide them with buying power across the apprenticeship training market. It is essential that apprenticeships are viewed by employers, school leavers, teachers and parents as a quality route into a career. To do this the quality of apprenticeships on offer must improve. This paper highlights changes needed
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“The economic case for this investment is clear: apprenticeships produce economic returns estimated at around £18 for every £1 of public funding”
Foreword
to achieve this. Getting the education system right will increase the status of apprenticeships. Functional skills such as basic literacy and numeracy should be taught well enough at school so that they don’t need to be part of the apprenticeship. In England we need to move away from simply a drive to increase participation targets and instead develop an apprenticeship programme that delivers quality training that businesses need. If this happens a rise in participation rates will follow. Apprenticeships should be genuinely demand led, not target led. There are many positive things about apprenticeships in England, as there are in the devolved countries, but we must build on our achievements to date. Any changes to the system need to be strategic, taking a long-term view of the skills this country needs to remain competitive in the global economy. Mike Cherry LIWSc FRSA National Policy Chairman Federation of Small Businesses
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Executive Summary
This paper examines the current English apprenticeship model following the journey of both business and apprentice. It looks at its strengths and weaknesses, comparing where possible other countries’ models, and puts forward a number of recommendations to improve the apprentice system for small business employers and apprentices alike. By considering the overall journey, rather than individual aspects of it, it aims to develop an end-to-end view of the process and how the program as a whole can be enhanced.
Summary of findings According to the FSB Survey Panel:3 • Eighty one per cent of small businesses owners are ‘not very confident’ or ‘not at all confident’ that students leaving school at 16 have the right level of employability skills • Seventy seven per cent of employers commented that school leavers’ business awareness was either poor or very poor • Sixty nine per cent of members want a greater emphasis on employability skills in schools • Thirty one per cent of small businesses offer work experience to students in their local community however, 67 per cent of members have never been contacted by their local school/college • Nine per cent of members have taken on an apprentice in the previous 12 months while only seven per cent plan to in the next 12 months. Forty seven per cent claimed that an apprentice would never be suitable for their business
Summary of other findings • Advanced and intermediate apprenticeships produce economic returns estimated at £18 for every £1 of public funding
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Executive Summary
• In 2010-2011, 83 per cent of new apprenticeships were in 15 -out of 118subjects4 • In England there are around 11 apprentices for every 1,000 employees compared with 39 in Australia5 • In Switzerland in 2010, just under two thirds gained the apprenticeship certificate6. • In Germany approximately two thirds completes an apprenticeship by the age of 257
Summary of recommendations There are three main themes that emerge from the journey of apprentices and businesses.
Apprenticeships have an image problem The current apprenticeship programme has evolved over time and for around 30 years has been in a state of constant change, undermining the ‘brand image’. The programme has been stretched to include functional skills that help make up for failings in the education system. This undermines the confidence of businesses in apprenticeships and more significantly, it creates a poor image of apprenticeships in the eyes of teachers, school leavers and parents. This is compounded by the fact that there is no clear definition of what now constitutes an apprenticeship – something that successive Governments have failed to articulate. Furthermore, for too long businesses have been left on the sidelines as they are not in charge of the funding that the apprenticeship receives. To address these issues, the FSB recommends:
“This image problem is compounded by the fact that there is no clear definition of what now constitutes an apprenticeship”
• Giving businesses the autonomy to draw down funding and buy what the apprenticeship needs and not what the provider wants to deliver. Once businesses are in control of training, their perception of and participation in apprenticeships will improve • Government should work with employers to produce an agreed definition of an apprenticeship so that everyone knows what they are • As soon as practical, functional skills should be removed as a core element of the apprenticeship. Business expects functional skills such as numeracy and literacy, to be delivered in schools.
Strengthen engagement between schools and small business Local schools need to better harness the expertise of small business. FSB statistics indicate that few small businesses are contacted by local schools to sit on governing bodies, be a mentor, help with careers advice or talk about apprenticeships in schools. Schools need to better understand small businesses to accommodate their needs and engage with them. Furthermore, the curriculum should place greater emphasis on employability skills and work-related learning. School leavers must be better prepared for the workplace and apprenticeships should be better promoted in schools. It
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The Apprenticeship Journey
is important that vocational education is seen as being of equal value. • Employability skills and practical applications of learning need a much greater emphasis in the school curriculum and full-time education • Schools need to engage with local small businesses more and in a variety of ways • Government should consider a financial incentive for businesses that take on work experience students • The apprenticeship route into a career should be promoted to all young people
The apprenticeship programme is too confusing Despite the creation of the National Apprenticeship Service (NAS) to provide an end-to-end service for businesses and to promote and explain apprenticeships, too many small businesses still find them confusing and are put off by the complexity. The FSB recommends: • That NAS supports small business employers better, and should consider how it can provide a more tailored service to small and micro businesses. Possibly through account managers specialising in the support of small businesses. Effective communication remains key to improving small business engagement • NAS becomes more responsive to the needs of business, and considers what lessons can be learnt from other countries to promote apprenticeships in the local area • The nature and structure of NAS is reviewed to ensure that it provides a more small business friendly service
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Executive Summary
The ideal apprentice journey For the apprentice Before the apprenticeship There is a smooth and well informed transition from education to an apprenticeship. The apprentice’s decision to take the apprenticeship route into a career is the result of a comprehensive programme of career guidance during their schooling. This has given information which enables them to consider a wide range of options so they can decide on the best one for them. They should enter the apprenticeship well equipped with a high standard of literacy and numeracy, employability skills and a good knowledge of the industry. They will also have experience of the workplace and a positive attitude to work.
During the apprenticeship The apprentice will have been informed from a young age about the apprenticeship process and they will have chosen it as an option that suits their ambitions and aspirations. They will spend a number of years in the business learning and will undertake high quality and relevant out-of-work learning.
After the apprenticeship In-depth information will have been provided to them on possible next steps and they will have been invited to become a member of an apprenticeship alumni association. They will visit schools to promote apprenticeships to other young people. They will also continue working within the business they did their apprenticeship in and will build their career there.
For the small business Before the apprenticeship The business knows that apprenticeships are a high quality, rigorous work-based learning option that will increase the skills base of their business and help them grow. They will have no doubts about the possible outcome of the apprenticeship and will be confident the apprentice will be an asset to the business. The business will be well informed about how government recognised apprenticeships work. They will understand the process, funding and what the benefits are to their business. They will know how to go about the process of recruiting an apprentice and be confident that the young person they take on will have a range of skills and will be keen to work. They will know where to go for advice and will find that advice useful.
During the apprenticeship The provider they contract with will be helpful and supportive. The courses the apprentice takes will be relevant to the business. The training provider will be responsive to the needs of the business and the business will have chosen the course.
After the apprenticeship Once the apprenticeship is over, they will recognise the value of the ex-apprentice to the business and make arrangements for any future development. They will consider taking on another apprentice and will offer advice to other businesses on this issue.
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Section 1: The English apprenticeship system While traditional apprenticeships have a long history in England, what is now recognised as a government apprenticeship has been continually changed over the last 30 years. As a result, the apprenticeship system in England now looks quite different to approaches in other countries (see Annex A for more details). This period of constant change has created a confusing landscape for many small businesses as they do not have the time to keep up with the changes. A 2007 Select Committee also said that there has been: “No discernible consistent purpose in government policy on apprenticeships, apart from a desire to increase numbers in training and – very recently and belatedly – to increase numbers completing8.” The FSB considers an apprenticeship to be a new job that includes a significant amount of on the job and out of workplace training. In most cases the apprentice is likely to be a young person entering the workplace for the first time. An apprentice could also be an older person who is moving into a completely new career. Fundamentally however, it is first and foremost a job with training and education. It should provide the apprentice with the competencies needed for the job, a foundation on which to build a career, and should be challenging and rigorous. It should normally involve a significant time-period that will ensure that skills taught are embedded and conceptualised. There are currently three levels of apprenticeships: 1. Intermediate Level Apprenticeships (level 2) 2. Advanced Level Apprenticeships (level 3) 3. Higher Apprenticeships (level 4 and 5) Since 2000, programmes that have a Level 2 final qualification have been recognised as an apprenticeship. Apprenticeships were made available to adults (24+) in 2004. The large increase in the number of apprenticeships
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The English apprenticeship system
over the last few years has been largely because of an increase in over-24 year olds9. Apprenticeship frameworks are designed by Sector Skills Councils (SSC) that should work with business representatives from industry sectors to develop the content. FSB research suggests that many small businesses are not aware of their SSC10. A typical framework includes: • A competency element (generally a National Vocational Qualification) which is the practical work based skills element • A technical element (such as a BTEC or City and Guilds qualification) which is the study of underlying theory and knowledge • Functional skills – numeracy, literacy and IT • Personal learning and thinking skills • Employee rights and responsibilities Some large businesses run apprenticeships in-house but most small businesses will need to involve external training providers for parts of the apprenticeship. Sometimes the training provider will help the business recruit the apprentice and other times the business will do that for themselves. Evidence suggests that the sales and marketing efforts by providers are an important way to raise awareness of apprenticeships in small businesses and to get them to recruit apprentices11. In England, the Government pays towards the training element of recognised apprenticeships. The level of payment depends upon the age of the apprentice and the level at which they are studying. The remaining training costs and the payment of wages are borne by the business, meaning the business contributes the greatest amount to the apprenticeship. From August 2013 the Government will stop funding apprenticeships at Level 3 for all apprentices aged over 24. Loans will be available instead.
“What is now recognised as a government apprenticeship has been continually changed over the last 30 years”
• If the apprentice is aged 16-18 years old, Government will fund 100 per cent of the cost of the training • If they are 19-24 years old, the Government will fund up to 50 per cent of the cost of the training • If they are 25 years old or over the Government may make a contribution of up to 40 per cent of the cost of the training This is paid directly to the lead training provider. The training provider can be the company itself, a Further Education (FE) college or a commercial training company. The Apprenticeship Grant for Employers (AGE grant) was introduced in 2012 and pays £1,500 to firms taking on 16-24 year olds as apprentices if they have not taken one on in the previous 12 months. This incentive will only be available for a short time. The FSB welcomed this financial incentive.
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The Apprenticeship Journey
Among the benefits the current system offers, the most obvious are the qualifications and skills that the apprentice gains. These make the apprentice a productive member of the businesses team and provides the foundation for further development within the business. The qualifications gained are transferable, giving the apprentice wider career opportunities. However, as FSB survey findings reveal, the majority of small businesses do not participate in the apprentice programme. Many small businesses see apprenticeships as a confusing and bureaucratic process where the benefits are outweighed by the complexity. Apprentices themselves also find challenges to entering the apprentice system, and these are explored in the following sections.
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Section 2: The apprentice’s journey This section highlights problems in the system making the apprentice’s journey not always as smooth as it should be.
Before the apprenticeship The apprentice’s journey starts in school. The quality of career education and its breadth fundamentally influences the choices school leavers make. Schools should provide guidance on all career options, introducing young people to the variety and richness of career options open to them. Business involvement is crucial. There is evidence to suggest that some schools and colleges do not always have a positive attitude to apprenticeships. A recent OFTSED report commented that: “Many of the young people interviewed in the survey, particularly those who had little idea of what they wanted to do after year 11, said the advice and guidance they received from their schools were unsatisfactory. Although they wanted to leave schools and gain employment, few felt that they had been given information about what was available – other than staying at school or going onto college.”12 OFSTED also said: “Inspectors came across several examples of bright young people feeling that they had been derided by their teachers for wanting to progress to work-based learning rather than stay on at school.”13 Another issue is whether schools are teaching young people the skills that they need to undertake an apprenticeship successfully. FSB
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The Apprenticeship Journey
statistics indicate that many young people are leaving schools without the employability skills that employers expect14. Demos and the Private Equity Foundation have reported that schools in England are not as good as in other countries at understanding the role they play in preparing young people for work. As a result they are less focussed on this role15.
Employability and functional skills Nearly one in four 16 apprenticeships are not completed. Some businesses find some apprentices do not have the basic skills needed for the job. Recent FSB survey results show that eight in 10 businesses do not believe school leavers are ready for work. The FSB’s June 2012 panel survey found that 81 per cent of small businesses owners are ‘not very confident ‘or ‘not at all confident’ that students leaving school at 16 have the right level of employability skills. Sixty seven per cent are ‘not very confident’ or ‘not at all confident’ that those leaving college are prepared for the world of work. Small businesses are particularly concerned about a lack of: • • • •
Understanding of business Communication skills A positive attitude to work/self management skills; and Numeracy and literacy skills
When FSB members were asked what changes they wanted to improve the employability skills of young people: • Sixty nine per cent want schools to place a greater emphasis on developing employability skills in schools • Sixty six per cent want more done to improve basic literacy and numeracy skills • Thirty eight per cent want to see an increased range and availability of work experience • Thirty five per cent want a greater provision of entrepreneurship/business education Improving education standards is fundamental to driving up employer demand for apprentices. However, without this focus, apprenticeships may be perceived by business and the general public as a programme to teach basic skills to young people failed by schools, meaning older, more experienced workers are preferred. Demos and the Private Equity Foundation reports that some education experts argue there is currently little room in the curriculum for employability skills because of the time pressures that schools face achieving GCSE results.17. Switzerland’s very successful apprenticeship programme provides an interesting contrast to the English experience. Steedman18 argues that a
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“FSB survey results show that eight in 10 businesses do not believe school leavers are ready for work”
The apprentice’s journey
key reason for its success is the high attainment levels that schools leavers have. She states that high attainment at school also helps keep the cost of apprenticeships down later. Switzerland is the only European country that can claim that most employers incur no net cost as a result of an apprenticeship19.
Work-related learning and work experience Both work experience and wider work-related learning skills – such as job application techniques and how to write a CV as well as self-management and problem solving – are vital for developing employable young people.
Work-related learning Work-related learning is linked to employability skills but is more concerned with the practical application of skills. Young people need to have a good understanding of the workplace and business issues. Without these, they can find it hard to be successful at job applications and apprenticeships may therefore be hard to access. Following the Wolf report20, in 2012 the Government consulted on removing compulsory work-related learning from the Key Stage 4 curriculum. Despite objections from the FSB, the Government removed this duty in September 2012. We remain deeply concerned that without it many schools may fail to teach these vital skills.
Work experience and exposure to small businesses Good quality work experience in an area that interests a young person is a ‘positive force in equipping young people with an appropriate work ethic and basic employment skills’21. Research by OFSTED shows that if a young person undertakes good work experience, or some form of vocational taster course, they will be more successful in their apprenticeship22. While many young people take part in work experience, the quality of some provision has been questioned23 and participation with other activities is low24. The Education and Employers Taskforce research shows that only seven per cent of young people questioned have had contact with four or more employers25 despite evidence that this reduces the likelihood of becoming ‘not in education, employment or training’ (NEET)26. Evidence suggests that young people want more employer engagement in schools27 and that too much work experience is currently with existing social networks28. FSB research shows that only 31 per cent of small businesses have provided work experience places29. Work experience in a small firm will expose young people to the potential of working in a small business and completing an apprenticeship in one. Engagement with small businesses can also go beyond traditional work
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The Apprenticeship Journey
experience and can include activities such as mentoring, talks from businesses and businesses teaching classes on entrepreneurship. Some schools use organisations such as Young Enterprise30 to facilitate engagement. Thirty eight per cent of members felt that with a greater range of work experience young people would be better prepared for the workplace.
Careers advice Employer’s value good careers advice because it ensures young people are well informed about their career choices. If better careers guidance were provided young people would be better prepared for work in a small business according to 40 per cent of FSB members. In addition, 36 per cent said that an increased awareness of SME jobs and career opportunities would also help achieve the same aim. Yet only three per cent of members have been contacted by their local school or college to help provide careers guidance, although a further one per cent proactively contacted their local school or college to volunteer their expertise. Small businesses can find it hard to know how to contact a school to volunteer help31. Recent changes requiring schools to provide pupils with independent careers guidance are welcome32. However careers guidance must be of a high quality, consistent and must include discussion of opportunities with local small businesses. Careers guidance in other European countries such as Germany and Switzerland is comprehensive and provides the standard England should be aiming at (see Annex A). Unfortunately indications are that this new duty on schools in England may not meet that aspiration across the board33. There are concerns that schools may not have the necessary resources34 to provide high quality face-to-face advice to all pupils and that there may not be sufficient safeguards to ensure this is provided in all schools. It is likely compliance with the new duty on schools will be inspected by OFSTED through thematic reviews and outcome measures. However, the Education Select Committee in 2011 said: “We believe that there should be some form of clear accountability measure for the quality, impartiality and extent of career guidance services in schools. We recommend that OFSTED school inspections should, as part of the pupil achievement strand within the framework for inspection of schools, assess specifically whether schools are meeting their statutory duty to secure the provision of independent and impartial career guidance.” The committee argued that the thematic review of careers guidance might mean that poor provision of careers guidance may not be identified early enough35.
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The apprentice’s journey
After an apprenticeship Concerns remain about the lack of young people in England progressing from a lower level apprenticeship to a higher one and from further education to higher education36. Without a clear indication an apprenticeship will lead to a better career path, apprenticeships will not have the necessary ‘demand pull’ to encourage young workers into training schemes. The experience of other European countries is informative in this context, where the progression of apprentices from higher apprenticeships into the higher education sector is more common.
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Section 3: The employer’s journey As with the apprentice’s journey, the businesses’ apprenticeship journey could be made smoother. Apprenticeships are an excellent way to teach and develop new recruits, getting a new generation of people into the business and expanding what the business does. The most widely cited reason for taking on an apprentice is to invest in skills, with 76 per cent of members saying that they took on apprentices to improve the skills base of either their business or their industry. Despite these benefits, only nine per cent of FSB members have taken on an apprentice in the last 12 months. A further seven per cent said that they plan to take on an apprentice in the next 12 months. In part, the low takeup of apprentices appears to be due to the costs involved coupled with the reported bureaucracy of taking on an apprentice37. The FSB also believes that lack of awareness is an issue. Lowering the initial cost to business is key for small businesses. While the FSB welcomed the recent introduction of the £1,500 AGE grant for many a longterm wage subsidy would be a more attractive way to overcome barriers to take on an apprentice. Here the FSB has brought forward a recommendation for a fully costed National Insurance Contributions holiday (NICS) scheme to lower the employment costs of new staff for small businesses. This should include apprentices. The FSB would also like Government to consider a longer term use of the Apprenticeship Grant for Employers.
Sources of support and advice Despite the creation of NAS to promote apprenticeships there is still a lack of understanding among small business about the apprenticeship program. In many instances, small businesses remain unclear as to how an apprenticeship works, what the benefits will be to their business and what their obligations are.
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The employer’s journey
The Holt review38 identified this issue, saying not enough is done to reach out to small businesses to explain the business benefits of the programme. The review argued that NAS needs to take a leading role on developing and delivering all communication relating to the apprenticeship programme and create: “Clear and relevant core messages covering what an apprenticeship is ... both positive for SMEs and the economy at large and a valid career path alongside the option of going into higher education.39” The FSB’s survey results confirm that NAS is not the first port of call for advice: • Of members thinking of taking on an apprentice in England 63 per cent go to a local provider for advice whereas only 23 per cent turn to NAS • A further 14 per cent in this category get advice from the BusinessLink website, seven per cent from a trade association and only two per cent from a SSC • When looking for support during an apprenticeship, only 11 per cent seek advice from NAS compared to 76 per cent seeking advice from local providers This contrasts sharply with Wales where 44 per cent of businesses looking to take on an apprentice sought advice from Careers Wales/Apprenticeship Matching Service and during an apprenticeship 17 per cent got advice from them. The risk is that if NAS does not reach out to more small businesses, there will be insufficient apprenticeships for young people that want them. Lessons could be learnt from other countries that have faced similar issues (see Annex A for more details). In Austria,40 the appointment of apprenticeship advisors who directly contact businesses have helped to increase numbers involved alongside other initiatives. In Australia, local apprenticeship centres will contact local employers and encourage them to take on apprentices.
“Lessons could be learnt from other countries that have faced similar issues”
Business confidence in the brand The ‘brand’ of apprenticeships is not well recognised largely due to the constant change in content and definition in the recent past. In particular, there is a concern the definition has been expanded to include courses that potentially undermine and dilute the brand. Businesses need a clear definition of an apprenticeship and an assurance that it is a quality product that provides a good return on their investment. An apprenticeship needs to be seen as a high quality vocational qualification that produces skilled workers with recognised and valued qualifications. They should be an important employment signal. In recent months there has been some controversy caused by a number of very short apprenticeship programmes in some sectors. Some have
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The Apprenticeship Journey
questioned whether shorter apprenticeships at level 2, should in fact be classed as apprenticeships, arguing that the inclusion of these courses under the apprenticeship umbrella has damaged the apprenticeship brand41. Doel highlights this issue in a recent IPPR paper: “The single apprenticeship programme covers learners and sectors with different needs. Recognising these apparently disparate needs within a single apprenticeship brand represents a significant challenge in the context of apprenticeship growth demonstrated by recent media stories criticising the growth of supposedly low-quality short apprenticeships.” Doel argues that: “The further radical alternative would simply be to recognise that some programmes, while delivering value to employers, individuals and the state, do not fit with the apprentice brand.”42 To get around this problem, Australia has differentiated between longer, more technical apprenticeships and shorter less technical traineeships by creating two types of work-based training under its scheme. In Australia there are three to four year apprenticeships for higher skilled more technical careers and one to two year traineeships for lower skilled, less technical roles. Both are valuable training schemes funded in a similar way, but the brand of the apprenticeship has been kept separate, with the majority of apprentices at a Level 3 certificate43. Similarly, in Wales a Level 2 is a foundation apprenticeship and the expectation is that many will go on to do a Level 3 as a full apprenticeship. FSB statistics indicate that in Wales, more small businesses offer apprenticeship at Level 3 than in England. By stretching the definition of an English apprenticeship, the FSB believes that it not only undermines the brand and status of apprenticeships, it also affects the worth that is placed on other work-based, short, Level 2 qualifications. It is evident that to increase SME take-up of apprenticeships, the apprenticeship offer needs to be more attractive. Small businesses need to believe that apprenticeships are a worthwhile way of bringing school leavers into business, and as argued earlier, to be confident the prospective apprentice has the right education to be able to undertake the apprenticeship affectively.
The Apprentice framework Small businesses need the out of workplace training that their apprentices undertake to be as relevant as possible. The House of Commons Committee of Public Accounts reported that because providers are not told which types of training they must deliver, in practice they concentrate on delivery of a small number of apprenticeship subjects in bulk. In 2010-2011, 83 per cent of new apprenticeships were in 15 – out of 118 – subjects44. Just over half of all employers (not just SMEs) were involved or felt able to influence
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The employer’s journey
the decisions about the content and delivery of training before it started.46 This indicates that providers are often having too much influence on the courses that apprentices take. Getting this relationship right could therefore significantly increase the number of small businesses taking on apprentices. The Select Committee also found that the Skills Funding Agency does not know how much profit providers are making on each apprenticeship type. While it says that it pays more for courses that are more expensive to run than others, it cannot say which courses delivers what profit to the provider. It is also unable to demonstrate that its funding rates are robustly based on the actual costs of delivery.45 This lack of adequate supervision of funding drains confidence in the system.
The funding system Because funding is drawn down directly by the provider, it further isolates the business from the process.This leads to a situation indentified earlier whereby the provider rather than the business has more influence over the training provided. The Holt review suggested one way to get employers more involved would be by giving employers the money through vouchers or through netting off the costs from employer’s NICs contributions for example.47 The FSB sees this as a potentially powerful tool. If employers draw down the funding it will ensure they are at the heart of the system and the current dynamic between the provider, state, business and apprentice would change. Moreover, employers would be more engaged with the type and quality of training as well as where they buy it from. Providers would then need to deliver the programmes that businesses ask for and not those that best suit them, making the system far more demand led.
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Section 4: Improving the journey for the apprentice Having reviewed the apprentices’ experience, the following section makes recommendations to improve the ‘journey’ of apprentices starting at the crucial stage when young people are considering their career options at school.
Before the apprenticeship The most important role that a school has is preparing students for the next stage in their life. Schools and colleges should also equip all young people with key employability skills, knowledge of how to apply for jobs and how to behave in the workplace. Employers are willing to train young people on skills needed for that sector, but for an apprenticeship to be successful, the apprentice needs to come to have a good general education. As highlighted earlier, learning employability skills in school is crucial. The FSB believes these skills should be embedded in the everyday curriculum. Employers need to be confident that these skills are taught as part of existing qualifications so that students are more ‘work ready’. The challenge to achieving this goal is that with the end of compulsory work-related learning at Key Stage 4, Government needs to consider ways in which employability skills can become a key part of teaching at all ages. To improve the understanding of small businesses’ expectations, improving teachers’ appreciation of skills demanded of school leavers by businesses would be a good first step. Workplace experience for the teachers themselves would be one way of achieving this. Beyond that, school engagement with small business should be strongly encouraged and made routine. Schools need to be innovative in the way they expose students to business and should try to do so as often as possible. The trick is to translate the desire of many small businesses to get involved with their local
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Improving the journey for the apprentice
schools and make this engagement a matter of routine. Many find it difficult to know how to approach a school so schools need to reach out to them. The FSB would be keen to explore how it might help solidify engagement among its members.
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• All teachers should undertake work experience as part of their training. • Employability skills and practical applications of learning need a much greater emphasis in the school curriculum and full-time education. • Schools and colleges need to routinely engage with small businesses.
Figure 1 : Reasons for schools and businesses contacting each other. Base 2486 87% You contacted school/college School/college contacted you
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Work experience and exposure to small businesses Work experience provides young people with realistic expectations of the workplace. Evidence earlier in this paper shows the clear benefits relevant work experience can have on job prospects. The FSB hopes that removal of work related learning – work experience was often an aspect of this learning – will not result in a decrease in the number of young people undertaking work experience. The FSB also hopes that work related learning will continue in schools despite the removal of the duty to provide it at Key Stage 4.
21
The Apprenticeship Journey
Work experience and employer engagement comes in a variety of forms and can include short placements in a variety of firms, talks from local businesses or even local businesses teaching lessons or practical sessions. Two weeks in year 10 is not enough. Students should be exposed in a variety of ways to a variety of businesses throughout their school life. Exposure to small businesses should help more young people consider undertaking an apprenticeship in one and highlight the diversity of opportunities available. Small businesses will also give them a much wider experience of business. As with work related learning, improving understanding and engagement between the school and business communities is critical. Schools can find it hard to provide work experience placements in popular vocational areas48, as many schools require the experience to be held over the same two weeks each year. For a small business, these demands over a short period cannot be met. Schools need to have a better understanding of small businesses in their community so they can develop a work experience plan that works for them. Greater flexibility from the school and work experience at a time that best suits the business would encourage them to offer places (see Figure 2). This could mean the placement being one day a week for a few months rather than all at once. As recommended by OFSTED, better co-ordination among secondary schools would also improve matters and offer a wider range of work experience places49. Government should also consider the use of a financial incentive to encourage more small businesses to offer work experience placements. This would offset the opportunity cost that work experience can cause. Many charities exist to help facilitate employer and schools engagement. More needs to be done to promote organisations such as Young Enterprise and Inspiring the Future to headteachers and governing bodies. Figure 2: Factors that would encourage an SME to take on a work experience student Base: 1635 32%
A financial incentive 19%
More proactive outreach by schools 16%
An 'interview process' to provide reassurance 10%
More support on framing the work experience
9%
Work experience falling when it best suits my business
8%
Greater flexibility from the school/college Other None of these A work experience student is not suitable for my business
22
3% 23% 24%
Improving the journey for the apprentice
• Schools need to engage with local small businesses more and in a variety of ways. • Schools should continue providing work related learning despite the removal of the duty to provide it at Key Stage 4.
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• All schools need to be more innovative with the work experience and the employer engagement that they offer and develop sustainable employer engagement partnerships. • Schools should consider ways to make it easier for small businesses to offer work experience. • Government should consider financial incentives for businesses that take on work experience students.
Careers guidance Good quality, comprehensive careers advice from as early an age as possible is important to both businesses and young people. Young people need to know about career pathways, training and potential jobs. They also need to be inspired. Businesses need young people to come to them well informed about the industry and training and keen to work hard. While there is provision for independent face-to-face guidance for over-19s through the National Career Service, it is not guaranteed for all under19s as there is no duty on schools to provide it. This is a major omission since young people have to make decisions from 14, choosing between apprenticeships, FE college vocational courses or preparing for university entry. Careers guidance needs to start as early as possible in schools. The OECD agrees with the need to provide face-to-face careers guidance arguing for Governments to: “Deliver key elements of guidance pro-actively to all students, so that students can be supported by one-to one guidance by professionals when they make key career decisions.50” The new duty on schools to provide independent careers guidance from August 2012 will be inspected by OFSTED in thematic reviews and outcome measures. The Education Select Committee was concerned about the adequacy of this safeguard. The FSB would like Government to consider these concerns again51. Above all, the vocational route and specifically the apprenticeship route needs to be promoted. Talented young people who want a career in a relevant sector should be actively encouraged to explore the apprenticeship route. Business engagement should help facilitate this.
23
The Apprenticeship Journey
• Face-to-face careers advice should be available to all under-19s. • Government should consider whether the current plans for the review of schools provision of careers guidance is sufficient in light of the Education Select Committee’s findings.
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• Careers guidance in schools and colleges should be extended to younger and older students than is currently required. • The apprenticeship route into a career should be promoted to all young people.
During and after the apprenticeship As part of an effort to improve the apprenticeship brand, a national alumni scheme for qualified apprentices should be considered. This was a view the Holt Review of apprenticeships52 supported. It suggested that a Royal Society of Apprentices should be created. The report states that current and qualified apprentices lack a sense of belonging to a wider community in the way that those that have been through higher education enjoy. By having an umbrella organisation it would help bring together cohorts of apprentices to create this sense of belonging. As well as helping to create parity of esteem with higher education, a Society will create a group of enthusiastic individuals who can act as champions of apprenticeships and mentors for those currently going through the system. NAS could co-ordinate this organisation, and thereby have a greater role in marking the completion of an individual’s apprenticeship.
• The creation of a national alumni network, possibly a Royal Society or equivalent to help strengthen and promote the brand of apprenticeships.
24
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Section 5: Improving the journey for the small businesses The three fundamental issues this paper finds in the employer journey is brand quality, employer ownership and the history of constant change. Apprenticeships shouldn’t be viewed as a fix for unemployment, although they can offer a route to a sustainable career for some unemployed people. All apprenticeships need to be of a high quality. The following brings forward recommendations to address these issues. As a general point, the FSB welcomes the use of financial incentives to encourage SMEs to take on apprentices and to help offset some of the costs involved. Australia – which has a much higher rate of apprenticeship take up – uses incentives on a large scale to help encourage small businesses to take part. However, to be really effective, these incentives need to become an integral part of the apprenticeship programme and maintained over a number of years so that all involved know what is available and the eligibility rules. Short lived initiatives that are frequently changed in response to fleeting political needs, detract from the image of apprenticeships and add to the perception that the programme is bureaucratic and complex.
Quality and confidence in the brand The FSB believes that there is enormous value in the current apprenticeship system but that the brand of apprenticeships is not as well developed as it could be. One of the main roles of the forthcoming Richard review should be to define what an apprenticeship is, who it is for and what it should deliver. The FSB would like the Richard review, and in the longer-term Government, to consider the definition of an apprenticeship and settle on a definition that lasts. That definition should be built around the following key principles: • An apprenticeship must be recognised as the foundation of a career that provides a route to the top and not just as an entry level job with training
25
The Apprenticeship Journey
• The apprenticeship must be seen as a rigorous programme leading to a high quality national qualification which provides a solid foundation for further vocational and academic progression • It must be a meaningful employment signal that businesses know is not something that everyone can achieve – and is of a high quality In parallel to settling on a clear, robust definition of an apprentice, a clearer definition of other work-based training – especially for over 24s – will help define the brand of an apprenticeship as well. To improve the quality and brand of the apprentice, the status of Level 2 qualifications needs to be looked at again. Some are concerned about whether Level 2 qualifications are appropriate to be included in the apprenticeship definition and want England to be on a par with other European countries where apprenticeships often start at Level 3. There are a number of options: 1. Level 2 apprenticeships become a foundation apprenticeship with the expectation that a Level 3 will be completed to be fully qualified 2. Level 2 apprenticeships become traineeships and an apprenticeship starts at Level 3 as was the case in England 12 years ago 3. Create a distinction between less technical and shorter traineeships and more technical apprenticeships as is the case in Australia The FSB advocates a return to a system where Level 2 work-based qualifications would be renamed a ‘traineeship’ which would focus on foundation skills needed in a particular workplace. However, the FSB recognises that this definition may not work for all sectors, and this needs to be considered in any deliberations. The key is to create apprenticeships that deliver competence in a specific employment context and provide a career in such a way that they command respect from the general public. If such a change were considered, the FSB would not envisage any difference in funding between a traineeship and an apprenticeship. Having said this, the FSB would like funding to be examined to ensure that it reflects the priorities of creating quality apprenticeships and traineeships that genuinely educate the workforce.
• Government works with employers to produce an agreed definition of an apprenticeship so that everyone knows what they are. • The Richard Review should ask what employers need apprenticeships to deliver and what should become a separate programme.
Functional skills In the long-run apprenticeships should not include core functional skills up to level 2. In the short term, and in the context of current dissatisfaction with young people’s literacy and numeracy, this will not be possible. The long-term
26
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Improving the journey for the small businesses
solution is for all functional skills to be taught well and embedded in full-time education – the basic point being that apprenticeships should not be used to catch-up on functional skills. Greater emphasis should be placed on ensuring that all school leavers possess core functional skills. This would ensure that these skills are in place before the start of the apprenticeship. However, if higher level numeracy, literacy or IT skills are needed in a certain sector, then these should be an integral part of the apprenticeship. The business will be best placed to know what is needed for their sector.
• As soon as practical functional skills should be removed as a core element of the apprenticeship. Business expects functional skills to be delivered in schools. There should be an entry requirement for apprenticeships.
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Funding and frameworks It is crucial that businesses have greater influence on the development of training frameworks and deciding what skills and knowledge are needed in each sector. This is closely linked to the recommendations that follow concerning how apprentices are funded. Part of the answer lies in developing a flexible, more modular framework to allow small businesses to choose training that best matches their specific needs. A more modular approach would allow for greater choice. To maintain quality, the sector would decide on the core elements of each framework with the individual business able to select the rest. There should be serious consideration of how it can be assured that all providers will offer SMEs this service and how quality can be retained. Making training ‘demand led’ by allowing businesses to draw down the funding directly would change the market dynamics for training provision. If the business draws down the funding themselves, they will be a more discerning customer and be more involved in the full apprenticeship process. Businesses will then have a very direct stake in the type and quality of training that they are paying for. Holt makes other recommendations relating to funding which the FSB believes should be explored. For example, there should be consideration of how funding could be weighted to ensure that providers do not offer a limited number of frameworks in bulk to bigger businesses. The Holt review found that providers were at times less responsive to smaller businesses rather than larger ones due to the economies of scale. To address the problem, funding should be distributed in such a way to ensure the right courses are offered to all businesses53.
27
The Apprenticeship Journey
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• Give businesses the autonomy to draw down funding and buy what the apprenticeship needs and not what the provider wants to deliver. Once businesses are in control of training their perception of and participation in apprenticeships will improve. • Government should consider how funding could be weighted to ensure extra costs for providers serving micro businesses are suitably compensated. • A more modular system of frameworks would allow for small businesses to be able to put together frameworks that best suits their business. • Government should consider the long-term use of financial incentives to encourage SMEs to take on apprentices and to help off-set related costs.
Supporting the apprenticeship programme To support businesses taking on apprentices requires a strong, responsive body that helps businesses and the apprentice understand the programme, find each other and supports them throughout the process. For the most part, small businesses do not have the resources that larger businesses have and would benefit from support from Government. The FSB would therefore like NAS to become more responsive to the needs of micro and small businesses and apprentices in particular. The structure of NAS should be reviewed and potentially NAS could become more independent of government and it should raise its profile. The effectiveness of other organisations that perform similar roles, for example Careers Wales/Apprenticeship Matching Service in Wales, provides a useful example to follow. The graph below demonstrates how more Welsh small businesses rely on them for impartial information. Figure 354: Wales and England results for where businesses go for advice before and during an apprenticeship
Career Wales/Apprenticeship Matching Service WALES Training provider (college) National Apprenticehip Service (NAS) ENGLAND Apprenticeship provider (college or private provider) 0%
28
10%
20%
30%
40%
50%
60%
70%
Improving the journey for the small businesses
There are a number of simple steps that could be taken to help NAS become more responsive to the needs of small businesses, and to support them better when they take on an apprentice. For example the FSB would like NAS to consider how it could boost its service to SMEs to offer something more aligned to what is currently provided to large businesses, such as account managers. It could also provide more tailored, small business guidance on apprentice employment regulations; provide template interview tools, employability skills tests and better information on the quality of providers to support employers through the process better. The potential to build upon local NAS offices should be considered. In Australia local apprenticeship centres provide support for all involved in apprenticeships throughout the process. They also provide advice on other skills issues. The guidance that NAS provides to SMEs could be simplified too: many members report that too much guidance on apprenticeships assumes prior knowledge when trying to engage businesses that haven’t previously had an apprentice. As cited earlier, FSB members would find a less bureaucratic and easier to understand process an incentive to take on an apprentice. By ensuring this kind of support is suitable to the small business could make all the difference.
• NAS to become more responsive to the needs of business and to consider what lessons can be learnt from other countries to promote apprenticeships in their local area.
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• NAS should look at ways of improving its support for small businesses, possibly through account managers specialising in the support of small businesses. Effective communication remains key to improving small business engagement. • The nature and structure of NAS should be reviewed to ensure that it provides a more small business friendly service.
29
Conclusions
The underlying theme of this paper is that the quality and status of apprenticeships need to be improved in England. The focus of Government should not be the number of apprenticeships but rather the quality. If the product is of a high quality then the numbers will follow. This paper recommends a number of changes which should help achieve this. It is crucial that employers are put at the heart of the system and are not passive bystanders. To do this employers should draw down the funding themselves and not the provider. This will make employers more discerning customers and providers more responsive to business need. Far more schools need to engage with small businesses, and education about business should feature higher on school agendas. All young people should be exposed to a number of small businesses as they progress through their education. All schools should frequently invite local small businesses to speak, help with careers advice and potentially to lead classes. Work related learning should be retained and employability skills need to have a much greater emphasis in the curriculum. Too many small business people say that school leavers do not have the employability skills needed for the workplace. There needs to be much greater emphasis on schools achieving core functional skills for all young people. The first role of education is to equip all school leavers with the basic functional skills to progress in their future careers. Competency in core numeracy and literacy skills should be an entry requirement for every apprenticeship. This will improve the image that schools, parents and young people have for the programme. It would no longer be viewed as a ‘catch-up’ scheme, and would instead be seen as a valued and rigorous vocational qualification. Government must develop a clear definition of what an apprenticeship is. For too many years the apprenticeship programme has been tinkered with
30
“Far more schools need to engage with small businesses, and education about business should feature higher on school agendas”
Conclusions
to such an extent that many businesses don’t know what a government recognised apprenticeship looks like. This definition should be developed with all businesses so that the definition is universally accepted, recognised and valued. The role of NAS needs to be improved so that they really do provide an end-to-end service to small businesses. Businesses need to have a greater voice in this service and NAS should consider providing small businesses with a more tailored service. Additional financial incentives should be considered. The FSB warmly welcomed the AGE grant and would like Government to consider a more long-term wage subsidy for small employers taking on apprentices. Short-term grants will not necessarily be that effective as it takes time for small employers to become aware of what is available. A constant change in funding will also add to the impression that many small businesses have which is that the system is confusing. This grant will help many small businesses deal with the costs involved in taking on apprentices, and if used in the long-term will encourage more employers to take them on. The FSB looks forward to the Richard review publication and hopes that the recommendations start the process towards a better system. The FSB fully supports the apprenticeship programme and believes that it has great potential for many more small businesses. Putting employers at the heart of the system and ensuring that apprenticeship are seen by all as a gold standard for vocational qualifications will ensure small businesses are fully engaged.
31
Annex A: Apprenticeships abroad This section of the paper looks at the apprenticeship systems in other developed countries. The focus is on European and Australian apprenticeships. What sets many of these countries apart from England is the level of qualifications offered but most importantly the status of apprenticeships. While other countries do change and seek to improve their apprenticeship programmes they are often more stable than in England. Developing a programme that is able to remain significantly unchanged for many decades is something that England should aspire to do. The valued status of apprenticeships in other countries is also something that England should try to replicate.
Australia Australia has a higher proportion of apprenticeships than England does. In England there are around 11 apprentices for every 1,000 employees compared with 39 in Australia55. Around half of all apprentices are under 2556. The Australian model of apprenticeships and traineeships makes a distinction between more technical and less technical work based training courses. Traineeships take less time, around one year, whereas the apprenticeship lasts around three to four years. “There are two main differences between an apprentice and a trainee. An apprentice is trained in a skilled trade and upon successful completion will become a qualified tradesperson. Trades such as electrical, plumbing, cabinet-making and automotive mechanics are just a few that are a part of the apprenticeship scheme. A trainee is someone who is being trained in a vocational area. These vocational areas include, but are not limited to, office administration,
32
Annex A: Apprenticeships abroad
information technology and hospitality. Upon completion of a traineeship you will be eligible to receive a minimum of a certificate II in your chosen vocational area57.” The Australian Government contributes a substantial amount to the apprenticeship system. Australia pays incentives to employers of apprentices and trainees on a large scale. These incentives are used to encourage completion of apprenticeships at level three and above58. Australia’s state governments also pay the majority of the formal, off-the-job training. Some employers can also claim payroll tax exemptions59. A lot of the work of promoting, dealing with the administration and matchmaking of businesses and apprentices is done though local Australian Apprenticeship Centres60. These one-stop shop local centres roles include: Provide assistance to employers, Australian apprentices and training providers throughout the duration of the Australian apprenticeship • Market and promote Australian apprenticeships in the local area • Administer incentive payments to employers and personal benefits to Australian apprentices • Work with the state and territory training authorities to provide an integrated service • Establish effective relationships with job services Australia providers, group training organisations, registered training organisations (RTOs), schools and community organisations61 These centres can provide advice and support to all involved in the apprenticeship system. The Government is currently expanding the role of these centres to ensure that they give a wider range of advice on skills and training. While Level 2 certificates are available, most apprenticeships are at Level 362. This system, while encouraging a high take-up of apprenticeships does face a number of issues according to Knight and Karmel. They have a relatively high non-completion rate and there is evidence to suggest that fewer people are interested in taking up very high level qualifications in the traditional trades. Finally, this is a costly system and there are questions to be asked about the need for a more targeted approach63.
Germany Approximately two thirds complete an apprenticeship by the age of 2564. This system is called a dual system, that is tied in with ‘social partners’ such as the local Chambers of Commerce and involves a substantial out-of workplace requirement. The dual system refers to the fact that employers directly undertake much of the training and as such have to have ‘qualified trainers’ in their organisations and have the necessary equipment and facilities. On top of this the apprentice will also spend around a day a week in a vocational school. Employer and employee organisations have a role in apprentice matching, inspection of quality and the assessment of
33
The Apprenticeship Journey
apprenticeships65. The cost of off-the-job training in vocational schools is paid for by regional education authorities. The cost of exams and assessment is paid for by Chambers of Commerce financed through membership fees66. Almost all apprenticeships are for Level 3 and last around three years. In Germany there are 350 recognised apprenticeship occupations. The support provided to young people in Germany in terms of careers guidance and work-related learning is significant. Schools have a responsibility to provide a vocational orientation within the curriculum. Alongside ‘World of Work’ lessons, students are also often provided with work visits and work experience. All pupils have access to career counselling interviews and can request more that the minimum if they wish to67. The number of young people that want apprenticeships is outstripping the number of businesses willing to offer them. The German Government has tried a number of mechanisms to encourage businesses to offer places such as a reduction in the burden of cost and regulations.
Switzerland Hilary Steedman68 argues that the Swiss apprenticeship model is in many ways more successful than others in Europe. Swiss school leavers have a higher educational standard and more qualified people go into apprenticeships. In 2010 just under two thirds gained the apprenticeship certificate69. It is a popular career pathway. All apprentices attend publically funded vocational schools and so the costs are limited for the business. Employers can choose to provide extra training in technical subjects or other areas. Switzerland is the only country in Europe where the firm bears no net cost as a result of the apprenticeship70. Again, young people in Switzerland are provided with extensive careers guidance. Careers guidance starts when the young person is around 12. They will learn about the local economy and local business. As they get older they will attend careers centres and parents will be part of the careers guidance process. They may attend taster sessions in local businesses that offer apprenticeships and they will learn how to apply for jobs71.
Austria There is a very high demand for apprenticeship places in Austria. Around 40 per cent of young people go into apprenticeships, the majority of whom are under-19. Most apprenticeships last three years and completion rates are high72. However, Austria suffered from the fact that more people wanted to be an apprentice than there were businesses to support them, something England
34
Annex A: Apprenticeships abroad
also suffers from. In 2003 a number of measures were introduced in an attempt to increase the number of engaged businesses. • Appointment of apprenticeship advisors (experienced apprenticeship trainer and providers) whose job it is to contact firms directly and persuade them to offer more apprenticeships • Provision of training facilities for young people not yet ready or at the right level to take up an apprenticeship or for apprentices that are falling behind the expectation of the employer. This provision is provided outside of the employer provision73. Alongside financial incentives these measures have begun to reverse the trend and increase employer demand74.
Wales The Welsh system is very similar to that in England. However, a slightly larger number of FSB members offer apprenticeships at Level 3 in Wales than they do in England. The labels given to different levels of apprenticeships are Comparison of the levels of apprenticeships offered by FSB members in England and Wales75
Higher Apprenticeship (Level 4 and 5) WALES
Apprenticeship (Level 3) Foundation Apprenticeship (Level 2)
Higher (Level 4 and 5) ENGLAND
Advanced (Level 3) Intermediate (Level 2) 0%
10%
20%
30%
40%
50%
60%
70%
Comparison of where English and Welsh FSB members go for advice before an apprenticeship76
Career Wales/Apprenticeship Matching Service WALES Training provider (college) National Apprenticehip Service (NAS) ENGLAND Apprenticeship provider (college or private provider) 0%
10%
20%
30%
40%
50%
60%
70%
!
35
The Apprenticeship Journey
different and as a result there is a greater expectancy that an apprenticeship is a level 3 as opposed to simply undertaking a foundation apprenticeship. FSB statistics demonstrate that the national careers service/apprenticeship service in Wales is used by a greater number of small businesses than in England. Careers Wales’ Apprenticeship Matching Service has had the benefit of time to build up a reputation for providing advice. It also benefits from having an integrated service with Careers Wales’ wider offering. The Welsh experience demonstrates that these services need time to bedin and for businesses to be aware of the offer. Careers Wales also has a strong link with schools and colleges which possibly helps as businesses would have to use them as a route to finding apprentices. NAS should look to see what is offered in Wales which makes the scheme there more attractive to businesses.
36
Annex B: FSB statistics The FSB has looked at the journey that both the apprentice and the business make when embarking on an apprenticeship. Therefore members were asked questions related to education, work experience, employability skills as well as issues around apprenticeships themselves. Some key statistics are below. These statistics can be broken down by business size, sector and region should that be required. Results are based on an online survey carried out by 2,774 members of the FSB ‘Voice of Small Business’ Panel. This represents a response rate of 37 per cent. Surveys were completed between Tuesday 12 and Tuesday 26 June 2012 and the national data has been weighted to the membership profile. The study was undertaken by Research by Design on behalf of the FSB. Have you provided work experience in the last 12 months? Yes
31%
No
69%
Which of the following reasons best describe why you have not taken on a work experience student (under the age of 19) in the past two years? Base: 1628 (Not taken on a student) Not relevant to my business/sector
29%
It’s too costly/time consuming
27%
It is not an option that has been considered
22%
Schools in our area do not contact us
20%
Requirements set by schools are too restrictive
15%
Government regulation/legislation regarding placement is too complex
12%
Previous negative experience
10%
Lack of appropriate candidates
10%
Unsure how to get involved/run a work experience programme
9%
Other
2%
Unsure
2%
37
The Apprenticeship Journey
Which of the following, if any, would encourage you to take on a work experience student in the future? Base: 1635 (Not taken on a student) A financial incentive
32%
More proactive outreach by schools to local businesses
19%
An ‘interview process’ to provide businesses with reassurance
16%
More support on framing the work experience
10%
Work experience falling when it best suits my business
9%
Greater flexibility from the school/college
8%
Other
3%
None of these
23%
A work experience student is not suitable for my businesses
24%
Which of the following a) has your local school contacted you about, and b) have you contacted your local school/college about, if any? Base: 2486 School/college contacted you
You contacted school/ college
Work experience placement
4%
27%
Apprenticeships
6%
8%
Speaking at the school
3%
7%
Student mentoring
1%
3%
School Governor
2%
2%
Providing careers advice
1%
3%
Anti-social behaviour from students
1%
0%
Other
1%
1%
None of these
87%
67%
When employing these types of young people how confident are you that they are prepared for the world of work? Base: 2308-2390 Very confident
Quite confident
Not very confident
Not at all confident
Unsure
School leavers
1%
7%
33%
48%
12%
College leavers
1%
19%
42%
25%
13%
University leavers
3%
25%
35%
22%
15%
38
Annex B: FSB Statistics
Considering just school leavers (typically those aged 16 years old) how do you rate their competency with regards to the following skills? Base: 169-175 (Those employing 16-17’s) Excellent
Good
Neither
Poor
Very poor
Unsure/N/A
Business awareness
0%
4%
16%
40%
37%
2%
Communication
0%
16%
26%
40%
16%
2%
Team working
1%
30%
34%
21%
10%
4%
Positive attitude to work/ Selfmanagement
1%
18%
22%
32%
25%
3%
Numeracy skills
0%
17%
25%
40%
15%
4%
Literacy skills
0%
15%
25%
45%
14%
2%
IT skills
8%
55%
21%
7%
2%
8%
People skills
0%
12%
37%
38%
11%
2%
What more should schools do to prepare young people for work in a small business? Base: 2466 Place greater emphasis on developing employability skills in schools
69%
Improve basic literacy/numeracy skills
66%
Provide better careers guidance
40%
Increase availability/range of work experience
38%
Increase awareness of SME jobs and career opportunities
36%
Provide more entrepreneurship/business education
35%
Other
11%
Unsure
5%
Within the past 12 months have you taken on one or more apprentices who have participated in a work-based training and development programme, leading to a nationally based qualification, or do you plan to do so in the next 12 months? Base: 2477 (England, Wales, NI) Yes, I have taken on one or more apprentices within the past 12 months
9%
Yes, I plan to take on one or more apprentices within the next 12 months
7%
No
82%
Unsure
4%
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The Apprenticeship Journey
Which of the following, if any, would encourage you to take on an apprentice within your business? Base: 2088 (Not taken on apprentice or unsure – Total England, Wales, Northern Ireland) A wage subsidy
35%
Less bureaucratic process
22%
Qualifications/frameworks/courses more relevant to my business
18%
An organisation to handle the administration and HR aspects
17%
More suitably qualified young people applying
15%
More support throughout the process
12%
Improved quality of training providers
10%
Fewer organisations to deal with
8%
An apprentice shared with other businesses
7%
Other
3%
An apprentice is not suitable for my businesses
42%
Unsure
7%
Why did you decide to take on one or more apprentices? Base: 219 (Taken on an apprentice – Total England, Wales, Northern Ireland) To add to my skills base (business or industry)
76%
Cost effective way of employing staff
45%
To bring in younger employees/change age profile
30%
Civic duty/help local economy
25%
Encouraged by training provider
13%
To increase staff loyalty/motivation
12%
Other
4%
At what level(s) is/was the apprenticeship(s)? Base: 203 (Taken apprentice) Intermediate (level 2)
67%
Advanced (level 3)
27%
Higher (level 4 and 5)
8%
Unsure
7%
40
Annex B: FSB Statistics
Who made the decision over which level of apprentice(s) to take on? Base: 203 (Taken apprentice) My business
57%
Apprentice provider
38%
The Apprentice/student
8%
Unsure
5%
Where do you/your business go for advice and support when a) thinking of taking on an apprentice and b) during the apprenticeship? Base: 223-295 (Taken/thinking of taking apprentice) Thinking of taking on an apprentice
During an apprenticeship
Apprentice provider
63%
76%
National Apprenticeship Service (NAS)
23%
11%
Businesslink
14%
5%
Trade association
7%
5%
Local Authority
4%
4%
Sector Skills Council
2%
1%
Somewhere else
3%
1%
None of these
8%
11%
Unsure where to go for advice and support
10%
7%
41
Notes
1.
National Apprenticeship Service, Business plan 2012-2013, David Way, Chief Executive
2.
Adult apprenticeships: estimating the economic benefits of apprenticeships; technical paper, NAO, February 2012
3.
FSB ‘Voice of Small Business’ Survey Panel (June 2012) conducted by Research by Design Ltd on behalf of FSB
4.
House of Commons Committee of Public Accounts, Adult apprenticeships, 84 report of session 2010-12
5.
The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE
6.
ibid
7.
The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE
8.
House of Lords Select Committee on Economic Affairs report, 5th report of session 2006-2007; Apprenticeship a route to skill
9.
Why rethink apprenticeships? Tess Lanning, found in Rethinking Apprenticeships, IPPR, Edited by Tony Dolphin and Tess Lanning
10. http://www.fsb.org.uk/policy/images/sector%20skills%20council%20research.pdf 11. BIS Research Paper Number 77 – Evaluation of Apprenticeships: Employers, May 2011 (http:// www.apprenticeships.org.uk/News-Media/Latest-News/~/media/2310FB6A989E4666B30D8F11 415C681B.ashx) 12. Apprenticeships for Young People; a good practice report, OFSTED, April 2012 13. ibid 14. FSB ‘Voice of Small Business’ Survey Panel (June 2012) 15. The Forgotten Half, Jonathan Birdwell, Matt Grist, Julia Margo, Demos and Private Equity Foundation Report, 2011 16. Quarterly Statistical First Release, ONS, 28th June 2012 17. The Forgotten Half, Jonathan Birdwell, Matt Grist, Julia Margo, Demos and Private Equity Foundation report, 2011 18. Hilary Steedman, Challenges and change: Apprenticeships in German-speaking Europe, found in Re-thinking apprenticeships, IPPR, 2011 19. ibid 20. Review of Vocational Education: The Wolf report, March 2011 21. Apprenticeships for Young People; a good practice report, OFSTED, April 2012 22. ibid 23. The Forgotten Half, Jonathan Birdwell, Matt Grist, Julia Margo, Demos and Private Equity Foundation report, 2011 24. YouGov (2010) Edge Annual Programme of Stakeholder Research: Business in Schools. 25. It’s who you meet: Why employer contacts at school make a difference to the employment
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Notes
prospects of young adults Education and Employers taskforce, Dr Anthony Mann, Director of Research and Policy, Education and Employers Taskforce 5th February 2012 26. Ibid 27. YouGov (2010) Edge Annual Programme of Stakeholder Research: Business in Schools. 28. Work experience: Impact and delivery – Insights from the evidence (April 2012,) A report by Dr Anthony Mann, Director of Research and Policy, Education and Employers Taskforce 29. FSB ‘Voice of Small Business’ survey panel (June 2012) conducted by Research by Design Ltd on behalf of FSB 30. http://www.young-enterprise.org.uk 31. YouGov (2010) Edge Annual Programme of Stakeholder Research: Business in Schools. 32. http://www.education.gov.uk/aboutdfe/statutory/g00205755/statutory-careers-guidance-foryoung-people 33. See Annex A 34. The Education Select Committee found in July 2011 that “It appears that the Department for Education’s funding contribution to the all-age service is designed to cover only the provision of online and phone services for young people transferred from Connexions Direct, and that face-toface services will be offered by the all-age service only to people aged over 18”. Furthermore “the duty on schools meanwhile, does not amount to a duty to provide face-to-face services; nor is there any identifiable enhancement to school funding specifically to recognise the cost of career guidance services”. 35. Education Select Committee, Participation by 16-19 year olds in education and training, July 2011 36. Review of Vocational Education: The Wolf Report, March 2011 37. FSB ‘Voice of Small Business’ survey panel (June 2012) conducted by Research by Design Ltd on behalf of FSB 38. Making apprenticeships more accessible to small and medium-sized enterprises, a review by Jason Holt, CEO, Holts group of companies, May 2012 39. Making apprenticeship more accessible to small and medium-sized enterprises, a review by Jason Holt, CEO, Holt Group of Companies, May 2012 40. See Annex A 41. Why rethink apprenticeships? Tess Lanning in Rethinking apprenticeships, and Conclusions, Tony Dolphin and Tess Lanning in IPPR, Edited by Tony Dolphin and Tess Lanning, 2011 42. Martin Doel, Apprenticeships and further education colleges: the next chapter, found in Rethinking apprenticeships, IPPR, Edited by Tony Dolphin and Tess Lanning, 2011 43. See Annex A 44. House of Commons Committee of Public Accounts, Adult apprenticeships, 84 report of session 2010-12 45. Making apprenticeship more accessible to small and medium-sized enterprises, a review by Jason Holt, CEO, Holt Group of Companies, May 2012 46. Making apprenticeship more accessible to small and medium-sized enterprises, a review by Jason Holt, CEO, Holt Group of Companies, May 2012 47. ibid 48. Apprenticeships for young people: A good practice report, OFSTED, April 2012 49. ibid 50. OECD review of vocational education and training; learning for jobs, Pointers for policy development, May 2011 51. Education Select Committee, Participation by 16-19 year olds in education and training, July 2011 52. Making apprenticeships more accessible to small and medium-sized enterprises; a review by Jason Holt, CEO, Holts group of companies, May 2012 53. ibid 54. FSB ‘Voice of Small Business’ survey panel (June 2012) conducted by Research by Design Ltd on behalf of FSB 55. The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE 56. ibid 57. http://www.apprenticeshipsinfo.qld.gov.au/apprentices/difference.html 58. Brian Knight and Tom Karmel, Apprenticeships and Traineeships in Australia, Rethinking Apprenticeships, IPPR, Tony Dolphin and Tess Lanning, 2011 59. ibid 60. The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE 61. http://www.australianapprenticeships.gov.au/Aus_App_Centres/Overview.asp
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The Apprenticeship Journey
62. The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE 63. Brian Knight and Tom Karmel, Apprenticeships and Traineeships in Australia, Rethinking Apprenticeships, IPPR, Tony Dolphin and Tess Lanning, 2011 64. The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE 65. ibid 66. ibid 67. ibid 68. Hilary Steedman, Challenges and change: Apprenticeships in German-speaking Europe, Rethinking Apprenticeships, IPPR, Tony Dolphin and Tess Lanning, 2011 69. ibid 70. ibid 71. ibid 72. The State of Apprenticeship in 2012: international comparisons Australia, Austria, England, France, Germany, Ireland, Sweden and Switzerland, A report for the Apprenticeship Ambassadors Network, Hilary Steedman, LSE 73. ibid 74. ibid 75. FSB ‘Voice of Small Business’ survey panel (June 2012) conducted by Research by Design Ltd on behalf of FSB 76. FSB ‘Voice of Small Business’ survey panel (June 2012) conducted by Research by Design Ltd on behalf of FSB
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