Apprenticeships: Are they the answer to industry’s skills gap?

Are apprenticeships really a viable solution to economic growth and a boost to the ever-dwindling skills gap? Thisismanufacturing.co.uk asks Employer Services Director for the Northwest, Graham Fisher.

On October 22 2009 the National Apprenticeship Service (NAS) launched the ‘Good for Business’ campaign, to persuade more businesses to get involved in apprenticeships. Where will NAS succeed where other schemes have failed?

Apprenticeships have been steadily growing since the mid 1990s when the Government’s modern apprenticeship programme began. In 2008 we had 240,000 starts. We’ve seen the increase year on year significantly because employers are seeing the benefits, and also because apprentices are covering a lot more occupations now.

Figures show apprenticeships have trebled in the past 10 years. However, October 2009, more than 130,000 people were registered on NAS for only 4,500 vacancies. What are you doing to close the gap between employers and those seeking to train?

NAS is doing a significant amount of work: our front line force engaging with employers and dealing with local parties. The biggest part of that is the team that work directly with employers selling and promoting the benefits. Since April 2009 the Northwest division has engaged more than 2,500 additional apprenticeships opportunities with new employers (private and public). Had NAS not been there, the vast majority of those would not have happened.

Employers are often put off apprenticeships because of bureaucracy: the process of recruiting people and funding and having to work with training providers. Can you assure them that they have the support they need to accommodate unskilled workers?

NAS is there to handhold employers through that experience. Often employers aren’t aware of apprenticeships and it can be a complicated business. NAS is trying to reduce that by finding the gaps in the market and creating opportunities to meet that demand. If an employer wants to move forward in their search for an apprentice, we will identify the apprenticeship you are looking for, find training providers in your area, and then talk to them on your behalf. If the employer wants to go with that provider we will help them through the process rather than leave them to go through it unaided. Some employers want the hands on experience. But some say ‘I’ve got a business to run here. Can you sort it out for us?’ We want to remove any of the hassle in the training system and take the time to deliver what the employer is looking for.

What are the benefits of apprenticeships to employers?

It’s a ‘no brainer’. The evidence proves that having apprentices improves positivity and competitiveness of companies, it reduces the cost of training, the cost of recruitment and there is evidence to support that apprentices do tend to stay on, so turnover costs reduced. Many companies see apprentices progressing through to director level. Bringing somebody new into the organisation "particularly a young person who might not have a perspective of the industry - brings opportunity to mould that individual in company’s ethos and way of doing things. And grow that individual so they progress in that company.

What about those smaller companies who invest in training and then lose their staff to bigger companies?

Individuals will always move on to other companies. But that will exist whether its existing staff or those on training programme. It’s a difficult marriage. We currently have a big company in the Northwest and are working with them in terms of the supply chain. We have suggested that we work with them as the main employer for the whole supply. That way they get a better service and better product from your supply chain. And we are hoping that this reduces some of the poaching from employer.

Will there be a serious economic price to pay if we don’t provide incentives to business to invest in training?

“Yes. We have to support business in seeing the benefits of training, particularly around apprenticeships and to talk them through the implications and where their business be in five years time. Would you not invest in a new piece of equipment in the next five or ten years? Well why not invest in your workforce? You need people there ready to fuel and drive that continued growth. I can understand employers thinking they need good economic growth before investing in the workforce, but there’s a danger if you wait too long you won’t have the people there to reach the orders and potentially lose business. Put that investment in there now. Investment may not be as great as two years ago but it needs to be there to drive that. Companies need to develop the skills base and increase numbers to drive the economic improvement over the next few years.”

What is NAS’ priority over the next year and how can it help where other initiatives have failed in the past?

“In the Northwest we’ve seen the impact that NAS has had already. We bought in over 2,500 opportunities that I doubt would have been there before. We are engaging with more employers directly or by working with other partners such as Manufacturing Institute and Business Link, giving them the tools to talk effectively about apprentices. It’s about raising awareness and helping more employers take on apprenticeships by identifying the right framework. The challenge is also about engaging learner services - those who offer advice and guidance - and to give them the tools to promote apprenticeships to individuals. Getting better information into schools so they know where the future job opportunities are.”

You have one chance to inspire and persuade all the North West to jump on the NAS bandwagon. What do you say?

Do you want to be more competitive than other employers in your sector? Do you want to reduce operating costs do you want more motivated staff? If the answer to those questions is yes, then look to take on an apprentice.

Did you know?

A new scheme has been launched to recognise businesses who employ apprentices. YouGov research conducted in 2009 found that more than 80% of consumers prefer to use companies that employ apprentices. This lead NAS to set up a badge of honour for all employers of apprentices, plus a link to their site on our website. For more information click here.

2500 is the actual number of apprenticeship opportunities employers have offered through direct NAS engagement with employers since April 2009, across both the private & public sector. Based on our period 4 data the NW has delivered 13.4% more starts (2103) than the same period in 08/09.