BUSINESS IS GOOD FOR APPRENTICES Chambers of Commerce: Delivering apprenticeships across the UK About this report The British Chambers of Commerce is the national body for a powerful and influential Network of Accredited Chambers of Commerce across the UK; a network that directly serves not only its member businesses, but the wider business community. The publication of the British Chambers of Commerce (BCC) report, ‘Skills for Business: More to Learn?’, in which more than 6,000 businesses from across the UK took part, highlighted how the education system in its current form is not meeting the needs of British business. The report showed that only 29% of businesses are very or fairly confident in recruiting a school leaver with A-Levels or the equivalent. These findings are troubling, especially in light of figures that reveal the number of young people currently not in employment, education or training has exceeded one million. Business continually argues that apprenticeship programmes are an effective tool to improve the skill set of young people. This will be fundamental in improving the employment opportunities of school leavers and in reducing the skills gap that currently exists in the UK. Representing 100,000 businesses who together employ more than 5 million employees, the British Chambers of Commerce is The Ultimate Business Network. Every Chamber sits at the very heart of its local community, working with businesses to grow and develop by sharing opportunities, knowledge and know-how. Written and researched by Adam Reid, Policy Researcher, BCC Thanks to our participating Chambers Birmingham Chamber of Commerce & Industry Cambridgeshire Chamber of Commerce Derbyshire & Nottinghamshire Chamber of Commerce Doncaster Chamber of Commerce Liverpool Chamber of Commerce London Chamber of Commerce & Industry North East Chamber of Commerce St Helens Chamber of Commerce Acknowledgements Adam Marshall, Director of Policy and External Affairs, BCC Anne Tipple, National Skills Executive, BCC Abigail Morris, Policy Adviser, BCC John Wastnage, Policy Adviser, BCC Design and layout Sarah Jarvis, BCC British Chambers of Commerce 65 Petty France, London, SW1H 9EU T: 020 76545800 F: 020 76545819 E: [email protected] W: www.britishchambers.org.uk 2 APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN About the BCC The BCC has collected case studies from Chamber members across the UK which outlines the real experiences of businesses and learners throughout the apprenticeship process. These case studies range from instances where an apprentice has been offered a permanent job at the end of their course, leading to further promotion and successful careers; to cases where an employer has tried to offer an apprenticeship programme but barriers, such as perceptions of certain industries by schools or colleges, or rigid apprenticeship frameworks, have prevented this. JANUARY 2012 Table of contents Apprenticeships benefit business Role of the candidate Role of the school or college Experiences of learners on apprenticeship page 4 Civic Duty Local Chambers promoting Page 13 Recommendations page 15 courses apprenticeships page 7 page 8 page 10 Page 14 3 4 Research by the BCC found that for businesses that have taken on an apprentice, the vast majority (82%) have done so to increase the skills capacity within their organisation. Most businesses within the Chambers network reported a positive experience of apprenticeship schemes. Some of these examples are listed below. We’ve found that apprentices are committed, hardworking and bring fresh ideas. Having them on board is important to us as they are the people who are going to be the future of the organisation, making sure that our company is viable and that we have the skills to deliver our future objectives. We also find that people who come into the organisation as an apprentice are more likely to stay with us long term. Of the apprentices we’ve recruited over the past six years we have on average a 90% retention rate, which is really effective for us and shows that the commitments that we’ve put into developing these young people has paid off. Helena Partnership, St Helens Overall it has been a very positive experience for all of us. The Chamber helps us with the recruitment process by supporting us in selecting the candidates and the young people who apply for the programme are obviously keen to find a career for themselves, which means we can find the right people. VCL Stair lifts, St Helens Apprenticeships have proven to be fundamental to the success of my business. Most of our staff have completed our apprenticeship programme and nearly all of our supervisors are former apprentices. Apprenticeships are a key part of our long term recruitment programme. We like to recruit apprentices because they can learn the business, they are loyal and you get to know them. This is what gives our business a competitive edge. Kevin McLoughlin, Painter and Decorator, London Apprenticeships benefit business APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN Apprenticeships benefit business We never consciously made a decision to offer apprenticeship placements, but after taking on our first apprentice we haven’t looked back. Since offering apprenticeship placements our business has been growing at an astonishing rate. We put this down to our training programme. Since 2007 we have taken on 16 apprentices and all of them have gained permanent employment with us. CUB, Cambridgeshire Some customers have also commented on the benefit that apprentices add to businesses: I am writing to express my delight in the excellent service I received in the Co-operative food store. When I last visited the store I was extremely impressed with the young man there, who helped me with my queries and even asked if I needed any help carrying my shopping to the till. I would like to express my gratitude to this young man and look forward to visiting the store again. The Midcounties Co-operative, West Midlands 5 Role of the candidate One business stated that they prefer to recruit apprentices over applicants who have completed other forms of training: Whilst apprenticeships offer a good opportunity for both the learner and the employer to improve skill sets, the programmes are candidate dependent; the success of the programme rests on the determination and personality of the apprentice. Unfortunately in some cases, negative business experience of an apprentice can over shadow any previous positive experiences. This gives us the opportunity to shape and train our apprentices to fit the company’s needs. In a specialist, niche market such as ours, your workforce is your most valuable asset. It’s essential our team are well trained and act as ambassadors for the company when on our site. We believe apprenticeships are the best way for us to stay competitive and increase our market share. Multiplex Engineering, Derbyshire and Nottinghamshire We have in the past found it difficult to recruit staff with the correct skill set and work attitude. It has been the biggest constraint we have faced as a business. It was therefore a conscious decision to find a training solution to meet our needs. The IT industry is one that is constantly changing – new developments, tighter margins and new competition – we needed staff trained with not only the right skills but also with the right attitude to be able to cope in this environment. Apprenticeships have proven this. CCS Media, Derbyshire and Nottinghamshire Whilst the feedback above is very positive, one business noted that the benefits are not immediate and companies have to invest time and resources in order to reap the rewards: You have to be committed and put in the time and effort to help apprentices develop, but as you watch them improve week by week it is an extremely positive experience and I would recommend it to any business. VCL Stair Lifts, St Helens APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN 6 Apprenticeships benefit business We had some good experiences with apprenticeships but one negative experience with someone who was immature and lacked work ethic. Dixon Timber, Doncaster In 2010 we decided to employ three apprentices who were undertaking an apprenticeship in Business and Administration. I set out a full week programme which covered everything they could possibly need to know as well as a role play to help build their confidence. During the week they were all consistently late, were dressed inappropriately and portrayed an “I don’t want to be here attitude”. Each apprentice completed their training that week and were given their daily tasks, a computer for their use which had all the applications they needed and had been covered in the training programme. When it came to undertaking their tasks, it became apparent that they didn’t want to be working. They felt that they had to do something after school and this was the easiest option as they got paid. ACS UK Ltd ICT, Doncaster This employer’s experience has put them off wanting to offer apprenticeship programmes in the future. 7 8 In other cases, businesses have tried to recruit an apprentice and have found a candidate who would be suitable; however schools’ outdated perceptions of certain industries, combined with teachers’ encouragement to pursue academic qualifications, has made it difficult for businesses to secure the best candidates. In the past I have lost out on good apprentices because schools have talked their students into going to sixth form at the last minute rather than pursuing a vocational option. Dixon Timber, Doncaster We have had positive experiences of apprenticeships but it has taken time to get this right. We have been working with two neighbouring schools for six years and it has taken this time to effectively tackle misperceptions of the manufacturing sector in school staff and students alike. However, the firm is now getting high calibre school leavers. Optima International, Doncaster We have had positive experiences with Doncaster College on the financial training side (apprentices) but had a bad experience regarding engineering. Consequently we use other providers. The problems were caused by a lack of transparency and a lack of helpfulness from the college. Jenkinson Electrical Engineering, Doncaster Role of the school or college APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN Role of the school or college We feel that colleges are offering courses they want to offer, not what is needed for our business. There is a lack of programmes in certain disciplines, such as sales and marketing, and some colleges delivery of other programmes is far too rigid. It is fundamental for schools and colleges to work towards needs of local business rather than maintaining the college’s status quo if in the future we are to have an effective and productive workforce. CUB, Cambridgeshire The BCC report ‘Skills for Business: More to Learn’, found that whilst some businesses are keen on offering apprenticeships the majority (54%) do not find them relevant to their business sector. This is typically because apprenticeship frameworks are developed too slowly, particularly for businesses that are reliant on technology. One business argued that: I have always been interested in looking at apprenticeships for web/animation but there has never been any support for it. The current IT based apprenticeships are either about using ICT or technical ICT (hardware/network support etc). I have discussed with Connexions and the college in the past about trying to create a CDI apprenticeship when there was a significant investment in apprenticeships a couple of years ago. I argued that CDI is a growth sector for the region but there is very little available for people to enter the market and apprenticeships would be perfect as no school courses tend to prepare someone adequately for actual work in the sector. Software Development Company, Doncaster If the BCC’s recommendation of creating more modular frameworks for apprenticeship programmes is realised, then businesses would feel more able to offer these programs, delivering both transferable and specialist skills. 9 10 Whilst learners are not directly members of the Chamber of Commerce network, it is still important to note their experience of the apprenticeship process. I’ve found the combination of learning while you’re working to be very useful; I’ve learnt a lot of new skills and gained experience in working with colleagues in a business environment. I’ve also developed a lot more confidence in things like using the phone and have generally become more confident in myself. I’ve really enjoyed working and I think it is something that more young people should consider doing. Apprentice at Helena Partnerships, St Helens Doing an apprenticeship has given me a lot of practical experience that I would never have learnt from reading books; for me, working alongside other staff doing a similar role has been much more valuable. Apprentice at Kingdom Security, St Helens One business wrote to say that an apprentice won their employee of the month award: An apprentice who started as an apprentice consultant in the manufacturing division just over 12 months ago was awarded the company’s Employee of the Month award in April this year. The award is given to the top performing consultant in the whole group and is judged on the amount of money they generate for the company during that month. For a young man to win this award in a company that has been established for more than 38 years is an amazing achievement. It is also testament to the calibre of the apprentices coming through the programme. GPW Recruitment, St Helens Experiences of learners on apprenticeship courses APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN Experiences of learners on apprenticeship courses The fact that an apprentice can win a business’s employee of the month award shows that people undertaking an apprenticeship scheme can add real value to any organisation. Whilst normally apprenticeships begin on a temporary basis, in many cases apprentices are offered permanent contracts once they have completed their programme, which can lead to promotion through the business structure. The most successful case was when we took on an apprentice from Ways to Work, a community led job brokerage, in 2003. He started as a retail assistant, throughout the years he developed his skills and knowledge and moved up the career ladder by becoming Retail Manager, by 2011 he had been promoted to the higher position of Sales Manager. Doncaster Business One ex-learner, who joined a Derbyshire business as an instrumentation apprentice over 15 years ago, now manages the company’s offshore operations. He explained: My apprenticeship has given me the training and confidence I need to have a really good job in an exciting and specialised field. Every day is different; I can find myself on a North Sea oil rig or working at our site in Chesterfield. It’s definitely worth considering earning and learning to get the career you want. Multiplex engineering, Derbyshire and Nottinghamshire 11 12 Another former apprentice stated: Doing an apprenticeship helped me gain confidence. The most useful part is on the job training; it’s relevant and obviously I’ve gained a full-time permanent job as a result of my training Apprentice at Bold Spirit, Liverpool Even if an apprentice is not kept on after their programme has finished, once completing their course other businesses would be more confident in recruiting them. One employer argued: We would be very confident in recruiting someone who has completed an apprenticeship with a different business. I would have great confidence in recruiting someone who has completed an apprenticeship programme which involved extended contact with a business. Kevin McLouglin Painter and Decorator, London Civic Duty APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN Experiences of learners on apprenticeship courses For some businesses, civic duty was given as an important reason for offering an apprenticeship programme. BCC research shows a third (33%) of businesses that have taken on an apprentice have done so from a sense of civic duty, and to boost their local labour market. One employer stated: All they (young people) needed was an opportunity to show what they could do and that is the same for all of the apprentices on the programme. These young people represent the future of this country. If local businesses support them now, we will all reap the benefits in the future. GWP Recruitment, St Helens Apprenticeships are a key priority for our business. We offer Apprenticeships in order to provide local youngsters with not only the ability to work towards a qualification, but also to obtain important ‘on the job’ skills and experience, which in the current climate is especially important. Helena Partnership, St Helens A business located in the North East said of their apprentice: She is a shining example of what young people can achieve given the right support, training and encouragement. Our company ethos is that good people make good business, and her commitment is testament to this. NECC’s commitment to their apprenticeship scheme is clearly evident and one to be highly recommended. Lockout Tagout Safety Ltd, North East 13 14 Local Chambers have been campaigning to increase the numbers of apprentices offered in their local areas. Working in partnership with local businesses, they have been promoting the benefits of apprenticeships in order to persuade more businesses to offer schemes. Many have been successful in increasing the numbers of apprenticeships offered in their area. Surrey Chambers of Commerce, Surrey ALPS, National Apprenticeship Service and Surrey County Council began Campaign 200 in September 2011 to encourage Surrey businesses to take on an additional 200 apprentices. The campaign started at the Surrey Youth Festival with a business breakfast designed to show employers the “truth behind the myth” of apprenticeships. 34 businesses signed pledges on the day. The pledges show businesses commitment to take on an apprentice. Surrey Chambers pushed forward the campaign with a series of articles and case studies explaining the procedures and ease of finding apprentices. Information has been available at all Chamber events and on the website. This marketing technique has been a huge success and we have no doubt that by April 2012 there will be 200 more Apprenticeships in Surrey. Surrey Chambers of Commerce St Helens Chamber’s 100 Apprenticeships in 100 Days campaign was launched in April 2011, with an event hosted by Kath Boullen, Chief Executive of St Helens Chamber and Cllr Marie Rimmer, Leader of St.Helens Council, who backed the campaign financially. The campaign was supported by a local media partner giving coverage on progress and keeping the campaign in the public eye. The campaign got off to a flying start following the launch event. We hit a lull in the period of double bank holiday weekends, putting us behind schedule for about a week. With additional marketing we soon got back on track and progress was steady throughout the campaign. The use of a campaign graphic to monitor progress throughout the campaign – counting up the days and number of Apprentices recruited acted as a way of reminding the public and internal staff of the progress made and required. St. Helens Chamber of Commerce Recommendations APPRENTICES ARE GOOD FOR BRITAIN APPRENTICES ARE GOOD FOR BRITAIN Local Chambers promoting apprenticeships After conducting a survey of over 6,000 businesses and gathering these case studies from businesses located throughout the UK it is apparent that businesses and learners both find apprenticeship programmes very beneficial. Business is good for apprenticeships, and apprenticeships are certainly good for business – that is what we learned from the experiences of Chambers of Commerce and their members across the UK. Yet our research also shows there is room for improvement if we are to encourage more and more firms to use apprenticeships to train and develop both new and existing staff. Our recommendations include: Changing apprenticeship frameworks to make them more modular and responsive to business innovation; Incentives to encourage more people to undertake high-level apprenticeship schemes; Reinstating independent careers advice; and Targeting businesses that employee 100-249 staff members. For more information on BCC’s view on how best to further boost apprenticeships to upskill UK workers and encouraging growth, please consult the BCC report Skills for Business: More to Learn? 15 BRITISH CHAMBERS OF COMMERCE 65 PETTY FRANCE LONDON SW1H 9EU T: +44 (0)20 76545800 F: +44 (0)20 76545819 [email protected] www.britishchambers.org.uk
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