Joint Conference ProgrammeApprenticeship Developments 2013

Friday 29th November 2013

Background to the Conference - Patrick Highton, BCPL

Black Country Partnership for Learning29th November 2013

Black Country Strategic Economic Growth Plan – Jatinder Sharma, Principal and Chief Executive, Walsall College and Member of Black Country Local Enterprise Partnership Board

Black Country

Strategic Economic Plan

November 2013

Driver 1: Improving Black Country Business Competitiveness

Driver 2: Raising Employability, Education and Skills

Driver 3: Transforming our Infrastructure and Environment

Jobs +

£1.1bn

Skills+£1.4bn

Business+£3.7bn

Raising Productivity by £6.2bn

Skills for the Future Workforce

2008 Performance

2008 Performance

Apprenticeships

Skills for the Workforce

Black Country Business Survey

14%

86%

Does Your Business Currently Employ

Graduates?

YesNo

02040

Are You in a Position to Offer Structured Training

in the Next 2 Years?

Skills for the Workforce

Growth Sectors

High Value Manufacturing Skills Gaps

Programming Engineering

Production

Skills for HVM

“The lack of skilled workers is holding back our growth”

"We see apprentices as the way forward to keep skills for the

future”

“We are very concerned with low level of apprenticeships – they don’t teach them how to

use equipment”

“We would be looking for experienced trainers, mentors and assessors who can deliver not only recognised qualifications but also a

series of short focused courses along with simulated learning rigs”

“We need to make people aware of some of the good

prospects in engineering rather than banking and insurance”

‘”We are interested in working with schools. There is a need to change

kid’s perceptions when they are younger”

Challenges Opportunities

High Value Manufacturing Skills Gaps

“Availability of skilled people. People that are willing to work.

Work ethic is lacking, especially in poorer areas”

 

The difficulty is finding suitable

people to employ”. 

“There’s a lack of skills locally”.

 

“Staff and recruitment problems are the biggest ones. It’s an

aging workforce”. 

The skills base. There is a general lack of recruits

coming into the industry”.

 “The lack of skilled workers

is holding back our growth”.

Skills for the Workforce

Enabling Sectors

Skills for the Unemployed

Youth Claimants (age 16-24) rate

Outlook for Apprenticeships in England following the Richards Review & Government’s Response – Richard Marsh, Director of Employer Engagement, Apprenticeship Division, Skills Funding Agency

Apprenticeship Development and Excellence 2013

Employer Conference

52

Agenda

Apprenticeship latest

Employer views

Future plans

National Apprenticeship Service

53

Apprenticeship latest

Volumes

• Participations rising still – but new starts down slightly in 2012/13

• But strong growth in Advanced and Higher starts

• Durations have increased dramatically, success rates stabilised

• 200,000 workplaces with Apprentices – growth in SMEs involved,

• Supported by the £1,500 AGE grant now paid to 30,000 + SMEs

Overall a period of relative stability but with further reform ahead,,,

54

the market is not saturated

‒ 200,000 of 4 million workplaces with Apprentices

‒ UKCES –under 30% of all employers had funded or arranged training leading to a recognised qualification 2011.

‒ Market analysis e.g. FTSE 100 and Times Top 100 reveals many household brands without Apprenticeships

‒ Under penetrated sectors e.g. I.T, Retail and London & SE in general

‒ Emerging sectors e.g. professional and business services need the concept of Apprenticeships ‘sold’ to them

Apprenticeship latest

55

Employer Satisfaction - Business Benefits

Subtitle hereAnticipated benefits – 2011/12

• Improve or maintain skills• Train people as employer wants • Improve productivity• Social responsibility• Create diverse workforce

Anticipated benefits – 2012/13

• Improve product or service quality • Improve productivity• Improve staff retention• Improve ability to attract good staff

Benefits experienced 2011/12

• 72% Improved productivity• 69% Improved staff morale• 67% Improved product or service quality• 66% Improved image in sector• 65% Improved retention

Benefits experienced 2012/13

• 72% Improved product or service quality• 68% Improved productivity• 67% Improved staff morale• 60% Improved retention

National Apprenticeship Service

Anticipated and realised benefits remain high and are increasingly well matched

Based on 4,000 completed responses surveys published summer 2012 & 2013 (BIS website)

56All Employer Satisfaction – Ability to Influence

The ability to influence the structure, content, delivery or duration of the Apprenticeship training before or during the Apprenticeship training

2012/13 (2011/12 figure in brackets)

• 50% of employers reported they had the ability to influence before training (55%)

• 58% of employers reported they had the ability to influence during training (60%)

• 67% of employers reported they had the ability to influence during or before (69%)

• 33% of employers reported they did not have the ability to influence training (31%)

National Apprenticeship Service

Introduction of minimum durations and other measures may have reduced employer influence. This was not the intention or the future direction,,

Based on 4,000 completed responses surveys published summer 2012 & 2013 (BIS website)

57

Grant holding experience versus Provider led

National Apprenticeship Service

• Grant holding employers (approximately 70) hold a funding contract with the SFA• They often use providers for some or all of their Apprenticeship • But their experiences are generally more positive

Grant holders tell us that they:

• experience greater influence and control over the quality, content and structure of their Apprenticeship training

• find it easier expansion of the programme to others areas of the business

• provide a broader range of learning, internal, e-learning, mentoring etc

• feel they have ownership over the delivery model and assessment methods

When using a provider the employer-provider relationship is rebalanced towards the employer – as the employer is the informed purchased

58

Large Employer Intentions Surveys… April & October

National Apprenticeship Service

16-18 Recruitment

2 out of 3 respondents are intending to recruit 16-18 year olds in the next 12 months. An increase of 15% from April

Traineeships

Nearly half of responders are planning to offer Traineeships this year

Higher Apprenticeships

92% of respondents say they know about Higher Apprenticeships, 50 % planning to offer Higher Apprenticeships in their business

Based on responses from 201 of the biggest 250 employers of Apprentices in England

59

Reform

After several reviews and consultations,,,,

We have now reached a point where we can start to plan for the future

Government plans to put employers in control but will still need Providers / Colleges!

 

National Apprenticeship Service

60

Trailblazer projects are leading the way in implementing the reforms.

Trailblazers are led by employers and will involve both large and small businesses and professional bodies.

They will lead the way in developing new Apprenticeship standards and assessment approaches.

This will build on what already exists to ensure that professionalism and quality in training are the primary focus.

How will we deliver the reforms?

61

Our first Trailblazers are in the following sectors:

More than 70 organisations are already involved in the first phase of Trailblazer projects.

They took on over 13,00 apprenticeship starts in 2011/12.

What are your plans for Trailblazers?

Aerospace Automotive Digital Industries Electrotechnical

Energy & UtilitiesFinancial Services

Food and Drink Manufacturing

Life &Industrial Sciences

62

The Trailblazers will pave the way for full implementation of the reforms during 2015/16 and 2016/17.

The aim is that all new Apprenticeship starts from 2017/18 will be on the new programme.

As the new standards are developed and agreed, we will cease funding Apprenticeships under former frameworks.

Apprenticeship funding will go to employers to spend at Providers

Details in December,,,

What is the timetable for reform?

Apprenticeship Developments in the Skills Landscape – Progress in the Region and Implications for Providers - Mickey Burke, Head of Area Relationship Team, Black Country, Telford and Wrekin, Skills Funding Agency 

6464

Apprenticeship Developments in the Skills Landscape: Progress in the Region and Implications for Providers

Mickey Burke - Head of Area Relationship Team

6565

Apprenticeship Developments in the Skills Landscape: Opportunities and Challenges for us all

Mickey Burke - Head of Area Relationship Team

6666

1. Back to the Future….

2. Progress and Opportunities

3. Challenges

4. Making it happen…

Agenda:

6767

Speaking at the apprenticeships launch, education and skills secretary (?) promised that

employers would be in the driving seat in terms of the design and development of

apprenticeships which would offer a major boost to business and productivity. He added:

'Apprenticeships are one of the best ways we can fill our skills gaps. ‘

The chancellor of the exchequer (?) commented: 'The government is strongly committed to

expanding and improving the apprenticeship programme in this country ... We must work in

partnership…to ensure that even more businesses and even more young people are

benefiting ….”

 

1. Back to the Future

6868

• Apprenticeship Numbers are up!!!• Success rates are up• Focus on quality • Greater Flexibilities• National Apprenticeship Service• Additional funding• LEPS• Localism

2. Progress and opportunities

6969

• Employer Engagement! • The Employer Proposition• Competing challenges• IAG• Complexity ? • Working in Partnership; Collective BC ‘locality’

response• Lessons Learned…

3. Challenges:

7070

• What can you do? • What can we all do? • How can you engage• How can you effect change? • Two things to take way from today and

implement….what will they be?

“Government can provide opportunity. But opportunity means nothing unless people are prepared to seize it.”

4. Making it happen…

7171

Coffee!

Break

Apprenticeships in the Context of Labour Market Developments – Professor Lorna Unwin, Institute of Education, University of London

Apprenticeship and the Labour Market

Professor Lorna UnwinBlack Country Learning Partnership

and LEP Conference 2013l.unwin@ioe.ac.ukwww.llakes.org.uk

Health & Social Care 78,400 (70,820)

Business Admin 48,270 (44,550)

Management 46,140 (44,980)

Customer Service 44,620 (59,090)

Hospitality & Catering 34,590 (35,540)

Children’s Care, L&D 25,570 (25,840)

Retail 24,770 (31,240)

Hairdressing 15,090 (16,610)

Industrial Applications 14,310 (18,800)

Engineering 13,270 (13,280)

Apprenticeship Starts 2012/13 (2011/12) Data Service

Level 2 Level 3 Higher

Under 198,750

3,530 90

19-2411,580

7,530 340

25+14,850

13,230 1,300

West Midlands Starts 2012/13(Data Service)

Everywhere is Somebody’s Workplace

• What is YOUR WORKPLACE like as a learning environment?

• Why are some workplaces more conducive to learning?

• Why does quality of apprenticeships vary so much?

• Is the apprenticeship model of learning suitable for every workplace and every sector?

Worlds within worlds: how can the potential of the workplace be unlocked?

Expansive-Restrictive Continuum

• Every workplace (public and private sectors - all sizes) is part of a productive system

• Workplaces extend across an ‘expansive-restrictive’ continuum as learning environments

• Apprenticeships reflect the nature of the workplace as well as the sector

• Employers, providers and other partners need strategies for being ‘more expansive’

Structures of Production

‘Owners’ (Public or Private)Head Office

Regional/Local

ManagersEmployees

ProductMarket

TechnologicalChange

Regulation

Apprenticeship alignsbusiness & personal goals

Learning/training seen as an ‘event’

Dual status: learner & worker

Existing skills accredited - fast track

Boundary crossing - internal & external

Confined to immediate job - isolated

Off-the-job promotesdeeper learning

Off-the-job limited tocompleting portfolio

Vehicle for wider workforce development

Bolted on - detached

Stimulating Demand

• Apprenticeship portrayed as employability programme - focus on youth

• ‘Sold’ as a ‘product’ not as a model of skill formation

• Re-position apprenticeship as a key strategy for business sustainability and growth - workforce development

• Make employer support a priority

• Maximise opportunities for sharing resources/sites/expertise

Panel Q & A

Lunch

Apprenticeship Developments – A View from the West Midlands Training Provider Network – Chris Luty, Executive Director, BCTG Ltd

West Midlands Training Provider Network

Who Are WMTPN? Representing over 400 Providers in eight sub-regions

Walsall Association Sandwell Association Dudley Association Wolverhampton Association Birmingham & Solihull Coventry & Warwickshire Hereford & Worcester Shropshire, Telford & Wrekin Staffordshire

What We Do Help communicate regional/National policy into local

actions through LEP Apprenticeship Plans Promoting apprenticeship take up with employers and young

people Linking with regional stakeholders – DWP, SFA, NAS, AELP, NCS

In practice this means Representing Private Providers at World Skills regionally to

encourage take up of skills competitions Manage NAS projects to promote Apprenticeship take up

totalling £300,000 Providing over 15,000 Have a Go skills tasters for young people Reducing learners travel costs to encourage participation Making collective responses to consultations Working with AELP to have a national Voice

How Do We Do It? WMTPN Members nominated by their local networks Members leading in seven Champions Areas

Skills Funding Agency / National Apprenticeship Service World Skills Education Funding Agency DWP and Job Centre Plus Local Enterprise Partnership & Education Skills Boards National Careers Service ESF

Not Only Apprenticeship Provision Programmes for the Unemployed Traineeships Study Programme 24+ Advanced Learning Loans

Apprenticeships in the Black Country 12,390 Apprenticeship starts at Intermediate or

Advanced Level in 2012/13 including 2203 - Health & Social Care, 1155 – Management and

1- Farriery Increasing numbers of Providers delivering in sub-

region 274 Different Providers delivering Intermediate Courses 244 Different Providers delivering Advanced Courses

Black Country Provider Network A core of 60+ Providers with facilities and larger numbers

locally Quarterly briefing events Private Provider representation at LEP Education Skills

Board

The Unknowns For Us All! 24+ Advanced Learning Loans

Challenging for Private Providers – VAT, Advanced & Higher Apprenticeship take up a concern

The learner as the real customer Are we really delivering what they want, when

they want it? Apprenticeship Reform

Proposals to place Apprenticeship Funding directly with employers

May work for larger employers, but risks disengaging SME employers

For More Information Visit - www.wmtpn.com

Apprenticeship Division, Skills Funding Agency - Dan Baker, Business Development Manager

Higher Apprenticeships

Presented byDan Baker29 November 2013

95 | Presentation title – 00/00/2012

Background to Higher Apprenticeships

Higher Apprenticeships were introduced in response to employer demand for Higher Level Skills and to give Apprenticeships some parity with academic Programmes.

Higher Apprenticeships are critical to the economy:• They respond to employers’ higher level skill needs • Support business growth • Meet individuals’ career aspirations and • Enhance opportunities for social mobility

Government made higher Apprenticeships a key part of its plan for growth in March 2011

Originally SASE frameworks were capped at Level 5. Following consultation that cap has now been removed and Apprenticeship frameworks have been developed that are equivalent to Masters Level (Level 7)

96 | Presentation title – 00/00/2012

Numbers of Higher ApprenticeshipsTotal Numbers for EnglandLess than 100 starts in 2007/08

Less than 200 Starts in 2008/09

Around 1,500 Starts in 2009/10 (on Approximately 6 Frameworks)

Around 2,200 Starts in 2010/11

Around 3,700 Starts in 2011/12

Around 8,900 Starts in 2012/13

Strong growth but Government wants a step change increase in HA’s

David Cameron announced the Higher Apprenticeship Fund in 2011.

97 | Presentation title – 00/00/2012

Numbers of Higher ApprenticeshipsBlack Country residents0 starts in 2007/08

0 Starts in 2008/09

Around 40 Starts in 2009/10

Around 50 Starts in 2010/11

Around 120 Starts in 2011/12

Around 290 Starts in 2012/13

Massive growth in percentage terms but small proportion of the overall @13,000 Apprenticeship starts in the Black Country

98 | Presentation title – 00/00/2012

Higher Apprenticeship Fund

Government ambition to invest £25 million in the creation of an additional 23,000 Higher Apprenticeships over the lifetime of the parliament (By May 2015).

Rationale for the investment – it works – for every £1 the government invests in Apprenticeships there is a net return to the economy of £18 (increased productivity and output, economic growth, lower spending on welfare etc). Return is greater at Higher levels.

Investment has meant that in 2013 we now have more than 40 Higher Apprenticeship Frameworks with more in development across a diverse range of sectors.

Developments with professional bodies to link HA’s to entry to some of the professions. (eg Accountancy, Banking, Engineering etc)

99 | Presentation title – 00/00/2012

Full List of HA’s

Full List of Higher Apprenticeship Frameworks available in 2013: * denotes still in developmentAccounting Advanced Manufacturing Engineering L4 Advertising and Marketing Communications Agriculture Banking Business and Administration Business, Innovation and Growth Care Leadership and Management Commercial Airline Piloting* Construction Technical and Professional Contact Centre Operations Creative and Digital Media: Interactive Media* Employment Related Services Engineering Environmental Technologies* Express Logistics Facilities Management Fashion and Textiles (Technical) Food and DrinkHospitality Management Human Resource Management Insurance IT, Software, Web and Telecoms Professionals Legal Services*

100 | Presentation title – 00/00/2012

Full List of HA’s Continued

Life Sciences Management Power Engineering (Utilities Engineering Operations)* Professional Services: Audit, Accountancy, Tax* Professional Services: Audit, Tax, Management Consultancy Project Management Providing Financial Advice Public Relations Retail Management* Space Engineering* Supply Chain Management Sustainable Building Technologies* Sustainable Resource Management* The Water Industry (Systems Operation and Management / Waste Management Water) The Water Industry (Utilities Network Management) Vehicle Maintenance and Repair* Work based learning for Practitioners*

101 | Presentation title – 00/00/2012

The Richard Review / Apprenticeship Implementation Plan

Government Implementation Plan now published some key points

1. Move to employer ownership of apprenticeship and its delivery (including funding direct to the employer)

2. Apprenticeship Standards will be one page documents set by industry and replace frameworks. Levels also set by industry related to job roles (will include highers)

3. Focus on outcomes not content or process (end test carried out independently)

4. Narrowing of definition of apprenticeships – Government will set small number of mandatory criteria.

5. Competency demonstrated through independent assessment.

6. Good IAG and awareness raising needed – better data sharing to inform choice.

7. Timescales – begin in 2015/16 full implementation by 2017/18

102 | Presentation title – 00/00/2012

Resources

Apprenticeship websitehttp://www.apprenticeships.org.uk/News-Media/Latest-News/~/~/link.aspx?_id=C0E72E74DA424B6BBBE56BED93FA16A3&_z=z

Apprenticeship Vacancies Higher Apprenticeships advertised herehttps://apprenticeshipvacancymatchingservice.lsc.gov.uk/navms/Forms/Candidate/Apprenticeships.aspx

Apprenticeship Frameworks Online – search for full framework specs and ones in development by sector / level etchttp://www.afo.sscalliance.org/

Youtube clip on HA’shttp://www.youtube.com/watch?v=DG3PqhU5prM&feature=youtu.be

Learning Aims Reference Application (check if HA is funded)https://gateway.imservices.org.uk/sites/lara/Pages/Welcome.aspx

Workshops1, Higher Apprenticeships – Case Studies – Adult Care Sector and Food and Beverage Industries

Paul Kitchen, Business Services Team – University College Birmingham

2. Apprenticeships and Higher Apprenticeships – Market Positioning – a case study of Applied Science Technicians

Penny Riddle, Business Development Director – Halesowen College

3. Business Benefits of Taking on an Apprentice – The Employer View – Colin Parker, Director, Black Country Skills Factory

BCPL/BCLEP Apprenticeship Conference

Higher Level ApprenticeshipsUniversity College Birmingham

BCPL/BCLEP Apprenticeship Conference

Higher Level Apprenticeships

• 2011 – there were 2100 Higher Apprentices• 2015 – planned increase to 19,000

• Employers working with professional bodies and providers

BCPL/BCLEP Apprenticeship Conference

Higher Level Apprenticeships• Employer Led and Work Based

• Must have parity with existing Framework for Higher Education Qualifications (FHEQ)

• Developers are encouraged to use QCF, FHEQ,HE Qualifications and use Professional Body recognition even though these might not be credit bearing in themselves

• Minimum credit value increased to 90 credits for level4/5 and 120 for level6/7 (10 hours per credit)

BCPL/BCLEP Apprenticeship Conference

Higher Level Apprenticeships

As long as :• Meet the employer skills requirements• Support individual learners to maximise their potential and

particularly act as a basis for progression to the next level of learning associated with job role

• Offers employers the opportunity to develop occupational competencies and technical knowledge at degree level to undertake defined job roles

BCPL/BCLEP Apprenticeship Conference

Accounting Advanced Manufacturing Engineering L4 Advertising and Marketing Communications Agriculture Banking Business and Administration Business, Innovation and Growth Care Leadership and Management Commercial Airline Piloting* Construction Technical and Professional Contact Centre Operations Creative and Digital Media: Interactive Media* Employment Related Services Engineering Environmental Technologies* Express Logistics Facilities Management Fashion and Textiles (Technical) Food and Drink Hospitality Management Human Resource Management InsuranceIT, Software, Web and Telecoms Professionals Legal Services* Life Sciences

• Management Power Engineering (Utilities Engineering Operations)* Professional Services: Audit, Accountancy, Tax* Professional Services: Audit, Tax, Management Consultancy Project Management Providing Financial Advice Public Relations Retail Management* Space Engineering* Supply Chain Management Sustainable Building Technologies* Sustainable Resource Management* The Water Industry (Systems Operation and Management / Waste Management Water) The Water Industry (Utilities Network Management) Vehicle Maintenance and Repair* Work based learning for Practitioners*

 

BCPL/BCLEP Apprenticeship Conference

Existing Frameworks

Current Frameworks have until April 2014 to meet the new SASE requirements (The Specification of Apprenticeship Standards for England (SASE) sets out the minimum requirements to be included in a recognised English Framework. Compliance with the SASE is a statutory requirement of the Apprenticeships, Skills, Children and Learning (ASCL) Act.)

No longer mandatory for HLA:

Employer Roles and ResponsibilitiesFunctional SkillsPersonal Learning and thinking skills

Optional elements will no longer count towards the credit value for a framework and funding will not be available

BCPL/BCLEP Apprenticeship Conference

Professional Qualifications• Non Credit bearing Professional Body Qualifications

• Encouraged to use these as part of the framework

• Developers will need to ensure a nominal credit value is assigned and this is supported by the various bodies involved in order for it to be understood in the framework

• Where combined qualifications are used they will have to be NOS compliant

BCPL/BCLEP Apprenticeship Conference

Funding

• Employer contribution • Adult Learning Loans• Student Loans

*Providers who may already be NVQ approved will have to go through another Quality Approval Process (QAP)

BCPL/BCLEP Apprenticeship Conference

Provision at UCB

Two Higher Apprenticeships

Hospitality Management Level 4

Care Leadership and Management Level 5

BCPL/BCLEP Apprenticeship Conference

Hospitality Management Level 4

Diploma - skills Principles – knowledge

Job roles: Hospitality Manager Head of Department Kitchen Manager Head/Executive Chef Front Office/Reception Manager Accommodation Manager Housekeeping Manager Food &

Beverage/Restaurant/Bar Manager

BCPL/BCLEP Apprenticeship Conference

Care Leadership and Management Level 5

Diploma – skills & knowledge

Job roles: Adults’ Residential Management Adults’ Management Adult’s Advanced Practice

Specialist Pathways• Business Development &

Enterprise• Learning Disabilities

BCPL/BCLEP Apprenticeship Conference

Delivery Methods

• Assessor visits for competency elements• Knowledge delivery once per week

• Combination and flexibility to workplace• Capacity building for

employers/mentors/coaches/• Increased online ,block, workplace

BCPL/BCLEP Apprenticeship Conference

FutureRichards reviewFuture of Apprenticeships in England. Implementation Plan

• Standards designed by employers

• Standards replacing current frameworks and will be very short

• Single approach to assessment which employers and professional bodies will develop

• Assessment at the end of programme with synoptic element to the end-point assessment

• Apprenticeships will be gradedBCPL/BCLEP Apprenticeship Conference

Delivery Methods

• Assessor visits for competency elements• Knowledge delivery once per week

• Combination and flexibility to workplace• Capacity building for

employers/mentors/coaches/• Increased online ,block, workplace

BCPL/BCLEP Apprenticeship Conference

Paul Kitchenp.kitchen@ucb.ac.uk

Sector Skills Alliancewww.afo.sscalliance.org

BCPL/BCLEP Apprenticeship Conference

Apprenticeships and Higher Apprenticeships: a case study

Penny RiddleBusiness Development DirectorHalesowen College

What happens to our full time L3 students when they leave College?

» HE fees putting off a significant number of learners from progressing to university.

» Parents’ reluctance for their children to get into debt.

» Graduate unemployment rates in the West Midlands.

» Limited opportunities for 3 leavers to progress – other than into HE.

Higher Education and Apprenticeships: making the link

» Curriculum development at L4/5 must lead to an employment outcome.

» The light bulb moment: the HNC in Computing that we planned to

introduce was the knowledge component of the Higher Apprenticeship for IT, Software, Web and Telecoms Professionals.

What about our L3 Science students?

» Grades required to study Sciences at universities have increased.

» Market research showed a demand for technicians in companies in the Black Country.

» Employers indicated difficulties in recruiting technicians:

» No local apprenticeship at the required level» Graduates’ practical laboratory skills not good

enough and salary expectations too high.

Advanced Apprenticeship for Laboratory Technicians

» Knowledge component: HNC in Applied Biology or Applied Chemistry

» Skills component: Level 3 NVQ Diploma in Laboratory and Associated Activities.

» Progression to more specific Higher Apprenticeships planned for 2015.

October 2013:

» Future of Apprenticeships in England: Implementation Plan:

» 8 Trailblazer Projects set up» Includes a project on Life Sciences and Industrial

Science

Presentation Heading (Arial 36pt)Date/ Sub Heading (Arial 18pt)

SKILLS FACTORY Business Benefits of an Apprenticeship

Colin Parker - Profile

Colin Parker - Black Country Skills Factory Director (since mar 2013)

Industry Experience

30+ years in automotive component industry in West Midlands (Lucas, Perkins, Denso, Honda, TRW, Arrk),

Roles in Plant Management, General Management & Operations.

Range of company (site) size 1,500 employees 100 employees

Range of management styles Japanese, US, UK

Range of sites with and without Apprentice schemes.

1. Despite High Unemployment in the region, Engineering employers report :-

“Unable to recruit suitably skilled staff to fill our vacancies”

The Black Country Consortium i54 Enterprise Zone Skill Report :-

“ 15 broad classifications of Skills shortage reported by Black Country high value manufacturing companies”

High Value Manufacturing Skills Crisis

Black Country Manufacturing is facing a Skills “Double-Whammy”

1st - Whammy

0

5

10

15

20

25

20 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55 56 - 60 61 - 65

%ag

e of

wor

kfor

ce in

age

gro

up

Age

Skilled Workforce Age Distribution

Ideal

Typical

Ideal ‘Even’ age distribution

More than 50% skilled workforce over 50

Demographic ‘Time Bomb’

Large proportion of skilled workforce will retire in the next few years

High value manufacturing employers need to take action NOW to minimise

the increase in the skills crisis

2nd - Whammy

High Value Manufacturing Skills Crisis

2 Options.

1. Recruit externally (at an ever increasing cost) those with existing skills

2. Develop the existing workforce through up-skilling and “grow your own”

X

High Value Manufacturing Skills Crisis

Very Rapid

growth

Growth forecast

Business Benefits of Apprenticeship

Apprenticeship Case Study Production Maintenance Technicians

Business Situation in 1998

Undergone Rapid Business Expansion £0 £125m in 6 years Growth forecast to continue year on year.

High technology equipment across multiple shifts

Struggling to achieve breakdown targets

Maintenance employees 0 25 in 6 years Difficult to recruit qualified technicians

Maintenance labour turnover 30%

Business Benefits of Apprenticeship

Vicious Circle Lack of Job Satisfaction + Pressure

Technician Leaves Company

Externally recruit (compromise on quality?)

PRODUCTIONOUTPUT

PRESSURE

Loss of Productivity lack of output(due to lack of familiarity with equipmentSlow fixing of breakdownsMis-diagnosis of faultsmistakes causing additional problems

Increase in working hours Additional shift patterns introducedHigh and sustained overtime

No time / availability for training

RecruitmentCosts

Overtime

Shift Premium

Special Transport

AdditionalSpare Parts

Many Additional CostsNot Achieving Customer Expectations

Needed to break the vicious circle.

Business Benefits of Apprenticeship

Production Maintenance Technician Apprentice Program

Started 2 or 3 apprentices per year (over a 6 - 7 year period)

Apprenticeships lasted 4 years (new level 2 level 3 additional training)

Undertook mix of both Craft and Technician Apprenticeships (C&G + BTEC routes) Undertook mix of Mechanical and Electrical Maintenance Apprenticeships

Used Block release and Day release method of off-the-job training

Recruited apprentices through own external advertising, plant tour and interview assessment

Created program of additional specific off-job training required over and above the requirements of the apprenticeship qualification.

Business Benefits of Apprenticeship

Production Maintenance Technician Apprentice Program

Key points for Successful Apprenticeships. Apprentices were treated as “Additional” Headcount on Shift headcount planning (They were seen as extra ‘benefit’ by others on the shift.)

Apprentices assigned to the Shift Team Leader to ensure proper on-the-job training

Apprentices periodically rotated around different sections in the plant (for future flexibility and continuous learning + boredom prevention)

Independent Apprentice Mentor designated (originally HR person ex- Apprentice after 5 years)

Regular formal review with apprentice by college, manager and mentor

Business Benefits of Apprenticeship

Production Maintenance Technician Apprentice Program

Results - 7 years later.Growth Achieved

Company Sales growth Achieved

25 % of Production Maintenance Department are ex- Apprentices

Only 1 Apprentice drop-out during apprenticeship (competitive and thorough selection process)

Major reduction in Labour Turnover of maintenance technicians External 30% 18% Apprentices n/a 5%

Good News - BUT Why was Apprentice Labour turnover much lower than

Externally Recruited Technicians ?

Business Benefits of Apprenticeship

Organisational CultureAll Organisations have their own Culture (Values, Attitudes, Behaviours, Norms)

A Successful Employee :- 1) Has required skills / able to learn required future skills 2) Shares the Values, Attitudes, Behaviours & Norms

Apprentices are a blank canvas(Not Conditioned by much previous experience) Chance to learn “What is Normal” in your companyBetter & happier team member

Mainly in-builtDifficult to change/influence

Need to find at interview

Conditioned by previous experienceHas learned “What is Normal” over working life.Hard to unlearn causes job dis-satisfactionHidden Business Benefits of Apprenticeships

= Lower Labour Turnover + better ‘fit’ team member

Business Benefits of Apprenticeship

My Lessons / Advice regarding Engineering Apprenticeships

Great Benefits to the Company Right Skills Right Culture (Attitude & Behaviours) Lower Labour turnover = improved Productivity + Lower costs = improved Profitability + Competitiveness

BUT This is a long term Investment Don’t do it cheap (you need to attract the right calibre of person) Don’t do it for a quick fix or to deliver a quick result. Need to invest plenty of your staff time in delivering appropriate on-job training. Need to keep investing in them throughout and AFTER their apprenticeship. People are loyal if they can see career progression (not necessarily money) (e.g. more skill, more responsibility, more interest)

The Black Country Skills Factory: –

is an employer -led education & training collaboration being coordinated by the Black Country Consortium Ltd with pump prime funding from UKCES.

To address the current skills shortfall in the High Value Manufacturing sector (HVM) in the Black Country for both large and small employers.

Objective :-

The 4 Activity Strands STRANDS MAIN PURPOSE

1 Up-skilling of Existing Workforce Counteract ageing workforce. Reflect new technology.

2 Apprenticeships Penetrate into SME’s

3 School Engagement Increase pipeline of people wanting to enter into the HVM sector.

4 Skills Factory Profile First point of contact for skills in HVM

“Voice” of the Employer (> 70 employers directly engaged)

1) Delivery method -

“Bite-sized” practical training in specific topics. (Right content, trainer and equipment) 2) Priority skills shortage areas identified :-

Maintenance MultiskillingWelding CNC MachiningFoundry SkillsTool Making

Skills Factory subsidy -

30% of Employers Training Fees.

SKILLS FACTORY : Up-Skilling

Results to date184 training days completed 22 companies participated

Skills Factory Apprentice Wage Subsidies for Engineering Apprenticeships in Black Country High Value Manufacturing

Companies.

Age 16 - 17 18 - 20 21 +

Minimum rate (per hour) £3.72 £5.03 £6.31

Skills Factory subsidy £1,000 £1,250 £1,500

Enquire via www.blackcountryskillsfactory.co.uk

Conditions:- 1. SF wage subsidy only paid to companies who have not taken on a new apprentice in the last 12 months. SF wage subsidy will be in addition to the AGE grant (subject to eligibility criteria).2. One level 2 apprentice subsidy per company. Paid after 13 weeks.3. SF subsidy is conditional on a minimum hourly rate being paid to the apprentice over a minimum of a 35 hour week.

Level 3 Engineering Apprenticeship SubsidiesAge 16 - 17 18 - 20 21 +

Minimum rate (per hour) £3.72 £5.03 £6.31

Skills Factory subsidy £1,250 £1,250 £1,250

Apprentice Wage Subsidy21-Nov-13

Level 2 Performing Engineering Operations Apprenticeship Subsidies

Conditions:- 1. SF wage subsidy paid to companies commencing a Level 3 Engineering apprentice after Jan 1st 2014.. (no restriction on previous history of apprenticeship starts)2. One level 3 subsidy per company. Paid after 13 weeks.3. SF subsidy is conditional on a minimum hourly rate being paid to the apprentice over a minimum of a 35 hour week.

New for 2014

SKILLS FACTORY : Apprenticeships

Results to date :-

18 Black Country SME’s have received Subsidy

1st Subsidised Apprentice3DT Tooling Ltd

“We have taken an apprentice for the 1st time to support our future growth.The Skills Factory Subsidy really helps a smallbusiness in the early stages of the apprenticeshipto offset the training costs and lack of output.”

Paul Reeves – Partner 3DT Tooling Ltd

Aim Increase the number of people wishing to consider hvm as a career choice

Activities :- Engagements with schools (both staff & pupils)

Skills ChallengeTeacher Industry Placement days Careers FairsVisits to IndustryWork Placements

SKILLS FACTORY : Schools

Skills Factory Schools Challenge 7th November 12 Schools – 100 pupils – 11 employers

CONTACT DETAILS:

www. BlackCountrySkillsFactory.co.ukPROJECT DIRECTORColin Parker - 07944 268709 Colin_Parker@blackcountryconsortium.co.uk

Panel and Plenary Session – Q & A from floor on the inputs above followed by summing up

Slides and related information will be available on the BCPL websitewww.bcpl.org.uk

Thank you