Civil Engineering Contractors Association

Transcription

1 Civil Engineering Contractors Association Training & Development Survey 217

2 About CECA The Civil Engineering Contractors Association (CECA) is the representative body for companies who work day-to-day to deliver, upgrade, and maintain the country s infrastructure. With more than 3 members based across eight regions, CECA represents firms who together carry out an estimated 7-8 per cent of all civil engineering activity in the UK, in the key sectors of transport, energy, communications, waste and water. CECA has a key role in shaping the future of training in the construction industry, with close links to policy makers both in Government, construction related Sector Skills Councils and other relevant representative bodies. CECA provides sector specific knowledge to a wide range of the CITB s committees and working groups to ensure that the specific and unique needs of the civil engineering community are taken into account when changes to training related issues are being contemplated. CECA members can seek assistance in matters relating to levy/grant, card schemes, funding applications, formulation of training plans, as well as having the opportunity to attend regional training sessions and update briefings. Where more company specific interventions or advice is required CECA members can request an in-house visit from CECA s in-house training advisors. CECA s Training & Development Forum is a well respected body that regularly receives first hand updates from leading industry figures.

3 Introduction Executive Summary The CECA Training & Development Survey was carried out in May 217. This year the survey attracted a slightly lower response rate than in previous years. This may be partly explained by the two bank holidays in May but may also be an indicator that some member firms are experiencing a challenging year. Over 2% of CECA member companies responded to the survey, with over 27, employees represented. The most noticeable drop in responses was from medium sized member firms (5-249 employees) From 7 responses, 48 were from SME sized businesses (23 small + 25 medium), and 22 are large businesses. A Difficult Year & Mixed Fortunes As with previous survey results, there were many positive indicators and rising trends on recruitment of graduates and apprentices. However, these positives were balanced by concerns raised by some member who reported experiencing difficult times and uncertainty. While some members reported growth in numbers of staff or company turnover there was also a noticeable number of member firms downsizing, for sale, or going into receivership. Forecasts & Uncertainty Each year many members report that it is difficult to forecast growth, forecast recruitment of graduates or apprentices and especially difficult to forecast training spend for the future. The nature of the civil engineering business and the changing nature of projects means that this will always be the case. However, this year more than any previous survey members had even greater concerns about forecasts and felt that future recruitment and training would be tightly linked to success (or otherwise) in winning contracts.

4 Benchmarking Data & Average Training Days As with last year, the 217 survey collected useful benchmarking data. As well as providing rich detail of training, talent management, apprentices, and graduate recruitment amongst CECA members, this survey provides some interesting numerical data that can be useful for benchmarking your business against industry averages. Most members were able to provide details of useful benchmarking data such as the average training days per employee. However, there is a great deal of diversity within CECA and comparisons need to consider the nature of your business, geography, type of projects, types of client, and other factors such as whether your business is solely in Civil Engineering or whether you provide complete solutions, and whether you employ staff of use labour-only subcontractors. Scottish Members & A Slight Variation In Questions CECA Scotland started the survey one week later than other regions but still has the largest response from any region. The survey was amended slightly for CECA Scotland members to reflect the fact that they have their own Governments, and also to remove questions 9 and 1 about the apprentice levy. All the other questions were identical and this report reflects the combined responses from all the other questions.

5 CECA Training & Development Survey 217 Purpose - The Survey Helps CECA To: Understand the type and quantity of training that CECA members have participated in during 216 and their requirements for the future; Influence the CITB Grant scheme and other sources of funding; Ensure that key stakeholder including Government, parliamentary parties and CITB take account of members training and development needs; Appreciate and address any skills shortages perceived by members; Identify training areas where there is insufficient training resources to match demands Plan future CECA training events. Response Rate This year we had a significantly lower response than the bumper response from 216 survey. However, we are grateful to the 7 members from across the UK completing the survey. The telephone survey allows members to explain the reasons behind their answers and to express views relating to issues and challenges they face. It was interesting that the decline in response rate was largely within medium sized member companies: down from 37 to 25. Perhaps it is no coincidence that medium-sized member companies were most vocal (this year and last) in describing the challenges they faced and the shortage of resources to manage training. Apprentices Once again apprentices feature significantly. The number of apprentices recruited in 216 continues to rise. Most larger members recruit apprentices each year and a growing number of small and medium sized members recruited apprentices in 216. Many members commented that it is still quite a challenge to recruit apprentices and there are many barriers that can prevent companies recruiting their first apprentices or taking on as many as they would wish to. CECA still has an important role in helping more members to see the benefits, helping members to take the first steps towards recruiting apprentices and in making the process of recruiting apprentices easier and more attractive. Proposed Apprentice Levy Most members were aware of the prospect of an additional apprenticeship levy. Approximately 1% of members who responded indicated they would recruit more apprentices; a few that they would recruit fewer apprentices but most were unsure. Many members remain unsure and did not expect the apprenticeship levy to affect them. Note: CECA Scotland members were not asked questions 9 and1 about the apprentice levy. Scottish members were not alone in feeling concerns about the apprentice levy questions. One of the problems with changes and regional variations is that it leaves some people unsure about the rules and how they apply to their business. Welsh members expressed concerns that the procedures for claiming back apprentice levy were different between England and Wales. Size Small (up to 49 staff) 23 Medium (5-25) 25 Large (25+) 22

6 4 Apprentices Recuited Each Year (by Size of Business) (forecast) Small Medium Large Total Apprentices Recruited By Size of Business It is encouraging that the total number of apprentices recruited by members completing the survey has risen year on year. This year there appeared to be less willingness to forecast apprentice numbers (always tricky and often linked to business issues outside of training such as the projects won/lost, project locations, type of work, skills required, etc). The healthiest percentage growth in numbers recruited was from small and medium sized businesses and it is pleasing to see that many more medium sized businesses are planning to recruit apprentices. As with previous surveys, it is apparent that smaller members have less potential for employing apprentices. Some smaller members will recruit an apprentice every other year and this can make it difficult to look at trends on a year by year basis.

7 Companies Recruiting Apprentices Small Medium Large Total (forecast) Companies Recruiting Apprentices This graph provides an alternative view of the growth in apprentices. This is partly explained by the fact that the smaller businesses recruit very few apprentices and often only every other year.

8 Apprentices By NVQ level Apprentices employed by NVQ Level Female Apprentices by NVQ Level Level 2 Level 3 Level Apprentices Employed By NVQ Level As might be expected, most apprentices are at level 2 NVQ, with fewer at level 3 and fewer still at level 4. However, the gap between level 2 and level 3 apprentice numbers was far smaller this year than in previous years. 7 Apprentices by age group % Apprentices By Age Group Around 6% of apprentices employed by members are in the age range Many CECA members have concerns about younger apprentices especially those under 17 years of age who are too young to drive. Members cited issues with insurance, security, transport and a need for greater supervision. The groupings may affect the outcome of this question but it is clear from member feedback that many members avoid younger age apprentices (below 18 and especially below 17) and there do seem to be far fewer apprentices in the 25+ age bracket.

9 Graduates There is a rising trend in the total number of graduates recruited, year on year, over the past 3 years. However, once again there is a decline in numbers of graduates recruited by smaller companies. This year there was also a noticeably lower rate of growth and once again forecasts for graduate recruitment are low Graduates Recruited Each Year By Company Size (forecast) Small Medium Large Forecast figures for graduate recruitment in 217 fall short of the figures recruited in 216, but this has been the pattern in previous surveys and the actual numbers recruited continue to rise. Many members reported that recruitment forecasts may not reflect actual numbers and that actual recruitment will be influenced by many factors. Members reported continued uncertainty created by Brexit and the General Election. These issues were cited as causing concerns about the availability of future work. Civil Engineering generally fares well under stable conditions with long-term commitments to building infrastructure. The UK seems to have enjoyed a long period of relative stability and so these ripples of potential change cause worries for some members. However, as with every year of the survey there are CECA members who are thriving. Many members link plans for graduate recruitment with growth in business and with a feeling of uncertainty about the future many were reluctant to forecast future graduate recruitment. A few members commented that graduate recruitment could be affected by increasing focus on apprenticeship training.

10 Female Graduates... rising percentage Members reported higher numbers of female graduates recruited over the last three years. In previous surveys, around 12% of graduates recruited were female. In 216, members reported 16% of the graduates recruited were female and this figure may be higher because some companies were unable to provide female graduate figures. Graduate Recruitment, Salary & Benefits Members were asked about starting salaries for Graduates. The responses suggest a very even spread with 22% in each of the three middle ranges, 19% below 2K and 15% above 26k. The pie graph shows a wide spread of starting salaries, but is clear from conversations with members that a more detailed study would be required to gain a clearer appreciation of graduate recruitment. Some smaller companies will recruit very few graduates and the salary can be a factor of circumstances and how strong the individual candidate is. Most large companies have better defined salaries and benefits packages for graduates but even so there seems to be flexibility based upon the situation and circumstances. Graduate Salaries < 2k 2-22k 22-24K > 26k 19% 15% 22% 22% 22% Members provided feedback on the types of benefits they offer to attract the best graduates. Once again, several member companies felt that they offered such good benefits in terms of work experience or training that they did not need to offer further incentives. Other members reported offering packages including good salary, car or van, pensions, and fast-track progression. A more detailed survey focusing on graduate entry might yield more data that would be of interest to all members.

11 Levy Payments & Grant Claims As always, some members expressed views on the existing levy payments. Some members felt that they were paying too much based upon unfair way in which levy payments are calculated in relation to sub-contractors. The question about the proposed new apprentice levy prompted even greater comment on the existing levy payments. Grants Claims As with previous surveys many members are able to provide detailed information on the grants that they claim. Some members work to a training plan and connect the claims they make with the training plan and not necessarily with different types of available grant. Others feel it is so difficult to keep track of grants they are entitled to that they are losing out. It is apparent that for some companies it is challenging to keep track of the grants that they are entitled to and some members feel they probably claim less than they are entitled to. This is particularly true for companies that do not have a dedicated training resource. One company pointed out the challenge of getting information from sites in order to make grant claims. Sites do not always perceive the importance of feedback to Head Office staff. In larger companies with HR and Training teams there is a usually champion who appreciates the significance of making grant claims. With tight margins in civil engineering projects, the grant claims can be a significant proportion of the company net profit Apprenticeship Grant (A2-6) Craft Non- Apprenticeship Grant (A8) Percentage Claiming Grants Technical, Managerial and Professional Grant Support (A9/A19/A25 /A29/A31-33) Work Experience Grant (A19) Short Duration Grants (B21) CPCS Grants (A42/A43) Employer Support Funding ie. Growth Fund, Flexible or Structured Funding

12 CITB: Communication As usual, members had a mix of enthusiasm for the support they get from CITB. Some members reported that they get excellent support while others reported that it is becoming harder for them to get the support and information that they need. Several members referred to the CITB website and the challenges they perceive in finding the information that they need. 4 CITB Contact (as percentage) A few Times Weekly Monthly Quarterly Never per Year % Over 93% of members who responded have some communications with the CITB. Some reported that they find CITB communications helpful to their business. However, some members felt it was becoming more difficult to get hold of their CITB representative especially since the CITB has re-organised. CECA members generally reported less satisfaction with CITB since recent changes. Some members felt they had too much CITB communication because they could not quickly get to the information they need.

13 Training Spend Ratio This year we looked at the training spend to company turnover ratio for all members who were able to provide this information. 3 Ratio of training spend to turnover Percentage members up to.1 up to.2 up to.3 up to.4 up to.5 up to.6 up to.7 up to.8 > The graph shows a considerable percentage of members have a training spend is less than.1% of turnover or greater than.9% of turnover. It is likely that these extreme outliers are affected by the complex nature of some member firms: i.e. some civil engineering teams are a part of a large organisation and training cost may be civil engineering only, but turnover figures provided may be for the group. Ignoring the outliers, most members seem to spend between.2 and.6% of their annual turnover on training each year.

14 Raising the profile of industry and recruiting people into civil engineering Once again, the 217 survey asked members a range of questions about their involvement with school curriculum support, careers events, traineeships, vacation work and other aspects of recruitment and attracting people into civil engineering Members described being involved with some of these initiatives when they related to particular projects, for example some client funded projects may include a requirement to recruit unemployed or ex-offenders. Many members want to raise awareness within schools and feel that this vital to attracting people into the industry. Several members reported concerns that schools, teachers, parents and careers advisors are not aware of civil engineering as a career option. Members also reported concerns that school pupils are encouraged to stay in the system and complete A levels rather than considering apprenticeships in civil engineering. Several members reported offering flexible working only within Head Office staff and not on sites. More than 1 member joked that flexible working on sites is the option to work from 7am to 7pm. Several members pointed out logistical challenges associated with offering flexible working at sites such as shared transport etc. There were a few members who felt that flexible working could be more widely offered. One member extolled the value of recruiting part-time staff local to projects who had useful skill but only wanted part-time work.

15 CECA Training Most members expressed positive interest for all the different CECA training courses and most valued the fact that CECA can provide industry specific training on topics such as commercial awareness and leadership that would not otherwise be available CECA training topics Only one member reported having no interest in CECA training. However, despite interest in the courses, several members commented on barriers to using CECA courses: location, timing, cost etc. In particular, rural member companies find that CECA courses (and others) are difficult because of distance to travel, the need for overnight accommodation, travel costs, time off work, etc. Most members were very positive about CECA training especially those who had recently attended CECA courses. Some members said they were unaware of the range of courses CECA offer.

16 Average Training Days Per Employee As you might expect, the larger companies offer more formal training days per employee. Most companies reported training staff on an individual needs basis or based upon the requirements for card renewals. Some members pointed out that averages can be misleading because someone studying for an apprenticeship or a civil engineering qualification may skew the figures particularly within a small company Average training days per employee Small Medium Large

17 Other Comments From CECA Members This year there were again many interesting comments from CECA members. Civil Engineering disadvantaged compared to general construction Several members commented that Civil engineering firms lose out as compared with general construction industry. Some members felt that the levy payment formula was unfair, other felt it was harder to claim grant for some civil engineering training and others felt that CITB do not appreciate the differences or stand up for civil engineering. We would like to recruit plant operative apprentices but it is hard to find appropriate courses, people and grants Lack of grants for some courses, and more expensive courses = disadvantage for CIVILS We get very little grant funding. Sites don t supply the paperwork to HQ and it creates friction and extra work CITB levy should be scrapped and replaced with an apprentice levy Civils lose out the way levy payments are calculated because civils carry higher level of non-construction staff i.e. planners HR etc. Not happy about a national approved training supplier list => cost and inefficient and blocks use of good local supplier Civils lose out the way levy payments are calculated because civil engineering businesses often need to carry higher level of nonconstruction staff - ie planners HR etc. Averages and Training in Civil Engineering Several members pointed out that average training days is somewhat unrealistic because it varies so much between different individuals and also depending on projects or the cycle of card renewals. Training is often determined by jobs / projects or major contractor requirements. last year was a BIG year for training... Lots of card renewals and extra one off costs Feeling the pinch Several members reported feeling the pinch and uncertainty about future work. Work has been up and down. No log-term security! Feeling squeezed from all sides. Low rates for project work Company in administration but still trading and operating Being sold off! Down from 4 to 1 staff Apprentice Training Some members expressed strong views that the way grant funding and levy payments are set up will influence behaviour. Some felt that the focus on apprentices was so strong that companies may play the system making every employee appear to be an apprentice so that training grant claims can be maximised: Because of legislation... all new starts will be on apprentice schemes in future. Grants and Levy As with every survey, many members commented on grants and levy payments. Most members feel that things could be better or easier. In particular, several members reported having issues with the way the levy payment is calculated in relation to the use of LOSC. There were lots of comments about site based workers not able to complete forms for various reasons resulting in grant claims being reduced.

18 Many felt it should be easier to claim grants and there should be better guidance available from CITB or CECA on how to get the grants that are available. A few members reported having made significant grant claims this year but often that was tinged with a feeling that they ought to have been entitled to similar larger payments in the past. I would like to think that we will use the AL as an opportunity to upskill and train people in areas of benefit to the Business that are not covered by the CITB Levy. CITB information on grants could be better and CITB website should be clearer and easier. We do not understand the Apprentice scheme and so will not employ apprentices. The importance of CECA Many members expressed great satisfaction with CECA and most members feel that CECA has a vital role. Some had suggestions for more collaboration within the CECA family There was also an interesting comment about the emergency services who need good infrastructure and a suggestion that CECA might forge stronger alliances with other groups like emergency services to promote the civil engineering sector. Several members want CECA to lobby on particular issues such as the suggested move towards a national approved supplier list for training which members felt could be a bad thing for regional firms with specific training needs. Many members are passionate about civil engineering and keen to see more being done to raise awareness in schools: pupils teachers and parents to raise awareness of exciting jobs in an exciting industry. Sponsor local children activities and football teams and raise awareness among children of the vital role for infrastructure and the opportunities for great jobs CECA membership should be more of a badge of honour and big companies should value the quality associated with CECA members and give preference to other members. CECA has a vital role in protecting civil engineering and seeing the bigger picture Not happy about a national approved trainer list => cost and inefficient and blocks use of good local supplier

19 Notes

20 Civil Engineering Contractors Association 1 Birdcage Walk London SW1H 9JJ