The Royal Wolverhampton NHS Trust

Transcription

1 The Royal Wolverhampton NHS Trust Trust Board Report Meeting Date: 27 th March 2017 Title: Executive Summary: A Revised Recruitment Approach for Apprentices This report recommends a temporary change to the recruitment strategy for apprenticeships on a short term basis in order to embed apprenticeships within the organisation and to achieve the quota assigned to the Trust by HEE. The apprenticeship targets set for RWT are circa 185 The current method of recruitment to this target using a consider an apprentice first approach for vacancies is not resulting in sufficient recruitment to apprenticeships The information below sets out a number of options for consideration to support meeting the target, and a recommended option Recruitment to the apprentice posts should be staggered into cohorts, to facilitate maximum support and manage numbers Numbers to apprentice posts have been assessed using previous 12 month s turnover data for A&C posts band 1-3 Action Requested: Report of: Author: Contact Details: Links to Trust Strategic Objectives Resource Implications: Equality and Diversity Assessment Risks: BAF/ TRR (describe risk and current risk score) Public or Private: (with reasons if private) References: (eg from/to other committees) Appendices/ References/ Background Reading NHS Constitution: (How it impacts on any decision-making) The Board are asked to approve the option taken Linda Holland, Director of HR and OD Claire Young, Corporate Learning & Development Manager Tel ext 8227 Claire.Young3@nhs.net Revenue: Capital: Workforce: Funding Source: (Include here details as to the equality and diversity impact of the recommendation (if any), specifically in relation to the Protected Characteristics under the Public Sector Equality Duty, namely age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership, race, religion and belief, sex, and sexual orientation) Public In determining this matter, the Board should have regard to the Core principles contained in the Constitution of: Equality of treatment and access to services High standards of excellence and professionalism Service user preferences Cross community working Best Value Accountability through local influence and scrutiny

2 Background The apprenticeship levy will come into effect in April 2017, and will be payable by employers at 0.5 per cent of their pay bill, 1.4m for RWT The levy will only be payable on a pay bill in excess of 3 million per annum Employers with a pay bill of less than 3 million won t pay anything but will still be able to draw down funds to deliver apprenticeship training. How will this work? The introduction of the levy is to put investment in apprenticeships on a long-term, sustainable footing. It will be collected through the pay as you earn (PAYE) The Department for Business Innovation and Skills will establish a new body to maintain an oversight of the levy and will also ensure quality in the apprenticeship system. The cost of delivering apprenticeships for year olds is often higher, due to the need for more pastoral care or support with additional skills training. The government is offering additional funding of 1000 per apprentice in this age group. When the Levy comes into operation, this will mean that all public organisations must have 2.5% of their workforce made up of apprentices which equates to 185 apprentices for RWT. Apprenticeships The Facts What is an Apprenticeship Apprenticeships are work-based training programmes designed around the needs of employers, which lead to nationally recognised qualifications. They offer good value for money and can quickly deliver a highly skilled, ambitious workforce, with competencies that meet the needs of new and existing patient pathways and service models. They also offer career progression and further learning opportunities for new and existing staff and are a good way to engage with local communities and boost the local economy. Anyone who is a resident in the UK, over 16 and not in full-time education can apply for an apprenticeship. From April 2017 the Trust will be able to utilise the levy to educate existing staff via the apprenticeship route. Talent pipeline Building apprenticeship programmes within the NHS can be a cost effective means of creating a skilled, flexible and motivated workforce to further improve the quality of NHS healthcare. NHS Employers is supporting the NHS, Skills for Health and the Department of Health (DH) to increase the number of apprentices within the health sector. Quality Guarantee for Apprenticeships The Government has announced a new specification of apprenticeship standards for England (SASE), which sets out the minimum requirements to be included in a recognised English framework. It will ensure: o All apprenticeships deliver high quality, nationally recognised qualifications relevant to the skill, trade or occupation of the learner and employer Page 2 of 11

3 o All apprenticeships offer individuals appropriate training to achieve a good standard of literacy and numeracy (and ICT where relevant to the skill, trade or occupation) o Every apprentice will receive the number of guided learning hours required for the framework. The SASE is a statutory document that employers offering apprenticeship programmes must comply with by law under the Apprenticeships, Skills, Children and Learning Act Uptake to date The target 2.5% of the workforce being employed as Apprentices equates to 185 apprenticeships for RWT (confirmed by HEE-WM). This number cannot simply be seen as a maximum in any given year. The expectation is for our organisation to continually have these numbers working for us in apprenticeship roles, on a rolling basis. The e-vcp process was recently amended to include the provision to be able to identify any suitable vacancies for apprenticeship; however this has not produced any enquiries and is cause for concern, highlighting the need that the Trust needs to consider a more direct approach. As at the end of December 2016, we had 23 apprenticeship starts since April 16. The Trust has a target of 93 to be reached by the end of March 2017, rising to 185 from April 17 onwards. As previously stated, RWT apprenticeship quota is 185 based on 2.3% of total workforce headcount, it is not clear at this stage how an organisation will be penalised if they do not meet their quota. Staffing statistics The Trust workforce profile shows that 0.35% of the workforce is aged years, with a further 16.44% of the workforce aged between years: in this age category the majority of employees are towards the end of the age group. RWT Staff in Post by age % 0% 16% 27% 23% Page 3 of 11

4 Age Distribution of Royal Wolverhampton Trust Workforce years years years years years %ge of workforce 0.35% 16.44% 22.61% 26.96% 33.64% Majority of Workforce = 66.01% Largest single group in workforce Median age of workforce = years The highest number of applications received for jobs through NHS jobs is for those aged years (41%), who have the lowest level of success at shortlisting (23%), but on being interviewed have the highest rate of success (8%). It is likely that a factor in the lack of success at shortlisting for these applicants is due to their lack of experience. It is probable that a proportion of the applicants aged years would be more suitable for an apprenticeship, giving them valuable experience which would assist them in future job applications. It is important to note that 92% of apprentices within the Black Country Apprenticeship Academy (of which RWT is a member), have successfully moved into employment on completion of their programme. The Trust average turnover rate is 10%, but for those staff aged the turnover rate is 19% and for those aged it is 18%. Both of which are significantly in excess of the average rate for the Trust. NHS Job Applications by Age Profile Applications Success at shortlisting years years Success at interview Turnover rate Trust average turnover rate 41% 23% 8% (15-19) 19% (20 29) 18% 26% 30% 6% 10.96% 10% Turnover Rate indicator years 50+ years 19% 34% 8% 7.29% 13% 33% 6% 12.67% Page 4 of 11

5 Age Profile by Staff Group Add Prof Scientific & Tech 0.00% 3.57% 4.34% 2.97% 3.38% Add Clinical Services 34.48% 19.07% 13.44% 15.97% 18.10% Admin and Clerical 44.83% 16.16% 21.64% 24.27% 26.35% Allied Health Profs 0.00% 7.93% 6.67% 4.53% 4.20% Estates and Ancillary 20.69% 5.97% 5.13% 7.36% 16.07% Healthcare and Scientists 0.00% 3.13% 3.92% 3.46% 2.52% Medical and Dental 0.00% 12.45% 12.59% 8.83% 6.15% Nursing and Midwifery 0.00% 30.79% 31.48% 32.48% 23.22% Students 0.00% 96.00% 79.00% 13.00% 0.00% Existing staff aged years are employed within 3 staff groups, i.e. Additional Clinical Services, Admin and Clerical and Estates and Ancillary indicating that there are already recognised opportunities for employment within those areas. There may be genuine barriers of entry into other areas of employment within the Trust due to Genuine Occupational Qualifications of a minimum age or qualification which restrict the appropriateness for apprenticeships. The distribution within the staff groups for those aged is greater, indicating wider opportunities exist for this age group. The Trust has an aging workforce with 33.64% of the workforce being aged 50+, the majority of which employed within Admin and Clerical and Nursing and Midwife staff groups. With the potential of this staff group retiring it is vital that the Trust commence succession planning to negate the impact of this. Page 5 of 11

6 Staff Turnover The table below shows the variance of starters vs leavers in Bands 1 to 3 in administration and clerical vacancies over the past 12 months. Month 2015 / / / Starters FTE Leavers FTE Net Variance FTE Starters (Headcount) Leavers (Headcount) Net Variance Headcount The next generation of staff and the differences of their expectations is worth considering at this stage of the talent development cycle. The career aspirations of Generation Y and Z are very different to that of the existing workforce and may pose a recruitment difficulty if our organisation cannot offer the flexibility they want. Page 6 of 11

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8 Proposal considerations Areas or departments that cannot accommodate apprentices will be identified on a case by case basis In order to spread the Apprenticeship targets two approaches will be utilized. o 1 = external recruitment of young people into apprenticeships, 2 = internal recruitment of existing staff to apprenticeships o 2 would offer apprenticeships to 100 existing members of staff e.g. Customer Care and Business Administration could be potential areas Rolling recruitment of 20 apprentices per month, (a mixture of new recruits and existing staff) would ensure the sustainability and embed the programme. The Work Based Learning Team would seek to commence all the apprentices through a cohorting arrangement for ease of management, and also to provide support and networking between the apprentices A pre-apprenticeship programme would be developed as part of the recruitment and selection process and also to minimise the risk of drop-out. The programme will be designed to reflect the values of the organisation, set employer expectation from the outset, and provide a real taste of what an apprenticeship will be within our organisation. A centralised recruitment and support function would be created via HR functions This approach will enable the Trust to support areas through workforce profiling, enabling a targeted approach to identify a talent pipeline and succession plan in areas where a significant proportion of staff are over the age of 50 A specific HR Toolkit to manage Apprentices will be developed Specific education and training for managers will also be developed Existing volunteers and Princes Trust students will be guaranteed an interview for apprenticeships applied for within RWT Financial benefits Cash releasing savings through reduction in bank expenditure e.g. if we assume 10% savings for A&C, Ancilliary and nursing Bank and agency costs as at M9 16/17 Assumes 10% saving Clerical 755,146 75, Scient, Therap, Tech 1,232,784 - Nursing 289,594 28, Consultants 3,858,952 - JMS 5,873,632 - Ancillary 190,276 19, ,200, , Reduced expenditure on pay for those positions replaced with apprentices see below table o E.g. Differential pay cost (Band 2 to apprentice) based on 185 apprentices would equate to a pay saving of 236,893 per annum. This is based on the assumption of the entire apprentice target being met through recruitment of young people. Therefore if, for example, half of the apprentice target is met with conversion of existing staff into apprenticeships, the savings would be Page 8 of 11

9 half that quoted above. Apprentice salary 1.00WTE Band WTE Savings Apprentice 3.30per hour 7,376 18,417 11,041 Apprentice 5.50 per hour 12,658 18,417 5,759 Apprentice salary 1.00WTE Band WTE Savings Apprentice 3.30per hour 7,376 20,401 13,025 Apprentice 5.50 per hour 12,658 20,401 7,743 Improved staff retention; completing apprentices can move into higher apprenticeships or apply for positions as we become more sophisticated and as more standards become available. Apprenticeship Levy Usage Funds can be used for: apprenticeship training and assessment (with an approved training provider and assessment organisation, up to its funding band maximum) Funds CANNOT be used for: Wages statutory licences to practise travel and subsidiary costs managerial costs traineeships work placement programmes the costs of setting up an apprenticeship programme A working example of how the Apprenticeship Levy could be utilised RWT Apprenticeship Levy = 1.4m (based on 0.5% of paybill) No of Apprentices Level of learning Which Apprenticeship Standard Duration Cost pa Total Levy Used Customer Service 12 months , Healthcare Support Worker 12 months , Senior Healthcare Support Worker 12 months , Healthcare Science Assistant 24 months , Healthcare Assistant Practitioner months , ,000 NB: Nursing Associate and Nurse Degree apprenticeships are under development, the following example is based on the assumption of similar costs to other Healthcare level 4 and 5 learning Page 9 of 11

10 No of Apprentices Level of learning Which Apprenticeship Standard Duration Cost pa Total Levy Used 30 4 Nursing Associate (assumed cost ) 24 months , Nurse Degree (assumed cost ) 36 months , , Apprentices Total levy used 1,430,000 NB: Any unused funds are expected, after an 18 month period, to go back into the pot to be available to other employers as top up contributions. Conclusion The Trust has implemented a revised e-vcp process which was advertised via SMB & AUB, however this has not produced the interest required to meet the levy targets A more direct approach to the recruitment and allocation of apprentices should be considered We use the opportunity to further promote workforce planning through talent pipeline development and using apprenticeships to assist with our succession planning; targeting departments which have traditionally been difficult to recruit to Recommendations The following options have been considered as applicable to new staff only, it is anticipated that for existing members of staff that are eligible for an apprenticeship we will continue to engage them on this training as is current practice. Option 1 - Managed vacancy panel approach (preferred option) Review our recruitment process and mandate that all vacancies within bands 1 to 3 are subject to a scrutiny panel prior to advertising in order to maximise the development opportunities for new staff. Corporate Learning & Development Manager to liaise with Divisional managers and attend Divisional meetings to inform operational mangers of the vacancy process and engage with them around the benefits of utilising vacancies for apprentices Corporate Learning & Development Manager to liaise with Divisional managers and Divisional vacancy panels, to provide support/challenge to Divisional Vacancy panelsensuring every suitable vacancy is converted into an apprentice post Corporate Learning & Development Manager to support the weekly Trust level vacancy panels, following up with the operational managers those posts suggested by the Trust level panel which could be filled by and apprentice - ensuring every suitable vacancy is converted into an apprentice post To note: this option has been implemented with effect from 1 st February 2017 and has secured 15 apprentice roles. Option 2- Status quo approach Continue as we are, encouraging managers to consider employing apprentices Page 10 of 11

11 whenever a vacancy arises. If we continue in this way, there is a very high risk that the organisation cannot meet its government quota which may leave the Trust under scrutiny and open to penalties. Option 3 Pump prime approach For a period of 6 months suspend the appointment to all admin and clerical vacancies, (in bands 1 to 3) Appoint admin and clerical/ancillary apprenticeships into each of the above vacancies Allocate apprentices to areas where the vacancies have occurred, whilst providing support to managers Option 4 No external recruitment approach Utilise the levy funds to develop existing staff only, however this will have limited effect in attracting new staff into the organisation. It may be very difficult for areas to support the numbers of apprentices at any one time We will lose the opportunity to attract young and innovative employees which will further impact on the vacancy gap in future years. * * * * * Page 11 of 11