Services for Apprenticeships (SERFA) Erasmus Plus Project. National report on Apprenticeships in England:

Transcription

1 Services for Apprenticeships (SERFA) Erasmus Plus Project National report on Apprenticeships in England: Current situation, successful services and SMEs needs Prepared by Aurelie Nollet and Stephen Roberts, Cornwall Marine Network & Cornwall Apprenticeship Agency Limited June 2017

2 Contents 1. Overview of apprenticeships and work-based learning in the United Kingdom Statistical information Apprenticeship volumes Apprenticeships by age Apprenticeships by gender Apprenticeships by level Apprenticeships by sector Legal Framework Responsibilities Professions and branches Curricula Remunerations Qualification requirements for trainers Assessment Institutional Framework/Involvement of Stakeholders National authorities Regional/local authorities Social partner institutions (Chambers, Trade Unions) VET Institutions (Colleges, public or private VET providers) Companies Financial Implications Cost responsibility Public Funding National Trends in apprenticeship and/or work-based learning Support Services for Companies Status quo Supporting institutions Public Institutions Private Institutions and social partners: focus on the Apprenticeship Training Agency model Support services Examples of best practices: the Cornwall Apprenticeship Agency Experience and needs of enterprises: results of the company survey Target groups chosen for survey Statistical Profile of participants Reasons for not offering apprenticeships Reasons for training apprentices... 25

3 3.5. Recruitment of apprentices: Problems, challenges and needs Support received Need for support Conclusion References... 29

4 1. Overview of apprenticeships and work-based learning in the United Kingdom 1.1. Statistical information Apprenticeship volumes In 2015/16, there were 509,400 apprenticeship starts in the United Kingdom, 9,500 more than the previous year. Between 2009/10 and 2010/11 there was a large jump in the number of apprenticeship starts, increasing by 63% from 279,700 to 457,200. The decline in figures in 2011/12 can largely be attributed to the introduction of the Single Individualised Learner Record (ILR) 1. Overall, between 2010/11 and 2014/15, 2.4 million apprenticeship starts were made. 904,800 people were on an apprenticeship in 2015/16 ( participation ) up from 871,000 the year before. 260,900 people successfully completed an apprenticeship in 2014/15 up 5,100 on the previous year Apprenticeships by age People aged accounted for 30% of apprenticeship starts in 2015/16 (153,860) and under 19s 26% (131,420). 16 year olds accounted for 22% of apprenticeship starts in 2002/03, followed by a constant decrease to 6.7% in 2010/11 (for the first time below the 10% threshold) and 6% in 2015/16. In parallel, the number of year olds increased from 6% in 2007/08 to 20.2% in 2015/16. It should be noted that before 2004/05, apprenticeships were not available for people over the age of The Individualised Learner Record (ILR) is the primary data collection about further education and work-based learning in England. It is collected from learning providers in England s further education system.

5 Age group 2015/16 figures Percentage Under * 16 30,410 6% 17 43, % 18 56, % , % , % , % , % 60+ 3, % Not known - - Total 509, % The growth in the number of apprenticeships since 2009/10 has been largely driven by an increase in the number of apprenticeship starts by people aged 25 and over. In 2015/16, they made up 44% of all apprenticeship starts Apprenticeships by gender In 2015/16, 53% of apprenticeship starts were by women (268,730) and 47% by men (240,630). The number of women starting an apprenticeship in England has been higher than men for every year since 2010/ / / / / / / / /16 Female 49.7% 49.6% 53.8% 53.1% 54.7% 52.9% 53% 52.8% Male 50.3% 50.4% 46.2% 46.9% 45.3% 47.1% 47% 47.2%

6 Apprenticeships by level Apprenticeships can be studied at different qualification levels: In 2015/16 the highest number of apprenticeship starts was for Intermediate apprenticeships (Level 2) with 291,330 starts, followed by 190,870 Advanced (Level 3) and 27,160 Higher (Level 4 and above) apprenticeships. Higher Level Apprenticeships did not exist before 2006/07. The majority of Higher Apprenticeship starts in 2015/16 were Levels 4 or 5. Level 2014/15 full year 2015/16 full year Level 2 298, ,330 Level 3 181, ,870 Level 4 7,090 9,510 Level 5 12,590 16,870 Level Level 7-30 Total higher apprenticeships 19,770 27,160 Total apprenticeships 499, ,400 Name Level Equivalent educational level Intermediate 2 5 GCSE passes at grades A to C Advanced 3 2 A level passes Higher 4, 5, 6 and 7 Foundation degree and above Degree 6 and 7 Bachelor s or master s degree Apprenticeships by sector As in previous years, the majority of apprenticeship starts were in the service sectors. Almost three quarters (71%) of all starts were concentrated in three sectors: Business, Administration and Law; Health, Public Services & Care and Retail & Commercial Enterprise.

7 Figures for 2015 are as follows: Sectors Intermediate Level Apprenticeship Advanced Level Apprenticeship Under All Ages Under All Ages Agriculture, 3,260 1, , , ,500 Horticulture and Animal Care Arts, Media and Publishing Business, Administration and Law 22,510 24,760 32,670 79,930 8,650 15,890 25,890 50,440 Construction, 9,550 4,650 2,470 16,670 1,710 2, ,510 Planning and the Built Environment Education and Training , ,340 3,710 5,570 Engineering and Manufacturing Technologies 15,340 11,820 19,750 46,920 12,760 12,910 5,230 30,900 Health, Public Services and Care 12,170 18,160 34,760 65,090 5,540 15,630 35,210 56,380 Information and 880 1,300 1,600 3,780 5,280 3,690 1,440 10,410 Communication Technology Languages, Literature and Culture Leisure, Travel 2,750 2,370 1,810 6,930 3,610 2,190 2,140 7,930 and Tourism Preparation for Life and Work Retail and Commercial Enterprise 19,400 19,070 24,850 63,320 3,350 7,760 9,860 20,960

8 Science and Mathematics Unknown Grand Total 86,900 84, , ,300 42,700 63,100 85, ,900 Sectors Higher Apprenticeships All Apprenticeships Agriculture, Horticulture and Animal Care Arts, Media and Publishing Business, Administration and Law Construction, Planning and the Built Environment Education and Training Engineering and Manufacturing Technologies Health, Public Services and Care Information and Communication Technology Languages, Literature and Culture Leisure, Travel and Tourism Preparation for Life and Work Retail and Commercial Enterprise Science and Under All Ages Under All Ages ,950 2,900 1,340 8, , ,140 8,820 12,820 32,010 43,790 67, , ,290 6,800 3,370 21, ,470 2,180 4,640 8, ,350 25,070 25,060 78, ,100 10,970 17,730 34,640 80, , , ,840 6,660 6,180 3,180 16, ,360 4,560 3,940 14, ,760 26,920 35,010 84, Mathematics Unknown Grand Total 1,800 5,800 19,600 27, , , , ,400

9 1.2. Legal Framework Apprenticeships have a long tradition in the United Kingdom dating back to around the 12 th century when the system was supervised by craft guilds and town governments. However legislation governing apprenticeships only appeared in the 1990s. In 1994, the Government introduced Modern Apprenticeships, later renamed Apprenticeships, based on frameworks defining a set of requirements for an apprenticeship programme. Up until the current reforms, frameworks were used by training providers, colleges, and employers to ensure that all apprenticeship programmes were delivered consistently and to agreed standards. In 2008 the Department of Education stated its intention to make apprenticeships a mainstream part of England s education system 2. The following year the Apprenticeships, Skills, Children and Learning Act introduced a wide range of measures covering apprenticeships, learning and skills and educational provision and founded the National Apprenticeship Service to coordinate apprenticeships in England. In England Apprenticeships are defined as full-time paid jobs that incorporate on and off the job training. They are available to anyone over the age of 16. They combine working with studying for a work-based qualification from GCSEs or equivalent to degree level. Apprenticeships can last from one to four years. A successful apprentice will qualify with a nationally recognised qualification on completion of their contract. Apprentices have the same rights as other employees and are entitled to be paid at least the apprentice rate of the national minimum wage. Over 2.4 million apprenticeships were started between 2010/11 and 2014/15 and the Government is committed to significantly increasing the quality and quantity of apprenticeships in England and achieving 3 million starts by The Welfare Reform and Work Act 2016 placed an obligation on the Government to report annually on its progress towards meeting this target. The Enterprise Act 2016 additionally provided the Secretary of State with the power to set targets for apprenticeships in public bodies in England to contribute towards meeting the national targets. Since 2015 significant changes to apprenticeships have been made or are in the process of being implemented. Up until 2017, a series of apprenticeship frameworks were in place and defined all the statutory requirements for an apprenticeship programme. Under the current reform, employer-designed apprenticeship standards will progressively replace frameworks 2 World Class Apprenticeships. The Government s strategy for the future of Apprenticeships in England. DIUS/DCSF, 2008

10 and will operate under a different funding model. The reform forms part of broader changes to the apprenticeships system including changes to the funding rules Responsibilities In the United Kingdom, skills and training are devolved policy areas so apprenticeship rules are different in England, Wales, Scotland and Northern Ireland. Since July 2016, apprenticeships and skills along with higher and further education policy in England is the responsibility of the Department for Education. It used to be in the remit of the Department for Business, Innovation and Skills but it was transferred to the Department for Education when the former was replaced by the Department for Business, Energy and Industrial Strategy. Up until 2017, the Skills Funding Agency, a Government Executive Agency, runs the National Apprenticeship Service which supports, funds and coordinates the delivery of apprenticeships and traineeships throughout England and provides a dedicated, responsive service for both employers and learners. It supports over 1,000 colleges, private training organisations and employers. The National Apprenticeship Service focuses on increasing the number of apprenticeships in England and coordinates the National Apprenticeship Week. With the new reform, the design and delivery of apprenticeships will be overseen by a new, independent quality body, the Institute for Apprenticeships (IfA). It will be employer-led. An independent chair will lead the work of a small board made up primarily of employers, business leaders and their representatives. The IfA will carry out quality assurance functions to support standards and assessment plans Professions and branches Until 2017, all the statutory requirements for an apprenticeship programme were defined by apprenticeship Frameworks. These Frameworks were categorised by industry and job roles. The 250 Frameworks extended to sectors with no apprenticeship tradition such as the service sector or creative industries, for which a set of Creative Apprenticeships were introduced in Recently, apprenticeship frameworks have been developed in sectors such as law, accountancy and advanced engineering as an alternative to qualifying for these professions by completing university degrees. Under the current reforms, groups of employers are working together to develop a range of standards which will replace the frameworks. The standards are less generic and focused on specific job roles and they are more numerous. 147 different standards have currently been approved for delivery and many more are in development. Rather than a group of

11 qualifications, the standards consist of a list of required competencies, knowledge, skills and behaviours apprentices will need to be fully competent in their job role and meet the needs of employers in the sector. At present there is a cross-over period in some sectors where the new standards are being delivered alongside the old Frameworks but the full switchover to Standards is expected to occur by It is expected that there will be between 600 and 800 new Apprenticeship Standards compared to the current frameworks Curricula The new apprenticeship standards are developed by trailblazers made up of groups of employers. Each Trailblazer group should include a wide range of employers (at least 10) committed to being involved in the development of the apprenticeship standard. There is a requirement to involve small businesses and at least two employers with fewer than 50 employees should join the group. Each Trailblazer group is supported by a representative from a Government Department. Professional bodies are involved to help ensure routes to professional registration in occupations where these are available and can be involved in the development of the standard. Training providers are also involved so they can contribute ideas from a delivery perspective and also to ensure they are ready to deliver the new apprenticeship standards. Finally awarding or assessment organisations are involved to share their experience of assessment. This is useful for Trailblazers when they are drafting their assessment plans. The process to develop new standards is as follows:

12 Source: The Future of Apprenticeships in England: Guidance for Trailblazers From Standards to Starts, HM Government, December 2015 Until the Institute for Apprenticeships becomes fully operational, the Department for Education and the Skills Funding Agency are responsible for supporting trailblazers and running the processes associated with the development and approval of Expressions of Interest from groups of employers, apprenticeship standards and assessment plans. The apprenticeship standards should: Be short, concise and clear: no more than two sides of A4 Set out the full competence needed in an occupation so that, on completion, the apprentice is able to carry out the role in any size of employer across the sector Should require at least a year of training before the end-point assessment with off-thejob training accounting for at least 20% of the apprenticeship Contain minimum English and Maths requirements and any digital skills required. The Standard will set the level required Not include mandatory requirement for qualifications unless the Trailblazer group decides to include them into the standard. Include an assessment plan to provide a clear description of what is assessed and how, who carries out the assessment and what the internal and external quality assurance arrangements are

13 Remunerations Since 2010 employers in England have been required to pay apprentices at least the minimum wage set by the UK Government. National Minimum Wage for Apprentices is currently 3.50 an hour for any age person undertaking an apprenticeship within the first 12 months of the Apprenticeship but it reverts to National Minimum Wage after 12 months for 19+ Apprentices. As of March 2017, the National Minimum Wage is 5.55 an hour for year olds, 6.95 an hour for 21 to 24 year olds and 7.20 for people aged 25 and over. Apprentices work for a minimum of 30 paid hours a week and must work more than 16 hours. Apprentices are paid for both their normal working hours and the time they spend training as part of their apprenticeship, whether while at work or at a college or training organisation. Apprentices are entitled to the same employment rights as other employees, including holiday entitlement, sick pay, maternity leave and any benefits or support the employer offers such as coaching, mentoring or voucher schemes Qualification requirements for trainers Up until 2017, the Skills Funding Agency (SFA) has been contracting with learning providers to deliver apprenticeships. There are two main types of training organisations colleges of further education and independent training providers, which can be in the private or voluntary sector. Learning providers can also be employers themselves. Before becoming an SFA contracted training provider, an organisation has to be on the UK Register of Training Providers. The pre-qualification process includes completing due diligence questions to assess if the organisation is financially robust, as well as capacity and capability questions. The learning provider acts as a broker between the Government Funding Agency and the apprentice s employer and delivers the apprenticeship training package. The learning provider should develop a detailed apprenticeship programme that meets the employer s needs; provide training to the apprentice and ongoing assessment, support and advice throughout the training period to the employer and the apprentice. All training organisations receiving government funding for apprenticeships are inspected by the Office for Standards in Education, Children s Services and Skills (Ofsted). Ofsted publishes the results of its inspections on its website. From 1 May 2017 onwards, any organisation which wants to deliver apprenticeships must be listed on a new Register established as part of the current reform. By introducing higher quality requirements for providers, the Government aims to give employers a level of assurance that the providers they are using have the capacity and capability to delivery good quality

14 apprenticeship training. There will no longer be SFA contracts with training providers. The funding will now be received by the employers who will then choose their training providers from the Register of Apprenticeship Training Providers (RoATP). The training providers must be occupationally competent in the knowledge and skills required by the apprentice, either currently working or having recently worked in the sector; and they must be able to maintain this competence in order to deliver the knowledge and skills undertaken in the workplace setting where apprentices are working Assessment The new reform has introduced the principle of an independent end-point assessment (EPA) as a way of assuring quality in the apprenticeship system. By 2020 EPA will have replaced the existing model of continuous assessment resulting in qualifications. All apprentices need to pass an end-point assessment which determines overall competency and achievement. This is separate to any qualifications and assessment that the apprentice may undertake during his training. Apprenticeships in the majority of sectors will be graded. A pass grade means the apprentice has demonstrated full competency against the standards. There are also higher grades (Merit, Distinction) to recognise higher levels of performance. Towards the end of the apprenticeship, employers and providers will sign-off the apprentice as ready for the end-point assessment; this sign-off is referred to as the Gateway. Signing-off an apprentice indicates the employer and provider believe the apprentice s knowledge, skills and behaviours are at the level required to attain the apprenticeship. A number of approaches are being used for the end-point assessment, including: knowledge tests, competency-based interviews, assessment of portfolios of evidence and professional discussions. An assessment plan will specify the approach for each apprenticeship standard. To ensure independence, the end-point assessment must involve a third party, independent of the training provider or employer, who does not stand to benefit financially from the outcome of the assessment. A Register of Apprenticeship Assessment Organisations (RoAAO) was established in 2016 and lists the organisations that have been assessed as being suitable to conduct independent end-point assessment. Individual employers have the freedom to select their own Apprentice Assessment Organisation (AAO) from the Register of Apprenticeship Assessment Organisations. The cost of end-point assessment will vary depending on the requirements set out in the Assessment Plan and hence will be costed individually based on the specific assessment tools and methods needed. An important element of the costing for end-point assessments is the type of occupation and the time taken by the independent assessor in face-to-face, telephone

15 or online assessment activity. As a general guideline, it is expected that cost will represent no more than 15% of the total costs of delivering the apprenticeship Institutional Framework/Involvement of Stakeholders National authorities The Department for Education (DfE) is responsible for apprenticeships and skills along with higher and further education policy in England. DfE is a ministerial department, supported by 18 agencies and public bodies. The Government is currently developing a Digital Apprenticeship Service (DAS) through which everything from apprenticeship certification to funding will be channelled. Each employer will have an account and apprenticeship funds will be paid into an account via the Digital Apprenticeship Service (DAS) which employers will then use to pay providers (or themselves in some cases) for their apprenticeship training. The Government also established a new independent quality body, the Institute for Apprenticeships (IfA), expected to become operational in The IfA will: have powers to undertake quality and approval functions in relation to apprenticeship standards and assessment plans. have power in relation to wider quality assurance functions, including making arrangements for assessing the quality of the end point assessment for each apprenticeship. have responsibility to advise Government of funding allocations per each apprenticeship standard appoint a majority of employers on the Board to ensure that it is an employer led body Regional/local authorities Regional and local authorities are involved in apprenticeships in so far as they offer apprenticeship vacancies. The Enterprise Act 2016 allowed the Secretary of State to set apprenticeship targets for prescribed public bodies. At least 2.3 per cent of the workforce in public sector bodies in England will have to be apprentices, in a move requiring that 200,000 more will have to be recruited by The public sector is therefore expected to deliver 16.2 per cent of 3 million apprenticeship starts by Social partner institutions (Chambers, Trade Unions)

16 Some organisations are identified as the training provider for the sector. This is the case of the Construction Industry Training Board for example which had an apprenticeship completion rate of 81% in 2016, with apprenticeships rated Outstanding by Ofsted VET Institutions (Colleges, public or private VET providers) Most employers use an exrternal organisation to provide the Apprenticeship training. Training organisations colleges of further education or independent training providers now need to be registered on the new Register of Apprenticeship Training Providers. The training provider can: deliver apprenticeship training to employers that will use the apprenticeship service to pay for apprenticeship training deliver apprenticeship training to their own apprentices, or apprentices of their connected companies, if they will use the apprenticeship service to pay for apprenticeship training deliver apprenticeship training as a subcontractor Companies The business selects a training provider from the Register of Apprenticeship Training Providers and receives a voucher through a new digital apprenticeship service enabling employers to directly manage their apprenticeship programmes and purchase training. The business liaises with the selected training provider to detail its needs and define the apprentice s training programme. The business employs the apprentice and commits to training Financial Implications Cost responsibility The Government covers most of the costs associated with apprenticeship training. As of April 2017, a new funding system is being introduced. All employers operating in the UK, with a pay bill over 3 million each year, will be required to pay 0.5% of their total pay bill into an apprenticeship levy. The levy will fund apprenticeship expansion and it is expected that less than 2% of employers across all sectors will pay it.

17 The levy will be calculated as follows: Public Funding Key highlights of the new funding system include: Employers who are too small to pay the apprenticeship levy will have 90% of the cost of apprenticeship training paid by government; There will be 15 funding bands, with the upper limit of these bands ranging from 1,500 to 27,000. All existing and new apprenticeship frameworks and standards will be placed within one of these funding bands. This single funding band will be regardless of the ages of the learner, or geographic location. The employer and training provider agree on a price for an apprentice s training and assessment within the limits of the funding band. The total government contribution may increase further through incentive payments. All employers will receive an incentive payment of 1,000 for employing a year old apprentice or young care leavers and young people with education, health and care plan. The training provider will also receive an incentive payment of 1000 for delivering apprenticeship training for a year old; Employers with fewer than 50 employees will not have to pay anything towards the cost of training a year-old, young care leaver or young person with an EHC plan. Government will pay training providers 471 to deliver English and maths qualifications when an individual is working towards an apprenticeship standard

18 1.5. National Trends in apprenticeship and/or work-based learning The Government is driving forward the current apprenticeship reform based on the acknowledgement that individual apprenticeships provide good returns, but there is an insufficient number of apprenticeship opportunities to meet demand from individuals, and skills gaps remain in the economy. Whilst the vast majority of apprenticeships provide high quality training, feedback from employers shows that it is not always the case, hence the need to continue to drive up the quality of apprenticeship training and ensure that anyone completing an apprenticeship is fully competent in their occupation. The Government calculated that apprenticeships provide a typical return of for every 1 of Government investment in apprenticeships at levels 2 and 3.

19 2. Support Services for Companies Status quo 2.1. Supporting institutions Public Institutions The new Digital Apprenticeship Service set up by the Government aims to include five main employer-facing services: Estimate apprenticeship funding: employers will be able to calculate how much they will have to spend on apprenticeship training, before the levy is introduced Find apprenticeship training: employers will be able to find the right training provider and apprenticeship type to suit their business Recruit an apprentice: employers will be able to work with their training provider to post an apprenticeship opportunity Manage your apprenticeship funding: employers will be able to register securely to set up an employer account and access their apprenticeship funding Add an apprenticeship: employers will be able to set up their chosen apprenticeship package and authorise payment to their training provider Training providers will also be able to add apprentices, submit data and sign contracts. Finally, the "find an apprenticeship" service will continue for everyone interested in applying for an apprenticeship: Private Institutions and social partners: focus on the Apprenticeship Training Agency model Apprenticeship Training Agencies (ATA) help employers recruit, employ and train apprentices in a wide range of fields. In 2009, 12 organisations were awarded a share of 7 million National Apprenticeship Service funding to establish ATAs under a pilot programme running until The pilot programme was aimed at supporting SMEs so that they were more able to take on apprentices with the aim of employing them either during or at the end of their apprenticeship programme. The pilot ATAs drew their inspiration from the Australian Group Training Organisations (GTO). GTOs have been a feature of Australia s apprenticeship system for over 20 years. They support SMEs, promote training in traditional trades, and employ young people placing them with suitable employers. The Apprenticeship Training Agency (ATA) model is intended to support the delivery of a high quality Apprenticeship programme with a focus on small employers who wish to use the services of an ATA to source, arrange and host their Apprenticeships. This could be for a number of reasons including them not being able to commit to the full framework, short term restrictions on employee numbers, or uncertainty about the value of an Apprenticeship.

20 The distinctive feature of the ATA model is that it is the ATA which acts as the apprentice s employer and which places them with a host employer. The host employer pays the ATA a fee for the apprentice s services; this fee being based on the wage agreed with the host (at least the minimum Apprentice rate) and the ATA management fee. If circumstances change and the host employer is unable to retain the apprentice the ATA will find alternative and appropriate employment for the apprentice giving them the reassurance that they can continue their Apprenticeship. With the pilot phase proving to be successful, a new ATA Recognition Process and a National Register of Approved ATAs was introduced. The ATA model provides useful support to SMEs because it overcomes many of the traditional barriers they face when engaging with apprentices. In particular an ATA: provide free SME advice: SMEs do not know how to recruit apprentices helps the SME specify their apprenticeship requirements: SMEs rarely know what they want, undertakes low cost but high quality apprentice recruitment: SMEs don t have the time or money to undertake full recruitment, acts as the apprenticeship employer, removing the SME from employment legislation, provides advice on training provision: SMEs are very confused by the skills market and do not know what options they have provides ongoing pastoral support during the apprenticeship to the apprentice to ensure host SMEs release the apprentice for training: this support helps ensure the apprenticeship completes and succeeds, allows an early transfer from employment in the ATA onto the payroll of the SME, providing a risk free means of trialling the apprentice before employment, at any point the Host SME can give just 2 weeks notice if the arrangement is not working successfully or if business experiences a downturn : although this rarely happens because the recruitment adds quality to the start of the journey, it does give SMEs reassurance that they are not carrying the risk of employment Key features of the ATA model: An ATA is nationally approved as a recruitment agency solely to recruit apprentices An ATA is a business whose core functions are the sourcing of employers and candidates interested in engaging with apprenticeships, leading to the employment, training and development of apprentices. Under the model the apprentice will be employed by the ATA and hired out to host employers who provide the productive employment and on-the-job training for 4 days per week. In addition, Technical Training will be delivered by a registered training providers for 1 day per week. An ATA will always aim to contribute to a high quality apprenticeship experience, working closely with training providers and host employers. An ATA will focus on the creation of new apprenticeship opportunities with SME employers to complement and not displace apprenticeships directly employed by an individual employer. An ATA will agree clear terms and standards with all the employers, providers and apprentices with which they work.

21 ATAs must be aware of and comply with all relevant employment law and regulation including those appropriate to Employment Agencies and Employment Businesses where these apply Support services Examples of best practices: the Cornwall Apprenticeship Agency Since its establishment by Cornwall Marine Network in 2012, Cornwall Apprenticeship Agency has been operating as an ATA, trading across all business sectors. The Agency pioneered the employer-owned model of providing skills brokerage to SMEs, 92% of whom have never engaged with apprentices. In 2013 the Agency won funding from the UK Commission for Employment and Skills to support more SMEs and apprenticeship seekers. Since then the CAA has expanded into the UK Apprenticeship Agency and delivered more than 1,200 new Apprenticeships in SME s across the UK in a broad range of apprenticeship frameworks.

22 3. Experience and needs of enterprises: results of the company survey 3.1. Target groups chosen for survey Cornwall Marine Network (CMN) targeted different circles of businesses, all based in Cornwall. An invitation to answer the survey was first sent to CMN s members in the marine sector and the mailing list was filtered out to target small and medium sized enterprises only (less than 250 employees according to the EU definition). CMN s membership is composed of 351 businesses and only four of them are not SMEs. Skills brokers at the Cornwall Apprenticeship Agency (CAA), CMN s subsidiary company, also shared the survey with businesses they currently work with or have supported in the past. As an Apprenticeship Training Agency, the CAA is not sector specific and supports businesses across all sectors. Via the CAA, the survey was therefore shared outside the marine sector to businesses who have received support with skills and training, whether or not this support led to the recruitment of an apprentice. This second pool of businesses has therefore a greater awareness of skills and training issues and they are likely to have benefited from a training need analysis and in-company training plan. The survey was additionally sent to representative bodies such as the Federation of Small Businesses and the Cornwall and Isles of Scilly Local Enterprise Partnership. As part of the UKCES national project run in 2012, CMN additionally collected information from 207 SMEs on their knowledge and understanding of apprenticeship, resource and financial constraints and preferences in terms of support options. 71% of the respondents had 10 or less employees. The survey results helped CMN set the Cornwall Apprenticeship Agency as an Apprenticeship Training Agency tailored to SMEs needs. Results of this wider survey are presented in this report Statistical Profile of participants Company size 28 businesses responded to CMN s survey. Among the respondents, 67.9% have 25 employees or less, including 28.6% with less than 5 members of staff. 17.9% have between 26 and 49 employees and only 4 companies have more than 50 members of staff. Sector / industry of business The survey reached out a relatively large variety of industries with 4 businesses in marine industries and businesses; 4 in the accommodation and catering sector; 3 in education and training; 3 in health and education services; 2 in the arts, entertainment and recreational sector;

23 2 in the building sector; 2 in other manufacturing; 1 in fishing and aquaculture, 1 in manufacturing of machinery and equipment, 1 in other services (hairdresser, cleaning, employment services), and 5 classified as others (voluntary and community sector, sports and education, mining searches and geology services and sales and marketing services). Provision of apprenticeships 39.3% of the respondents (11 companies) do not currently employ an apprentice, 57.1% (16 businesses) currently employ between 1 and 3 apprentices and one respondent currently employs more than 3 apprentices. Figures show that those enterprises that currently do not provide apprenticeships have mostly never done so (7 out of 11). In total 75% of the respondents have employed apprentices in the past five years. Additionally, 92.9% of the respondents do not hire interns. It may be noted that internships are not a widespread scheme in the United Kingdom, contrary to other EU countries such as France where internships are often a compulsory element of a training course. No, I never have offered apprenticeships Not in the last five years, but I had apprentices before that time Yes: 1-5 apprentices during the last five years Yes: more than 5 during the last five years 3.3. Reasons for not offering apprenticeships The SERFA survey shows a number of reasons for companies lack of engagement in apprenticeships, among which the lack of time to train apprentices appears as the most quoted. A number of barriers relate to training with 4 businesses out of the 8 who have not offered an apprenticeship in the last five years identifying the high cost of training, the complexity of training and the small benefit of training on its own as especially, very or rather important hindering factors.

24 Other reasons frequently quoted by businesses include: Too much or complicated bureaucracy Lack of experience in the implementation of apprenticeships Other business priorities No experience in this field, lack of knowledge on how to approach this step However businesses did not identify the following elements as hindering factors: Negative previous experience with apprentices Time spent in the company compared to the time spent in training No need for skilled workers The UKCES survey provided relatively similar results in terms of lack of knowledge around training and revealed additional barriers around recruitment, funding constraints and the lack of knowledge on the return on investment as illustrated in the two graphs below.

25 Financial Constraints Can t afford the wages for an Apprentice. Can t commit to employing a new member of staff for a minimum period of 12 months. Unable to access incentives to offset the cost of employment. Yes major problem Some concern Not an issue 3.4. Reasons for training apprentices The SERFA survey shows the following reasons for training apprentices (from most cited reason to least cited one): To secure long-term professional needs To train apprentices according to the needs of the company To secure an age-balanced workforce To help reduce youth unemployment No adequate skilled workers are available on the labour market The training of apprentices supports the image of the company The training of apprentices is generally more cost-effective than searching for suitable specialists For reasons of responsibility for the labour market in the region 3.5. Recruitment of apprentices: Problems, challenges and needs 85% of the respondents did not have any problems with the recruitment of apprentices. This can be explained by the fact that a number of respondents may have benefited from a skills brokerage service provided by the Cornwall Apprenticeship Agency and support with the recruitment to identify their training needs, define the apprenticeship role, advertise the vacancy and interview the candidates.

26 For the 3 businesses who encountered problems with the recruitment, they all identified the following issues: too few applicants; insufficient basic practical skills, social skills and basic school competences of the applicants; and insufficient knowledge of how to shape the application process. In terms of possible solutions to overcome these problems, the businesses suggested a wider advertisement of vacancies possibly in schools and colleges; and one of the businesses organised an Easter school as a trial week to test they had the right candidates. The UKCES survey provided more representative results of issues related to recruitment as presented below: 3.6. Support received For those who had issues with the recruitment (3 businesses), they all received support to address these problems from either an education and training organisation (college) or an Apprenticeship Training Agency. The 3 businesses received general advice and support to pre-select applicants; and 2 of them also received information materials and brochures, information on the content of the apprenticeship, and information on the organisation of the apprenticeship training. The 3 respondents considered they benefited from the support provided.

27 As additional responses, a few businesses also highlighted they received information on how to create job specifications and organise the recruitment 3.7. Need for support When asked what type of support businesses would like to receive in relation to the preparation and implementation of apprenticeships, businesses mostly answered they wanted general advice; information, support and advice with funding opportunities; assistance in the preparation and implementation of application processes and support with the pre-selection of applicants. Overwhelmingly, businesses answered they wanted to receive support from apprenticeship training agencies and from education and training organisations, followed by support from funding experts and skills brokers. The UKCES survey additionally provides information on the support SMEs would like to receive, as presented below:

28 4. Conclusion Apprenticeships in the United Kingdom are currently going through a major reform led by the Government and which sees the employers placed in the driving seat for the development of new apprenticeship standards and the recruitment of the training provider. This reform is part of a larger plan to improve the quality and quantity of apprenticeships and in particular to support their development at higher levels of training. As the shift from the Apprenticeship frameworks to the Apprenticeship standards will be completed over the next few years, it is particularly important to communicate and update businesses about those changes to reduce uncertainty. As revealed by the SERFA survey and larger national studies, one of the main barriers preventing SMEs from taking on apprentices relates to resources, with businesses quoting the lack of time to train apprentices, the high cost of training, the complexity of the training and the small benefit of training on its own as the main hindering factors. In this context, it is crucial to communicate the value of apprenticeships to SMEs with a simple and business-focused message, demonstrating the return on investment associated with apprenticeship schemes. SMEs themselves need to communicate this message and this is what SERFA partners will aim to do via their European network of Apprenticeship champions joining together employers who have had a positive experience and have been successful in delivering apprenticeships. Other challenges that are shared among the SERFA partners include to limit the number of drop-outs, to tap into more talents and attracts more young people by promoting apprenticeships as an alternative route to graduating from university, and to ensure flexibility among training providers when delivering off-the-job training. Between October 2016 and October 2018 SERFA project partners will work collaboratively to share successful experiences and design tools and services that will make it easier for small and medium-sized enterprises to take on apprentices. Those will be made available on the SERFA project website.

29 5. References CEDEFOP, Skills forecasts in the United Kindgom up to 2025, 2015 Edition House of Commons Library, Apprenticeship Statistics for England, James Mirza Davis, Commons Briefing Papers SN06113, November 2016 Parliament Publications, Note on Apprenticeship Training Agencies, November 2012 Department for Business Innovation and Skills, Skills Funding Agency priorities and funding for the 2016 to 2017 financial year, Nick Boles MP, Minister of State for Skills, December 2015 Pearson, Handy Guide to Apprenticeship Reform, April 2017 City & Guilds website, Apprenticeship Standards (England)