Why everyone wins with apprenticeships

In the construction of a strategy for the future of the UK economy, apprenticeships will provide a vital cornerstone.

The Government wants to see three million apprenticeships started by the end of the decade, almost quadrupling the current number being delivered in the UK.

One aspect of that will be the Apprenticeship Levy, introduced this month, which will see employers with wage bills of more than £3 million a year pay 0.5 per cent of their total tally to fund apprenticeships.

This move will be welcome, particularly in Shropshire where the need to build the future workforce is pressing if the county is to continue to attract business investment.

The county needs to continue to develop its workforce, and to create roles that will entice young people to want to stay and make a life in a county which has an ageing population compared to other parts of the country.

Some organisations have already tackled the apprenticeships issue.

Salop Design & Engineering in Shrewsbury has invested heavily in apprenticeships, not just for itself but for the industrial sector in Shropshire.

Commercial director Christopher Greenough said: "We are a tier two metal pressing and assemblies manufacturer. We have been in business in Shrewsbury for 50 years.

"We have seen dramatic growth in our sector over the last 12 to 18 months, and now see, as all businesses is Shropshire do, that the skills gap is the biggest factor stopping our business from growing.

"We are committed to raising awareness of apprenticeships. We are working with local schools to show that a vocational learning route is as important, and indeed more beneficial to some youngsters, than staying on at school to take further exam courses. But it is important to say that the apprenticeship route can actually be the start of a path to a degree. So, it is not that an apprenticeship is a way out of learning, indeed it can be the start of lifelong learning. But, you will end up with that degree, without the shackles of a large student loan.

"Mirroring the theme from the Government, we see a real need in Shropshire for business to work with training providers, and to that end we teamed up with In-Comm Training to provide bespoke, engineering apprenticeships from our site. This is our commitment to help ensure all Shropshire businesses have access to the training they need."

Mr Greenough added: "Apprenticeships are truly the very best way to get young people into your business; the apprentice not only gets the chance to earn and learn, but they also get to know your business; the machines, the people and more importantly the way you want them to be involved in your business.

"You have the chance, as an employer, to work with and help shape the apprentice, so you both get value from the working relationship. You are investing in the future of the apprentice, and also the future of your company.

"We have taken on, over the last three years, a total of five apprentices – they all have a different skill set, and different personalities. They are all starting on the road of learning, and our aim is to make sure they get all the skills they require to become life-long engineers. We, as a business don't want people who can just make things, we want people who know why they are making those things the way they are.

"We want people who understand how things work, and have a real grasp of manufacturing. This is our commitment as a business to Shropshire, this is our corporate social responsibility, and this is how we intend to close the skills gap and help more businesses succeed.

"The most important work I see that we can do as business is work with schools and colleges to make sure that all young people have the necessary knowledge of business. We need to show them the fantastic opportunities within our companies.

"We need to convince the youth of today that we have the jobs that will provide them with a secure future. I am working and speaking with as many schools as possible to make sure that young people have all the information they need to make an informed decision on their futures.

"Take a look at your current workforce, are they an ageing workforce? Are they a local workforce? Are they a very skilled workforce?

"If the answer to any, or all of these questions is yes, then you need to have a look at apprenticeships. They will make a difference to your business, they will make a really positive impact. They will enthuse your staff and bring new life to your business."

There are approximately 872,000 apprentices currently working in the UK but the recent shake-up of apprenticeships is intended to see that figure soar to three million by 2020.

The reform comes after a review by ex-Dragon's Den star and entrepreneur Doug Richard, whose review led to a focus on increasing the quality of apprenticeships and focusing them on the needs of employers.

For the 97 per cent of the businesses in Shropshire who won't have to pay the levy, funding is changing over the next 15 months. Currently, the Government pays 50 per cent of the funding value for 19-year-old apprentices and older.

From May that will increase to 90 per cent and for businesses with less than 50 employees there will be additional incentives for recruiting 16 to18 year olds including fully-funded programmes and bonus payments.

Shropshire Colleges Group's Tracey Linforth, apprenticeship manager, and Corinne Brown, business development manager, are forging relationships with hundreds of county businesses advising them of the implications of these changes.

"The changes are designed to put employers in the driving seat," said Ms Brown. "I have worked in education for 26 years and I have never seen change like this.

"It's a very fast moving picture at the moment and it's in everyone's interest to keep up.

"The Government want to raise the profile of apprenticeships, similar to the status in Germany, where being an apprentice is viewed as equal to going to university.

"Colleges and training providers will no longer dictate what apprenticeships look like – it's in the hands of the businesses to create the model fit for their future workforce and we need to alter our training to suit."