The Chartered Institute of Personnel and Development (CIPD) has published a new guide designed to help employers develop and run a high-quality apprenticeship offer that responds to their skills needs.

The guide, Apprenticeships that Work, is being launched ahead of National Apprenticeship Week, taking in pace in England from 6-10 February.

It been developed by a working group including representatives from employers including Rolls Royce, Siemens, Capgemini Marks and Spencer and West Sussex Council, as well as trade unions, the National Apprenticeship Service (NAS) and the UK Commission for Employment and Skills (UKCES).

Around a third of employers surveyed by the CIPD currently offer apprenticeships. Of those who don’t, most believe that apprenticeships aren’t appropriate for their organisation.

This new guide is designed to show employers of all sectors and sizes how they can make apprenticeships work for them. However, the CIPD is warning that quality is at least as important as quantity and apprenticeships will fail to meet aspirations unless:

• Apprenticeships are embedded in a workforce planning approach, as part of a long-term strategy on workforce growth and skills development.
• The role that apprentices play in the organisation and how they will be supported, particularly by their line manager, is made clear
• Employers secure the support of the existing workforce, senior management as well as line mangers and trade unions
• The training apprentices receive on and off the job is high quality and tailored to employer needs
• Relationships with training providers are carefully managed.
• Alternative and more informal recruitment methods are considered, especially when likely candidates are very young and have no prior work experience
• Employers understand the legal framework
• The apprentice is placed at the heart of the apprenticeships programme and employers provide ongoing support, pastoral care and mentoring
• Employers provide fair access to their apprenticeships schemes and widen the talent pool from which they recruit in terms of gender, ethnicity and diversity

Katerina Rüdiger, skills adviser at the CIPD who led the development of the guide, said:

“Good quality apprenticeships can offer an alternative, high-quality route into work and help improve youth employability.

They are also a useful tool to achieve a more balanced skills profile in the UK and respond to employer skills needs.

“Recent government policy has been to encourage more employers to offer apprenticeships but if employers who’ve never hired apprentices before are being incentivised to do so, it’s vital that they get the guidance they need to ensure the apprenticeships serve the needs of employers and employees alike.”

John Hayes, minister of state for further education, skills and lifelong learning, said: “Evidence shows that apprentices help boost productivity and give businesses a competitive edge, with most recouping their investment in less than three years. This new guide will help employers who haven’t previously employed an apprentice take full advantage of all they can offer.”

Colin Stanbridge, chief executive of London Chamber of Commerce and Industry (LCCI) said:

“Apprenticeships are a great way to up-skill our labour market. However the process of setting up an apprenticeship can often be overwhelming, especially for SMEs who find themselves bombarded with information from a variety of sources.

“What these firms need is high quality support and guidance throughout the process. CIPD’s guide to taking on an apprentice provides all the information a business needs in one place. Its step-by-step approach and easy to digest content enables employers to easily navigate through the guide and come out the other end ready to offer an apprenticeship.”

Dean Royles, chair of the CIPD Board, director, NHS Employers and National Apprenticeships Ambassador, said:

“Apprenticeships are an effective means for employers to develop their own talent. They also offer a viable alternative to university for people looking for a direct and affordable route to skilled jobs and careers.

“The CIPD’s new guide gives practical advice to help employers tailor quality apprenticeship programmes that provide an invaluable first step on the employment ladder for young people and also develop existing employees throughout their careers.”

Business Secretary Vince Cable today announced new measures to ensure more young people benefit from an Apprenticeship, and to help employers gain the skilled workers they need to grow.

As part of the Government’s plan for growth, Ministers are taking action to make it easier for companies to take on apprentices, and ensure that the quality of Apprenticeships is continually improved. He told businesses in London today that the Government would slash the red tape that can deter hard pressed firms from taking on apprentices, and provide a financial incentive to help the smallest firms recruit their first young apprentices.

The following measures to further strengthen the UK’s world class Apprenticeships programme were announced today:

• To encourage thousands of small firms that don’t currently hire apprentices to take on a young apprentice aged 16 to 24, the Government will offer employers with up to 50 employees an incentive payment of up to £1,500. This will support up to 20,000 new Apprenticeships in 2012/13. An initial payment will be made two months after the individual has started their Apprenticeship; the balance will be paid after the Apprenticeship has been completed and the trainee has progressed into sustainable employment.

• Processes will be simplified to make it quicker and easier for employers to take on an apprentice. The National Apprenticeships Service and training providers will be required to ensure that every employer is in a position to advertise a vacancy within one month of deciding to take on an apprentice. Health and safety requirements will be streamlined so that there are no additional demands on employers that already meet national standards.

• There will be a renewed focus on targeting the programme where Apprenticeships deliver greatest value – including on younger adults, new employees, higher level qualifications and particular sectors where they can make the greatest impact.

• Apprenticeship providers will be required to offer training in English and Maths up to the standard of a good GCSE (level 2) for all Apprenticeships.

A new review into the standards and quality of Apprenticeships will be undertaken by a leading employer. Reporting in spring 2012, the review will help ensure Government works effectively with training providers and businesses to continually raise the standards of all Apprenticeships, and that training keeps pace with the changing needs of industry.

Business Secretary Vince Cable said:

“The Apprenticeships programme is a success story, with record numbers of learners starting an Apprenticeship this year. But I have listened to employers, and will go further to ensure that investment is targeted where impact is greatest, delivering the specific skills businesses need to drive growth.

“Apprenticeships are proven to boost the life chances of young people, and are a sound investment in our future competitiveness. So when times are tough, it’s right that we provide additional support to help the smallest firms meet training costs.

“We’ll cut no corners on quality. Apprenticeships will remain the gold standard for excellence in vocational training – but where red tape serves no purpose, we’ll strip it away.”

Skills Minister John Hayes said:

“By reviving Apprenticeships, this Government is helping thousands of people discover the purposeful pride that builds successful careers, thriving firms and strong communities. By continuing to drive up standards and reaching out to small businesses, we’ll create a culture in which values, drives and rewards vocational excellence and fuels economic and social progress.”

Research shows that every pound of public investment in an Apprenticeship generates up to £40 for the wider economy; improvements in productivity ensure employers recoup their training costs within three years; and an advanced Apprenticeship boosts an employee’s lifetime earnings by around £100,000. But some smaller firms have been deterred from hiring an apprentice due to perceived logistical, training and administrative costs.

Attendees at today’s Apprenticeships Summit, held at BIS, included Bentley Motors, SEC Recruitment and Kesslers International.

Dr Adam Marshall, Director of Policy at the British Chambers of Commerce said:

“Businesses do see the benefit of Apprenticeships. For many business owners they are a critical way to train up young people and adults that then help grow their firms. However, smaller companies often shy away from taking on apprentices. They worry about the initial costs involved, the skill levels of candidates, and the potential risks to their business, particularly at a time when employing people is tough due to worries about the economy.

“For some time we have been telling ministers that small firms must be incentivised to take on apprentices, so we welcome the government’s moves to strip away some of the obstacles that have made it hard for smaller firms to get engaged. Health and safety constraints, inflexible teaching frameworks, and high upfront costs often deter companies from taking on apprentices. By reducing red tape, and incentivising firms to take the plunge, the government is offering real help to firms and apprentices alike. An external review of Apprenticeship standards and frameworks is a positive step, and will be critical to making Apprenticeships flexible and relevant to employers across the country.”

John Walker, National Chairman, Federation of Small Businesses, said:

“We very much welcome the action the Government is taking on Apprenticeships. In particular it is good news that businesses will receive an incentive payment to take help them with the demands of taking on an apprentice. A third of businesses responding to an FSB survey said this would encourage them to take an apprentice on and a rebalancing of current funding to provide this is something we have called for, for some time. With youth unemployment reaching almost a million, initiatives like this will help the smallest of firms to take on young people. Nevertheless there remains a need for a continued focus on helping small businesses take on apprentices and the barriers they face in doing so.”

Today’s announcements are part of the government’s growth review. Building on the programme of reforms set out in the first Plan for Growth, the next stage of the review is focusing on education and skills, infrastructure, logistics, mid-sized businesses, rural economy and open data. More details and actions will be announced later this month.

The proportion of 18 to 24-year-olds in England not in employment, education or training (Neet) has risen to 18.4%, official figures suggest.
The figure from the Department for Education is the highest for the second quarter since 2006, and is up from 16.3% last year.
Nearly a million (979,000) 16 to 24-year-olds were Neet between April and June this year, the figures show.

The government said it was boosting apprenticeships and 16 to 18 education.

Neets figures fluctuate during the academic year, peaking in the third quarter as school, college and university courses end.

But this year’s 18 to 24 figures are the highest for the second quarter since comparable data was first published in 2006; the previous was 17.6% in 2008.

The figure is even higher for 19 to 24-year-olds, with 19.1% considered Neet.

The data is published for England only by the Department for Education, derived from the quarterly Labour Force Survey.

The proportion of young people in England aged 16 to 18 who are considered Neet has continued to fall, however, amid a government drive to encourage more young people to stay on in education or training.

‘Brutal impact’

It dropped to 9.8% in the quarter to June, down from 10.2% at the same point in 2010, and 11.9% the previous year.

The figures come as record numbers – an estimated 220,000 – are expected to fail to get UK university places.

And last week, figures from the Office for National Statistics showed that youth unemployment in the UK – the proportion of 16 to 24-year-olds not in work – had also risen, from 20% to 20.2% in the quarter to June.

The Prince’s Trust youth charity said it was “deeply concerned” that the Neets figures were rising again.

“We know that unemployment can have a brutal impact on young people, with thousands suffering from mental health problems, feelings of self-loathing and panic attacks,” a spokesman said.

A government spokesman said the number of young people not in education, employment or training “has been too high for too long”.

Adult apprenticeships

The fall in the number of 16 to 18-year-old Neets was an encouraging sign, and the government would set out a strategy for post-16 participation in education later this year, the spokesman said.

The government will have supported 250,000 more adult apprenticeship places than under Labour’s plans and has launched a Work Programme offering personalised support and training to help unemployed young people, the spokesman added.

However, shadow education secretary Andy Burnham said the figures showed the government was “being far too complacent” and risked “leaving the next generation behind”.

“By scrapping Labour’s guarantee of an apprenticeship place for young people who want one, scrapping the Education Maintenance Allowance [grant for low-income 16-19 year-old students] and cutting careers services, this government is making it harder for young people to get on,” he said.

“For the first time there is a risk that the next generation will do worse than the last,” he added.