You’re hired! Apprenticeship guide for business
Contents What is an apprentice?..................................................3 How to apprenticeships work?......................................4 Why choose and apprentice?........................................6 Apprentices - a practical guide.....................................8 Things to remember.....................................................13 Apprenticeship checklist..............................................14 Case studies.................................................................15
➤➤ Written by David Joel with the support of the Business East Hants board ➤➤ Designed and produced by East Hampshire District Council ➤➤ Last modified April 2013 ➤➤ To contact Business East Hampshire about this guide, email: info@businesseasthants.org
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You’re hired! Apprenticeship guide for business
What is an apprentice? An apprentice is an employee following a programme of work based training leading to a nationally recognised qualification. Apprenticeships are open anyone over 16 years old and aimed at individuals who want to develop their prospects and build a career. They could have just left school or have been working for years and seeking to start a new career. An apprentice needs to live in England and not in full-time education. A business can use apprenticeships to train both new and existing employees.
Get East Hants Working Apprenticeship Scheme Funding is available from East Hampshire District Council, working in partnership with Business East Hants, to subsidise wages and contribute towards transport and training for apprentices joining businesses in East Hampshire district. Businesses of all sizes are eligible for the scheme. In particular, we encourage applications from small and medium sized businesses.
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How do apprenticeships work? Apprenticeships come in four levels: ➤➤ Intermediate level (Level 2 – 5 GCSE passes at grade A* to C) The apprentice works towards work-based learning qualifications such as an NVQ Level 2, Key Skills and, in most cases, a relevant knowledge-based qualification such as a BTEC. These provide the skills required for the apprentice’s chosen career and allow entry to an Advanced Apprenticeship. ➤➤ Advanced level (Level 3 – 2 A level passes) Advanced apprentices work towards work-based learning qualifications such as an NVQ Level 3, Key Skills and, in most cases, a relevant knowledge-based certificate such as a BTEC. To start this programme, the applicant should ideally have five GCSEs at grade C or above or have completed an Intermediate Apprenticeship. ➤➤ Higher level (Level 4 – 5 Foundation degree and above) Higher apprentices work towards work-based learning qualifications such as an NVQ Level 4 and, in some cases, a knowledge-based qualification such as a Foundation degree. New Higher Apprenticeship frameworks were developed as part of the Higher Apprenticeship Development Fund. Apprentices can also progress to higher education, including university degrees ➤➤ Degree level (Level 6 – 7 Bachelor’s or master’s degree) The qualification is similar to the higher apprenticeship; degree apprentices also have full-time employment status rather than student status. However, while work-based higher apprentices have the option to gain a Bachelors-level qualification, university study is central to the degree apprenticeship programme.
Delivery As apprenticeships are work-based training programmes, most of the training is “on the job” – at your premises. The rest can be provided by a college or by a specialist learning /training provider.
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You’re hired! Apprenticeship guide for business
On the job training delivered by ➤➤ line manager ➤➤ peer employee ➤➤ training provider ➤➤ trainer/assessor Job knowledge element delivered by a training provider ➤➤ at the employer’s premises (on site) ➤➤ in a “classroom” environment ➤➤ at the provider’s premises
Funding for apprenticeships Government will support employers who take on apprentices with the following incentives: ➤➤ £1,000 payment to both the employer and provider when they train a 16-18-year-old. ➤➤ £1,000 payment to both the employer and provider when they train a 19-24-year-old who has previously been in care or who has a Local Authority Education, Health and Care Plan. ➤➤ Employers with fewer than 50 people working for them will be able to train 16-18-year-old apprentices without making a contribution towards the costs of training. The government will pay 100% of the training costs for these individuals.
The Apprenticeship Levy The levy was introduced on 6 April 2017 and will be charged at a rate of 0.5% of an employers’ pay bill (for those with an annual pay bill of £3 million pounds) paid through PAYE on a monthly basis.
Non levy payers A least 90% of non-levy paying employers’ apprenticeship training and assessment costs in England will be paid for by the government. The government will ask these employers to make a 10% contribution to the cost, paid directly to the training provider, the government covers the rest. This cost will be spread over the lifetime of the apprenticeship.
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Why choose an apprentice? The key to choosing whether to take an apprentice on is to understand why the business needs one. Common reasons for choosing an apprentice include: ➤➤ Business vision, strategy and skills alignment Part of the broader vision for an organisation may be to help develop the community in which it operates in order to contribute to its own future success. Apprenticeships may form part of a business’ plan to deliver its future vision and can help ensure that the business has the skills needed to achieve that vision. ➤➤ Fill your skills gap Apprenticeships deliver skills designed around your business needs, providing the skilled workers you need for now and the future. ➤➤ Financial – improve your bottom line Apprenticeships deliver real returns helping companies to improve productivity and competitiveness. Training apprentices can also be more cost effective than hiring skilled staff, leading to lower overall training and recruitment costs. ➤➤ Employer/employee loyalty Apprentices tend to be eager, motivated, flexible and loyal to the company that invested in them. Remember, an apprentice is with you because they want to be – they have made the choice to learn on the job and a commitment to a specific career. This can in turn motivate other parts of the workforce as the company is demonstrating commitment to its – and their – future.
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You’re hired! Apprenticeship guide for business
➤➤ Risk mitigation Where skills are limited locally then a potential mitigation to a skills shortage may be to grow your own. Apprenticeships provide a means to do this in a controlled manner. ➤➤ Corporate social responsibility Many companies and organisations like to be seen to be putting something back into the business community.
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Apprentices a practical guide A number of BEH members have taken on apprentices directly. The following are key considerations when taking on an apprentice.
Be clear why you want an apprentice ➤➤ What do you want them to do? ➤➤ Align business needs with apprentice requirements. ➤➤ Remember the recruitment of apprentices is not a short-term solution to business resourcing issues!
Consider ways to fund the apprenticeship post ➤➤ Private funding – company meets the costs ➤➤ Grants and other sources of funding available to businesses
Find appropriate training providers ➤➤ Engage with providers of the skills your apprentices will need. ➤➤ They can advise on costs and levels of subsidy for training your chosen programme may attract. ➤➤ Providers may not be local for the skills you require. ➤➤ Engage with the providers before you begin the recruitment process
Select your approach to apprentice recruitment ➤➤ National Apprentice Service route (www.apprenticeships.org.uk) ➤➤ Direct route (open market) ➤➤ Other (e.g. independent apprentice provider such as PETA, Catch 22 etc)
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You’re hired! Apprenticeship guide for business
Recruit your apprentice Establish how you are going to recruit (i.e. directly or through third parties such as colleges, apprenticeship providers, NAS or agencies)
Support your apprentice ➤➤ When you recruit your apprentice, remember that it is just the start of your journey together. ➤➤ A business needs to have processes and people in place that champion the apprentice commitment. This should include some form of training plan. ➤➤ The purpose of this support is: ➤➤ To ensure that the business gets the best from the apprentice. ➤➤ The apprentice feels the commitment of the business and knows his or her obligations. ➤➤ To motivate and inspire the apprentice. ➤➤ To liaise with the training provider. ➤➤ To monitor and record the apprentice’s on the job learning. ➤➤ A training plan can be as comprehensive as getting the apprentice to formally work in every area of the business and gaining sign off from each department once the apprentice completes an assignment. It could be as simple as having an apprentice supervisor who allocates the apprentices time and activities as required. ➤➤ Whoever is made responsible for the apprentice needs the following attributes: ➤➤ Time and a desire to do it ➤➤ Enthusiasm and commitment to the company ➤➤ Can be both a teacher and leader ➤➤ Inspirational and leads by example
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Get East Hants Working Apprenticeship Scheme supporting local business East Hampshire District Council prides itself on being a businessfriendly council. The council is committed to the delivery of economic growth and is taking a proactive approach to improving skills, employability and supporting local enterprise. In partnership with Business East Hants (the local business partnership) we have developed the ‘Get East Hants Working’ initiative, aimed at boosting local employment, job creation and business growth through apprenticeships. Funding is available from East Hampshire District Council, working in partnership with Business East Hants, to subsidise wages and contribute towards transport and training for apprentices joining businesses in East Hampshire district. Businesses of all sizes are eligible for the scheme. In particular, we encourage applications from small and medium sized businesses.
To be eligible for the scheme businesses must: ➤➤ have offices in East Hampshire ➤➤ pay business rates to East Hampshire District Council ➤➤ offer a minimum of 30 hours per week ➤➤ contribute towards apprentices’ wages
What is available? ➤➤ Up to 2 years funding per new apprenticeship post ➤➤ + up to £400 towards travel ➤➤ + money towards training (for over 19s) depending on qualification level
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You’re hired! Apprenticeship guide for business
Who manages and administers the funding? Business East Hants and Economic Development Team (East Hampshire District Council) will manage and administer the funds.
Do the apprentices have to be resident in East Hampshire? Yes. The apprentice must be a resident of East Hampshire District and will be required to prove that they live in the district.
What can the grant be spent on? The grant is intended to subsidise wages and therefore will only be paid upon receipt of proof of spend on wages. Transport contribution will be used to cover costs of travel to the workplace or training provider. The transport contribution can also be used for the ‘Wheels to Work’ scheme. Details about the scheme are available at www.cfnf.org.uk/Content/Wheels_to_Work.html
What are the timescales? Funds will be allocated on a ‘first come first served’ basis. All applications will be assessed to ensure that they meet the eligibility criteria. The Council will process payments on a monthly or quarterly basis (to be agreed with the employer). What happens if the apprentice leaves the employment or the employers terminates the contract? If an employee leaves the job before the end of contract or an employer wishes to terminate the contract, the employer must notify Business East Hants and the Economic Development Team immediately in writing and give reasons for termination of employment. The Economic Development Team and the employer will discuss options available which may include: ➤➤ Recruit another employee to fill the post for the remaining term of the contract. ➤➤ End involvement in the initiative – the council will only refund payment made to the employee during the period of employment under the initiative (proof of payment e.g. pay slip required).
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Positives and negatives The decision to take on an apprentice, like any business decision, has advantages and disadvantages. Here are some of the positives and potential negatives of taking on an apprentice based on Business East Hants members’ experiences.
Positive ➤➤ Develop the skills that your business needs. ➤➤ Allows you to shape staff into what you want them to be (skills, values, culture). ➤➤ Alignment of skills and business strategy. ➤➤ Cost effective in the long term giving bottom line benefits in the future. ➤➤ Apprentices are productive whilst being trained. ➤➤ Engenders loyalty from the apprentice. ➤➤ Good for the business community. ➤➤ Demonstrates corporate responsibility. ➤➤ Allows the business to effectively try before you buy. ➤➤ Ultimately more efficient staff. ➤➤ Lower cost and risk than hiring off the street.
Negative ➤➤ It requires effort, it looks easier than it is ➤➤ It is not free (you pay the apprentice whist going through on-thejob training) ➤➤ Training providers for the skills you need may not be on your doorstep. ➤➤ Need to plan for an apprentice (process, mentor, coach). ➤➤ Long-term investment (with some short-term gains). ➤➤ The trained apprentice may leave at the end of their apprenticeship.
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You’re hired! Apprenticeship guide for business
Things to remember An apprentice is not ➤➤ A means of getting lucrative government grants ➤➤ Cheap labour ➤➤ A short term fix to labour problems ➤➤ Exempt from employment law
The employer’s responsibilities The employer has some fundamental responsibilities: ➤➤ You must give your apprentices an induction into their role and provide on-the-job training. ➤➤ You are responsible for paying your apprentices’ wages. ➤➤ Employment must be for at least 30 hours per week, except in the minority of circumstances where the learner cannot complete the full 30 hours. In these cases employment must be for more than 16 hours per week. ➤➤ Since 6 April 2012, all apprentices must be employed under an Apprenticeship Training Agreement (see National Apprentice Service (NAS) website www.apprenticeships.org.uk or training provider for details).
Recruiting an apprentice ➤➤ The NAS approach is not the only approach to taking on apprentices. A business may take the NAS route and explore the funding support options for apprentices. Alternatively, a business may elect to ignore the NAS approach and it’s associated funding. ➤➤ Businesses may proceed on their own or work with independent apprenticeship providers. There is no right way but all routes have points to consider.
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Apprenticeship checklist Identify the skills requirements ➤➤ What work do you want the apprentice to do?
Develop a job description and person specification ➤➤ What kind of person are you looking for?
Contact training providers to identify suitable courses/programmes and costs Secure funding and other resource requirements Advertise your apprenticeship ➤➤ Open market ➤➤ Jobcentre Plus website ➤➤ The training provider advertises the post on the NAS website
Interview apprentices Sign Apprenticeship Agreement* Health and Safety ➤➤ For candidates age 18 or under, you will need to complete a risk assessment form for young people at work * To find out more about Apprenticeship Agreements, go to www.apprenticeships.org.uk
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You’re hired! Apprenticeship guide for business
Case studies
Morgan Innovation & Technology Ltd Specialists in research, design and manufacture of medical equipment. Currently employ 24 staff. Howard Clarke, Chairman and Research Director: “For us, the process was rather tortuous due to lack of information at the time. We were looking to recruit an A-level student and it took us a long time to identify an appropriate course and Training Provider (TP). However, we are now very happy with both our Apprentice and TP and we are getting a lot out of the scheme. We would therefore advise any company looking to take on an apprentice, especially at the highest level to not only have a full person specification but to have identified the course and the provider before starting the process.”
AMK Chauffeur Group One of the UK’s biggest independent mini-coach operators. Employ 240 staff. Graeme Fraser – Managing Director “There’s little more satisfying as an employer than to see your staff succeed on a professional and personal level. With an apprentice, you get the opportunity to help to develop a young persons’ confidence and skills from the very beginning. At AMK we have employed a number of apprentices over the years and, for a relatively small investment, we’re helping to ensure their future and the future of our business.” Dean Linegar – Master Technician NVQ Level 4 “I always wanted to be a mechanic, but after a year at college I decided that full-time education wasn’t for me. The apprenticeship scheme gave me the chance to earn money and gain experience whilst obtaining the skills and training needed to become a qualified technician. After finishing my apprenticeship, I was given the opportunity to continue my training and recently achieved an NVQ Level 4 to become a certified Master Technician.”
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Key contacts Alliance of Sector Skills Councils ➤➤ 0845 072 5600 ➤➤ www.sscalliance.org
Alton College Old Odiham Road, Alton, Hampshire, GU34 2LX ➤➤ 01420 592200 ➤➤ www.altoncollege.ac.uk/business
Business East Hants Business Partnership Team, Economic Development Service, East Hampshire District Council Offices, Penns Place, Petersfield, GU31 4EX ➤➤ 01730 234165 ➤➤ info@businesseasthants.org ➤➤ www.businesseasthants.org
East Hampshire District Council Penns Place, Petersfield, GU31 4EX ➤➤ 01730 266551 ➤➤ www.easthants.gov.uk
National Apprenticeship Service ➤➤ Telephone: 08000 150 600 ➤➤ www.apprenticeships.org.uk
Useful links: Training providers and courses - www.trainingandcourses.com Recruitment/Employment agency - www.apprenticesforbusiness.co.uk