WhiteHat Interview in Education Investor - May 2017

BRITAIN: APPRENTICESHIPS

Interview: Euan Blair Apprenticeships have long been overdue a makeover.

Ledetta Asfa-Wossen spoke to new kid on the block Euan Blair, founder of training company White Hat, on why he thinks the market needs an overhaul

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hat made you want to set up an apprenticeships business?

It was clear to me that the levy provided a unique opportunity to transform post-16 education in this country, but I was concerned that without a credible new entrant offering something radically different, the overall project would stall.

The long-term aim is for WhiteHat to play a significant role in creating a system where 30% of 16-23 year olds pursue an apprenticeship; apprenticeships are seen as a truly viable alternative to university; and that every major employer is offering a wide-ranging, quality apprenticeship programme.

What does WhiteHat do exactly?

WhiteHat is predominantly a tech start-up with a mission to accelerate careers and develop a diverse group of future leaders. We offer apprenticeship recruitment and training services via our tech platform and bring candidates and employers together to open access to careers which have traditionally been only open to graduates.

You worked at Sarina Russo for a few years, how did that influence you?

At Sarina Russo, we were mainly focused on helping long-

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term unemployed people in the West Midlands, and later in London. We had started to explore apprenticeship provision and I realised there was a huge opportunity to develop an innovative approach that could significantly change the post16 education landscape, but that it would take a start-up to do this effectively.

What makes your apprenticeships business different exactly?

We are about to launch our tech platform, which will enable young people to showcase their strengths to prospective employers through video and personality profiling and access opportunities directly through their smartphone. Tech has to be at the heart of any modern apprenticeship offering and will enable us to have the kind of social impact we want to have at scale. Our platform will allow us to reach hundreds of thousands of young people directly, excite them around the opportunities an apprenticeship offers, and equip us to deliver a better training and support service to our young people (users) and our employers (customers). The current architecture is clunky and difficult to access and we want to offer something that is intuitive and seamless.

Additionally, we’re working with partners who can

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EducationInvestor Global • May 2017

BRITAIN: APPRENTICESHIPS

Euan Blair, founder, White Hat

EducationInvestor Global • May 2017

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provide learning content that is far superior to anything that currently exists in the apprenticeship space, such as Mind Gym; who deliver some of the best leadership and management training available, or The University of Massachusetts; who have developed state-of-the-art cyber security content.

How do you aim to ensure a high success rate for employers and students that are placed?

We work with about 100 employers ranging from start-ups to large corporates and the average starting salary our apprentices earn is 210% higher than the apprenticeship minimum wage.

It means not just using someone’s “gut” to determine if a young person is a match for an employer or sector, but gathering the right data, across everything from financial circumstances to aspirations to personality traits, and then using a combination of tech and analysis to inform which opportunities are most suitable. Ultimately, we are aiming to drive a machine learning response to the problem of sustainability, as we can make this much more of a science than an art. Most “dropouts” can be linked to an inappropriate match upfront. For example, if a young person says they crave structure, stability, and enjoy a well-ordered environment, don’t send them to work in a start-up, however great it might be.

What do you think is lacking in the UK apprenticeships market?

The quality of delivery has suffered as the sector has focused too much on simply expanding provision. There has also been a lack of innovation and experimentation – far too many organisations are delivering apprenticeships in the same way they were delivering them five years ago. Part of this is down to the fact that apprenticeship organisations need to operate in a highly regulated environment, but also there just hasn’t been enough talent recruited into the sector from different environments.

Conversely, there is a large issue on the supply side in hospitality, where even blue chip employers like Pret A Manger are struggling to attract British talent – their applications dropped by more than 30% post the EU referendum last year.

Finally, we believe that apprenticeships can help solve the skills gap problem in the digital sector, where we will see exponential growth in the coming years.

Who’s your core market and what level of qualifications do you offer?

Our core market is professional services and tech apprenticeships – we’ve focused on what I’d describe as traditionally closed industries: finance, creative media, advertising, tech, consulting.

Are your qualifications designed to accompany a degree or replace a university degree?

More the latter – though I actually think it’s quite unhelpful viewing this issue through a traditional academic lens. It’s about the end goal – developing a successful career – rather than degree plus/degree replacement. Apprenticeships should not be viewed in a vacuum, but as means for a young person to fulfil their potential and ultimately build a career they feel excited about.

What’s your view on the Apprenticeship Levy and how do you think that will impact your business exactly?

Absolutely, although it’s somewhat inevitable until the quality of vocational routes improves. In order to really change this view we need to be presenting apprenticeships as a viable alternative, not just to university, but to the very best universities. The whole sector needs to focus on driving modern apprenticeships that can offer career experiences able to exceed what’s available to graduates.

The levy presents a phenomenal opportunity both to create a fairer, more accessible system for young people to find employment, and for organisations to change radically the way in which they recruit. It’s not straightforward for most employers, and that I completely understand. The government is effectively forcing them to engage with something they may have had no interest in engaging with.

However, if organisations choose to use it to address some of the big problems they’re currently grappling with; employee churn, challenges recruiting into particular job roles, internal skills shortages, and a lack of workplace diversity, they can really benefit from the levy. A well-managed apprenticeship programme can actually present a solution to each of these problems.

The levy should be viewed as a huge positive by apprenticeship providers, as it means you are competing in an environment where those that can create the best offer will win. I think this presents a massive opportunity for us to grow our provision and it is allowing us to work with employers who were looking for something markedly different from what was previously on offer.

What employment sectors are you seeing the most shortages in?

Where do you see opportunities for growth in your business?

There are different answers there depending on whether you look at the supply or the demand. There are huge numbers of young people wanting to do accounting or finance apprenticeships for example, but not enough employers yet offering opportunities in this space.

As of right now, we are only delivering in London and the South East. This focus is important, as we need to ensure we have really proved our model in this region and that we’re not expanding before we have the right infrastructure to grow while maintaining the quality of what we are offering. Tech

Would you agree with Vince Cable’s assertion that the UK has a dated view of vocational education and that apprenticeships are still less regarded than an academic route?

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BRITAIN: APPRENTICESHIPS

will be a key driver in our expansion though. Realistically, we cannot deliver a truly impactful, quality service at scale without automating how we operate. The platform we are building at the moment will allow us to do this as we move from our minimum viable product to a comprehensive build.

Could you describe your business model?

We’ve created a marketplace, matching the best non-graduate talent to employers with whom they can build successful careers. We receive the majority of our funding through the government (though this is changing post-levy) but charge employers a commercial fee.

How many employers do you work with?

We have worked with about 100 employers to date, ranging from enterprise clients such as Sage, Foxtons, Nomura, Wellcome Trust, Portland, UKTV to a variety of SMEs and start-ups.

Do you see White Hat as an international business?

White Hat could certainly be an international business. Central Europe has long been a benchmark of apprenticeship provision although tech is still not playing as much of a role as it could in the process and improvements could still be made.

It’s notable the extent to which the apprenticeship debate is currently raging in the US. A levy at the federal level is very unlikely, but it is possible that individual states will use a combination of tax incentives and potentially even legislation to push the issue along. Minnesota, for example, already has a Workforce Enhancement Fee of 0.1% of taxable payroll, used to support retraining the unemployed. It’s also interesting that President Trump emphasised during Chancellor Merkel’s visit that he was a huge admirer of the German apprenticeship model.

We are entirely focused on first winning the apprenticeship debate in the UK – and winning in this context means entirely transforming the current perception of apprenticeships, having every large business offer an apprenticeship programme

EducationInvestor Global • May 2017

to rival or even subsume their graduate programme, and creating a situation in which school leavers are having to make a really difficult choice about whether they go to a top university or join an incredible apprenticeship scheme.

How is apprenticeship training evolving and what would you say is the most effective form of delivery?

Apprenticeship training needs to become more involved – especially with the 20% off-the-job requirement – and provide a better level of content. This will become even more important if universities start to take seriously the opportunities for them to deliver in this space. Effective delivery means being able to offer a varied service depending on specific apprentice or employer needs. That requires a combination of online content, face-to-face teaching, and ultimately good coaches leading the provision. The coach’s role is particularly important, as they have a pastoral, mentoring role to play as well as using their expertise to deliver the training.

Are you seeking investment?

We are yet to raise a large round of investment as we’re mainly self-funded through angel investors. Global University Systems also have a minority stake.

Where do you see White Hat in five years’ time?

In five years’ time, White Hat should be viewed as the clear choice for young people who are driven, ambitious, and want to enter a high-powered career without going to university.

We will be operating at a national scale and will have started to expand our provision internationally.

More widely, we will have helped to make the case for apprenticeships so compelling that even without government nudging behaviour, apprenticeship programmes would continue to expand as the demonstrable return on investment would make it an obvious solution to the talent and skills pipeline for large and small employers alike. n

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