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Apprenticeship Provider – South Coast

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Non Levy and AEB Contracts for 2018-19: £800K

  • Estimated Turnover to March 2019 £ 900 K
  • Estimated EBITDA to March 2019 £ 250 K

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In our latest update we take a look at how you can make degree apprenticeships work for you.

1.Use your levy pot to train existing employees

Contrary to popular belief, apprenticeships aren’t just for new recruits at entry level. Older staff looking to upskill and progress are increasingly becoming interested in degree apprenticeships – and this is where the levy can help employers unlock the talent within their existing workforce.

The apprenticeship levy can be used to train existing employees as long as the training meets an approved apprenticeship standard or framework and the proposed employee meets the eligibility criteria for apprentices.

2.Use apprenticeships as a retention tool

An independent Government study found that 56% of employers said that apprentices stayed in the business longer than other recruits, creating lower overall recruitment costs as a result.

The same research also showed employers think apprenticeships build a higher level of commitment and loyalty than other employees. It’s believed that the positive impact apprenticeships have on employee retention results from a combination of the quality of the training provided and the ability apprentices have to learn and grow in the business from within.

3. Use degree apprenticeships to develop staff for higher roles

When the UK Government introduced degree apprenticeships in 2015, it created new routes to obtaining Level 6 and 7 qualifications – the same level as a full bachelor’s or master’s degree. This has enabled employers, for the first time, to be able to provide apprenticeship training at a higher level, progressing staff from junior roles to senior roles while in work.

By giving older staff the opportunity to be developed through degree apprenticeships, employers are able to re-train them for career progression or upskill them to meet the needs of evolving job roles. This is especially important with the need for older staff members to develop digital technology skills This helps employers unlock the hidden talents of their staff to create a higher performing workforce.

4. Use degree apprenticeships to address current and future skills gaps

Higher and degree apprenticeship standards (designed to raise and standardise the skill level and competency of a range of occupations) are helping businesses build a skills pipeline to fulfil future roles. Currently, there are 147 new standards approved for delivery but employers can look forward to as many as 1,600 by 2020.

As degree apprenticeships enable employers to gain valuable skills by developing staff via work-based training programmes, skills can be developed in highly-sought-after areas such as leadership and management and digital technology, and people can apply those skills to their role immediately. Building this pipeline of skills from within is a solid way to future-proof your organisation and ‘win’ the war on talent.

5. Helps to enhance your Corporate Social Responsibility (CSR) programmes

Having a robust corporate social responsibility strategy not only provides an increased competitive advantage for businesses but is often now a necessity. Degree apprenticeships offer a prime opportunity to strengthen a business’s commitment to this agenda as they are an opportunity to improve social mobility with the potential to break down barriers and increase access to higher education for disadvantaged students, whilst also contributing to local growth and development.

Although launched in 2015, it is only in the last 18 months or so that degree apprenticeships have begun to gain some traction with employers and students alike. It has long been a complaint of employees that current graduates and/or degree programmes don’t provide the necessary skills that are required in the workplace and that many graduate entrants simply lack basic commercial awareness and soft skills.

In addition since their foundation, the types of degree apprenticeships on offer have evolved away from mainly STEM (science, technology, engineering and mathematics) subjects and towards legal, consultancy and risk-analysis courses and this has began to increase their popularity.

So is this a fundamental shift in the higher education model?

Well although the more traditional universities are beginning to understand the changing dynamic away from the academic student learner to the student consumer, and therefore the need to change with the times, there is still a long way to go, especially in how such degree apprenticeship programmes will be structured.

Also the need for universities to meaningfully engage with employers will provide a real challenge for those institutions that havent been used to having to be “commercially facing”, and although a lot of them have developed good links with businesses in recent years there is more that will need to be done, especially in the development of courses with employer involvement.

It is also worth noting that in the UK we have often viewed apprenticeships as something inferior, the poor relation if you will to a university education but there is evidence now that that is changing. Major employers such as JCB, Ernst & Young and IBM are increasing their intake of apprenticeships. The JCB Chartered Manager Degree Apprenticeship for example has been designed for candidates who are passionate about studying Business Management at degree level whilst working within a highly successful global business and with a view to become a skilled JCB business professional.

If we think about this shift in the relationship between higher education and the workplace is not surprising. The old world of free education, the 11 plus, grammar school or comprehensive, technical college/polytechnic or university, old 5-7 year apprenticeship or Red Brick University degree is now a far cry away from what is required to succeed in a world of tuition fees, artificial intelligence, skills shortages, global competition and greater economic uncertainty.

However, it is exactly the reason that degree apprenticeships should develop and grow as a response to changing and more complex business world

For more information on how we can help in developing your training & development programmes contact the Leadership Team at grow@leadershipteam.info.

According to official figure published in the last two weeks the new apprenticeship levy is yet to increase the number of people being trained, and employers’ groups has said that the government had failed to act on mounting concerns about changes to the apprenticeship system.

However, whilst a lot of the concerns raised are valid it might be worth employers taking a step back to think about how you can get the best out of your apprenticeship programme.

To help you we have put together 5 tips for running a successful apprenticeship programme:

1. Set the tone at the top – the senior team needs to believe in it or else there is small chance of success. Similarly the organisation as a whole needs to buy in and accept that apprentices are an integral and valuable part of the business.

2. Get your recruitment right – It is essential that anyone involved in apprentice selection understands the apprenticeship scheme, knows the type of candidate and the qualities and competencies they are looking for, uses clear job descriptions to make good objective hires.

3. Get a strong training framework – Once you have recruited the apprentice the next important consideration is who and how they will receive the training to support the Apprenticeship. Remember, employers who pay the levy have the power to ensure that they receive the right service from the training provider (private, college or university) that they choose to provide the delivery of the education and learning part of the apprenticeship programme. Strong liaison between the employer and the training provider is absolutely critical.

4. Give apprenticeships opportunity – there is nothing worse for an apprentice to feel that they are just a number, or worse an inconvenience. Like all of us they need to feel valued and encouraged to develop their skills and use their training within the apprenticeship programme

5. Create a strong support system – This is of vital importance both for the organisation and the apprentice. Providing the right practical support and guidance to an apprentice will help ensure they settle in well, develop with your organisation and help contribute to the success of your business. Practical elements of support should include:

  • giving apprentices a clear outline of expectations and a safe supportive environment to learn and develop
  • encouraging them from the start to own and drive their programme targets and to seek regular feedback to self-assess their performance
  • up-skilling and developing line managers so they can coach their apprentice and act as a role model
  • putting a workplace learning mentor in place to further enhance the experience, adding and creating a proactive environment that builds on their eagerness, motivation and commitment.

In summary the above tips are some of the key considerations that employers should take into account when they are looking to develop apprenticeships that will deliver long term value for the business.

For more information contact The Leadership Team today.

In short, what is the Apprenticeship Levy?

Gov.uk describe it simply, the Apprenticeship Levy is a levy on UK employers to fund new apprenticeships.

Who does it apply to?

It will be applied to businesses with annual pay bills in excess of £3 million, and the levy will be applied across all sectors.

How much is the levy likely to be?

The levy will be charged at a rate of 0.5% of an employer’s payroll. Each employer will receive an allowance of £15,000 to offset against their levy payment.

How is the levy collected?

It will be collected by the HMRC monthly via Pay As You Earn (PAYE).

Where is this allowance paid into?

After the levy is collected via PAYE, it then becomes accessible by the employer via a digital account service. The employer can then use the account to pay for apprenticeship training.

I am a levy paying employer, how do I access the digital account service?

You can sign-up and access your Apprenticeship Levy Service here.

What can we use the digital account service for?

The digital account allows you to:

  • receive levy funds for you to spend on apprenticeships
  • manage your apprentices
  • pay your training provider
  • stop or pause payments to your training provider

What can we use the allowance for?

You can use funds in your digital account to pay for apprenticeship training and assessment for apprentices that work at least 50% of the time in England.

How do we spend our allowance?

Once logged into your digital account you can select the ‘Find apprenticeship training’ to find approved apprenticeship training providers. You will then liaise with your chosen training provider to determine a prices and payment schedules.

Once you agree and the training has started, monthly payments will be taken from your digital account and sent to the training provider.

What if there is not enough money to pay for training one month?

If you don’t have enough funds in your digital account to pay for training in a particular month, you will be asked to share the remaining cost of training and assessing your apprentices for that month with the government. This is called co-investment.

This co-investment means that you will pay 10% of the outstanding balance for that month, and the government will pay the remaining 90% up to the funding band maximum. If your costs go over the maximum, then you must pay the difference out of your own budget.

What are the funding bands?

You can find full details of the funding bands and their maximums here.