greater together - growing apprenticeships and traineeships (19 march 2015)

GREATER TOGETHERGrowing Apprenticeships and Traineeships in the North East

Welcome

09.30 Arrival, Registration, Refreshments

10:00         Welcome & Scene Setting Anthony Knowles SFA/NAS

10.15 Employer Perspective George Ritchie MBE, Ambassador Network Chair

10.45 NAS Employer Engagement Anthony Knowles

11.15 LEP Priorities Simon Bowker NE LEP

Wendy Starks Tees Valley LEP

12noon Q&As

12.30 Lunch

1.15 Examples of Collaborative Working Chris Ord, Gateshead MBC

Alan Wallace, TTE

2:00pm Barriers to Engagement – Round Table Discussions

2.45 Feedback

15.00         Summary and close

3

apprenticeships.gov.uk

The Economy

4

apprenticeships.gov.uk

Economic Benefits

National Apprenticeship Service

£1.566bn investment in 2013-14

£18 of economic benefit for every £1 (National Audit Office)

Govt. estimate put this at £28 forevery pound invested

Productivity £214 / week

Best value for money of all‘post 16’ options

5

apprenticeships.gov.uk

Scene SettingSubtitle here

National Apprenticeship Service

• Funding envelope• Election • Richard Review implementation

• Employer Driven • New Standards• Funding

• Customer focussed service• Ease of access, simplicity• Brand• Partnership

6

apprenticeships.gov.uk

Greater Together?

National Apprenticeship Service

Focus of today:

Growing ApprenticeshipsIdeasWhat works?What we can do?Sharing with othersOvercoming barriersWorking together

Apprenticeship Ambassador Network

George Ritchie MBENorth East Network Chair

MinisterMinister

National Apprenticeship Service/Skills Funding

AgencyResponsible for providing

the secretariat and support to the AAN

National Apprenticeship Service/Skills Funding

AgencyResponsible for providing

the secretariat and support to the AAN

Apprenticeship Ambassador Network

David Meller, ChairResponsible for:

• Direction• Drive• Employer

Engagement

Apprenticeship Ambassador Network

David Meller, ChairResponsible for:

• Direction• Drive• Employer

Engagement

Jason HoltSME Ambassador

(Supported by Ambassador Community)

Jason HoltSME Ambassador

(Supported by Ambassador Community)

Chairs of the Local Apprenticeship

Ambassador Networks x 10

Chairs of the Local Apprenticeship

Ambassador Networks x 10

Gordon Birtwistle MP

Business Ambassador

Gordon Birtwistle MP

Business Ambassador

Andrew Jones MPParliamentary Ambassador

Andrew Jones MPParliamentary Ambassador

Employer Ambassadors

(currently known as the national AAN)

Employer Ambassadors

(currently known as the national AAN)

• Responsible for all MP engagement

• Focused upon underperforming constituencies

Responsible for:• External

engagement• Listening and

reporting

• Local geographic champions driving the ambition /targets through their local employer engagement plans

• National sector champions leading and driving growth within their sectors across England

• Responsible for supporting the ambition to engage 140,000 SMEs by 2015

Who are we?

The Minister and Chairs Ambition

• AAN work is very high on Government’s agenda, strong backing of the Minister

• ‘Business to business’ - The Minister is very clear he wants employers to promote Apprenticeships ‘business to business

• Minister specifically wanted to see the Local Ambassador Networks grow

2010/11 2011/12 2012/13 13/14 14/15 15/16 16/170

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

The Ambition is to increase workplaces with apprenticeships from 10% to 20% by 2016

Actual Trend F'cast / projection

Workplaces with apprentices 11/12 – 13/14 (Q3)

The Minister and Chairs ambition

Workplaces with apprentices: Where we are now and ambition

Estimated Apprentices in Workplaces

LAAN 2011/12 2012/13 2013/14Total

Workplaces 2012/13

Total Workplaces

2013/14

% of Workplaces

with Apprentices

2012/13

% of Workplaces

with Apprentices

2013/14

Proposed Ambition Ambition %

NE 11,900 13,700 14,500 75,375 78,205 18.20% 18.50% 22,700 29%

YH 20,800 24,000 25,900 176,580 181,395 13.60% 14.30% 45,300 25%

National 204,800 228,700 240,400 2,234,315 2,322,370 10.20% 10.40% 446,100 20%

Ambassador Networks Primary Focus

• Action orientated group focussed on opening doors

• Increase proportion of workplaces engaged in Apprenticeships from 10% in 2012/13 to 20% in 2016/17

• Expand networks

• Personal Action Plans

Ambassador Chair’s View

Employer Engagement

The employer perspective, what works well, what could be improved?

Working together

How can providers, colleges and partners (LEPS etc.) help the network achieve it’s aims?

NAS Approach

Anthony KnowlesHead of Employer and Delivery Services – North East

16

apprenticeships.gov.uk National Apprenticeship Service

Over400

Employersalready involved in redesigningApprenticeships

Over2.1m

Apprenticeshipstarts this Parliament. We are committed to delivering at least 2 million.

96% Employers who take on an apprentice say their business benefited.

£117kExtra income earned by someone who completes a Level 3 Apprenticeship

Amount we invested in Apprenticeships last year

Return for every pound that Government invests in Apprenticeships

£1 £28

Number of ‘full Apprenticeships’ has trebled since 2009/10

£1.5 bn

Over 220,000

Workplaces already offeringApprenticeships

At least 12 monthsDuration for Apprenticeships

8 out of 11

Industrial Strategy sectors already covered by our Trailblazers

NewHigherApprenticeshipsIn occupations like space engineer and

pilot

68,000Apprenticeships in smaller businesses supported by our Grant for Employers

Over 23,000Apprenticeships pledged during National Apprenticeships Week 2015

By 2017/18

All Apprenticeship starts will be on new employer-led standards

Organisations representing half a million businesses support reforms

17

apprenticeships.gov.uk National Apprenticeship Service

What we do?

• Employers• SMEs• Large Employers

• Find an apprenticeship• Brand• Campaigns• Partners

18

apprenticeships.gov.uk

Engaging with SME’s

• Small Business Team• Employer Commitment• Service Standard• Provider Search Tool• Intermediaries• Supply chains• Apprenticemakers

19

apprenticeships.gov.uk

Account Management How’s Business?

National Apprenticeship Service

Our approach is to listen and aska business to tell us about…

What the company does?

Current priorities?

Long term aims?

Apprenticeship fit?

Getting the most from Apprenticeships

20

apprenticeships.gov.uk

What can Apprenticeships Deliver for your Business?

National Apprenticeship Service

Increase: Government investment in your

workforce Staff commitment and motivation

(88%) Productivity (81%) Customer base (81%) Skills base with your business (82%)

Reduce: Recruitment costs (75%) Time and effort associated with

recruiting (80%) Staff turnover (80%)

21

apprenticeships.gov.uk

What can Apprenticeships do for your Business?

National Apprenticeship Service

Succession planning \ future talent pool

Fresh ideas

Address demographic issues

Workforce and developmento Existing staffo Mentors

Corporate social responsibility

Public relations

Open new doors and markets

Supports procurement and tendering bids

22

apprenticeships.gov.uk

Brand - Apprenticeship Week 2015

Marketing ApprenticeshipsBrand resources

24

apprenticeships.gov.uk

Support Campaigns

National Apprenticeship Service

@Apprenticeships @AppVacancies @TraineeshipsGov

#GetInGoFar #NAW2015 #GreaterTogether

Brand - The Shop Window

apprenticeships.gov.uk

26

Businesses Who Have Used `Find an Apprenticeship` www.gov.uk/applyapprenticeship

Brand - Awards 2015

28

apprenticeships.gov.uk National Apprenticeship Service

• Do we have an apprenticeship / traineeship growth strategy?

• What are our apprenticeship aims?• What proportion of employers we work

with of different sizes ( eg. SME / Large have started apprentices this year?

• Who are our top ten customers?• What percentage of their workforce are

apprentices?• Do we work with their customers and

supply chains?• How many new employers have we

engaged in the last 12 months?

Your strategy

29

apprenticeships.gov.uk National Apprenticeship Service

• What proportion of vacancies do we advertise on Find an apprenticeship?

• What proportion of our starts are in each age band?

• How do we align with LEP priorities?• In what subject areas do we offer

progression from intermediate to advanced to higher apprenticeship?

• Which of the new standards are we delivering?

• Who can we work in partnership with?

Your strategy

apprenticeships.gov.uk

Thank you

More information

Visit: www.apprenticeships.gov.uk

National Apprenticeship Service

Simon BowkerApprenticeship Manager,

North East Local Enterprise Partnership

More and Better Jobs

19th March 2015

NELEP Economic Geography

- £32 billion economy - 2 million population - 43,000 businesses - 800,000 employees - City/Rural/Coastal

33

An Agenda for Growth - “more and better jobs” – with clear vision, objectives and actions

Substantial investment proposals

New ways of working - changes to governance, co-ordination and alignment of resources

Secured a Growth Deal for the area, including the Local Growth Fund

Basis for the European Strategy and £113m investment in Skills

Strategic Economic Plan

Vision and Objectives

By 2024 our economy will provide over one million jobsHalve the gap between the North East and the nationalaverage (excluding London) on:

• Gross value added (GVA) per full time equivalent (FTE)• Private sector employment density• Activity rate

Fully close the gap on employment rate• Scale and quality of employment matching an increasingly better qualified and higher skilled workforce.

Themes

1. Innovation2. Business support and access to

finance3. Skills 4. Inclusion5. Economic assets and infrastructure6. Transport and digital connectivity

Skills: strategic objectives

Address the current and future skills needs, strategically investing ESF and Skills Funding Agency (SFA) resources and expertise to provide a reformed skills approach which meets the needs of employers and learners and complements or stimulates private and individual investment

Ensure young people are equipped and qualified to access the opportunities which will be available in a successful modern economy

Ensure high quality training facilities which help engage employers and learners, are available to support a higher skilled workforce

Skills: key actions

Strengthening the skills system• Demand-side activities, including greater employer engagement, • Supply-side activities relating to tackling barriers to employment,

increasing the number of working age population with level 3 and above skills, and challenging sectoral stereotypes.

• Locally designed and delivered information, advice and guidance system for young people and the working age population

Young people• A North East Schools Challenge, • Commitment on youth apprenticeships

Further education capital projects - seven priority schemes for 2015/2016

Employability and Inclusion: strategic outcomes•Increase the economic participation rate, assisting people to take up education, training and employment opportunities to increase life chances and economic wellbeing

•Provide support to those most distant from the labour market, where necessary assisting people to overcome disadvantage and poverty

•Tailoring support to meet the specific needs and circumstances of individuals through targeted intensive support and mentoring

Employability and Inclusion: key actionsA North East Labour Market Agreement - strategic leadership and accountability for employability and welfare to work support and a platform for a negotiation with government Inclusive North East - programme of activities, with £190m investment. Skills to move towards, enter and progress in workOlder workers, workless people and those facing redundancy - upgrade skills, learn new skills or re-trainReduce number of young people not in employment, education or training and those at risk of disengagingTackle multiple barriers to employmentSupport bottom-up social inclusion - community focused actionsTargeted activities - protected characteristics, specific communities with multiple barriers and high levels of exclusion

Apprenticeship Growth Partnership

Background and context

• North East Local Enterprise Partnership wants to see increase in take-up of Apprenticeships among employers and young people

• Two main drivers:

• Apprenticeships contribute more to meeting skills needs of the LEP growth sectors - ‘More and Better Jobs’

• Tackle low skills and high unemployment among young people

• Reflects national Government policy

About Apprenticeship Growth Partnership

• Partnership initiative

• Provide an additional resource, and bring together employers, Apprenticeship providers and other partners in the LEP area, to work towards the common goal of increasing the take-up of Apprenticeships among employers and young people

• Provide a focus for partnership efforts to achieve the LEP’s ambitious Apprenticeship targets

• Double the number of youth Apprenticeships over the next four years

• Double youth Advanced Level Apprenticeships in engineering and other skills linked to key growth sectors

• Achieve an additional 500 employers providing Apprenticeship places within three years

Apprenticeship research study

• Research activities:

• Analysis of SFA Apprenticeship data - volumes, characteristics, recent trends

• Skills needs and employment opportunities in the LEP economy, mismatches between demand and supply

• Existing studies into barriers and solutions, and good practice (inc other UK Hubs)

• Surveys / consultations:

• New Skills and TBR commissioned by the LEP

• Evidence base to develop objective, evidence-based priorities and actions for the partnership

Apprenticeship starts

Starts by age and level

Apprenticeship take-up

• Starts by 16-19 year olds in the LEP area fell by 33% between 2010/11 and 2012/13, although latest data shows a small increase between 2012/13 and 2013/14

• Intermediate Apprenticeship starts continue to outnumber Advanced Apprenticeship starts, though the balance is more even among adults than among young people. Advanced Apprenticeships accounted for 45% of starts by adults in 2012/13, and 35% of starts by 16–19 year olds.

• The number of Higher Apprenticeship starts has risen, though numbers remain relatively low compared with other programme types (690 starts by adults in 2012/13, and 10 starts by 16–18 year olds).

Mismatches between demand and supply

• Insufficient pool of high quality applicants for some roles, including the LEP’s key growth sectors (engineering, manufacturing)

• Need to stimulate extra demand in key growth sectors so Apprenticeships can play a greater role e.g. manufacturing, IT and digital, business services, creating and cultural

• Insufficient applicants for some roles - lower paid, irregular / antisocial hours

Barriers to increasing Apprenticeship take-up

• Structural barriers, resulting from national policy, the underlying functioning of the education system, and the fundamentals of how businesses, the economy and the labour market work.

• Apprenticeships not being prioritised in some schools as an attractive next step post-16

• Weaknesses in the employability skills of some young people leaving the education system

• Poor Apprenticeship wages and terms and conditions offered by some employers

• Preference of some businesses to use alternative methods to recruit and train the workforce

Barriers to increasing Apprenticeship take-up

• Information failures

• Lack of understanding of Apprenticeships among some young people, parents and schools

• Employers and schools receiving inconsistent information about Apprenticeships from a myriad of sources

• Some employers that are new to Apprenticeships finding it difficult to understand the offer and navigate the Apprenticeship system

Proposed focus and priorities

• Being realistic about what can be changed / influenced at the local LEP level

• Focusing on adding value, and addressing gaps / weaknesses in current system

• Priority 1: A substantial activity programme to improve school engagement in Apprenticeships

• Priority 2: A sustained programme to improve the work-readiness of young people

• Priority 3: Information for employers new to Apprenticeships

• Priority 4: Enhanced marketing and PR campaigns to support increased take-up and quality

Apprenticeship Growth Partnership (AGP)

The purpose of the AGP is to bring together partners with an interest in

Apprenticeships, to work towards the shared goals of: increasing the take-up of

Apprenticeships by employers and young people; and maximising the contribution

that Apprenticeships make to meeting the skills needs of the North East Local

Enterprise Partnerships key growth sectors.

Comments and questions?

Wendy StarksTees Valley Unlimited

Growing Apprenticeships/

Traineeships in the North East

Tees Valley Strategic Economic Plan (SEP) 2014

Tees Valley Strategic Economic Plan (SEP) 2014 Priorities:•Develop and nurture an innovation culture and positive environment for business growth.•Secure the transformation of Tees Valley into a Low Carbon High Value economy.•Secure improved skills levels to address future demand in growth sectors and in existing industries.•Secure additional capacity on the East Coast Main Line rail route and improve rail services to major northern cities and within the Tees Valley.•Improve our air, road, port, land and property infrastructure to enable economic growth.•Create and retain wealth by establishing the Tees Valley as a preferred location to live in, work and visit.

Tees Valley Strategic Economic Plan (SEP) 2014

Objectives:

•Support Innovation and Sector Development.•Develop the Workforce.•Develop and Provide Infrastructure.•Attract and Retain Wealth.

Tees Valley Businesses

• 99.5% SME’s (0-249)

- 85.9% Micro (0-9)

- 11.4% Small (5-9)

- 2.2% Medium (50-249)

• 0.5% Large (250+)

14,580 Businesses

Transportation and storage

Information & communication

Primary sector & utilities

Healthcare

Manufacturing

Accommodation & food services

Construction

Other services

Professional & bus. Services

34%

24%

13%

7%

7%

5%

4%

4%

3%

Tees Valley Statistics

25,000 new jobs over the next decade

Qualified to NVQ Level 4

25.5%

Working age population

421,000

Net increase of private sector

growth 8,000

120,000 replacement jobs over the next decade

Importance of Skills•Clear correlation between skills, wage levels and economic prosperity.27% 16-64 year olds NVQ4+ (35% nationally)7.6% 18-24 year olds claiming JSA (3.7% nationally)9.4% 16-18 year olds NEET (5.7% nationally)

• Employers are looking for highly skilled employees.• Work readiness is just as important as skills.• Low skill levels restricts opportunities at individual and community levels.

Jobs AdvertisedProfessional

Associate Professional & Technical

Administrative & Secretarial

Skilled Trades

Sales & Customer Service

Caring, Leisure & Other Services

Managers, Directors & Senior Officials

Elementary

Process, Plant & Machine Operatives

Key sectors for the Tees Valley

Key Challenges

•Replacement demand.•Business growth•Advancing technologies.•Ageing workforce•High unemployment•Low level skills

Apprenticeships - Starts

Apprenticeships – Starts by age

Apprenticeships – Starts by level

Apprenticeships – Starts by workplace size

Apprenticeships

The number of employers in the Tees

Valley offering Apprenticeships is joint

highest in the country at 21%

www.teesvalleyunlimited.gov.uk/skills

Questions?

GATESHEAD OFFER

Chris Ord16-19 Manager

Gateshead Council

1.WHY AND WHAT

2.LESSONS LEARNED

3.PARTNERSHIP

TechnicalApprenticeshipsTechnicalApprenticeships

Alan Wallace Technical Sales Manager TTE

Sembcorp Skills Development Programme (SSDP)

Employer Ownership of Skills PilotEmployers directly awarded government funding

37 successful in round 1

SembCorp partnership with National Skills Academy for Process Industries

SSDP Aims

Get NEET young people into the Engineering Sector

Get graduates more ready for work after their degree

Framework designed by local employers to meet their needs

Pre Apprenticeship Programme

Increased pool of Apprentices for the Sector

Programme bridging the gap between academic study and work

SSDP Activities

Tendered to Local Provider Network

Successful ProvidersTTENETAMiddlesbrough CollegeRedcar College

Higher Education Element

SSDP Lessons

Difficult to convert commitment in to action

Manage risks effectively – pilot criteria sometimes change

Ensure staffing is maintained – it’s a pilot see above.

SSDP Achievements

Pre – Apprenticeship Programme – 75% progression

28 Apprentices engaged, 18 employers

Partnership Working between Providers

Designed to benefit SME’s

Involve sector bodies - NEPIC

Barriers to Employer Engagement

Round Table Discussions

83

apprenticeships.gov.uk

• Cost/limited resources especially for SMEs even with AGE grant

• Reduction in company size for Apprentice grants eligibility • Competition too many providers chasing the same employers

• Speaking to the decision maker especially for large companies with multi sites/departments

• Offer too fragmented and complicated – the funding, frameworks,  • Misconceptions about what an apprenticeship is • Previous bad experience including poor quality applicants, poor quality

apprentice and/or poor provider

• Employers not willing to allocate work time for training

Barriers to Employer Engagement

84

apprenticeships.gov.uk

• Employers want shorter training period  • Unrealistic expectations of apprentices ability/skills when they first start

work

• Lack of employer trust in the system

• Lack of awareness of the business benefits

• Politicians constantly meddling and using Apprenticeships as a political football. Why can't they just leave colleges and providers in peace (ie. a period of policy and funding stability) for a while to "get on with it"!!

• The effect of Traineeships being offered to employers as "free labour", resulting in some employers now not willing to pay wages for apprenticeships when they can get it for free through Traineeships

Barriers to Employer Engagement

85

apprenticeships.gov.uk

• Lack of impartial and high quality IAG in schools

• Selling apprenticeships to younger workers when apprenticeship rate of pay is below National Minimum Wage and below pay rates for many entry level jobs.

• The title "apprenticeship" puts potential older learners off using the qualification as a career advancement or progression tool

• High Schools offering NVQ & BTEC qual's to learners before leaving school which conflict with apprenticeship funding streams for providers

• Location - no consideration given to a 16 year old, who can't drive and are expected to work outside of public transport

Barriers to recruiting

Round Table Discussions:

Share thoughts and ideas:

- What works for you? - Working together - Overcoming barriers

87

apprenticeships.gov.uk

Feedback

Summary & Close