Overcoming aversion to apprenticeships2017

redrow.co.uk

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Contents

Introduction 3

Is enough careers advice offered at school? 5

Case study : Elizabeth Gibbs 7

Are poor perceptions a barrier to entry? 8

Does the industry need to pay better? 10

Case study : Curtis Taylor 11

Redrow recommendations 12

Conclusion 13

Appendix: Survey findings 14

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Overcoming aversion to apprenticeships2017

Introduction:

The construction industry is facing a skills crisis. The Government has urged the sector – notably in the Housing White Paper – to deliver more homes and the community infrastructure that must support these. With such a challenge ahead, it is vital that there is a sufficiently large pool of people with the necessary skillsets to deliver these projects.

This report analyses the barriers to entry-level recruitment into the sector and outlines Redrow’s recommendations to overcome these. To better understand the issues affecting the sector Redrow canvassed the views of 2,000 parents and young people as well as 147 of Redrow’s own apprentices through a range of surveys.

A recent report from the Construction Industry Training Board (CITB) states that the construction industry must recruit 35,740 people a year to meet the country’s needs up to 2021, however others in the sector have quoted substantially higher figures. Meanwhile, the same research from the CITB estimates that output in the construction sector is expected to grow by 1.7% over the next five years, with 179,000 jobs needed as a direct result of the growth. Of the current 2.6 million construction workers in the UK, 12% are estimated to be from abroad, while 19% of the workforce is expected to retire within the next five to 10 years.

In addition, a hard Brexit could result in a further loss of the UK workforce, with Arcadis in its recent ‘Talent Scale’ report estimating a shortfall of up to 214,500 workers.

Aware of the skills issue for a number of years, the industry has already begun implementing change to attract talent to the sector. Research from the CITB shows that over the past three years, 121,000 extra jobs have been created and many firms in the sector have set clear recruitment targets. At Redrow alone, 15% of all employees are trainees, which means that more than 300 trainees are hired each year. In addition to attracting new entrants, the business also prioritises training and upskilling; almost 5,000 days of training are undertaken across the business each year and last year 29% of all promotions at Redrow were trainees.

While these are obvious solutions for the industry to implement, attraction to the industry remains one of the largest obstacles to boosting recruitment levels. Shockingly, more than half (52%) of young people questioned by Redrow have never given a career in construction any consideration. In addition 9% of parents would discourage their child from pursuing a career in construction. Changing perceptions and educating both children and parents has become crucial.

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72% A majority of parents have never discussed a career in construction with their child

“We’ve been talking about a skills problem in the construction industry for many years, but the gap is widening and action today has become crucial. Our research and other industry barometers of opinion show that careers in construction and the apprenticeship route are not seen as particularly desirable by young people or their parents - a problem which is further exacerbated by the poor career advice received in schools. As an industry, we urgently need to collaborate to tackle the barriers to recruitment and ensure that we are helping to promote accurate perceptions of what careers in construction and apprenticeships actually involve and their benefits.

“In our latest research we highlight not only the obstacles, but also provide a clear set of recommendations which we believe will help to tackle the problem. The industry has no control over the Government’s migration strategy, but we do have control over how we attract and retain talent, so we must do everything possible to recruit and train the housing leaders of tomorrow, today.”

Karen JonesHR Director at Redrow

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Is enough careers advice offered at school?

As part of Redrow’s research, one of the key areas investigated was the quality of advice which students are offered at school.

Across the board Schools have been under close scrutiny in recent years in terms of the quality and thoroughness of the careers provision they provide. In November 2016 the Sub-Committee on Education, Skills and the Economy criticised the Government for failing to address inadequacies in careers guidance, in very strong terms (“burying their heads in the sand” on the issue) particularly the lack of strategy for careers education1. Redrow’s survey of 1,000 young people corroborates this and indicates that advice on careers in construction and apprenticeships is not reaching everyone in the school environment.

Only 17% of the young people surveyed felt that they had received high quality information, proper guidance and advice on a wide range of careers from their respective schools. To add to this statistic a significant minority, 38%, felt that the careers education and information received at school was either non-existent or not particularly useful.

Careers in construction Half (50%) of young people questioned answered “no” when asked if information on careers in construction had ever been discussed with them verbally by a teacher or had been made readily available in careers literature. Young men were more likely to have been given advice on a career in construction, with 40% having received this, however just 29% of young women had received this advice in comparison. The result is that just 30% of young men questioned said a career in construction was a possibility for them and just 16% of young women. This data begins to offer an explanation as to why just 11% of the construction sector comprises female employees.

Apprenticeships Nearly a third (32%) of the young people stated that they hadn’t received information at school on apprenticeships. Again, more men (64%) than women (55%) had received advice on apprenticeships.

There is a particular failing in schools to recognise apprenticeships as an alternative viable route for young people. A report from educational think tank Sutton Trust2 found that 65% of teachers would not advise a pupil with predicted good grades enough to attend university to pursue an apprenticeship.

Redrow asked its own apprentices how they received their careers advice. When asked how they heard about Redrow‘s apprenticeship scheme, 35% said they heard about joining Redrow through family and friends. Only 8% found out about the scheme through a training provider and only 4% through the National Apprenticeship Service. Just 5% said they were encouraged to enroll on an apprenticeship through career advice that they received at school. The majority (63%) said that they did not receive enough career advice at school to help them find a fulling career path. Interestingly however, 100% of Redrow’s surveyed apprentices were pleased that they opted for an apprenticeship over other educational routes.

1 http://www.parliament.uk/business/committees/committees-a-z/commons-select/education-skills-and-economy/news-parliament-2015/careers-advice-government-response-16-17/ 2 http://www.suttontrust.com/wp-content/uploads/2014/08/higher-ambitions-report-final.pdf

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“It is widely acknowledged that careers education in UK schools is not as strong as it could be and, whilst this problem isn’t unique to housebuilding and construction, our findings show that many pupils are not getting adequate information about careers in these sectors. There is also a strong suggestion from our research that young men and young women are not receiving comparable advice.

“There is no reason why women should receive different advice from men based on their gender alone and, if young women are not making enquiries about these careers the duty is on us, as housebuilders, to put up more women role models. We must dispel any misconceptions quickly.

“It is now up to the industry and the Government to come together to help turn this around. A clearer careers education strategy from the Government would be welcome in this regard to ensure the information received is balanced.”

Clare HortonNew Entrant Programmes Manager at Redrow

Schools do not promote apprenticeships in the same way they do other educational routes

73% of Redrow apprentices agreed

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Case Study:Elizabeth Gibbs 3rd year apprentice painter and decorator

Based in Leicester at Redrow’s Hamilton Park development, 23 year old Elizabeth joined Redrow three years ago on a painting and decorating apprenticeship. Lizzie found out about Redrow’s apprenticeship scheme at her local job centre, having received no information about their benefits at school.

Now in the final year of her NVQ Level 3 Advanced Apprenticeship, and one of just four female apprentices across the country shortlisted for the Best Apprentice under 25 in the Women in Construction Awards, Lizzie has gone on to achieve great things and has even greater ambitions.

She hopes to one day start her own company targeted specifically at employing women as a means to attracting more into the industry.

Lizzie comments:

I love what I do – becoming an apprentice has been the best thing that I’ve done so far. I suffer from Dyslexia and am a very practical person, so a role like this is ideal for me as I didn’t want to be desk bound.

I’d like to progress to building site management in the future and one day have my own company that encourages more women into this industry.

I’d recommend an apprenticeship to anyone as the support provided to me has been instrumental in offering me a clear career path.

Just 16% of women said that a career in construction was a possibility for them

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Are poor perceptions a barrier to entry?

Misconceptions and poor perceptions of the industry are a huge barrier to entry for many apprentices, so Redrow’s research analysed this area in detail to better understand the areas that require attention.

Young peopleWhen digging deeper, problems with the perception of apprentices are all the more severe when looking at the construction industry on its own. A lack of awareness of the benefits that a career as a construction apprentice could bring is evident. A survey by the Construction Industry Training Board in 2013 found that when 14-19 year olds were asked to rank the construction sector’s appeal on a 1-10 scale, the sector scored an average of just 4.23. Similarly, Construction 20254 found as part of a SWOT (strengths, weaknesses, opportunities and threats) analysis ‘a lack of career attraction’, as a key threat to the industry, ‘due to a perceived low image, lack of gender diversity, low pay and job security due to the cyclical nature of demand for construction’.

Redrow’s survey of young people reveals that misinformation is rife today. More than half (55%) believe that “a career in construction mostly involves manual labour” – a view that fails to encapsulate the breadth and depth of the careers available. Nearly one in five (19%) of young people believe a career in construction does not require any qualifications beyond GCSEs. This fails to take into account the in-depth and complex skillsets required for some essential roles including engineering, quantity surveying and many others.

Parents Parents are a key influencer on the career paths which children choose and many parents share some of these negative and untrue perceptions. Redrow’s survey of 1,000 parents of school age children revealed that 33% of parents believe a career in construction mostly involves manual labour and more than a quarter (28%) of parents believe a career in construction mostly involves being on a building site.

The result is that more than 72% of parents have never discussed the prospect of a career in construction with their child. More parents have discussed the prospect of their child undertaking an apprenticeship (65%); however this means that approximately one third are not speaking to their parents about this option. And just because more are speaking to their children about apprenticeships than careers in construction, it does not mean they are necessarily speaking to them about construction apprenticeships.

Interestingly, the level of encouragement into construction careers and apprenticeships young people receive from their parents depends on their parents’ demographics. More than double the proportion of 35-44 year-old parents (43%) as opposed to over-55s (18%) have discussed the prospect of undertaking a career in construction with their child. Three quarters of 35-44 year-olds (75%) have discussed the prospect of undertaking an apprenticeship with their child, compared to the over-55s (56%). This shows that attraction to the construction industry is improving over time, with younger generations showing more encouragement.

Nearly 1 in 10 (9%) parents however would actively discourage their child from undertaking a career in construction.

3 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210060/bis-13-958-uk-construction-an-economic-analysis-of-sector.pdf 4 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210099/bis-13-955-construction-2025-industrial-strategy.pdf

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“Tackling the misconceptions which exist around a career in construction is key. A full and varied workforce is central to any business and while there are roles that involve some manual labour, there are an equal proportion that don’t. Our research shows that poor perceptions are held by parents as well as young people, however generationally, attitudes appear to be changing with younger parents being more encouraging of a career in construction.

“At Redrow we take on apprentices across a whole range of disciplines from engineers, business administrators and carpenters to name a few.

“The housebuilding and construction industries must collaborate more closely with schools in terms of talks and presentations from aspirational industry role models to show the full spectrum of careers available and what they truly involve.”

Clare HortonNew Entrant Programmes Manager at Redrow

100% of Redrow apprentices are happy they opted for an apprenticeship over other educational routes

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Does the industry need to pay better?

Perceived societal norms do not just target the social status of apprenticeships, but also the financial value. The perception of low pay is a challenge that needs to be overcome. Almost two thirds of parents polled (63%) thought that university would be a better route towards highly paid employment, compared to just 12% who thought the same of apprenticeships5.

One reason young people can perceive an apprenticeship to be a low wage option is the headline figure of the apprenticeship minimum wage of just £3.40 an hour. In reality, the apprenticeship average salary is closer to £6 an hour for most companies, with salary progression rapid after three to six months as skills are developed. Unfortunately many major construction companies cite that they lose potential apprentices to jobs in the service industry such as fast food chains, where salaries can be as high as £7.18 for entry level roles. However, in the longer term, the ‘earn while you learn’ nature of apprenticeships puts young people in a far better position both financially and in terms of career progression. The Government recently estimated that it costs employers an average of £26,000 to train a construction apprentice to Level 3 over a three year period. Combine the cost of this training with the average pay of £6 per hour for apprentices, and the total value received over a three year period is closer to £68,000. Apprentices then also boast three years practical experience under their belt.

Reality of salaries Research by the Institute of Fiscal Studies meanwhile found that the typical student will graduate with debts of around £44,035 or under. Whilst under the older financial system graduates would pay off all their debts by their late 30s, under the changes they will still owe £39,069 at age 40. By age 50, the debt will stand at £31,519, and will be written off shortly afterwards6.

The latest Hays international salary survey (June 2016) found that senior quantity surveyors earn a national average of £50,042, and some bricklayers are believed to command more than £200 a day, which could amount to £52,000 a year. Construction project managers are paid on average £43,000 after 5 years of experience, equal to if not higher than university graduates after two years of work (and three years of studying) but without the student debt incurred through university. For big name companies, construction roles come with employee benefits. According to the same survey, 72% of contractors now offer a company car or allowance, 45% give more than 25 days holiday a year, and 37% offer flexible working7.

Financial support However, apprentices do not receive the same financial support as those in full time education or training, who can access £1,200 from the Department for Education’s 16 to 19 Bursary Fund for transport, food and equipment. Those on waged training are considered to be employed, not in education. Parents are also not eligible to claim child benefit for 16 to 18 year old apprentices, even though parents of children in this age group who are in full-time education or vocational training can do so.

5 https://www.demos.co.uk/files/476_1504_CoA_WEB_2_.pdf?1425489134 6 https://www.teachfirst.org.uk/press/teach-first-perceived-low-pay-and-unclear-information-putting-poorer-young-people 7 https://www.ifs.org.uk/comms/r93.pdf

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Case Study:Curtis Taylor Site Manager, previously an apprentice carpenter at level 2 and level 3.

Based at Redrow’s Abbot Gardens, Moston site currently, 27 aged Curtis joined Redrow 9 years ago as an apprentice carpenter. In the last year of his apprenticeship, Curtis was awarded the ‘Apprentice of the Year’ accolade, and invited to join Redrow’s trainee management scheme. His initial entry as an apprentice has paid dividends with Curtis now employed as a Site Manager.

Curtis comments:

I knew that I wanted a career in joinery from an early age and I took woodwork at school for this exact reason. My school were very encouraging of my chosen career path and helped me to see all of the different options that were available to me, including apprenticeships. I’m very pleased that I chose this route.

The lower pay of an apprenticeship didn’t worry me when I started. Whilst it wasn’t loads of money, it was still more than if I had chosen to study at university, and I was much better off than a lot of my friends. Today, I’m immensely pleased that I’m not saddled with university debt.

I believe that apprenticeships are the best route into the industry as the knowledge and practical experience that I have compared to university graduates entering the sector is unrivalled. I have been lucky enough to learn from a range of different people who might have up to 40 years’ experience on the job. For me that’s invaluable and has been a crucial factor in my success.

Men are more likely to receive advice on careers in construction than women

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Redrow recommendations

The barriers preventing young people from entering careers in construction, and specifically via apprenticeships, are clear.

What we need now are solutions. Redrow’s recommendations are as follows:

1: Collaboration is keyThe skills gap is not something that can be solved by companies operating independently. Industry collaboration and a mentality of ‘sharing what works’ is key to overcoming the skills barrier.

2: We need more role models young people can aspire toThe industry has a number of role models from a range of backgrounds, pursuing a whole range of different career paths – we all need to be better at putting them up for relevant opportunities whereby they can reach young people. With one in five of the workforce set to retire within the next five to ten years, it is vital that we continue to cultivate and put forward aspirational role models. A continual flow of planned visits to our educational establishments, in partnership with schools, for inspiring talks and presentations is crucial.

3: The housebuilding and construction industries need to shout about the benefits Everyone knows that City lawyers and accountants tend to earn a lot of money. These sectors are good at shouting about their respective benefits! The industry needs to be better at getting the message out there that careers in construction can be fulfilling and pay well. A staggering 100% of Redrow apprentices said they are happy that they opted for an apprenticeship over other educational routes.

4: The range of careers available must be better publicised There is an incredible range of careers available from construction to commercial; customer service to land and planning; sales; technical and business support. These should be highlighted to children at schools – to this end a more strategic approach to careers education in schools by the Government should be a priority. The construction and housebuilding sectors are also a hotbed for entrepreneurship with ambitious individuals starting companies (including Redrow) from scratch and building them up into a significant UK-wide business with clout.

5: The comparative costs of an apprenticeship to university attendance must be made clearApprentices earn a wage while they learn. However, the amount of debt that university students are mounting up has increased and is becoming unmanageable and frequently, due to the saturated graduate jobs market, they are unable to enter a fulfilling role. This is another message the industry needs to become better at pushing out.

6: Working more closely with parentsParents are key influencers on their children in terms of the career path they pursue. Given our survey findings which demonstrate misperceptions held by parents, and the lack of communication of careers in construction to children, they are a vital link in boosting the entry of young people to the industry. Parents frequently attend Sixth Form and University open days with their children, so the industry should work together to create high profile ‘Open Doors’ days for parents and their children in order to better publicise apprenticeships and careers in construction. Another message we ought to communicate better to parents is that apprenticeships open further doors; many Redrow apprentices go on to pursue degrees. A Higher Apprenticeship also allows individuals to pursue a degree and professional membership. So it’s not an ‘either / or’ scenario.

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“The construction and housebuilding industries are now at a turning point and demand for new homes is on the rise. At the same time there is an acute risk that these industries – which are real bellwethers for the national economy – will go into decline because there are simply not the people available with the right skillsets. The upcoming Brexit poses a real threat in this regard with perceived risks preventing or deterring much talent from the continent already.

“The sentiment behind the upcoming Apprenticeship Levy is positive and indicates a drive toward change – time will tell what impact it has on the ground. Despite this we still must address that for too long the industry has failed to project itself in the best, and most accurate, way and this means that people who might excel – possible future leaders – never give the notion of a career in construction or an apprenticeship route into the industry, the time of day.

“We urgently need greater collaboration and transparency between the industry, Government and schools. The industry must unite and work to promote role models to improve its image; the Government must implement a clear strategy for careers education and the quality of provision available at schools must be enhanced and widened.

“It is not right that most young people are not even considering a career in housebuilding or construction or that advice on apprenticeships is not dished out evenly to our girls and boys. We hope the findings in this report act as real food for thought and is a catalyst for change.”

Karen JonesHR Director at Redrow

Conclusion

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Appendix: Survey findings

Young people:

The below outlines the key findings from the external surveys of parents and children on careers advice, careers in construction and apprenticeships and also the internal survey of Redrow apprentices about their experiences.

General

• Only 17% of the young people surveyed felt that they had received high quality information, proper guidance and advice on a wide range of careers from their respective schools. To add to this statistic a significant minority, 38%, felt that the careers education and information received at school was either non-existent or not particularly useful.

Careers in construction

• More than half of those questioned (52%) stated that they had never given a career in construction any consideration.

• 30% of young men questioned said a career in construction was a possibility for them, compared to just 16% of young women.

• 50% of young people questioned answered “no” when asked if information on careers in construction had ever been discussed with them verbally by a teacher or had been made readily available in careers literature.

• Young men were more likely to have been given advice on a career in construction, with 40% having received this. Just 29% of young women had received this advice in comparison.

• Pupils in London were most likely to have received advice on a career in construction with 45% receiving this advice. This falls to just 22% in the South West.

Perceptions of construction • 54% of the teens agreed with the statement “the construction sector is dominated by men”.

• 55% also believe that “a career in construction mostly involves manual labour”, a greater proportion than parents.

• Nearly one in five (19%) young people believe a career in construction does not require any qualifications beyond GCSEs.

• 18% agreed with the statement “my parents wouldn’t approve of me pursuing a career in construction”.

• Asked if a career in construction would be deemed a good option by their parents, 48% stated that it hadn’t been discussed while 27% of the teens stated “no”. Only 19% agreed that their parents would think a career in construction was a good option.

• While 32% (just under a third) of the candidates stated that they hadn’t received information at school on apprenticeships, 59% asserted that someone at school had outlined to them how apprenticeships work as well as their benefits.

• Again, more men (64%) than women (55%) had received advice on apprenticeships.

• More young people from the North East (73%) compared to those from the South West (53%) were told about apprenticeships, how they work and their benefits at school.

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Appendix: Survey findings

Parents:

Perceptions • There are several widely held perceptions amongst parents of school age children in terms of the nature of construction

careers:

1) 33% (just shy of a third) of parents believe a career in construction mostly involves manual labour;2) 28% of parents believe a career in construction mostly involve being on a building site;3) 58% of parents perceive that the construction sector is dominated by men.

• Nearly 1 in 10 (9%) parents would actively discourage their child from undertaking a career in construction.

• There is significant regional variation when it comes to parents’ perceptions of careers in construction e.g.: 1) 19% of Londoners believe a career construction does not require qualifications beyond GCSE, much higher than

the East Midlands and East Anglia where this figure stands at just 9% and Scotland where this stands at 7%; 2) Londoners (64%) are more likely than residents from the North East (43%) to agree that the construction sector is

dominated by men; 3) Three quarters from the West Midlands (75%) have discussed the prospect of undertaking an apprenticeship with

their child, compared to residents from the North West (57%).

Parental advice

• Only a minority of parents have discussed the prospect of a career in construction with their child (28%).

• More parents have discussed the prospect of their child undertaking an apprenticeship (65%); however this means that approximately one third are not speaking to their parents about this option.

• 31% of parents believe professionals working in the relevant sector are best placed to advise on a career in this sector; the same number think National Careers Service advisers are best placed. 21% think schools are best placed.

• Overall, 10% of parents think they are best placed to provide careers advice.

• However a greater proportion of parents with higher incomes think parental advice is the best: 26% of those earning £80,001-£100,000 and 22% in the £100,000-£150,000 bracket.

• The amount of encouragement a child gets in terms of careers in construction or apprenticeships from their parents varies depending on their parents’ backgrounds. For example younger parents are more likely to highlight careers in construction and apprenticeships to their offspring:

1) More than double the proportion of 35-44 year-old parents (43%) as opposed to over-55s (18%) have discussed the prospect of undertaking a career in construction with their child.

2) Three quarters of 35-44 year-olds (75%) have discussed the prospect of undertaking an apprenticeship with their child, compared to the over-55s (56%).

3) Higher income parents are also more likely to discuss a career in construction with their child:

• More than half of parents whose household income is between £80,001-100,000 (51%) have discussed a career in construction with their child, compared to those who earn between £25,001-£40,000 (25%).

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Appendix: Survey findings

Redrow apprentices:

The below results come from a survey of 147 Redrow apprentices.

• When asked how they had heard about Redrow‘s apprenticeship scheme, 35% cited that they heard about joining Redrow through family and friends. Only 8% found out about the scheme through a training provider and only 4% through the national apprenticeship service.

• Only 5% said they were encouraged to enrol on an apprenticeship through career advice that they received at school.

• Rather, almost 50% said they were encouraged by family and friends, and 37% said they investigated career options themselves and found out about the apprenticeship through their own research.

• This is all the more shocking considering that more than 70% of the apprentices surveyed were previously in full time education before embarking on their apprenticeship.

• Over 90% of apprentices agreed that being able to learn from leading industry experts and getting the best insight and skills development training is the most important benefit of their apprenticeship.

• The majority of apprentices thought that progression and promotion is easier because of the practical experience they have gained and opportunities available.

• Apprentices cited the fact that they are lower paid than a qualified professional worker as the biggest disadvantage in undertaking an apprenticeship.

• 73% agreed that schools do not promote apprenticeships in the same way they do other educational routes.

• The majority (63%) of apprentices surveyed said that they did not receive enough career advice at school to help them find a fulling career path.

• A staggering 100% of apprentices said they are happy they opted from an apprenticeship over other educational routes.

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Redrow was established in 1974. Today, it is one of the most successful and acclaimed property developers in the UK, building over 4,000 premium quality family homes a year in prime locations across England and Wales. We have built a unique reputation for quality and we pride ourselves on creating beautiful homes and communities that people love to live in. To achieve this, we focus on three key areas – building beautiful homes, valuing people, both internally and externally, and creating outstanding places. We embrace leading standards in each in order to deliver a premium brand, enrich lives and drive shareholder value.

Through the homes it builds, Redrow aims to enhance the beneficial characteristics of the local landscape, ecology and communal resources – this helps create socially sustainable communities. In 2016 Redrow committed £142 million to fund improvements to local communities, an 11% increase on the previous year.

Redrow is listed on the London Stock Exchange and is a constituent of the FTSE 250 index. For the year ended 30 June 2016, the Group reported record revenues of £1.38 billion.

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