Apprenticeships – Good for Business 19 th January 2012 Liz Coughlin, Employer Account Manager, Buckinghamshire

Aim The aim is to give you a brief overview of Apprenticeships and the potential incentives that going to be available to you as an employer.

3 Role of National Apprenticeship Service Expand the number of Apprenticeship places offered by employers Increase the number, quality and diversity of people applying for Apprenticeships, and in particular supporting year olds Make it easier for employers to recruit apprentices and for individuals to search and apply for Apprenticeship vacancies on the internet- based vacancy system Impartial brokerage service on all 250 Apprenticeships available and the provider base delivering them

4 Rising numbers of apprentices 162,000 people started an Apprenticeship in 2001/02 Over 300,000 people are expected to start an Apprenticeship in 2010/11

5 Basics about Apprenticeships Apprentices are employed by you and paid a wage - minimum of £2.60/hr This can be a permanent contract or fixed-term for duration of Apprenticeship Apprentices are on a structured, industry-standard training course – fully funded by the government if apprentice is aged 16-18, with some employer contribution if apprentice is 19+ Duration of Apprenticeship varies according to course and ability – from 12 months to three years Three parts to Apprenticeship – NVQ, technical certificate and key skills, available at levels 2-4 Some Apprenticeships require day release, and others are delivered ‘on- site’ in the workplace Available for new or existing employees and in most cases can start throughout the year

6 Types of Apprenticeships Apprenticeships can usually be matched to any role being recruited or trained Cross-sectoral Apprenticeships which can fit into any business e.g. Business Administration, IT, Customer Service, Accountancy, Payroll, Sales Other sector-specific Apprenticeships which are tailored to meet the needs of the sector e.g. Construction, Hospitality and Catering, Housing, Retail, Financial Services, Active Leisure, Print, Cleansing and Support Services, Building Services

Benefits to Employers Improved productivity Motivated and loyal workers Potential managers / leaders of the future Improved retention Addressing skills shortages Return on Investment

8 Returns on investment Superdrug 44% improved performance = £13,750 better revenue generation per employee Return 7 times greater than the cost of the programme Retention rates approximately twice that of non apprentices TUI UK & Ireland Fast track programme – apprentices outperform colleagues 10 years more experienced Grade 2 travel apprentices 8% more productive year olds outperform colleagues by 26% year olds outperform colleagues by 12%

What funding is available to support my business if I take on an Apprentice? (up to the day before the 19th Birthday) – training is fully subsidised 19+ (day of their 19th Birthday) – training is partially subsidised

Incentives Small Employer Incentives The incentive is for employers with up to 50 (and in some cases up to 250) employees and comprises a payment of £1,500 payable in two stages. It will be available to small firms in all industries and for Apprenticeships at all levels from April Details of how the new incentive will be administered and when employers will be able to express formal interest in it are currently being developed and will be announced as soon as possible. Updates on this development will appear on the Apprenticeship website ( The incentive is part of a wider £1 billion package of support to encourage small businesses to employ young people.

Subsidies Employer subsidy to employ a jobless young person From April 2012, an incentive of £2,275 will be available for small employers who employ a jobless year old for a period of 6 months. The subsidy will support work and training placements. Government aims to subsidise work placements and training for up to 160,000 young jobless over a 3 year period. Details of this subsidy are currently being developed and updates will appear on the apprenticeship website (

2011/2012 Priorities Increasing Apprenticeship starts Reducing NEET (Not in Employment, Education or Training) by creating opportunities through Apprenticeships Advanced and Higher Level Apprenticeships STEM sector Apprenticeships

Employers with Apprentices

14 Next Steps NAS offers a free and impartial service to employers to guide you through from identification of Apprenticeship role to the recruitment of apprentice Work with you to identify Apprenticeship framework which matches role Identify a range of training providers which fit your needs, from which you can choose Training provider then works with you to recruit an apprentice through the Apprenticeship vacancy website – posts vacancy, and can also support by sifting CVs Apprentice starts and training provider is then main point of contact for apprentice and employer– but NAS is still here for support if required

15 Apprentices – Good for Business Can you afford not to benefit from increased business performance? –Develop your workforce through Apprenticeship training –Recruit your new staff as apprentices Call: Web: Alternatively my contact details are M: E: