Rod Kenyon Improving Employer Engagement: making the Business Case Expanding and Delivering Apprenticeships 3 rd April

Terms of Reference To promote Apprenticeships to employers of all sizes to increase take-up To advise and help employers in improving Apprenticeship outcomes To provide feedback to Government on issues or barriers that prevent employers from getting involved

Current Facts & Figures Over 110,00 people completed their programmes last year Completion rate - 63% 180 Apprenticeship frameworks offered in more than 80 sectors Top Framework sectors: Construction, Engineering, Hairdressing, Automotive and Business Administration See AAN, LSC, DIUS and DCSF websites for further information

Engineering27,231 Construction26,893 Hairdressing22,810 Business Administration17,516 Early Years’ Care16,467 Electro-technical16,250 Hospitality16,224 Automotive15,383 Customer Service14,488 Health & Social Care10,288

What some of our members say: “Compass Group has seen recruitment and training costs fall significantly because apprentices are more likely to stay. They are also more likely progress into management roles, leading to additional savings.” Sir Roy Gardner, Chairman, Compass Group plc

"I am a huge fan of Apprenticeships because I have seen what they do for individuals and I have also seen what they do for my business. The fact is everyone wins.” Sir Terry Leahy, Chief Executive, Tesco “Apprentices are brought up in a culture of learning and development. They are self-motivated, ready to take the initiative and go into problem-solving mode, therefore reducing production time for the work they do by up to 25%.” Mike Turner, Chief Executive, BAE Systems

What British Gas says: “Our engineers are our ‘life blood’ – they represent our brand when they visit our customers’ homes. Our apprenticeship programme instils the company’s core values of customer care alongside technical competency. Delivering a professional service to the highest standards gives us a competitive edge over other companies.”

Business Benefits Delivering higher productivity and work quality which reduces costs and enhances profitability Improving staff recruitment, retention and staff satisfaction Producing motivated staff and managers of the future Reducing skills shortages and fostering a more diverse workforce.

Higher productivity BAE Systems says: Production time reduced by 25% Better performance than external recruits, resulting in less wastage of high-value materials Apprentices make fewer mistakes once qualified, they complete tasks correctly at a rate of 85% right first time, compared to 60% for external recruits British Gas says: In house Apprentices are on average 25% more productive and qualify three months sooner that externally trained engineers

Improving staff recruitment Retention – huge issue for the retail sector and the hospitality sector Compass Group says: Employees engaged in the Apprenticeship programme stay longer and improve their skills and knowledge, increasing customer satisfaction The labour turnover of employees who joined the programme stands at 15% compared to a national employee turnover figure at 49% Tesco says: Apprentices tend to stay with the company longer than non apprentices 85% retention against a company average of 70% for non apprentices aged 16-24

Producing motivated staff and managers of the future Kesslers International - the apprenticeship programme has delivered a long term benefit by supplying the next generation of shift managers, supplementing an ageing workforce Tesco – many apprentices have progressed to Team Leader British Gas – over 90% of gas servicing and installation managers originally joined the company as apprentices

Reducing skills shortages and fostering a more skilled workforce British Gas - work with schools and communities to attract applications from under represented groups Kesslers International - About 30-35% of the workforce are from multi ethnic backgrounds Many of our ambassadors have active programmes to recruit more diverse workforces

Recipe for Success: Supportive working environment with good peer support Valued at senior management level Clear Induction programmes Keep apps on their until complete Review Pay regularly High quality training Effective communication and partnership between the key stakeholders Early identification of ‘at risk’ apprentices Opportunity for a permanent position on successful completion

Ongoing Concerns – AAN Delivery too complex Low take up of Apprenticeships in London Poor advice and guidance Low completion rates Framework content FE/HE progression National clearing house Diversity