Apprenticeships = Short term pain, Long term gain

"Apprenticeships transform lives and are vital in making this a country that works for everyone... That is why we are committed to 3 million new apprenticeships by 2020" Justine Greening, Oct 2016

We all know that there are reforms to Apprenticeships. Training providers across the country are talking about the Apprenticeship Levy and how to increase the number of apprentices to get the best ROI possible from this tax. Organisations representing businesses, like the CBI, are publicly responding to government proposals and making their voice heard. At the same time changes continue to be made following Sainsbury Review and Wolf Report recommendations. There are national advertising campaigns and many press statements highlighting Apprenticeship schemes being launched.

Taking on a new Apprentice:

• Positive Corporate Social Responsibility from investing in a young person’s career
• Anyone can now be an apprentice, there are no age limits – which means we can introduce candidates with experience
• There are no recruitment fees for us providing your business with an apprentice – we look after the full recruitment process for free
• The Government are offering a ￡1,000 cash incentive for hiring a 16-18-year-old. (paid at month 3 and month 12)
• Funded training programmes can also be used to up-skill existing staff – boosting productivity and retention too.

Many businesses are looking to 'spend' their Apprenticeship Levy funds by recruiting a cohort of young Apprentices. However, they haven’t planned effectively, what they want from their apprentices in the long term.

"Some habits of ineffectiveness are rooted in our social conditioning toward quick-fix, short-term thinking" Stephen Covey, 1992

For employers simply looking to recruit Apprentices to 'spend' their Apprenticeship Levy funds and reallocate existing training budgets towards an Apprenticeship programme there will be short term pain associated with this approach. Simply recruiting young Apprentices or enrolling existing staff onto Apprenticeship programmes and expecting immediate success, will lead to increasing frustration and disappointment to the employer as the scheme progresses.

Expecting a short-term fix, such as a rushed Apprenticeship scheme to spend levy funds, to deliver long term benefits is unrealistic and illogical. Without planning for an effective implementation and designing a skills solution that acknowledges there will be issues and makes allowances for teething problems that will inevitably occur.

With employers now being contacted by numerous training providers all with a similar message to businesses, "Apprentices are great for your business and we can help you spend your levy" it is important to consider the long-term implications of a limited, short term solution such as up-skilling as many existing staff as possible through the levy.

Investing time, resources and effort now, while accepting the short-term pain associated with change, will result in a successful, productive approach to staff training and development in the long term.

The most successful schemes are ones that have been planned with long-term return on investment in mind rather than the short term impact of recouping levy funds. These Apprenticeship schemes have identified the benefits of seeing skills as an investment, rather than a cost. By taking a long-term view to Apprenticeships and training it is possible to plan for skills shortages and develop staff internally to progress their careers and continue to support business growth.

In order to benefit long-term businesses need to look at more than simply 'not giving anything to the taxman' and should consider external factors such as Industrial Strategy, Northern Powerhouse, Midlands Engine and the approach to Brexit.

As well as this, businesses should also consider internal factors such as:

• Workforce planning approach to staffing needs and skills gaps
• Securing buy-in from the whole business to ensure success
• Finding the right provider and co-designing a scheme with expert input
• Providing training for those supporting Apprentices
• Running a mentoring/pastoral support programme for Apprentices
• Celebrating success and ensuring career progression opportunities exist
• Specific recruitment processes for Apprentice roles
• Offering experience across all aspects of the business
• Method of measuring and reporting on training progress
• Potential lower productivity during initial introduction

There is a cost associated with implementing an Apprenticeship scheme, even if it is simply a time commitment, which is what many businesses don't see as worthwhile. Rather than rushing to spend funding available planning and preparing for a 5 year, or longer, cycle of Apprenticeship and skills training will allow for a smoother implementation with greater levels of understanding and buy-in across the wider business leading to higher levels of return on investment.

The investment that is made by a business will directly impact on the long-term return experienced and businesses accepting the need for an investment in Apprentices at planning stage will, in the long term, see the return far outweigh the short-term pain involved.