Rod Kenyon

Improving Employer Engagement: making the Business Case

Expanding and Delivering Apprenticeships

3rd April 2008

www.employersforapprentices.gov.uk

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

0

50,000

100,000

150,000

200,000

250,000

300,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Growth in Take Up of Apprenticeships1995 - 2006, by apprentices in learning (in 000s)

Engineering 27,231

Construction 26,893

Hairdressing 22,810

Business Administration 17,516

Early Years’ Care 16,467

Electro-technical 16,250

Hospitality 16,224

Automotive 15,383

Customer Service 14,488

Health & Social Care 10,288

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 recruitmentRetention – 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