A brand new report warns authorities to repair the problems stopping small companies from absolutely embracing apprenticeships, significantly in expert trades.
Authorities knowledge present that for each apprentice emptiness, almost two younger persons are , probably leaving many with out placements. A report from a cross-party thinktank, the Social Market Basis (SMF), Laying the foundationsprinted on 4 December,1 seems to be on the challenges holding small and medium expert commerce companies again from providing extra apprenticeships to youthful folks.
Talking with small trades companies,2 the authors say they realized {that a} lack of engagement is likely one of the largest points stopping them from taking up an apprentice. They typically lack essential relationships. The vast majority of companies surveyed stated that they’ve little to no interplay with native schools (52%), colleges (69%), impartial suppliers (60%), or universities (90%). This makes it arduous, typically unattainable, to navigate the complicated strategy of recruiting and coaching apprentices.
It’s essential to enhance the apprenticeship-employer ecosystem the SMF stated. Particularly, small enterprise expert trades want a ‘go-to’ middleman service, whose function can be to strengthen native connections, bringing SMEs and coaching suppliers to work collectively extra successfully. The SMF famous that its proposed system would “complement, not complicate” employment reforms that can revamp Jobcentres to enhance entry to work for younger folks – together with apprenticeships (see notes).
There are additional challenges in the case of inexperienced expertise. Inexperienced expert commerce companies have the particular situation of scarcity of related programs within the rising sectors. For instance, a senior human useful resource supervisor bemoaned the failure of faculties and coaching suppliers to meet up with growing demand for these roles. SMF noticed that inexperienced expert tradespeople see the ‘green education pipeline’ within the UK lagging behind the likes of Denmark and Germany.
To this finish, the SMF recommends that Expertise England – the brand new physique positioned to steer the UK’s expertise panorama – oversees the proposed middleman system. Expertise England ought to determine precedence sectors and, from this, information the strategic focus and focusing on for middleman organisations. The physique is completely positioned to take action, having already flagged the inexperienced workforce and housebuilding as expertise priorities in its first report, the SMF notes.
Regardless of the challenges, it’s price noting that enthusiasm for apprenticeships stays excessive amongst small companies, who recognise the important function younger folks can play in addressing expertise shortages. With a rising give attention to inexperienced expertise and the challenges posed by an getting old expert workforce, apprenticeships are seen as key to making a sustainable expertise pipeline for the longer term.
The total record of suggestions embrace:
- Improve the apprenticeship incentive fee for underneath 19s to £3,000. This needs to be funded utilizing apprenticeship levy underspend, quite than having it returned to the Treasury.
- DfE and Expertise England ought to launch a nationwide marketing campaign to advertise consciousness and optimistic perceptions of younger apprentices. This marketing campaign needs to be led by the Division for Training and Expertise England.
- Set up an middleman system that strengthens the relationships between SME trades companies and coaching suppliersforming a cohesive apprenticeship community that provides steering and help for employers, together with administrative and pastoral companies. To motion this we suggest the next steps.
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- The Division for Training enhance the protection of brokerage pathfinders to supply wider help.
- Expertise England takes duty and oversight of the brand new middleman system and set the strategic course.
- Native authorities (initially) handle the supply of the middleman system, earlier than transitioning this duty to Careers Hubs.
Niamh O Regan, Researcher at Social Market Basis, stated: “By and huge, small companies are eager to do their half to coach the following era. Sadly, for a lot of, taking up an apprentice is sweet in concept and painful in apply. The method could be complicated and the executive burden excessive – finally blocking the pipeline of expertise wanted to beat the UK’s expertise disaster.
Fostering higher connections between SMEs and coaching suppliers can pave the best way for a extra expert workforce, able to sort out the challenges of tomorrow.”
Jake Shepherd, Senior Researcher at Social Market Basis, stated: “To spice up the variety of apprenticeships and strengthen the workforce in key expert trades – crucial for assembly the UK’s infrastructure and local weather objectives – small companies should be helped to beat the boundaries they face.
The federal government can act by creating an middleman system that brings collectively Expertise England, Careers Hubs, and coaching suppliers to information companies and make the apprenticeship course of simpler to navigate. On the identical time, a nationwide marketing campaign can spotlight the advantages of hiring younger apprentices, whereas elevated monetary incentives would assist small companies handle the prices of taking them on.”
Donna Murrell, Managing Director, Reed in Partnership stated: “Reed in Partnership works with many small businesses who tell us that they find it difficult to recruit and support apprentices, especially young people who have just left school and may need some support with their life skills. We must address this, to get the skilled tradespeople we need for sustainable economic growth and open up fulfilling careers to young people. We think that implementing the practical proposals in this report will enable local businesses, training providers and other local stakeholders to do so.”
Simon Ayers, Chief Govt, TrustMark, stated: “At TrustMark, we know there is an urgent requirement for skilled, trained and competent tradespeople across the home improvement sector if we are to make Britain’s homes warmer and healthier. Having started as an apprentice in the gas industry, I recognise the vital role apprenticeships can play in addressing skills shortages and how they are key to creating a sustainable pipeline for the future of the industry. We believe that the solutions proposed in this report to help small businesses take on and support apprentices are both practical and deliverable and we hope the skilled trades will now embrace these opportunities to educate and foster the growth of the next generation. We look forward to working with Skills England and the Department for Education in shaping the right support for our small businesses to play their part in the net zero transition.”
Notes
(1) The report is sponsored by Reed in Partnership, with help in form from TrustMark. The SMF retains full editorial independence.
(2) Analysis strategies: In August 2024, we partnered with the sphere company Indiefield to conduct 10 interviews with people from a variety of small and medium-sized enterprises, together with sole merchants and family-owned companies. As well as, the SMF recruited one participant independently. Of the 11 companies interviewed, 5 had employed an apprentice throughout the previous three years, whereas the remaining six had not. We additionally performed an interview with inexperienced coverage consultants from the FSB, bringing the whole variety of interviews to 12.
