Post on 08-Jan-2017
Apprenticeship ReformsAn Employer
Engagement
Masterclass
Paula Gibson
Business Solutions Manager
28 November 2016
AGENDA
• The apprenticeship reforms: update on key facts
• Your changing relationship with employers
• Review your employer customers
• Sales and business planning
• Funding for all employers
• PART 1: Non-levy paying employers
• Funding and negotiating price
• Advice for working with non-levy
paying employers
• PART 2: Levy paying employers
• Funding and negotiating price
• Advice for working with levy paying employers
• Quality and ROI
• Approaches to marketing and communications
• Your internal systems and process
• Consultancy services
• Any questions?
UPDATE ON KEY FACTS
• The government has committed to increase the quantity and quality of
apprenticeships in England – reaching three million starts in 2020.
• An employer apprenticeship levy will be introduced
by the government in April 2017.
• The levy applies to any employer with a pay bill
over £3m – 0.5% of pay bill.
• At the same time, the Department for Education
have reformed the funding and learning
delivery arrangements.
• Any provider that wishes to continue to
deliver apprenticeships from May 2017
will need to be on the RoATP.
YOUR CHANGING RELATIONSHIP
WITH EMPLOYERS
• The nature of the provider-employer relationship is fundamentally changing. Employers
are at the heart of these reforms, from designing apprenticeships, to negotiating a price,
selecting a provider and choosing an EPA organisation.
• Having the right processes in place will be key to developing
new apprenticeship business.
• Your employer’s understanding of the new approach will impact on the
way you work. There will be a shift from transactional to a more strategic longer term
relationship based on the wider context of workforce development planning.
• You will need to up-skill your teams to communicate new delivery models,
dual funding systems, the levy, impact on public sector targets,
using the DAS, understanding financial incentives etc.
YOUR CHANGING RELATIONSHIP
WITH EMPLOYERS
You will
need to:
• Support your employers in understanding
the shift from frameworks to occupations –
do your Business Development and Sales
teams have the knowledge they need?
Employers will have more control
in designing apprenticeships
• Employer led Trailblazer groups are developing
new occupational Standards which will replace
SASE Frameworks.
• An increase from approximately 250
SASE Frameworks to potentially over
800 Standards.
• Each Standard will have a primary level that
relates specifically to the occupation, however
there are potentially a variety of levels for the
varying skills that underpin the occupation.
1
YOUR CHANGING RELATIONSHIP
WITH EMPLOYERS
New apprenticeships are designed to be more flexible
and more effective
• Qualifications are no longer mandatory – the provider and employer
can design a programme to meet the specification that meets the
new Apprenticeship Standard.
• Introduction of end-point assessment – once the apprentice has
completed the on-programme phase and passed their gateway
criteria they will move on to end-point assessment.
• Grading is confirmed at the end-point assessment.
• Employers will benefit because apprenticeships will be relevant
and meet their business needs.
• Colleges and providers will benefit because you can produce a
better, more relevant and higher quality product for your customers.
2You will
need to:
• Carefully define
your on-programme
offer for employers
to ensure it meets
their needs.
YOUR CHANGING RELATIONSHIP
WITH EMPLOYERS
Employers will co-invest and have more control
in the delivery of their apprenticeships
• Employers will be investing their own money into apprenticeships and will closely monitor ROI.
• There will be a mix of levy-paying (pay bill over £3million) and non-levy paying employers
(pay bill under £3million).
3
You will need to:
Understand which of your employers will be paying the levy and how much their levy will be.
Employers with a pay-bill over £3million (levy paying)
Pay an apprenticeships levy via PAYE and HMRC – funds go into the DAS account. With 10% additional top-up from government.
Employers with a pay-bill under £3million(non-levy paying)
Co-invest on 1:9 ratio with government for the delivery of ALL apprenticeships.
YOUR CHANGING RELATIONSHIP
WITH EMPLOYERS
The funding for apprenticeships will be simplified
• New funding bands will mean a reduction in funding for SASE Frameworks.
• There will be new opportunities in Standards with higher levels of funding available.
Band Band Upper Limit
1 £1,500
2 £2,000
3 £2,500
4 £3,000
5 £3,500
6 £4,000
7 £5,000
8 £6,000
9 £9,000
10 £12,000
11 £15,000
12 £18,000
13 £21,000
14 £24,000
15 £27,000
Framework Name and Level
Framework pathway name
Current funding based on average between 16-18 and 19+
Funding band
16-18 employer incentive
Provider uplift for 16-18 (20%)
Total 16-18 provider incentive
Max. possible total provider funding
Business and Administration (3)
Business and Administration
£5,173 Band 3 £2,500
£1,000 £500 £1,500 £4,000
Electrotechnical (3) Electrical Maintenance
£12,166 Band 10 £12,000
£1,000 £2,400 £3,400 £15,400
New Funding Bands from May 2017 Standards & Frameworks
Funding examples for Frameworks (comparison of current and new funding)
Standard Name and Level Funding band
16-18 employer incentive
Total 16-18 provider incentive (inc £1000)
Max. possible total provider funding
Customer Service Practitioner (2) Band 6 £4,000 £1,000 £1,000 £5,000
Installation Electrician/Maintenance Electrician (3) Band 12 £18,000 £1,000 £1,000 £19,000
New Standards equivalents
You will need to: Work with employers to understand which apprenticeships will be relevant and in demand so you can complete financial planning.
4
YOUR NEW EMPLOYER
RELATIONSHIP
40%Closingthe deal
30%Presentproposal
20%Quality
of training
10%Trust
10%Closingthe deal
20%Presentproposal
30%Quality
of training40%Trust
Provider (Supply) LedThe old model of provider – employer engagement
Employer (Demand) LedThe new model of provider – employer engagement
REVIEW YOUR
EMPLOYER CUSTOMERS
Levy paying employers Non-levy paying employers
Characteristics Sign-off on all recruitment plans and new roles can
sometimes take months.
Likely to want to move quickly and can often create
vacancies immediately.
Decision makers HR department / Finance Directors Business Owner
Pain points These employers tend to be oversubscribed for their roles,
particularly if they are a well-known brand. The quality of
the off-the-job training facility does not always match the
standard in the workplace.
These employers tend to have difficulty in finding the right
candidates for the job roles and ensuring roles profiles are
inspiring. This can lead to issues around retention. Off-the-job
training for SMEs is not always relevant for the job roles.
Financial
consideration
How will they spend their levy? Now that the employer is paying they will need to carefully
prioritise where they chose to invest. Higher banded
apprenticeships will cost them more, but what do they need?
Your relationship is
based on:
Trust and building customer loyalty. You should help to
plan their future apprenticeship strategy based on skill
and business needs.
Simplifying the process for employers and incentivising
apprenticeships programme in terms of their ROI and
actual costs.
SALES AND BUSINESS
PLANNING
• Be clear on your own strategy, growth targets,
set KPI’s and goals for your centre.
• Segment your employer customers and
your communication strategy for each:
• Existing employers versus new employers
• Levy paying employers versus non-levy
paying employers
• Public sector employers versus private
sector employers
FUNDING FOR
ALL EMPLOYERS
• Government will contribute £2000 towards the costs of 16-18 apprenticeships –
£1000 for the employer, £1000 for the provider.
• For Frameworks only, there is additional transitional funding (20%) to support
for providers with 16-18 yr old apprenticeship delivery.
• Further funding support and incentives for care leavers, and those with education
and healthcare plans.
• Payment for English and Maths – £471 per qualification, which is not taken
from employers levy and is paid for by government direct to the provider.
• There will no longer be any age restrictions to apprenticeship delivery
after May 2017.
NON-LEVY PAYING EMPLOYERS
FINANCIAL OPPORTUNITIES
• Non-levy paying employers will contribute 10% of the cost of an apprenticeship and the
government will contribute 90% of the cost, in a co-investment arrangement.
• Employers with less that 50 (49 or less), employees will pay no contribution if they take on a
16-18yr old apprentice, or 19-24 year olds who were formerly in care or who have an education
and health Care plan. These are fully funded by the government.
• Government will contribute £2000 towards the costs of 16-18 apprenticeships –
£1000 for the employer, £1000 for the provider.
• Further funding support and incentives for care leavers, and those with
Education and Healthcare plans.
NON-LEVY PAYING EMPLOYERS
CO-INVESTMENT EXAMPLES
How will your Business Development Teams handle co-investment conversation?
Standard / Framework name
Funding band Govt contribution Employer contribution (upfront cost)
Total
funding
16-18 employer incentive
Employerbalance
1-49 staff
Standard Customer Service Practitioner (2)
Band 6£4,000
£3,600 £400 £4000 £1000 +£600 +£1,000
Standard Installation Electrician/Maintenance Electrician (3)
Band 12 £18,000 £16,200 £1,800 £18,000 £1,000 -£800 +£1,000
Funding will vary based on the below:
• Is the apprentice 16-18?
• Is the employer a micro-business (49 employees or less)?
• Is the apprentice a 19-24 year old who was formerly in care or has an Education and Health Care plan?
• Deprived area?
Note: Providers can agree to deliver apprenticeships for a reduced cost (the co-investment will still be at a 9:1 ratio). If the cost exceeds the maximum funding band, the additional cost will need to be absorbed by the employer or provider.
ADVICE FOR WORKING
WITH SMEs
• Map out your existing SME customer base – prepare before you go and research the company.
• Consider suitable candidates – SMEs can create vacancies quickly.
• Take time to build a relationship with the SME business owner.
• Build the desire, rather than overcome the objections.
• Make sure you listen 70% and talk 30% of the time.
• Work on the ‘internal sale’ as well as the external sale.
• Communicate the ROI to their business.
• Capture your thoughts and actions immediately after the meeting.
• Make sure the candidate is fully prepared.
• Minimise the administrative load on their business.
WORKING WITH NON-LEVY
PAYING EMPLOYERS
Non-Levy
Paying
Employers
Employer’s own funds
Agreed priceand payment
schedule
Invoicedby provider
Co-investment with government
Calculate how much the employer will need to co-invest and what their incentive payments will be. Negotiate costs with the employer.
Negotiate and agree price and payment schedule with the employer. The Statement of Commitment signed by all parties should ensure roles and responsibilities are clear.
Have you got the right systems in place for the funding arrangements and contracts? SMEs will require a contract and price for each Standard/Framework agreed. The Apprenticeship Agreement establishes a clear contract for the above.
10% of cost will need to be paid up-front to trigger the government co-investment (and to register the start on the ILR).
LEVY PAYING EMPLOYERS
FUNDING OVERVIEW
• Levy paying employers will pay 100% of the costs of an apprenticeship
to providers, out of their Digital Apprenticeship Service (DAS) account.
• Levy paying employers who have exhausted their levy funds,
but who wish to take on more apprentices, will co-invest
with the government at the same 9:1 ratio as non-levy
paying employers.
• From 2018, employers will be able to transfer 10% of
their levy funding to another employer with a digital
account, e.g. an organisation in their supply chain.
LEVY PAYING EMPLOYER
EXAMPLE 1
Employer levy of £12,000.
Total annual levy fund with 10% uplift = £13,200.
Calculating co-investment
• £46,000 cost apprentice training cost - £13,200 annual levy funds = £32,800 that will need to be covered by co-investment.
• Government will contribute 90% of non-levy provision (£29,520).
• Employer will top-up £3,280 in this scenario.
Note: if any apprentices are aged 16-18, then they get the incentive payment.
Standard / Framework name Cohortsize
Funding band
Total employer cost
Provider uplift for 16-18 (20%)
Total funding
for provider
Framework Business and Administration (3) 4 Band 3 - £2,500 £10,000 £2,000 £12,000
Standard Installation Electrician/Maintenance Electrician (3) 2 Band 12 - £18,000 £36,000 £0 £36,000
TOTAL EMPLOYER COST: £46,000
LEVY PAYING EMPLOYER
EXAMPLE 2
Employer levy of £100,000. Total annual levy fund with 10% uplift = £110,000.
Employer total spend on apprenticeship training is £33,000 less than their annual levy funds available.
Employer will need to consider:
• Funds will expire after 24 months so will they increase training next year to use the funding?
• Do they want to allocate 10% of their levy funding to their supply chain?
• Do they have additional skills needs and can they use their levy funding to meet these needs?
Standard / Framework name Cohortsize
Funding band
Total employer cost
Provider uplift for 16-18 (20%)
Total
funding
Framework Catering & Professional Chefs – Professional Cookery (2) 4 Band 3 – £2,500 £10,000 £2,000 £12,000
Framework Construction Building – Maintenance Operations (2) 5 Band 7 – £5,000 £25,000 £5,000 £30,000
Standard Adult Care Worker (2) 2 Band 4 – £3,000 £6,000 £0 £12,000
Standard Motor Vehicle Service and Maintenance Technician (Light Vehicle) (3) 2 Band 12 – £18,000 36,000 £0 £36,000
TOTAL EMPLOYER COST: £77,000
SIX KEY STEPS TO HELP A LEVY
PAYING EMPLOYER DEVELOP AN
APPRENTICESHIP PROGRAMME
1. Understand their levy
Calculate their levy allowance and determine
how it will be allocated in line with your business
strategies.
2. Ask if they have a people plan?
Identify any skills gaps or recruitment opportunities
and determine if an apprenticeship is an
appropriate solution.
3. Review current training programmes and
where occupations can be mapped to
apprenticeships
Map new Standards to job roles to identify skills
gaps, support progression and identify recruitment
opportunities.
4. Decide which programmes to deliver
Evaluate which frameworks / Standards best meet
their business needs.
5. Decide how to deliver an apprenticeship
programme
Determine which delivery method is best suited
to their programme
6. Ensuring readiness to deliver
Do they have the internal capability and capacity
to delivery a quality programme for the apprentice?
THE PROCESS FOR
LEVY PAYING EMPLOYERS
Levy
Paying
Employers
Levy paid
Price agreed
Monthly deductions paid
to provider
Co-investment top up –
if insufficientfunds
Provider and employer agree and sign written agreement (including end-point assessment).
Employer flags on DAS –prompts payment schedule.
SFA issues auxiliary agreement for each contract between provider and employer.
Provider establishes learner evidence pack.
Employer sets up ILR registration to allow the funds from the DAS account to be released to the provider.
The provider pays employer any incentive payments.
Employer may need to make cash contribution if levy funds are exhausted.
Employer recruits apprentice (could be internal staff).
Employer selects provider from DAS —initial negotiations take place (it is sensible to have pricing schedules in place).
1 2 3 4
WORKING WITH ALL EMPLOYERS
TO ENSURE THE HIGHEST QUALITY
FOR THE APPRENTICE
Recruitment
• Initial assessment
• Apprenticeshipagreement
• Induction
Putting learning at the heart of apprenticeships
Real experience, practice and problem solving…
• On the job training and learning from and with others (experts and peers)
• Off-the-job education, training and on-line learning
• Coaching, mentoring, formative assessment, review and feedback
• A nurturing, supportive and visible learning environment where
apprentices have a voice
…to achieve productivityand autonomy
Mastery
• Craftmanship
• Resourcefulness
• Routine expertise
• Wider skills and behaviours
• Business-like attitudes
• Functional skills
• Autonomy
Independent end assessment
• Qualifications
• Licence to practice
• Certification
Continuing occupational
& management development
Signoff by
employer
cityandguilds.com/apprenticeships/news-events/making-apprenticeships-work
DEMONSTRATING RETURN
ON INVESTMENT (ROI)
Insights from the City & Guilds Industry Skills Board:
• Completion of apprenticeships in the businesses run by ISB employers ranges from 85% to 100%.
Apprentices stay longer after their apprenticeships than other employees.
• Job satisfaction is enhanced for adults because they take pride in seeing young people come
through and support the company in its decision to deliver apprenticeships.
• In TUI, apprentices perform on average 17% better and stay longer.
• McDonald’s, Xtrac, Compass and National Grid report significantly higher productivity amongst
apprentice-trained staff.
• Optimity is achieving 20% annual growth, driven partly by apprentice recruitment, training and input.
• The view from Nationwide, Barclays, and McDonald’s is that apprentices create innovation
and improve processes.
• Apprenticeships are a way of driving change in the gender mix for a given role.
APPROACHES TO MARKETING
AND COMMUNICATIONS
AWARENESS
• Have you updated your profile on the DAS?
• Do you have a marketing plan in place?
• What is your contract strategy for new non-levy and levy paying employers?
• What is your plan for retaining existing customers?
A
INTEREST
• Do your business development team leaders, managers and sales teams have the relevant knowledge and skills to communicate the value of apprenticeships, an employer’s funding eligibility and your apprenticeship offer?
• Can your team work with employers to understand and help identify their business need based on opportunities and future ambition?
• Are you demonstrating the quality of apprenticeships?
I
DESIRE
• Who will lead on negotiation with employers around price and content? Employers can specify which end assessment organisationthey want the provider to use.
• Are you clear on your pricing strategy?
D
ACTION
• The Apprenticeship Agreement will establish a clear contract for the above.
• Statement of Commitment signed by all parties makes roles and responsibilities clear – employer, provider, learner (or parent if apprentice is under 18 years old).
A
DEVELOPING YOUR MARKETING PLAN
TO STAND OUT FROM THE CROWD
You will need to develop a marketing plan that
is in line with your business objectives.
• What is your customer value proposition?
(consider features, products, processes etc.)
• What makes you different from your competitors?
• Review the college mission statement. Is it
encouraging for commercial organisations?
• What is your USP? (Unique Selling Point)
• How will you engage with customers? Which marketing
channels are most appropriate? (consider direct marketing,
events, advertising, websites, social media, partnerships etc.)
• Does your offer match existing and future skills gaps?
EXTERNAL COMMUNICATION –
COMMERCIAL DEVELOPMENT
AND MARKETING ACTIVITY
Background noise
Assertions of
competence
Illustration of
competence
Face-to-face
Sales
Advertising
PR – general media
Prospectus
Internet
Newspapers
PR – specialist media
Seminars/Events
Network groups
Proposals
Client satisfaction
Targeting programmes
One-to-one meetings
Broad brush
Highly focused/
Client specific
SYSTEMS TO MANAGE EMPLOYER
ENGAGEMENT – ARE THEY IN PLACE?
• Have you got a key account management framework?
• Are you making full use of CRM systems?
• Who are your target list of employers?
• Do you have a structured database?
• Are you using CRM tools to track
employer contact strategy?
IF YOU WANT TO TAKE
THINGS FURTHER WITH US
AREAS OF APPRENTICESHIP
CONSULTANCY AND TRAINING
Apprenticeship ReadinessReview your organisational readiness for the reforms, taking into consideration skills and capabilities, local and national position and future funding requirements.
Defining your Apprenticeship OfferDesigned to help you identify employer demand against local skills gaps now and in the future. Determine how this can be used to help shape your Apprenticeship offer for the new occupational standards.
Employer Engagement CPDSpecifically designed for sales and business development managers within further education, to help develop strategic relationships with levy and non levy paying employers, including developing a USP and pitch preparation.
Support for Teaching and Learning CPDTraining to support assessors moving towards a more Teaching and Learning based role. This will improve Teaching and Learning practices with a clear focus on the apprentice learning experience.
THE APPRENTICESHIP
CONSULTANCY PROCESS
Understanding your needs
Research and review
Define and develop solutions
Implement change
Evaluate impact
For more in-depth
support we can
offer a range
of paid for
consultancy
services.