SKILLS FOR BUSINESS: MORE TO LEARN? OCTOBER 2011
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SKILLS FOR BUSINESS: MORE TO LEARN? OCTOBER 2011
Transcript of SKILLS FOR BUSINESS: MORE TO LEARN? OCTOBER 2011
SKILLS FOR BUSINESS: MORE TO LEARN? OCTOBER 2011
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The British Chambers of Commerce is the
national body for a powerful and influential
Network of Accredited Chambers of
Commerce across the UK: a Network that
directly serves not only its members
businesses, but the wider business community.
Representing 100,000 businesses who
together employ more than 5 million
employees, the British Chambers of Commerce
is The Ultimate Business Network. Every
Chamber sits at the heart of its local
community working with businesses to grow
and develop by sharing opportunities and
knowledge and know-how.
Written and researched by;
Adam Reid, Skills Researcher – BCC
Acknowledgements;
Dr Adam Marshall, Director of Policy and
External Affairs – BCC
Abigail Morris, Policy Advisor – BCC
Anne Tipple, National Skills Executive – BCC
Kamala Mackinnon, Policy Researcher – BCC
David Chong Ping, Senior Research Manager
– Research by Design
The British Chambers of Commerce
65 Petty France
St. James’s Park
London
SW1H 9EU
Tel: 020 7654 5800
Fax: 020 7654 5819
Email: [email protected]
Website: www.britishchambers.org.uk
Foreword p. 3
Executive Summary 4
•Summaryofmainfindings 4
•Summaryofrecommendations 5
Introduction 6
Chapter One: Business Confidence 8
•Difficultyinrecruitingnewstaffmembers 8
•Confidenceinrecruitingnewstaff
basedonqualifications 8
Chapter Two: Apprentices 13
•Whichbusinessesaretakingon
anapprentice? 13
•Whatincentivesaretheretotaking
onapprentices? 15
•Whatbarriersaretheretotaking
onanapprentice? 17
Chapter Three: Business Training 19
•Whatbudgetsdobusinesseshave
forstafftraining? 19
•Whattypesoftrainingdo
businessesoffer? 20
•Whichbusinessesengagewith
schools,collegesanduniversities? 22
Recommendations 24
Conclusion 26
About Us Contents
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A skilled workforce is fundamental to every successful business in the UK, and developing the
capability of our workforce is crucial for economic growth and international competitiveness.
Our members recognise the importance of investing in skills and training, even when times
are financially hard. Even though the businesses that we surveyed are keen to recruit new
staff members and expand, a lack of appropriate skills within the labour pool is limiting
business growth.
The Government’s sustained commitment to apprenticeship schemes is a step in the right
direction, but businesses must be given more support in developing and offering the highest
quality apprenticeships as well as other workplace based training programmes.
This report sets out recommendations to help resolve the skills shortage in the UK and
improve the employability of the British workforce.
John Longworth Director General British Chambers of Commerce
Foreword
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Exe
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The British Chambers of Commerce (BCC) undertook research with businesses of different sizes and sectors within the Chamber network to explore three areas of business training. Firstly, which levels of qualifications are businesses most confident in recruiting from? Secondly, which businesses are offering apprenticeship schemes? Finally, what training do businesses offer their staff, and how do they get involved in engaging with young people in education? These questions formed part of the BCC’s 2011 Workforce Survey, which was conducted between March 29th and April 15th 2011, and attracted 7149 responses.
Executive Summary
SUMMARY OF MAIN FINDINGS
• Businesses find it difficult to recruit the
right member of staff for vacant positions.
45.4% of businesses reported it very or
quite difficult to find the right member
staff for a position; only 27.8% find it very
or quite easy.
• Business confidence in qualifications is low
at all levels. 45% of businesses are very or
fairly confident in recruiting a graduate,
28.6% of businesses are very or fairly
confident in recruiting a school leaver with
A-Levels or equivalent. A further 19.8% of
businesses are very or fairly confident in
recruiting an ex-public sector worker. 10% of
businesses are very or fairly confident in
recruiting someone who has been
unemployed for six months or longer.
• Only a minority of businesses have taken
on an apprentice between March 2010 and
April 2011 and even fewer plan to over the
next 12 months. 20% of businesses have
taken on an apprentice between March
2010 and April 2011; more worryingly,
among businesses surveyed this figure will
drop to 15% over the next year.
• Many businesses do not see apprenticeships
as relevant to their business sector. Most
businesses (54%) stated that apprentices
are not relevant to their business sector as a
barrier to taking one on, suggesting not all
owners or managers realise the potential
of apprenticeships.
• Larger businesses are more likely than
smaller firms to offer formal training.
Larger businesses are more likely than
smaller companies to provide training for
their staff, engage with schools colleges
and universities and offer apprenticeship
schemes.
• The majority of businesses have a staff
training budget. Only 14% of businesses
have no training budget, showing that
companies of all sizes are investing in staff
even in strained economic times.
• The majority of businesses have some form
of engagement with schools, colleges and
universities. 65.4% of businesses offered
some form of work-related learning activity,
with work experience placements being the
most popular activity.
• Businesses that offer apprenticeship
programmes view them as beneficial to
their long-term development. Most
businesses (82%) took on an apprentice
to build the skills capacity within their
businesses. Firms that have taken on an
apprentice are more likely to want to
expand than businesses that have not
taken on an apprentice.
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SUMMARY OF RECOMMENDATIONS
(1) Apprenticeship frameworks must be more
adaptable to business needs. Rigid frameworks
have resulted in many businesses viewing
apprenticeships as irrelevant to their sector
or business. A modular system would enable
businesses to create specific frameworks
specialised to individual business needs.
(2) Young people must be supported to
develop employability skills as well as formal
qualifications. Business confidence in school
leavers is very low. Often this is because
professionalism or communication skills are
lacking. Within each core subject the
practicable application of the subject should
be part of the syllabus, allowing for greater
transfer of knowledge into skills that
businesses need. To date, the Department for
Education has not done enough to incorporate
enterprise skills and employability into the
main curriculum
(3) Public sector employees must have access
to guidance on CV writing and interview
technique. Businesses are not confident in
recruiting ex-public sector employees, but this
is not necessarily because public sector
workers’ skills are poor. Difficulties arise with
the different recruitment procedures between
the public and private sector. The Government,
as a major UK employer, must give public
sector workers access to training to assist the
expected shift from the public to the private
sector. This must be available to all public
sector workers and not just those who are
officially at risk of redundancy.
(4) The greatest potential to increase the
number of apprentices is in businesses with
100-249 employees. Businesses with between
100-249 staff members have more potential
capacity to take on apprentices, compared to
less well resourced and time constrained
smaller businesses. The National
Apprenticeship Service, Chambers of
Commerce and others must help to boost
take-up among these businesses.
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(5) The Government must encourage
more people to undertake high-level
apprenticeship schemes. If the number of
apprenticeship places increases as rapidly
as the Government predicts, it is likely that
this surge will be in low level apprentices
(below NVQ level 3). Higher priority must
be given to level 4 and above apprentices
in technology, engineering and science;
this has been one of the factors that has
enabled the German apprenticeship model
to succeed.
(6) Young people need to be given
independent careers advice. Businesses
believe that young people are not receiving
impartial careers advice, with some
businesses feeling that schools are steering
young people away from pursuing careers
in certain industries. All young people in full
time education need to have easy access
to impartial information and guidance.
Schools should be in control of these
programmes; however, their progress
should be supervised by OFSTED and with
significant input from Chambers of
Commerce and other organisations that
understand the opportunities available in
the local economy.
(7) Health and Safety regulations must not
prevent young people from gaining work
experience. Although it is important to
protect young people, and safety should
be a high priority, health and safety
regulations must not prevent businesses
from engaging with young people either
due to real or perceived barriers. Health
and Safety regulations and restrictions
must be clearly laid out for businesses,
specifically outlining what is required and
differentiating between the varying risks in
respective sectors. The Government must
also use its regulatory powers to ensure
that insurers do not unduly penalise or
overcharge employers that try to engage
more actively with young people and
school groups.
Inro
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It is a popular misconception that businesses complain about the skills set within the labour pool without taking a pro-active response to resolve the issue. In fact businesses have continually been at the heart of the training and skills system and are the single largest investor in training in the UK, far exceeding investment by the state.
Introduction
1. www.parliament.uk/briefing-papers/SN03052.pdf (pg9)2. http://readingroom.lsc.gov.uk/lsc/National/Apprenticeships_Literature_Review_final.pdf (pg12) 3. http://www.apprenticeships.org.uk/4. http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110714/text/110714w0003.htm#11071481000007
APPRENTICES
Apprenticeships can be traced back to the 1563
Elizabethan Statute of Artifices, which made it
illegal for anyone to practice a skill without
first serving under a master for seven years.
Even though the 1563 statue was repealed in
1814, apprentices have remained an integral
part the UK training and skills system.
With little reform, consecutive generations of
people learnt skills and gained qualifications
through apprenticeship courses; by the mid
1960s, nearly a third of male school leavers
in the UK entered apprenticeships1 . However,
the decline of heavy industry in the UK in the
1980s led to a reduction in the number of
businesses offering apprenticeship schemes.
By 1990 there were only 34,500 apprentices in
the UK2. In an attempt to increase the number
of people undertaking apprenticeships and to
improve the value of apprenticeship schemes,
the Major Government introduced Modern
Apprenticeships in 1996. This reform
dramatically expanded the range of
apprenticeship frameworks allowing for an
increasing number of businesses to offer
apprenticeship schemes. As of 2011, there are
220 apprenticeship frameworks in the UK3
and between August 2010 and April 2011, there
were 326,700 apprenticeship starts4.
Apprenticeships were further reformed under
New Labour. In 2004, the upper age limit of
apprentices was removed and Young
Apprenticeships for 14 to 16 year olds were
introduced, involving pupils spending up to
two days a week in the workplace learning a
trade. This greatly increased the number of
people eligible to undertake an apprenticeship
programme. It also, however had the
consequence of confusing the ‘apprenticeship’
brand, as more and more training schemes
came to use the name.
The Coalition Government has continued this
commitment to apprentices, pledging to
increase the number of apprenticeship
schemes up to 500,000 places by 2012. On
6th September 2011, Skills Minister John Hayes
MP announced measures aimed at reducing
the barriers to taking on an apprentice for
large businesses. These measures include a
reduction in duplication of work and
administrative duties; if realised, this should
significantly improve large employers’ ability
to offer apprenticeship programmes.
5In
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Whilst apprenticeships have been mainly
accessible by all, historically the formal
school education system was limited to only
the wealthy and privileged. Following
industrialisation however, British businesses
lobbied the Government to introduce
universal education, recognising the
importance of formal education in creating a
skilled workforce and a competitive
economy. In response Parliament passed the
1870 Education Act, the earliest piece of
legislation solely focused on nationwide
education. The Act introduced universal free,
secular, primary education. By 1880 primary
education was compulsory for all children
between the ages of five and ten.
74 years after the 1870 Education Act, the
Government attempted to remove the
inequalities that still existed in the education
system by implementing the 1944 Education
Act. Schools were divided into three main
streams; Grammar, Secondary and
Technical5. Admittance to these schools was
decided by academic selection; the 11 plus
exam. Comprehensive schools started to
emerge in England in the 1960s and were
not based on academic selection, but rather
catered for all abilities. From the 1970s
onwards comprehensive schools became
increasingly popular and eventually became
the core of English schooling, replacing
academic selection.
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5. Technical schools proved to be unpopular very few were set up, leaving Grammar and Secondary schools as the main educational institutions.6. http://www.parliament.uk/briefing-papers/SN02797.pdf7. http://www.education.gov.uk/rsgateway/DB/STR/d001019/osr13-2011t16.xls
Despite continued investment and high
priority for training and skills from
governments over the past 20 years, the
financial crisis has dramatically affected the
skills and labour make-up of the UK.
Unemployment between May and July 2011
stood at 7.9%6, and young people have been
disproportionately affected. Currently NEETS
(Not in Education, Employment or Training)
account for 16% of the population between
the ages of 16 and 24. The number of NEETs
in England between the ages of 16 and 24
has increased from 655,000 in 2000 to
979,000 in 20117. It is against this backdrop
that the BCC undertook its 2011 Workforce
Survey, including a number of questions on
apprenticeships and young people. The
results of the survey are detailed in the
subsequent chapters.
Chap
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DIFFICULTY IN RECRUITING NEW STAFF MEMBERS
Even though recent Government figures reveal high levels of unemployment, businesses are still finding it difficult to find the right member of staff for vacant positions.
Figure 1 demonstrates that more businesses find it very or fairly difficult to find the right member of staff than very or fairly easy. 45.4% of businesses find it very or quite difficult to find the right staff for the position compared to only 27.8% of businesses that find it very or quite easy. The Public, Education, Voluntary Services, Healthcare and Charities sector has the highest proportion of organisations that find it very or quite easy to recruit the right member of staff for the position. 42.2% of respondents in this sector stated that they find it very or quite easy to recruit the right staff for the position, but only between 23% and 32% of businesses in all other sectors said that they find it very or quite easy. The majority of businesses find it difficult to
recruit the right member of staff for the position.
CONFIDENCE IN RECRUITING NEW STAFF BASED ON QUALIFICATIONS
Chapter One: Business Confidence
very difficult
quite difficult
neither easy nor difficult
quite easy
very easy
Base: 5919
FIG 1. HOWDIFFICULTBUSINESSESFINDITTORECRUITTHERIGHTSTAFFFORTHEPOSITION.
Percentage of businesses
Level o
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0 5 10 15 20 25 30 35
Categories Base: 5800
FIG 2. PROPORTIONOFBUSINESSESTHATAREVERYORFAIRLYCONFIDENTINRECRUITINGINDIVIDUALSFROMDIFFERENTCATEGORIES
Ex-public sector employess
Graduates School leavers with A-Levels or
equivalent
Long term unemployed
School leavers with no qualifications
Perc
enta
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50
45
40
35
30
25
20
15
10
5
0
45%
28.6%
19.8%
10%7.3%
Not only do businesses find it difficult to recruit the right member of staff to fill vacancies,
they also are not confident in recruiting individuals with qualifications (see Figure 2).
Figure 2 demonstrates that business confidence is low across all categories; very few
businesses are very or fairly confident in recruiting any individuals within the categories
tested. Businesses have the highest confidence levels in graduates. However, only 45% of
businesses stated that they would be very or fairly confident in recruiting a graduate. Less
than a third (28.6%) of businesses stated that they would be very or fairly confident in
recruiting a school leaver with A-Levels or equivalent. Figure 2 further demonstrates a
correlation between how highly someone is educated and business confidence. The higher an
individual’s level of education, the more confident businesses are in recruiting them. Only a
minority of businesses, however, would be very or fairly confident in recruiting an individual
from any of the categories tested.
Figure 3 demonstrates that as staff sizes increase, so does business confidence in graduates.
There is a similar link between confidence levels in school leavers with A-Levels or equivalent,
although the pattern is not as strong.
Nationally a minority of businesses are very or fairly confident in recruiting a graduate. However,
once staff size increases to 50 employees or more, there is a one-in-two chance that businesses
are either very or fairly confident in recruiting a graduate. Business confidence in school leavers
with qualifications up to A-Levels or equivalent is also related to business size. Only 20.1% of
businesses with 1 to 4 employees are very or fairly confident in recruiting an individual in this
category however, 37% of companies with 250+ employees are very or fairly confident. Larger
businesses are more confident in recruiting a graduate than smaller firms.
This business size divergence however, did not occur with school leavers with no qualifications.
Less than 9% of all businesses are very or fairly confident in school leavers with no qualifications.
Figure 3 demonstrates there is no clear pattern between business size and confidence in school
leavers with no qualifications; business confidence in this group is low across all category sizes.
This is hugely concerning for young people with no qualifications who are trying to enter the
labour market. A report 8 commissioned by the Government and published in March 2011
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8. http://www.education.gov.uk/inthenews/inthenews/a0075181/wolf-review-proposes-major-reform-of-vocational-education
Employee size Base: 5772
FIG 3. BUSINESSESTHATAREEITHERVERYORFAIRLYCONFIDENTINPEOPLEWITHVARYINGLEVELSOFQUALIFICATIONS
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enta
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70
60
50
40
30
20
10
0
School leavers with no qualifications
School leavers with A-Levels or equivalent Graduates
Chap
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outlined that 45% of school leavers did not achieve a ‘C’ in GCSE English and Maths at 16 and
very few (four per cent) of those who fail go on to achieve this from 16 - 19. This constitutes a
large number of young people with low levels of qualifications who will have great difficulty
entering the labour market.
Business confidence in ex-public sector employees varies according to business size. Just a
third (33%) of businesses with 250+ employees are either very or fairly confident in recruiting
an ex-public sector employee, this falls to 19% for businesses with 1 to 4 employees. Confidence
levels across all skill categories increased as business size increased. Chapter Three of this report
demonstrates that larger businesses are more likely to offer training to their staff and have
larger training budgets. This may explain why larger businesses have higher levels of confidence
in recruiting new members of staff as they have greater resources to train individuals and meet
the needs of the organisation. Much of this however, is to do with smaller businesses perception
of the qualification system, rather than the quality of the grades awarded.
Further divergences emerged when a sector breakdown was tiered (See Figure 4).
Figure 4 demonstrates which business sectors have the highest and lowest confidence in the
different qualification/experience categories. School leavers with no qualifications and school
leavers with A-Levels or equivalent received the highest level of confidence from the Hotels,
Restaurant and Leisure sector. Ex-public sector workers and the long term unemployed
received the highest level of confidence from the Public, Education, Voluntary Services,
Healthcare and Charities sector. The Marketing, Media and Research sector had the highest
confidence levels in graduates.
Unsurprisingly, the sector that has the most confidence in ex-public sector workers is the Public,
Education, Voluntary Services, Healthcare and Charities sector. 42% of businesses in this sector
are either very or fairly confident in hiring an ex-public sector employee. Individuals from this
category have experience of working in this sector and should have the necessary skills that
businesses or other organisations are looking for in potential employees.
Base: 5772
FIG 4. BUSINESSSECTORSTHATAREVERYORFAIRLYCONFIDENTINRECRUITINGINDIVIDUALSINTHEDIFFERENTQUALIFICATION/EXPERIENCECATEGORIES
Highest confidence Lowest confidence
School leavers with School leavers with Ex-public Long-term
Business Sector no qualifications A-Levels or equivalent Graduates sector workers unemployed
Manufacturing, Engineering,
Construction and Electrical 7.2% 30.7% 44.5% 12.2% 7.3%
Marketing, Media and Research 4.8.% 18.8% 50.0% 17.3% 8.9%
Business and Professional services 3.8% 22.6% 43.6% 15.9% 7.2%
Hotels, Restaurants and Leisure 14.4% 37.4% 48.2% 27.6% 16.3%
Transport, Export, Storage,
Retail and Wholesale 10.1% 34.0% 43.8% 19.2% 10.6%
Public, Education, Voluntary
services, Healthcare and charities 6.5% 28.8% 48.7% 42% 17.6%
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The Public, Education, Voluntary Services, Healthcare, and Charities sector however, is more
confident in recruiting a graduate than an ex-public sector worker. 48.7% of businesses in this
sector stated that they would be very or fairly confident in recruiting a graduate. In light of the
Government’s austerity measures, which include reductions in public spending and potential
redundancies among public sector workers, it may be difficult for ex-public sector workers to
find work in the private sector, as very few firms are confident in recruiting an ex-public sector
worker. Government figures reveal that between March and June 2011 employment in the public
sector dropped by 110,000, while just 41,000 new jobs were created in the private sector9. This
will further increase the difficulty for public sector employees finding work in the private sector.
Figure 5 demonstrates that businesses have similar levels of confidence in ex-public sector
workers and the long-term unemployed. However, a higher proportion of businesses are more
confident in recruiting an ex-public sector worker than someone who has been unemployed on
a long term basis. Only 19.8% of businesses stated that they would be very or fairly confident in
recruiting an ex-public sector worker and 10% in recruiting someone who has been unemployed
for 6 months or longer. A further 41% of businesses stated that they would be very or fairly
nervous about recruiting an ex-public sector worker and 52% of businesses are very or fairly
nervous about recruiting someone who has been unemployed on a long-term basis.
The low levels of confidence with regard to ex-public sector workers however, may not
necessarily be representative of the skills that they have, but rather business perception. Lack of
understanding of job titles and responsibilities of public sector workers within the private sector
creates a lack of understanding and negative perception of public sector employees.
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9. http://www.ons.gov.uk/ons/dcp171766_231681.pdf
Perc
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Confidence levels Base: 5790
FIG 5. OVERALLCONFIDENCELEVELSINEX-PUBLICSECTOREMPLOYEESANDTHELONG-TERMUNEMPLOYEDCOMPARED
Neither confident or nervous
Very confident
Fairly confident
Fairly nervous
Very nervous
40
35
30
25
20
15
10
5
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Ex-Public sector Long term unemployed
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Figure 6 demonstrates that for businesses that wish to increase staffing by 50% or more,
businesses have the highest confidence levels in graduates. However, only a minority (42%) of
businesses that want to expand their business size by 50% stated that they would be very or
fairly confident in recruiting a graduate. 17% of businesses nationally planned on expanding
their staff sizes beyond 50%. For businesses that are very or fairly confident in recruiting a
graduate, a significantly higher proportion of businesses wanted to increase their staff levels
beyond 50% compared to the national average.
Businesses that plan to grow their staff have very low levels of confidence in school leavers with
no qualifications and school leavers with A-Levels or equivalent. 70% of businesses that want to
increase their staff levels 50% or more stated that they would be very or fairly nervous about
recruiting a school leaver with no qualifications, a further 45% stated that they would be very or
fairly nervous about recruiting a school leaver with A-Levels or equivalent. This is particularly
concerning as businesses have low confidence in every form of qualification apart from degree
level. Business confidence in other qualifications beyond university level is fundamental if youth
employment levels are to improve.
FIG 6. BUSINESSESTHATWANTTOEXPANDSTAFFSIZEBY50%+ANDAREVERYORFAIRLYCONFIDENTINHIRINGPEOPLEFROMTHECATEGORIESTESTED
Base: 5790
Long term unemployed (6 months or more)
School leavers with no qualifications
School leavers with qualifications
up to A-Level or equivalentEx-public sector
employees
10%
Graduates 42.2%
7.4%
21.7%19.6%
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WHICH BUSINESSES ARE TAKING ON AN APPRENTICE?
The majority of businesses surveyed have not taken on an apprentice from March 2010 to April
2011. Only 20% of businesses stated that they have taken on an apprentice during this period.
Figure 7 demonstrates, however, that the likelihood of a business taking on an apprentice is
related to staff size. Only a minority (7%) of businesses with 1 to 4 employees have taken on an
apprentice in the last 12 months, however the majority (54%) of businesses with 250+
employees have taken on an apprentice (See Figure 7).
Whilst nationally the majority of businesses have not taken on an apprentice on from March
2010 to April 2011, there is a reduction in the proportion of businesses planning to take on an
apprentice. 20% of businesses stated that they had taken on an apprentice over the outlined
period; however, only 15% of businesses planned to take on an apprentice in the ensuing 12
months, a massive 25% drop over a 12 month period (See Figure 8).
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Chapter Two: Apprentices
Employee size Base: 5942
FIG 7. BUSINESSESTHATHAVETAKENONANAPPRENTICEINTHELAST12MONTHS,BROKENDOWNBYBUSINESSSIZE.
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
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60
50
40
30
20
10
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FIG 8. BUSINESSESTHATPLANTOTAKEONANAPPRENTICEINTHENEXT12MONTHSCOMPAREDTOTHEPREVIOUS12MONTHS
Have taken an apprentice on in the last 12 months
Plan to take an apprentice on in the next 12 months
Base: 5942
20%15%
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The majority of business size categories reported a decrease in the number of apprentices
being taken on in the next year (See Figure 9). Businesses with between 1 to 4 employees,
however, reported an increase, 7% of businesses in this category have taken on an apprentice in
the last 12 months, however, 8.8% plan to take on an apprentice in the next year. The most
popular reason for taking on an apprentice in this size category is to build the skills capacity
within the company. This suggests that a small but growing number of businesses see
apprentices as a tool for growth.
Figure 9 further demonstrates that the likelihood of businesses offering an apprenticeship
scheme is related to business size. The larger the company, the more likely it is to offer an
apprenticeship scheme. Only 7% of businesses with 1 to 4 employees have taken on an
apprentice in the last 12 months but 54.2% of businesses with 250+ employees have taken on
an apprentice. This business size divergence, however, is not as steep for businesses that plan to
take on an apprentice in the next year. The size difference is still present, but is shallower across
the different business size categories. A significant proportion of larger businesses are not
planning to take on an apprentice over the next 12 months.
All sectors, apart from the Marketing, Media and Research sector, reported a decrease in the
number of apprentices being taken on in previous 12 months compared to ensuing 12 months.
The Marketing, Media and Research sector listed an increase of 22% in the proportion of
businesses taking on an apprentice. The figure will rise from 9% this year to 11% next year
(see Figure 10).
FIG 9. PROPORTIONOFBUSINESSESTHATHAVETAKENONANAPPRENTICEINTHELAST12MONTHS,COMPAREDTOPROPORTIONOFBUSINESSESTHATPLANTOTAKEONANAPPRENTICEINTHENEXT12MONTHS
Employee size Base: 5942
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
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60
50
40
30
20
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Have taken an apprentice on in the last 12 months
Plan to take an apprentice on in the next 12 months
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The traditionally apprentice friendly Manufacturing, Engineering, Construction and Electrical
sector was not the most likely to offer apprenticeship schemes, but rather the Public, Education,
Voluntary services, Healthcare and Charities sector. This pattern did change, however, with
businesses that plan to take on an apprentice in the next 12 months. The Manufacturing,
Engineering, Construction and Electrical sector has the highest (22.5%) proportion of
businesses planning on taking on an apprentice in the next 12 months. Only up to 14% of all
other sectors are planning on taking on an apprentice in the next 12 months, a very low
proportion despite the expansion of the number of places available and the high priority that
the Government has given to apprenticeships. If businesses are unenthusiastic about taking on
an apprentice or face too many barriers, it is unlikely that the Government’s policy to increase
the number of apprenticeship schemes will succeed.
WHAT INCENTIVES ARE THERE TO TAKING ON APPRENTICES?
The most popular reason why businesses take on an apprentice is to build the skills capacity
within their organisation (See Figure 11).
Figure 11 demonstrates that building the skills capacity within the company (82%) was by far
the most popular reason businesses gave for taking on an apprentice.
15
FIG 10. BUSINESSESINTHEMARKETING,MEDIAANDRESEARCHSECTORTHATPLANTOTAKEONANAPPRENTICEINTHENEXT12MONTHSCOMPAREDTOTHEPREVIOUS12MONTHS
Plan to take on an apprentice in the next year
Have taken an apprentice on in the last year
Base: 299
11%9%
FIG 11. REASONSWHYBUSINESSESDECIDEDTOTAKEONANAPPRENTICE
Incentives to taking on an apprentice Base: 1746
Build loyalty
Building skills capacity
within the company
Civic duty / help local economy
Lower wage costs
Buildi skills capacity
within the industry
Encouraged by training provider
Perc
enta
ge o
f b
usi
ness
es
90
80
70
60
50
40
30
20
10
0
Chap
ter
Two
:Ap
pre
nti
ces
16
Businesses feel that taking on an apprentice is a form of investment in their organisation and
will increase the skill levels of their employees. The majority of companies that took on an
apprentice to build the skills capacity within the company wanted to increase their staff size,
17% of businesses wanted to expand staff levels beyond 50%, a further 51% wanted to increase
staff levels up to 50%. Only 3.9% of businesses that utilised apprentices to boost the skills
capacity within their firm wanted to decrease their company’s staff size.
For businesses that took on an apprentice to build the skills capacity in the company the
majority (68%) wanted to increase staff levels, higher than the national average of 64%.
Encouraged by a training provider (14%) was the least popular reason given to take on an
apprentice. Businesses see taking on an apprentice as a tool for growth; encouragement
from training providers was not as significant an influence for businesses to take on an
apprentice as building skills levels within the organisation. Many businesses however may
have been convinced by a training provider that taking on an apprentice would increase the
skills capacity within their organisation and listed this as the reason why they took on an
apprentice. Therefore the role of training providers in convincing businesses to take on an
apprentice may be understated.
Some businesses stated that taking on an apprentice is part of their workforce planning.
One organisation stated that they are planning to take on an apprentice because “one
employee is coming up to retirement.” Another business said that, “Apprenticeships are an
excellent way to transfer skills from older staff to new recruits”, thus retaining the skills set
within the organisation.
One business that only has 30 members of staff but has taken on five apprentices argues
that apprentices are a useful way of testing potential members of staff before committing
to permanent contracts.
BUSINESSESTHATLISTEDBUILDSKILLCAPACITYWITHINTHECOMPANYASANINCENTIVEFORTAKINGONANAPPRENTICEANDAMBITIONSFORGROWTH.
BUSINESSESTHATHAVETAKENONANAPPRENTICEINTHELAST12MONTHSANDAMBITIONSFORGROWTH
FIG 12.
Increase staff size Increase staff size
68.3% 64.2%
3.9% 5.5%
Base: 1746 Base: 5942Decrease staff size Decrease staff size
5C
hap
terTw
o:A
pp
rentic
es
WHAT BARRIERS ARE THERE TO TAKING ON AN APPRENTICE?
The removal of the default retirement age was listed as a barrier to taking on an apprentice. Staff
staying on at an organisation beyond their expected retirement date has reduced the capacity
and ability for businesses to take on an apprentice. A medium-sized 10 business stated, “Default
retirement changes mean we cannot now gear apprenticeships to employee retirements”.
The most common barrier businesses listed to taking on an apprentice was not relevant to your
business sector (54%). Surprisingly 39% of the Manufacturing, Engineering, Construction,
Electrical sector stated that apprentices were not relevant to their sector, despite the fact that
apprenticeship programmes originated from the engineering sector, and most professional
qualifications and training for this sector are achieved through apprenticeship training schemes.
This suggests that further promotion and education among businesses is needed.
Businesses noted that regulation was preventing them from taking on an apprentice, including
the removal of the default retirement age (see above) and restrictions derived from health
and safety regulation. One business stated that it is “impractical for our sector, they need to
be licensed to work and there would be an 8 week gap to commence as minimum”. Another
business stated that “apprentices may not be allowed to undertake the work we do until age
18”. A further business stated “Regulatory burden – if they were not good enough it would be
difficult to sack them”, as a barrier to taking on an apprentice. Some of these are real barriers,
and others are perceptions, leading to business pessimism.
Similar proportions of businesses listed training time/time constraints (20.5%), costs (20.2%)
and no previous experience to taking on an apprentice (19.6%) as barriers to taking on an
apprentice. Out of these three reasons, however, there was a clear business size divergence.
17
10. Business with between 50 to 249 employees
4.7%
10.5%
19.6%
20.2%
20.5%
53.7%
Lack of relevant training programmes available in your local area
Lack of relevant training programmes available for your business sector
No previous experience in taking on an apprentice
Costs
Training time/time constraints
Not relevant to your business/sector
Base: 3758Percentage of businesses
FIG 13. BARRIERSTOBUSINESSESTOTAKINGONANAPPRENTICE
Barr
iers
to
takin
g o
n a
n a
pp
ren
tice
0 10 20 30 40 50 60
Chap
ter
Thre
e:B
usi
ness
Tra
inin
g18
Figure 14 demonstrates that a similar proportion of businesses from each business size list costs
as a barrier to taking on an apprentice. However, the proportion of businesses that list costs as
a barrier significantly drops when staff sizes reach 250+ employees. Economies of scale would
dictate that costs as a barrier would gradually decrease as business size increased; however;
similar proportions of businesses with 1 to 249 employees state that costs is a barrier,
suggesting that it is not just micro firms that perceive cost as a factor stopping them using
apprenticeship schemes.
Between 19-22% of businesses with 1 to 249 employees listed cost as a barrier to taking on an
apprentice however; only 11% of businesses with 250+ employees list cost as a barrier to taking
on an apprentice. A similar pattern emerged, with businesses that list training time/time
constraints as a barrier. Between 17-23% of businesses with 1-249 employees’ list training time/
time constraints as a barrier, however only 5% of businesses with 250+ employees list time
constraints as a barrier. The same pattern is also present among businesses that list no previous
experience in taking on an apprentice; between 18-22% of businesses with 1-249 employees
stated no previous experience in taking on an apprentice as a barrier; however, only 12% of
businesses with 250+ employees list this as a barrier. Once business size reaches 250+
employees, companies have the capacity and resources to provide adequate budgets and time
to apprenticeship schemes. The large difference between businesses with 250 and 100-249 is
surprising. This suggests that there is potential for additional capacity in the latter category, and
that more can be done to help medium sized companies to take on an apprentice when
considering future staffing levels.
Only 13% of micro businesses that have taken on an apprentice in the last 12 months have a
training budget of over £500 per employee; 27% of small businesses and 46% of medium-sized
businesses spend over £500 per employee on training. This demonstrates very clearly the
differing needs of small and large businesses. Large businesses are more likely to have the
experience, time and resources to provide additional/ extra training to new apprentices, whilst
smaller companies are less likely to do so.
Employee size Base: 759
FIG 14. BUSINESSESTHATLISTCOSTASABARRIERTOTAKINGONANAPPRENTICE.
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enta
ge o
f b
usi
ness
es
25
20
15
10
5
0
5C
hap
terT
hre
e:B
usin
essTra
inin
g
WHAT BUDGETS DO BUSINESSES HAVE FOR STAFF TRAINING?
The majority of businesses that we surveyed have some form of training budget, only 14% have
no staff training budget at all. However, there is a clear relationship between business size and
the likelihood of a business having no staff training budget (See Figure 15).
Figure 15 demonstrates a pattern between business size and likelihood of a company having no
training budget per employee. Over a quarter (26%) of smaller businesses with 1 to 4 employees
have no budget for training; however, only 1% of businesses with 250+ employees have no
training budget for employees. Once a budget is introduced, the divide between small and
large businesses closes and there does not seem to be a relationship. However, budgets per
head for larger firms are slightly higher than smaller firms. The most popular response that
businesses gave was that their budget per employee varied; 29.4% of businesses have a varied
training budget.
Differing sectors have a similar spend in all budget categories, apart from when businesses
spend more than £500 per employee (see Figure 16).
Figure 16 demonstrates that the Business and Professional Services sector was the most likely
to spend over £500 per employee. A fifth (20%) of businesses in this sector stated that they
spent over £500. The Hotels, Restaurant and Leisure sector was the least likely to spend over
£500 per employee; only 5% of businesses stated that they spent this much on staff training.
The Hotels, Restaurants and Leisure sector also differed from other sectors, in that sector
specific training/professional qualifications (see below) is the most common training type after
induction and on the job training, however, NVQ levels 1 to 3 is the most popular training type
after induction and on the job training within this sector. This may be explained by the higher
confidence levels in school leavers with no qualifications (See Chapter One) and the need for
intermediate level training, compared to other sectors that are less likely to hire a school leaver
with no qualifications.
19
Chapter Three: Business Training
Employee size Base: 5959
FIG 15. PERCENTAGEOFBUSINESSESWITHNOTRAININGBUDGET
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enta
ge o
f b
usi
ness
es
25
20
15
10
5
0
Chap
ter
Thre
e:B
usi
ness
Tra
inin
g20
WHAT TYPES OF TRAINING DO BUSINESSES OFFER?
The most popular training types offered by businesses across all sizes and sectors are on the
job training and induction training. 92% of businesses offered on the job training and 70% of
businesses offered inductions to new members of staff, suggesting these two training types are
standard forms of training. The popularity of these two training types may be explained by the
breadth of training types that can fall under these two categories. The cost of in house training
compared to more formal, external and qualification-focused forms of training may further
explain why these two types of training are so popular among businesses.
After the two ‘standard’ forms of training, sector specific training/professional qualifications
was the most popular training type among businesses (53%).
FIG 17. PERCENTAGEOFBUSINESSESOFFERINGSECTORSPECIFICTRAINING/PROFESSIONALQUALIFICATIONS
Employee size Base: 5959
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enta
ge o
f b
usi
ness
es
90
80
70
60
50
40
30
20
10
0
19.5%
11.9%
10.6%
9.7%
7.5%
4.7%
Base: 3758Percentage of businesses
FIG 16. BARRIERSTOBUSINESSESTOTAKINGONANAPPRENTICE
Barr
iers
to
takin
g o
n a
n a
pp
renti
ce
0 5 10 15 20
business/professional services
pub/vol services/edu/train/health
manu/eng/const/elec
marketing/media/research
trans/dist/stor/ret/w’sale/exp/imp
hotels/restaurant/leisure
5C
hap
terT
hre
e:B
usin
essTra
inin
gFigure 17 demonstrates the correlation between business size and likelihood of offering sector
specific training/professional qualifications. A higher proportion of medium-sized and larger
firms offer their staff sector specific training/professional qualifications compared to smaller
firms. Once staff levels reach 10 members or above, there is more than a one in two probability
that a business will offer this training type to their staff.
The likelihood of being offered specialised training varied according to the sector that
businesses are in. The Public, Education, Voluntary Services, Healthcare and Charities sector
and the Business and Professional Services sectors are the most likely to offer this form of
training. 70% of the former and 66% of the latter offered sector specific training/professional
qualifications to their employees. The Transport, Export, Voluntary Services, Healthcare and
Charities sector was the least likely to offer this training type; only a minority, 39% of
businesses, offered this type of training.
After the standard training types, sector specific training/professional qualifications was the
most popular training type among businesses that wanted to expand staff sizes. 58% of
businesses that wanted to increase their staff levels up to 50% offered sector specific training/
professional qualifications.
Figure 18 demonstrates that, out of businesses that offered sector specific training/professional
qualifications to their staff, the majority wanted to increase the size of their workforce. Only
4.5% of businesses that offered sector specific training/professional qualifications training
wanted to decrease their staff sizes. Next to the standard training types of on the job and
induction training, sector specific training/professional qualifications was the most common
training type for businesses that wanted to increase their staff sizes.
45.7% of businesses that offer sector specific training plan to increase the employee staff size
up to 50%. Nationally only 42% of businesses wanted to increase their business size up to 50%.
A larger proportion of businesses that offer sector specific training to their staff want to
increase their business size compared to the national proportion of businesses that want to
increase their business size.
21
Perc
enta
ge o
f b
usi
ness
es
FIG 18. BUSINESSESTHATOFFERSECTORSPECIFICTRAININGANDAMBITIONSOFGROWTH
Stay the sameIncrease staff sizes over 50%
Increase of up to 50%
Decrease
50
45
40
35
30
25
20
10
5
0
Ambitions for growth Base: 3178
15.9%
45.7%
24.5%
4.5%
Chap
ter
Thre
e:B
usi
ness
Tra
inin
g22
WHICH BUSINESSES ENGAGE WITH SCHOOLS, COLLEGES AND UNIVERSITIES?
Approximately two thirds (65.4%) of businesses have some form of engagement with schools,
colleges and universities. Whilst a majority of businesses had some form of engagement, there
was a clear business size divergence. Small companies, as might be expected, are less likely to
engage with schools, colleges or universities than larger firms (See Figure 19).
Figure 19 demonstrates the clear divergence between large and small companies that offer no
work related learning activities. Over half (57%) of businesses with 1 to 4 employees had no
engagement with schools, colleges and universities, but only 5.4% of businesses with 250+
employees did not offer any. The Transport, Export, Storage, Retail and Wholesale sector (48%)
is the least likely to engage with schools, colleges or universities, and the Public, Education,
FIG 19. COMPANIESTHATDIDNOTOFFERANYFORMOFWORKRELATEDLEARNINGACTIVITIES
Employee size Base: 2040
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enta
ge o
f b
usi
ness
es
that
did
no
t o
ffer
wo
rk r
ela
ted
learn
ing
acti
vit
ies
60
50
40
30
20
10
0
FIG 20. PERCENTAGEOFBUSINESSESTHATOFFERWORKEXPERIENCEPLACEMENTS
Employee size Base: 5891
10 to 491 to 4 5 to 9 50 to 99 100 to 249 250+
Perc
enatg
e o
f b
usi
ness
es
wo
rk
exp
eri
ence p
lacem
ents
100
80
60
40
20
0
5C
hap
terT
hre
e:B
usin
essTra
inin
gVoluntary Services, Healthcare and Charities sector is the most likely to engage with schools,
colleges or universities. Only 22% of businesses in this sector did not offer any work related
learning activities. However, the majority of businesses across the band offered some form of
work related learning activity.
The most popular form of work related training activity that businesses offered is work
experience placements. The majority of firms (56%) offered work experience placements.
Figure 20 demonstrates, however, that larger companies are more likely to offer work experience
placements than small businesses. 87.7% of businesses with 250+ employees offered work
experience placements but only 28.5% of businesses with 1 to 4 employees did. Only a third
(34.6%) of businesses offered no form of work related learning activity.
Figure 21 demonstrates that similar proportions of businesses in each sector offered work
experience placements. The Hotels, Restaurants and Leisure and Public, Education, Voluntary
Services, Healthcare and Charities sectors are the most likely to offer work experience
placements. Just under a third (31.4%) of businesses have no form of engagement with schools,
colleges or universities, although the majority of businesses have some form of engagement.
For businesses that want to increase staff sizes up to up to 50%, work experience placements
(61.6%) are the most common work related learning activity.
A few businesses noted that they used to offer work experience placements, however, these
schemes had to stop because of increasing regulations and restrictions. One business stated
that, they “used to offer work experience and visits- not any more due to health and safety, red
tape and paper work”. Another business stated they “used to support work experience
students, but health and safety regulations make it impossible to offer this scheme now”.
Increasing regulation, perceptions of regulatory enforcement and fear of litigation has made it
difficult for young people to gain experience of a working environment before leaving school,
despite business interest.
23
FIG 21. SECTORSPREADOFBUSINESSESTHATOFFEREDWORKEXPERIENCEPLACEMENTS
71.8%
62.5%
59.4%
57.5%
50%
46.8
hotels/restaurant/leisure
pub/vol services/edu/train/health
manu/eng/const/elec
marketing/media/research
business/professional services
trans/dist/stor/ret/w’sale/exp/imp
Base: 3297Percentage of businesses
Busi
ness
secto
r
0 10 20 30 40 50 60 70 80
Reco
mm
end
ati
ons
24
Recommendations This report has highlighted several areas of concern for businesses in which the skills system is failing
to meet business needs. Whilst some of these issues are the result of perceptions within the business
community, which could in part be resolved through better marketing or increased awareness, other
areas need fundamental reform. Below are listed the most important concerns outlined in this report
and recommendations for how to resolve these problems.
123
APPRENTICES FRAMEWORKS MUST BE MORE FLEXIBLE (1) Issue – The majority of businesses (53.7%) stated that apprenticeship programmes are not relevant to their business sector, however businesses that did take on an apprentice saw it as a tool to grow their company. Apprenticeship frameworks are produced too slowly for constantly evolving industries, reducing their relevance to certain sectors. The marketing of apprentices may also, in some sectors, not be appropriately targeted.
Action Required – Apprenticeship frameworks need to be reformed to be more responsive and adaptable, quickly responding to changing needs of businesses. The Department for Businesses Innovation and Skills needs to work closely with UKCES, NAS and the Sector Skills Council in order to improve the adaptability and relevance of apprenticeship frameworks.
Recommendation – Apprenticeship frameworks should be more modular, allowing businesses to select different aspects of different frameworks. Businesses will then be able to create new frameworks that can specifically match the needs of their business and respond to the changing technologies and techniques of the business.
YOUNG PEOPLE MUST BE SUPPORTED TO DEVELOP EMPLOYABILITY SKILLS (2) Issue – As has been widely reported the education system is failing to provide young people with the skills that businesses are looking for. These include poor numeracy and literacy levels as well as the softer skills such as professionalism or communication skills. Interview technique and CV writing is also often poor.
Action required – Employable and basic enterprise skills need to be taught to young people in schools in order to prepare them for the work-place. The Department of Education needs to review the content and delivery of core subjects.
Recommendations – Within each core subject taught in schools, the practicable application of the subject should be a key part of the syllabus, so that young people can transfer what they learn into employable skills that businesses are looking for. For example business economics should be taught alongside theoretical maths to complement the existing syllabus. There is too much emphasis on exam results and not enough on the transfer of learning to practical contexts.
PUBLIC SECTOR EMPLOYEES NEED ACCESS TO GUIDANCE ON CV WRITING AND INTERVIEW TECHNIQUE (3) Issue – BCC’s survey shows that very few businesses are confident in recruiting an ex-public sector employee. Only 19.8% of businesses would be very or fairly confident in recruiting an ex-public sector employee. The problem is not necessarily with public sector workers skills, but rather the differences in recruitment procedures between the private and public sector.
Action Required – Public sector workers need to have the opportunity to be retrained, allowing for better fluidity between private and public sector employment. The Cabinet Secretary, together with DWP and REC must create an effective training programme that will assist public sector workers planning on entering the private sector.
Recommendations – All public sector workers must be offered retraining to increase business confidence in recruiting an ex-public sector employee. CV writing and recruiting methods differ greatly between the public and private sectors. The Government, as a major UK employer, should ensure that outgoing public sector employees have access to support in entering the private sector jobs market. This must not be restricted to those that are officially at risk of redundancy, but all civil servants who express an interest.
5R
eco
mm
end
atio
ns
25
7654
BUSINESS WITH 100-249 EMPLOYEES MUST BE TARGETED TO BOOST APPRENTICESHIPS (4) Issue – Only a minority of firms in each business size category have taken on an apprentice, until staff levels hit 250 members where over 50% of firms have taken on an apprentice. Our results suggest that medium-sized firms with between 100 to 249 members of staff may have some capacity to take on an apprentice.
Action required – Businesses with 100-249 employees should be targeted in the first instance as part of the drive to increase apprenticeships, before smaller, less well-resourced businesses. The Department of Business Innovation and Skills must take responsibility for this, working through the SFA and NAS.
Recommendations – Businesses with 100 to 249 employees should be specifically targeted by training providers to take on an apprentice before smaller companies. These medium sized businesses should further be encouraged to offer high level apprenticeship schemes when seeking to develop new skills or manage workforce changes.
HIGH LEVEL APPRENTICESHIP SCHEMES MUST BE PRIORITISED (5) Issue – The BCC fully supports the Government’s commitment to increase the number of apprenticeship places within the next year. However, we do hold concerns that if the number of apprentices being taken on increases as the Government predicts, this surge will occur in lower end apprentices, with little change in the number of high end apprenticeship places.
Action Required – The Government needs to promote high end apprenticeship schemes, ensuring that the maximum number of people undertake high end apprentices. The Department of Business Innovation and Skills and the National Apprenticeship Service, should encourage and facilitate the delivery of high end apprenticeship programmes.
Recommendations – There needs to be further encouragement of apprentices undertaking courses in the engineering, science and technology sectors. In order to train a high quantity highly skilled technicians, engineers and administration staff that meet business needs.
YOUNG PEOPLE MUST BE GIVEN INDEPENDENT CAREERS ADVICE (6) Issue – Businesses have raised the issue that young people are not receiving impartial advice on possible career opportunities. Young people are not being encouraged to pursue careers in certain industries and sectors by their teachers. This is particularly acute with the smaller amount of young women entering certain professions compared to men, with many industries still male dominated.
Action required – Within the National Careers Service, impartiality of guidance must be maintained and operate within an agreed quality assurance mechanism. Schools need guidance and support on what it is they are responsible for and the procurement, management and quality assurance of externally provided careers services. The Department of Education must encourage the impartiality of careers guidance within schools.
Recommendations – Schools must give independent advice to young people ensuring that certain career paths are not promoted over others. Schools should have general control of this service, however it should be monitored by OFSTED working with Chambers of Commerce, LEPs and others in the business community. It should further be encouraged that schools facilitate as much as possible face to face contact with a range of businesses, allowing for wide ranging impartial guidance and exposure to potential careers paths.
HEALTH AND SAFETY REGULATIONS MUST NOT HARM WORK EXPERIENCE OPPORTUNITIES (7) Issue – Many businesses that took part in our survey argued that health and safety regulations are affecting their ability to offer work experience placements and apprenticeship schemes. Although it is important to protect young people from harm and the safety of employees in the workplace, this must not act as a barrier to businesses offering training, either in reality or perception.
Action required – The Health and Safety executive must simplify health and safety regulations so businesses can understand the regulations more easily.
Recommendations – Lack of awareness and understanding within the business community can lead to instances of over-caution, in which businesses do not want to risk fines or being sued if health and safety standards are not met. The BCC argues that guidelines need to be outlined more clearly, differentiating between low and high risk situations. Industries need to be specifically targeted clearly outlining regulations and expectations of businesses. This recommendation must be considered as part of the Lofstedt review.
Co
nclu
sio
n26
CONCLUSION
Even though the UK currently has a slack labour market, businesses argue that there is a severe
lack of the skills that suit their needs. Furthermore, confidence in recruiting individuals that have
recently left the education system is low across all businesses. This raises serious implications
for the UK labour market in the medium and long-term, with young people, in particular, likely
to face significant challenges moving into employment. Whilst apprenticeships may present
an excellent opportunity for young people to get that first step on the ladder, this report found
that, despite extensive Government encouragement, businesses are finding it increasingly
difficult to offer apprenticeships to young people.
There is a clear divergence between the Government’s push on apprenticeships and businesses’
desire to use them in the coming months. Failure to match classroom training outcomes with
specific business needs has reduced the relevance of apprenticeship schemes to businesses.
The design and delivery of apprenticeships must be reformed in order to suit the needs of
businesses rather than the needs of the learner or provider.
The majority of businesses offered some form of engagement with schools, colleges and
universities; however, the likelihood of engagement is related to business size. Larger businesses
are more likely to have some form of engagement with schools, colleges and universities than
smaller companies. Work experience placements are the most popular form of engagement.
It is promising that businesses are engaging with schools, colleges and universities however our
evidence suggests placements alone will not solve the problem of business confidence in young
people. Whilst they present a good opportunity for people trying to enter employment, gain
experience and develop soft skills, work experience placements alone are unlikely to be the
solution to the low level of confidence that British businesses have in recruiting school leavers.
This study importantly demonstrates that businesses are training staff; engaging with schools,
colleges, and universities; and those that do take on an apprentice do so because they
recognise the additional value that apprentices add to their business. Whilst it is encouraging
that businesses are improving the value of many training courses through engaging with
schools, colleges and universities, more needs to be done to improve businesses involvement
with the skills system. This is particularly acute in light of the Government decision to increase
university fees, which is expected to result in a decrease in the number of people applying
for university and instead pursuing alternative career paths.
ABBREVIATION DEFINITION
Business/professional services Business and professional services
Hotels/restaurants/leisure Hotels, restaurants and leisure
Manu/eng/const/elec Manufacturing, engineering construction and electrical
Marketing/media/research Marketing and media
Pub/vol services/edu/train/health Public, education, voluntary services, healthcare, charities
Trans/dist/stor/ret/w’sale/exp/imp Transport, export, storage retail and wholesale
KEY
Chambers participating in the surveyBusinesses that participated in the survey are members of the following 53 Chambers.
Aberdeen and Grampian Chamber of Commerce Ayrshire Chamber of Commerce & industry Barnsley and Rotherham Chamber of Commerce Bedfordshire & Luton Chamber of Commerce Birmingham Chamber of Commerce Group Black Country Chamber of Commerce Bradford Chamber of Commerce Cambridgeshire Chamber of Commerce Channel Chamber of Commerce Cornwall Chamber of Commerce Coventry & Warwickshire Chamber of Commerce Cumbria Chamber of Commerce & Industry Derbyshire and Nottinghamshire Chamber of Commerce Doncaster Chamber of Commerce & Enterprise Dorset Chamber of Commerce & Industry East Cheshire Chamber of Commerce & Industry East Lancashire Chamber of Commerce & Industry Edinburgh Chamber of Commerce & Enterprise Essex Chamber of Commerce Fife Chamber of Commerce Glasgow Chamber of Commerce Greater Manchester Chamber of Commerce GWE Business West (West of England) Herefordshire & Worcestershire Chamber of Commerce Hertfordshire Chamber of Commerce & Industry Hull & Humber Chamber of Commerce Industry & Shipping Isle of Wight Chamber of Commerce Kent Invicta Chamber of Commerce Leeds, York and North Yorkshire Chamber of Commerce Leicestershire Chamber of Commerce & Industry Lincolnshire Chamber of Commerce & Industry Liverpool Chamber of Commerce & Industry London Chamber of Commerce & Industry Mid-Yorkshire Chamber Milton Keynes & North Bucks Chamber of Commerce Norfolk Chamber of Commerce & Industry North and Western Lancashire Chamber of Commerce & Industry North East Chamber of Commerce North Staffordshire Chamber of Commerce and Industry Northamptonshire Chamber of Commerce, Training & Enterprise Northern Ireland Chamber Portsmouth & South East Hampshire Chamber of Commerce and Industry Renfrewshire Chamber of Commerce Sheffield Chamber of Commerce & Industry Shropshire Chamber of Commerce, Training & Enterprise Somerset Chamber South Wales Chamber of Commerce St Helens Chamber Suffolk Chamber of Commerce Surrey Chambers of Commerce Sussex Chamber of Commerce & Enterprise Thames Valley Chamber of Commerce West Cheshire and North Wales Chamber of Commerce
BRITISH CHAMBERS OF COMMERCE65PETTYFRANCELONDONSW1H9EUUNITEDKINGDOM
T+44(0)2076545800F+44(0)[email protected]
