Greater Together - Growing Apprenticeships and Traineeships (19 March 2015)

Editor's Notes

• #2: Domestics Agenda
• #4: How many taxpayers in the room? The scissors of doom. UK plc. spending is the top line and receipts is the bottom line Apprenticeships are proven to help spending go down (cost less than other post 16 routes to the taxpayer) and income go up (apprentices are employed so pay tax and NI like everybody else as well as productivity gains) So if you pay tax, it is in your interest to grow apprenticeships, particularly for young people. Estimated to be worth £34 billion to the UK economy in 2014
• #5: Huge investment by the government and cross party support – why?
• #10: Prestigious group, influential employers from range of sizes, sectors and geographical areas Each AAN member to play integral part Develop personal action plans National sector champions Local geographic champions through the LAAN Chairs Specialist champions, SME – Jason Holt, 2 MPs to support Parliament & employers, Traineeships, Higher Apprenticeships
• #12: This tables is a forecast of our trajectory towards the ambition of increasing workplaces with apprentices from 10% to 20%. The blue line is actual workplaces. The red line shows a forecast for workplaces to the end of 13/14 - 245,000 (extrapolating in year data) Then a straight line projection to a total of 457k by 2016. Total workplaces can only be judged at the end of the year hence the target ending in the academic year 16/17. to meet this trajectory we would need to achieve 316k by 14/15 and 387k by 15/16.
• #13: The national total in 12/13 is 228,700. The Area totals are estimated .
• #18: Employers will be supported by the SBT, LCU or area teams according to size, geographical coverage. Call to action remains the website or free phone number.
• #19: To make the most of referrals providers need to ensure they have a contact point in the SBT Adhere to the employer commitment / service standard as detailed on the apprenticeships website Holt review recommendations continue to be implemented making it easier for employers to self serve via our website The search tool on the website depends upon an up to date FAA profile and accurate ILR data. Try searching for provision you offer on it to see if the information it produces reflects what you do.
• #20: Before thinking about apprenticeships it is important to think about where your business is going currently and in future?
• #21: Other businesses say: Increase: Government investment in your workforce Staff commitment and motivation (88% say employee satisfaction has improved) Increase your customer base and productivity (81% report increased productivity and 81% consumers favour businesses with apprentices) £214 per week Skills base with your business (82% Employers use apprentices to build skills capacity within their business) Reduce: Recruitment costs (75% of Employers report lower recruitment costs) Time and effort associated with recruiting (80% want apprentices to play a bigger part in their future recruitment plans) Staff turnover (80% felt Apprenticeships had reduced their staff turnover) Sources: 2011 British Chambers of Commerce research, Populus research commissioned by the National Apprenticeship Service and Productivity Matters, Centre for Economics and Business Research, 2013
• #22: They can also deliver………….. 71% stay with same employer 90% stay in employment
• #23: National Apprenticeship Week is designed to celebrate Apprenticeships and the positive impact they have on individuals, businesses and the wider economy. And last year was the most successful thanks to the unprecedented level of support from all our partners. Employers, apprentices and former apprentices, training organisations, schools, Sector Skills Councils and other support organisations who all got behind the week. A record level of media coverage was achieved and this slide shows just a couple of the headline grabbers. What are you planning for 2015?
• #24: Use the online brand site with materials that can be tailored with your own logos and messages.
• #26: Always encourage young people to register on AV Ensure your vacancies are listed and are inspiring to attract the most applicants – progression opportunities is as important as salary
• #27: Household names use the system so your vacancy will be alongside these names. To stand out you need to sell your company to applicants, include the scope for progression, what are the benefits of working for you?
• #28: We endeavour to make entering the awards a win-win situation, for example: They provide us with case studies and role models using these we are able to use real examples of outstanding programmes effective implementations across the country and sectors evidence of what success looks like benefits the employers and the learners receive these are used across different channels such as : the apprenticeship.org website - typically sees over 180k visits per week on average our employer account managers when speaking to organisations about engaging with apprenticeships and for media enquiries, you should note that even if the application isn’t chosen as a finalist – it could still be considered for a niche media requests
• #55: Our aim is to become a high-value, low-carbon, diverse and inclusive economy. To get there, we are focussing upon six priorities:
• #56: The more astute of you will notice I only have 5 priorities there. These are not directly linked to skills, although have a relevance. So by developing the infrastructure and encouraging growth, this will naturally lead to more jobs therefore a requirement for more skilled people. The priority directly related to skills is this one, and our skills team are working hard to make sure we can achieve this. Our Growth Deal will help us to achieve these priorities. Our key asks from Government complement our City Deal and will enable us to drive change locally. Our Investment Plan which includes public and private, local, national and European funding, will help private sector growth, creating transformational change in our economy – a key part of this is Local Growth Fund We are currently writing our specifications for ESF to tackle areas such detailed in our SEP, i.e. NEET, upskilling etc. These six priorities are grouped under four objectives within the SEP:- Next slide
• #57: Priority 3 in our SEP, under Develop the Workforce, is to ‘Secure improved skills levels to address future demand in growth sectors and in existing industries. Without a skilled, productive and flexible workforce, TV will struggle to meet the challenges ahead. The TVU Leadership Board has skills strongly established on the agenda. We really want to help employers address the issues and individuals to maximise their potential. The Employment, Learning and Skills Group, chaired by Ian Kinnery meets quarterly, with the specific aim of addressing the employment and skills policies.
• #58: When we talk about employer engagement, it’s worth looking at the make up of our businesses in TV. As we can see, Tees Valley is made up of predominantly SME’s, with over 10½ thousand micro businesses. So, unlike other areas, we don’t have many large companies that can take huge numbers of Trainees or Apprentices. Micro Small Medium Large 0-4 5-9 0-49 50-249 250+ 10,655 1,865 1,655 325 75 The other diagram shows the sectors the businesses are in – by SIC. All of this information will be coming out once the analysis is completed and will be posted on our website.
• #59: The Tees Valley business base is shifting once again, with growing expertise in the Advanced Manufacturing, Low Carbon and Digital and Creative industries. Export led growth and significant investment in sectors such as Subsea, Biologics, Automative, Oil and Gas, Digital and Creative, together with Transport and Logistics, Business ICT, Finance, Business Services and Healthcare have real growth potential. However, we do not have enough jobs in our economy and our growth potential is not being realised. We face a number of barriers to growth. With a working age population of 421,000 but only 281,000 jobs, we have an under-representation of private sector employment opportunities. This is particularly acute with unemployment in TV and youth unemployment consistently around double the national average. There are high numbers of people with significant barriers to work – only 25.2% of residents are qualified to NVQ Level 4 compared to 34.4% nationally – while businesses that need to recruit skilled workers can struggle to recruit and grow.
• #60: There is a clear correlation between skills, wage levels and economic prosperity – and you can see some of the statistics there. In the Tees Valley 27% of 16-64 year olds have an NVQ4+ qualification compared to 35% nationally (2012/13 Annual Population Survey figures), with the area showing high levels of youth unemployment - 7.6% of 18-24 year olds claiming JSA in September 14 compared to 3.7% nationally (JSA Claimants Sept 2014) and NEETS at 8.3% of 16-18 year olds compared to 5.3% nationally (DfE 2013).
• #61: Research shows that Tees Valley employers are looking for highly skilled employees, in fact 47% of jobs advertised in the Tees Valley last year (Jan 2014-Dec 2014) were for Professional and Associate Professional jobs. (Source: Labour Insight). Employers often look for a set of important core skills regardless of the type of work, e.g. communication, problem solving, self-motivated, working under pressure, organisationsal skills, team working etc. (Source: TV Skills Review interviews). Occupation family (SOC) Actual nos. % Professional occupations 6,983 29.1 Associate professional & technical 4,243 17.7 Administrative & secretairial 2,419 10.1 Skilled Trades 2,110 8.8 Sales & Customer Service 1,887 7.9 Caring, Leisure & other service 1,837 7.6% Managers, Directors & senior officials 1,813 7.5 Elementary Occupations 1,551 6.5 Process, Plant & machine operatives 1,191 5.0
• #62: The Key priority sectors for the LEP are: Chemical: The Tees Valley is the largest integrated chemical complex in the UK in terms of manufacturing capacity and the second largest in Western Europe. The area is home to a range of key clusters in the chemical sector including refining, petrochemicals, speciality and fine chemicals, plastics, biotechnology and pharmaceuticals. For the last two centuries Teesside has been the industrial heartland of Tees Valley, as well as a globally significant world-scale industrial base. Today, Tees Valley is again leading the way in the process industries and driving the transition to more renewable forms of energy IT: The Tees Valley accommodates a wide range of companies that specialise in the IT and Digital/Creative sector, including companies that focus on areas such as media and games development, mobile application and web development, IT support, IT consultancy and business application development to name a few. There are 32,000 ICT jobs in the North East region, and the potential for up to 2,000 more. The digital and creative sector is a central theme for enterprise development across each Local Authority area in Tees Valley. This activity is focused on the work of Digital City based in Middlesbrough, and Teesside University, mentoring and supporting entrepreneurs to accelerate the start up rate of new companies and maximising their high growth potential. Engineering: Tees Valley is home to a large successful cluster of advanced manufacturing and engineering businesses operating across all industries, from aerospace and automotive to renewable energy and chemicals. The strength of manufacturing in Tees Valley is due to the process, steel, offshore and energy sectors which form the heavy industrial economic base of the area.Health: Tees Valley benefits from having the expertise of both Teesside University and Durham University in the area; with a complementary focus on health, social care and health-related research. Furthermore, the North East has a thriving healthcare economy which is worth £8bn and employs 172,000 people. In the Tees Valley, we are home to world-leading biologics manufacturers such as Fujifilm Diosythn Biologics and rich sub-clusters of companies in biological reagents, assistive technology, health informatics and pharmaceuticals. On the latter, major pharma companies in the area include Dupont, Fine Organics and Johnson Matthey, along with GlaxoSmithKline on our doorstep in Barnard Castle Logistics: Tees Valley has seen recent investments in logistics infrastructure supporting our existing industrial base and the attraction of large scale distribution centres. Tees Valley is home to the fourth largest port in the UK, Teesport, a key terminal with two container quays, 'roll-on roll off' facilities and direct routes across the globe. Excellent rail and pipeline infrastructure, coupled with the road and land assets offer,  additional attraction to distribution centre developers. The logistics sector employs around 8,000 people in the Tees Valley and a number of major logistics operators successfully function from the Tees Valley, saving money and mileage and serving operations throughout Scotland, the North and the Midlands. Oil & Gas: Tees Valley is one of the key centres for the offshore industries in the UK, producing 70% of the oil platforms and heavy engineering for the North Sea.  The oil and gas supply chain in the Tees Valley is made up of more than 400 direct, and 3000 indirect companies, employing more than 4,250 people, including international companies such as BP, Conoco Philips, Hertel and Heerema.  Occupations within the industry are varied and numerous and the Tees Valley has excellent training providers and career opportunities for apprenticeships.
• #63: We have a number of challenges facing us in the Tees Valley and we have already set out how we are going to address these in our SEP: As Tees Valley and the remainder of the North East has an ageing workforce, many employers are aware that the need to replace people, who are being promoted, leaving the workforce or retiring is by far the greatest challenge. These people are often highly skilled. For example the Chemical Processing sector in the Tees Valley are expecting to lose up to 70% of their workforce, and many of their most highly skilled employees over the next ten years. Young people, parents, teachers and advisers, adults looking for a job, promotion or progression need to understand the careers paths available and the skills needed to get the jobs, not just now, but future jobs. Employers are generally adept at up-skilling and re-skilling their own workforces. However, employers across a range of sectors are finding it difficult to recruit experienced workers with up-to-date knowledge and skills to replace those leaving their workforce. With business growth comes new job opportunities due to new products under development, new business opportunities, effective supply chain partnerships and market opportunities. Changing technology means we don’t event know what a lot of the new jobs will look like in the future. A substantial skills gap in higher level qualifications has ramifications for recruitment into managerial positions and for innovation. We have a shortfall in terms of basic skills with 13.1% of people having no qualifications, compared to 8% nationally. Let’s look at some Apprenticeship information: next slide
• #64: We can see a considerable drop in the number of Apprenticeship starts since 2011/12 – a drop of 19%, nearly 1,900 starts.
• #65: However, although there has been an overall decrease in starts between last year and this year, 16-18 starts have increased by 5% (105). 19-24 starts has seen a decrease of 4% with 25+ starts decreasing by 34% 12/13 13/14 change 16-18 starts 2156 2261 +105 19-24 starts 2857 2739 -118 25+ 4512 2993 -1519
• #66: 2013 Starts by level Looking at our starts by level, we can see the majority, 5,058 are Intermediate. However there is then a significant drop in Advanced with 2,784 starts, then Higher with only 152 starts. Advanced Level 2,784 Higher 152 Intermediate 5,058
• #67: Because we have a high percentage of SME’s in the TV, you can see from this graph that we are penetrating these small businesses in terms of Apprenticeship starts – as we would expect. However, we know there is still work to do to engage businesses. We had 5,978 starts between August 2013 and July 2014 with companies ranging from 1 to 100 employees. This figure jumps up to 6,652 for those companies with 1 to 300 employees. Employment size Starts 1-3 1316 4-10 1614 11-30 1633 31-100 1415 101-300 674 301-1000 620 1001+ 288 Unknown 435 Note: Workplace size does not necessarily mean the size of the employer, as a large employer could have many workplaces.
• #68: According to the most recent UKCES Employer Perspectives Survey (2014) the number of employers in the Tees Valley offering apprenticeships is joint highest in the country at 21% matched only by Greater Manchester.  Nationally the figure is just 15%.    This of course may be due to the make up of our business base and we don’t have the huge companies like in some other parts of the country.
• #69: We need to work together with our employer, large and small, our education and training providers and our present and future workforce in a co-ordinated and collaborative way if we are to meet the demands and challenges of the world of work in the Tees Valley.