Transcript DEE - Market Evaluation

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Carillion Training
Services
'Can Apprenticeships
Rescue the
Economy?'
NEEC
January 2014
Ray Wilson
Director & General Manager
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Carillion Training Services - Overview
We operate a unique ‘host employer’ model which is predominantly
funded by Government grants. We train around 1500-2000 apprentices
annually across a national network of 15 training centres. Key points –
we:
- Are the UK’s largest construction employer/training provider
- Trained apprentices for around 50 years
- Recruit around 1000 new apprentices each year
- Achieve consistently good apprenticeship success rates
- Assist many small firms to train apprentices
- Have many existing links with schools and colleges
- Support local employment through our Work Experience
Provider base and our own recruitment agency, SkyBlue
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Benefits of Apprenticeships…
A report* by CEBR for the National Apprenticeship Service:
• Between 2012-13 and 2021-22, 3.8 million people will complete an
Apprenticeship. It is estimated this would contribute £3.4 billion to
the UK economy a year in productivity gains by 2022
• Apprenticeships boost productivity by enabling businesses to grow
their skills base.
• Productivity gains from former apprentices:
- engineering and manufacturing sectors (£414 per week)
- construction and planning (£401); and
- business, administration & legal (£268).
• The number of annual Apprenticeship completions is forecast to rise
across all sectors of the economy, growing from an annual 260,000
in 2012/13 to 480,000 by 2021/22.
* Source: The Impact of Apprenticeships: Center for Economics and Business Research
http://www.cebr.com/reports/productivity-matters/
Benefits of Apprenticeships…
A recent study* shows:
• Apprenticeships allow employers to secure a supply of the skills they
require
• Costs of recruiting experienced workers from the external labour
market seen as more expensive because of recruitment and induction
costs
• Often supply in the external labour market is limited
• Apprentices provide a pool of skilled people to select from for future
promotion
• Apprentices are seen as relatively loyal: more likely to stay with the
company and steeped in company values
• Apprentices seen to bring new ideas into organisations
• The costs of Apprenticeship training is recouped relatively quickly
The Net Benefit to Employer Investment in Apprenticeship Training - University of Warwick Institute for Employment Research
A Report for the Apprenticeship Ambassadors Network By Chris Hasluck, Terence Hogarth, Beate Baldauf and Geoff Briscoe
http://www.motor.org.uk/documentlibrary/research/Apprenticeship%20benefits%20jan09.pdf* Source
Benefits of Apprenticeships…
Can Apprenticeships Save Britain*?
• UK has been failing to keep up with the major developed economies in
productivity, but what about the developing economies?
• Our higher education system is a match for our competitors, but the
intermediate level is suffering.
• Apprenticeships could be the answer to how we address this problem, but
- attitudes to apprenticeships must change; and
- employers must treat apprenticeships as a vehicle for driving up
performance standards.
• By bringing in new employees with no preconceptions about how things
should be done, managers can bring about step changes in their ways of
working.
• Apprenticeships can be a viable alternative to University.
• David Cameron has pledged to make apprenticeships the ‘new norm’, and
wants work-based training to sit “at the heart of our mission to rebuild the
economy”.
* Source: http://ilmukblog.wordpress.com/2013/03/14/can-apprenticeships-save-britain/
Can Apprenticeships Rescue the Economy?
Absolutely!
by:
• Improving the supply of skilled labour in key sectors and
reducing reliance on migrant workers
• By providing a route way for young people to gain sustainable
employment and economic security
• By helping UK firms improve productivity and competitiveness
• By showcasing the UK’s high quality education and training
capability and ensuring its responsiveness to employer needs