Today’s post comes courtesy of Lorna Tyrtania, ThirdForce Senior Product Manager

Highlights of University of Warwick Institute for Employment Research Report (IER)

This research provides a detailed assessment of the contribution made by employers to the provision of Apprenticeship training to Level 2 and Level 3, and indicates some  of  the  longer-term  benefits  to  the  employer  from  engaging  in  such  Apprenticeship training.   The research focuses on a number of sectors including the Hospitality sector. The report runs to some 121 pages so this is my summary of the key points!

For many employers, the rationale for engaging in Apprenticeship training is based on the longer-term benefits that accrue to the business.    Nonetheless, Apprenticeships can bring benefits to the business as well as costs even in the short-term.  The main short-term benefit to  the  employer  is  the  trainee‘s  productive  contribution  during  the  Apprenticeship  training period.

Apart from the direct contribution to production, there are other benefits that can accrue to the business during the Apprenticeship period.  One example is innovation and the transfer of ideas into the workplace (for example through project work undertaken by Apprentices).

Whatever the productive contribution of Apprentices in the short-term, the main rationale for such training are the longer-term benefits to the business once the Apprenticeship training is completed.  These benefits include:

• The  relative  productivity  of  fully  experienced  workers trained  within  the  organisation versus those recruited externally.
• A better organisational fit between those trained in-house and the working practices of the organization.
• Improved labour retention of Apprentices trained within the organization.
• Removal of difficulties recruiting suitable fully-experienced workers from the external labour market.

A wide range of benefits were mentioned (although the relative importance of benefits varied across sectors).  These benefits included the following:

• Apprenticeships allowed the business to secure a supply of people with the skills and qualities that the business required and which were often not available on the external job market.
• Apprenticeships were especially important in establishments where they were seen as potential replacements for an ageing workforce.
• Even if external recruitment was possible it was often more expensive to recruit experienced workers from the external labour market because of recruitment costs plus the costs of induction and any necessary training.
• By training Apprentices the business contributed to the pool of skilled and certificated employees from which it might recruit in the future.
• Apprentices ensured that the supply-chain (i.e. sub-contractors) had a sufficiently skilled workforce.
• Lower labour turnover – Apprentices tend to stay with the organization.
• Apprentices provided a cadre of employees from which to select future managers.
• Apprenticeship training could increase interest in training amongst other employees.
• Shows company commitment to the employee.
• Apprenticeships were more practical and job-related than other forms of learning.
• Apprentices can bring new ideas and innovation to the business.
• A good Apprenticeship scheme could be reflected in an enhanced reputation for the business both within the industry and in the local community.

Hospitality Sector

The cost of investing in Apprenticeship training in the hospitality sector was modest in comparison to other case study sectors and was likely to be quickly recouped in a little over one year. The  average  cost  of  a  completed  Apprenticeship  in  a  hospitality  case study  was  in  the  order  of  £4,236. Where employers are willing to make a high level of commitment to the training programme and the Apprentice such that completion rates are high, and recognise that the Apprentice can be a valuable resource to the company over the medium- to long-term, then the returns to  the  employer  –  even  if  reported  in  qualitative  terms  –  are  comparatively  greater  than where the commitment is not so manifest.

The  overall  evidence  from  the  employer’s  perspective  is  that  Apprenticeships  provided  a “win-win”  situation. For  a  relatively  small  investment,  employers  are  able  to  equip themselves not only with employees having the skills they required, but also obtain a source of  new  ideas  and  the  means  to  address  some  of  the  long-standing  human  resource challenges the industry has to face (such as high labour turnover).

Several were part of  large  chains  of  hotels  and  restaurants  that  required  a  standard  quality  of  service  to  be maintained across their organisations.  Training was seen as central to achieving this goal.  Many hospitality establishments reported recruitment problems and, especially in the kitchen area, skill-shortages.    Respondents  also  recognised  that in  a  tightening  market  there  was  a need  to  ensure  that they  could  offer  a  high  quality  service  as  well  as  keep  costs  down.    This was dependent upon people being suitably skilled and qualified. Apprenticeships, and training in general, were seen as essential to meeting these goals, but potential recruits must also show some predisposition towards them.

There was also recognition of the value attached to the basic skills training that takes place within Apprenticeships. numeracy  and  literacy  skills  upon  entry  to  the  Apprenticeship  and  these  were  necessary skills to acquire in order to succeed in the industry.   Some employers recognised that young people sometimes lacked

In general, employers reported that   trainees   could   be   relatively   productive   from   near   the   commencement   of   their Apprenticeship  so  that  after  a  few  months  they  were  close  to  being  fully  productive.    The remainder  of  their  training  period  was  concerned  with  acquiring  greater  experience  and adding a range of additional skills that might be useful to them over their longer-term careers in hospitality or outside the industry.

I think the quote from the report that best resonates with the experience ThirdForce has had with engagement with Apprenticeship programmes is “for  the  employer  that  appropriately husbands their investment in Apprenticeships there are significant returns to be had.”