Costs and Funding

Costs and Funding

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Even in difficult times like these, Apprenticeships are a vital

way of improving the skills of staff and generating a committed and valuable workforce. When times are tough,

competition for contracts is even tougher. That’s when a well-trained, extra pair of hands could make a real difference

to your chances of success.

Apprentices can also help you ready your businesses for when the economy comes out of recession. By offering a flexible resource that can help your business grow, apprentices

can also give you a competitive advantage to exploit new business growth opportunities.

Employers do not normally receive a direct monetary incentive to take on apprentices. However, the off-job training costs are subsidised in full, or in part, by our funding through the National Apprenticeship Service. Occasionally

adhoc grant incentives are available to employers and expedient training consultancy will advise you of any appropriate grants.

Because it is good business. Skills shortages are still one of the biggest threats to UK business. Apprenticeships can

help businesses across all industries by offering a route to harness fresh talent. If you have trained staff with the

right skills for the job they can do a wider range of tasks and take on new responsibilities - this can help to reduce skill shortages, minimise staff turnover and workplace accidents, and increase productivity.

Taking on an apprentice is cost effective because your people can learn while they’re on the job and the government contributes to the costs of learning.

There are clear financial benefits to employers and their investment in Apprenticeships is repaid many times over.

A recent study by the University of Warwick Institute of Employment Research found that the costs of Apprenticeship

My business is struggling to make ends meet as it is with the recession. How is taking on an apprentice going to help my businesses manage through it?

Do I receive any monetary incentives to take on an apprentice?

Why would I want to take on an apprentice?

Yes, but what is the financial benefit to me?

Apprenticeships for the Recruitment Industry -

Business Benefits

http://www.apprenticeships.org.uk/Employers/Other-Questions.aspx#Question9








training are recouped relatively quickly, and that where the investment is nurtured, the returns are significant.

Another study by Sheffield University measured the long term financial benefit to investing in Apprenticeships. A level 3 Advanced apprentice will generate an additional lifetime benefit to themselves and their employer of

£105,000 compared to someone who does not gain an Apprenticeship. The Level 2 additional benefit is £73,000. This represents a gain of £16 for every £1 of taxpayers’ money.

The Learning and Skills Council recently surveyed businesses throughout the UK on benefits of hiring an apprentice

(Populus, January 2009). Of those surveyed:

81% said that employing apprentices generated higher overall productivity for their company.

66% said that their Apprenticeship programme made them more competitive in their industry.

92% said that their Apprenticeship programme better motivated staff and increased job satisfaction.

74% said that apprentices tended to be more loyal, remaining at their company longer than non-apprentices.

Apprenticeships can help businesses across all sectors by offering a route to harness fresh new talent. UK businesses consider skills shortages and recruitment difficulties a bigger threat to performance than soaring oil

prices and declining consumer spending, and more than a quarter of these rate this form of vocational training

higher than any other qualification. Apprenticeships ensure that your workforce has the practical skills and qualifications your organisation needs now

and in the future. The mixture of on and off job learning ensures they learn the skills that work best for your business.

Over 130,000 workplace offer apprentice places because they understand the benefits that apprentices bring to their

business – increased productivity, improved competitiveness and a committed and competent work-force.

Apprenticeships deliver real returns to your bottom line, with Apprenticeships helping them to improve productivity and to be more competitive. Training apprentices can also be more cost effective than hiring skilled staff, leading to

lower overall training and recruitment costs.

Apprenticeships deliver skills designed around your business needs providing the skilled workers you need for the future. They also help you develop the specialist skills you need to keep pace with the latest technology and

working practices in your sector.

Apprentices tend to be eager, motivated, flexible and loyal to the company that invested in them. Remember, an apprentice is with you because they want to be – they have made an active choice to learn on the job and a

commitment to a specific career.

Business leaders from a range of industries and backgrounds across England give their support for Apprenticeships and voice their ambition to help grow the number of places available.

Read what business leaders say about Apprenticeships in the “What Employers Say” document

What evidence is there that hiring an apprentice is good for my business?

The business benefits

Improve your bottom line

Fill your skills gaps

Motivate your workforce

What do employers say? (See Additional Document)



Earlier research, conducted in February 2008 by Populous on behalf of the LSC to launch the first National Apprenticeship Week revealed:

77% of employers believe Apprenticeships make them more competitive;

76% say that Apprenticeships provide higher overall productivity;

80% feel that Apprenticeships reduce staff turnover;

83% of employers rely on their Apprenticeships programme to provide the skilled workers that they need for

the future;

Two-thirds of respondents believe that their Apprenticeship programme helps them fill vacancies more

quickly;

88% believe that Apprenticeships lead to a more motivated and satisfied workforce;

59% report that training apprentices is more cost-effective than hiring skilled staff, with 59% believing that

Apprenticeships lead to lower overall training costs and 53% feeling that they reduce recruitment costs;

In terms of the return on investment linked to Apprenticeships, 41% say that their apprentices make a

valuable contribution to the business during their training period, while a further third (33%) report that apprentices add value within their first few weeks (or even from Day One);

57% report a high proportion of their apprentices going on to management positions within the company;

Over three-quarters of respondents expect apprenticeships to play a bigger part in their recruitment policy in

the future.

A study carried out by the University of Warwick Institute for Employment Research (IER) demonstrated that Apprenticeships are an investment by employers and where the investment is nurtured, the returns to the employer

are significant.

Based on detailed employer case studies in seven sectors the study was commissioned and scrutinised by the business leaders who form the Apprenticeships Ambassador Network (AAN).

The study showed that the costs of training are quickly recouped upon completion of the Apprenticeships. Other benefits include; retention within the company, understanding of company values, and progression to become

managers and supervisors.

Disclaimer - All Information in this document can be found within the NAS (National Apprenticeship Service) Website

Benefits in numbers

Further Research


Case Study—Editors Keys

Location: Manchester, North West Established: 2004 No of apprentices employed: 1 Size: 1-50

Manchester based Editors Keys is a leading designer, manufacturer and supplier of a range of editing keyboards to

the TV and audio industries and works with a number of clients at the BBC and ITV. The company also supplies microphones and recording equipment to the music industry.

Keen to expand his workforce, owner and managing director Mark Brown began to think about recruiting an

apprentice to the team. Being a small company with a small workforce, Mark was looking for an individual who could

work across all areas of the business as well as someone who would be willing and eager to learn. An apprentice seemed the ideal solution.

Having had no previous experience of Apprenticeships, Mark was understandably a little apprehensive. However,

after reading the positive employer and apprentice experiences on the Apprenticeship website and contacting the

National Apprenticeship Service helpline to talk through the initiative, his concerns were quickly dispelled and Mark decided this would be the best option for the company.

He was put in touch with Manchester based training provider who helped him to advertise the position through

Apprenticeship vacancies, a free online service which allows employers to advertise and manage their vacancies, and

allows individuals to search and apply for Apprenticeships and Advanced Apprenticeships.

The vacancy attracted over 40 applicants whom the Training Provider helped to screen and draw up a shortlist of potential apprentices for the company to interview. 17 year old Fallon Morris was appointed and is now working

towards her NVQ level 2 in Business Administration.

Mark comments: “I found the whole recruitment process for Apprenticeships great from beginning to end. The

National Apprenticeship Service and Skills Solutions have been extremely helpful for both Editors Keys and Fallon, our new apprentice.”

“Like many other business owners I had my reservations about employing an apprentice but it’s been one of the

best decisions for our company since we started. It’s allowed us to get that extra help we needed as well as help to


develop and train an enthusiastic new member of staff.”

Fallon is already making a big impact on the business with a marked improvement in customer service. She’s

learning about all aspects of the business from marketing and PR to social media and finance and has even been involved in designing the packaging for a new product. She’s brought a young and fresh perspective to the company

which is hugely beneficial due to the young target market.

Mark concludes, "Having Fallon with us is great for business, it allows you to get the help you need to do some of

the day-to-day tasks, as well as getting someone with fresh ideas to have a say in how the company is run. We run a small exciting company where we are all truly part of a team, so this works great for us."

“I think there are plenty of advantages for businesses to take on apprentices. You get the chance to employ

someone who is new to the business world and develop and nurture their skills exactly for your business. I also

believe as an Apprenticeship leads towards a qualification, the apprentice you take on is much more eager to learn than a standard employee or part time worker.”

For more information on Editors Keys please visit their website.


http://www.editorskeys.com/


Case Study—Prospectus IT Recruitment

Location: London / Middlesex, Established: 1988 No of apprentices employed: 1 Size: 1-50

Elkie Holland is Managing Director of Prospectus IT Recruitment which is a recruitment consultancy specialising in a niche market within the IT sector.

As a company evolves, there can be roles which are ideally suited to a training scheme like an Apprenticeship.

Periodically over 2 decades, Prospectus IT taken part in a number of Government Training Initiatives from the Youth Training Schemes (YTS) back in the 90’s to todays Apprenticeships. We are firm advocates of the necessity for

businesses to help young people get into the workplace and the positive benefits on all sides.

Prospectus has helped young people into the work place, some stayed with us many years after finishing their

Scheme and move on with good skills to apply to fresh new challenges.

Elkie Holland, MD says: “It’s lovely when a role comes which is suitable for an Apprentice. It is a pleasure to watch

a young person blossom and grow in confidence and ability. They can be like a breath of fresh air with their eagerness. We’ve had some young people who stayed with us following their training and in fact one girl stayed for

about 7 years. She was a delight and a great worker. Others stayed and moved after a couple of years quite often with tears but they had well and truly outgrown the role and needed a fresh challenge.”


The selection process for an Apprentice is very important to Prospectus. They look at the Apprentice’s current ability

and their motivation as they are equally important to a successful placement. Elkie Holland says “One of the important things we’ve found is that it must suit both the Employer AND the Apprentice. Commitment , respect and

patience must come from both sides too”.

“Our most recent Apprentice was primarily taken on in a business administration role but very quickly we unearthed

hidden investigative and reporting talents and put these to great use. The last 12 months has seen a lot of investigations and reports into a variety of software tools and platforms and his

summary reports following his investigations certainly saved me huge amounts of time. His suggestions were listened to and more often than not acted upon. ”

For more information on Prospectus IT Recruitment please visit their website: www.prospectus.co.uk


“I work with students 14 to 19 years old on a weekly basis and see their desire to work hard, gain a skill and climb the career ladder. All businesses need extra resource in order to grow and survive tough times. An Apprenticeship is

a solution for all parties and win -win results. I practise what I preach and took my first apprentice two months ago. Not only is she loyal, hardworking and enthusiastic she's teaching me about new online technology and swapping

skills!” Claire Young, The Apprentice 2008 finalist, owner of School Speakers and social enterprise Girls Out

Loud and mentor to the Young Ambassador Network

“My experience in business has highlighted how new talent can really invigorate a company. Apprentices can work in

a huge range of roles in a business and the businesses benefit just as much as the Apprentices themselves. This is why I am working with the National Apprenticeship Service to develop an Apprenticeship in Enterprise.”

Peter Jones CBE, Entrepreneur

"Because Apprenticeships are based in the workplace employers get the skills they really need. They are vital to the

future success not only of businesses across the country, but also for a vibrant economy." David Frost - Director General of the British Chamber of Commerce

“As an employer group that recognises the value of Apprenticeships to our businesses, we are delighted and encour-

aged by this Government’s commitment and investment in Apprenticeships. We are particularly pleased that the

recognition that increasing skills is fundamental to recovery is being backed with funding to ensure that all business-es, regardless of size or sector, are made aware of the true value of Apprenticeships and the difference they make to

the bottom line. There has never been a more crucial time for businesses to engage with Apprenticeships as training budgets will be under pressure and tough business decisions made. In Compass, we have made significant savings

in terms of recruitment, salary and training costs because we employ apprentices and our investment is rewarded

with loyal, motivated and enthusiastic employees who stay with us.” Sir Roy Gardner, Chairman of Compass Group Plc and Chairman of the Apprenticeship Ambassadors

Network

“Small firms are the country’s job creators – central to our economic recovery. The FSB supports the extra 75,000

Apprenticeships that will be created. These placements will help those school leavers at a time when the job market is sluggish at best. They will get real work experience and develop real skills. And small firms will benefit from the

skills of this workforce, which they traditionally find harder to recruit.” Colin Willman, Education, Skills and Business Support Chairman, Federation of Small Businesses

Apprenticeships Opening doors to a better future

What Employers Say!

http://www.apprenticeships.org.uk/

http://www.apprenticeships.org.uk/


“Using continuous evaluation we find that apprentices and employees develop greater confidence, a broader skill set

and a better understanding of the financial services business when they are able to access a structured programme of development. Our apprentices typically start at Level 2, with 80 percent progressing to Level 3 and 40 percent

continuing their learning to Level 4” Mark Hammond - Professional Qualifications Adviser, Skandia

“LV is proud to be able to offer Apprenticeships. We pride ourselves on recruiting the best people in the industry and by providing an Apprenticeship scheme we can ensure those staff stay with us and we develop their talent. The

members of staff who have already graduated have been very impressed with the scheme with many of them sign-ing up to do the next level of the course. One of the key factors is that by completing the course each participant

gains a formal qualification, which is accredited by both the City and Guilds NVQ scheme and the Chartered Insur-ance Institute.”

David Smith - HR Director, LV

“Since reaping the benefits of being an ex-apprentice and experiencing first hand the impact it had upon building up

my skills, confidence and progressing my career, I’ve always strived to encourage my staff and volunteers to embark upon there own Apprenticeships and in turn this has had a huge impact not only in my store but for Barnardo’s as an

organisation. We are able to work alongside assessors to tailor each Apprenticeship to the needs of each individual

apprentice. We gain a more experienced skilled and confident workforce to help raise the vital funds Barnardo’s needs to run thousands of projects helping children and there families across the UK.”

David Boulton - Store Manager, Barnardos Disclaimer - All Information in this document can be found within the NAS (National Apprenticeship Service) Website


What next and how to get started

If you are interested in finding out more about employing an

Apprentice on our EXCLUSIVE Apprenticeship for Recruitment and to find out more the benefits they can bring to business

please complete the “Learn More” form that can be found on our www.recruitment-apprenticeship.co.uk website as a tab in

the header.

Alternatively you can also call us on 0800 612 5402

The next step is to discuss your requirements with an Expedient Training Consultancy representative.

So, if you are ready to take on apprentices visit and complete

our “Learn More” form or alternatively you can call our employer helpline on:

0800 612 5402.

You will go through the following steps;

Step 1 – One of our representatives will call to discuss your specific needs. Step 2 - We will help you identify a Framework for the job role the Apprentice/s will be doing. Step 3 - You confirm the number of current employees and new recruits you want to start the Recruitment

Apprenticeship. Step 4 - Start the recruitment process. Vacancies are advertised by Expedient also, where suitable applicants

can apply (you will have access to this candidate pool as will all clients). Our pool of candidates will be offered on a first come first served basis.

Step 5 - You choose your ideal candidates and then your apprentices start. (One of our assessors will visit you and the apprentice to complete the necessary paperwork).

Additional Funding may be available to help with wages (this is dependent on the area your business is based,

current government incentives and other funding streams)


Can't afford to take on apprentices?

Steps to make it happen

http://www.recruitment-apprenticeship.co.uk/learner.html

http://www.recruitment-apprenticeship.co.uk

http://www.recruitment-apprenticeship.co.uk/learner.html


Costs and Funding

Expedient Training Consultancy’s funding covers the training of apprentices depending on their age.

The government provides the funds to cover the full cost of the mandatory training required to complete the

framework as determined by the relevant SSC for a young person aged 16-18 on an Apprenticeship. If employers or

providers choose to deliver additional qualifications or courses as part of the delivery of the overall framework then these courses will not be funded and will need to be paid for by the provider or employer.

Expedient Training Consultancy also assists with your Apprenticeship vacancies.

Like all employees, apprentices must still receive a wage. The National Minimum Wage for apprentices is £2.65 per hour. However, as skills develop, many employers tend to increase wages – in fact, research has found that

apprentices earn an average of £170 net pay per week.

There is also the cost of the supervision, support and mentoring that you will need to put in place to support the apprentice. These associated costs are not insignificant - however, the National Apprenticeship Service will match

employer’s commitment to hiring apprentices by covering in full, or in part, the training costs.

From 1st October 2010 you must make sure all your apprentices are being paid at least £2.65 for all the time they are on their apprenticeships. This includes time working plus the time spend training both on and off the job. This

includes time at college.

Apprentices aged 19 or over who have already spent a year on their Apprenticeship must be paid at least the full National Minimum Wage (NMW) rate appropriate to their age.

There is no reason for you to cut their pay. It is a minimum below which they should not be paid – it is not a

standard rate, nor is it the rate for all Apprenticeships.

Age National Apprenticeship Service contribution

16 -18 up to 100%

19 - 24 up to 50%

25 + Contribution for specified places

So what support can I expect?

Is there a cost for employers?

I pay my apprentices more than £2.65 an hour, should I cut their wages?

http://www.apprenticeships.org.uk/Employers/%7E/link.aspx?_id=9D400F7D13784BE59F833D279969F827&_z=z





The change will apply to all new and existing apprentices aged 16 to 18 and those aged 19 or over in the first year

of their Apprenticeship. The change does not affect those apprentices aged 19 or over who have already completed a year of their Apprenticeship – they will continue to be entitled to be paid at least at the full NMW rate appropriate

to their age.

Apprentices are those on a contract of Apprenticeship or those on a Government funded Apprenticeship. If you are not in one of these categories your employers must pay you at least the minimum wage appropriate to your age.

In-kind benefits such as meals, tips and childcare vouchers will not count towards the apprentice NMW. We are looking at deductions for

the provision of accommodation and will announce a decision in the summer.

Not necessarily. The new apprentice NMW applies to all 16 to 18 year olds and to those aged 19 and over in the first

year of their Apprenticeship. If they reach the age of 19 and have completed the first year of their Apprenticeship you must pay them at least the

full NMW rate for those aged 18 to 20.

If they are already 19 and have completed the first year of your Apprenticeship they must be paid at least the NMW rate for their age.

The NMW only applies to employees who are paid. Those on Government funded programmes who are unwaged are

not entitled to the NMW or the apprentice minimum wage.

An Apprenticeship is a package of work and on and off the job training. It is right that apprentices are paid for all the

time they are on the Apprenticeship. That includes training time.

Yes if it is study as part of the Apprenticeship.

Only if they are employed on a contract of Apprenticeship; or they are on a publicly funded Apprenticeship

programme and aged 16-18 or 19 and over in the first year of their programme. All others must be paid at least the NMW appropriate to their age.

The NMW is based on hourly rates. The Government has accepted the Low Pay Commission’s recommendation of a

minimum hourly rate. This will mean a simpler single system for employers.

Who does it apply to?

Can any benefits-in-kind, such as tips, accommodation, meals, or childcare

vouchers, count towards the statutory minimum wage for apprentices?

Will my apprentices be entitled to the new apprentice minimum

rate for the entire length of their Apprenticeship?

Why are non-employed apprentices excluded?

Why is on- and off-the-job training included in the definition

of hours for the Apprenticeship NMW?

Is evening class/study in the evening counted towards the hours for which

the NMW is paid?

I call my trainees apprentices, are they eligible for the Apprentice NMW?

Why has the previous weekly minimum (£95 per week) been replaced by

an hourly minimum rate? (England only)















The current exemption from the National Minimum Wage (NMW) for apprentices will end on 1st October 2010. It will be replaced by a NMW for apprentices aged 16 to 18 and apprentices aged 19 or over in the first year of their

Apprenticeship.

The new NMW applies to time working plus time spent on on-the-job and off-the-job training. Employers will be free to pay above the new NMW. Many already do so and this change will not affect that.

The Apprentice National Minimum Wage will be £2.65 per hour.

The rate is set to be consistent with current arrangements in parts of the UK. The Low Pay Commission has recom-

mended a rate that is fair to apprentices and does not discourage employers from offering Apprenticeships. The Gov-ernment has accepted the rate recommended. The rate is a minimum, employers can pay more – and many do so.

The Low Pay Commission will review the rate in 2013.

If they are 19 or over and have completed the first year of their Apprenticeship they must be paid at least the NMW

rate for their age.


What does the announcement mean?

What is the Apprentice National Minimum Wage rate?

The new £2.65 hourly rate is too low. Why? When will it be increased?

I have an apprentice aged 19 who had been on an Apprenticeship

for over a year. What NMW rate should I pay?






Apprentice Recruitment

Sourcing the right candidate for your business is a critical and sometimes time consuming part of the apprenticeship engagement process.

Expedient Training Consultancy in partnership with our sister company Expedient Recruitment can assist you in sourcing potential candidates through our Standard and Premium Recruitment Services.

The services provide a direct touch recruitment solution for businesses who like to manage the recruitment of new staff internally or a full service recruitment model for those that prefer a fully outsourced model.

Compare our Recruitment Services:

Feature Standard Service: Free Premium Service: £699.00

Job description Client prepares Job description for publication

Expedient will prepare a full job description based upon the client’s specific requirements and agreed criteria.

Job boards Position advertised on the NAS website

Expedient will advertise the vacancy across multiple, premium on line job boards. Expedient will create a client/job specific database that will capture all candidates that apply for the position; This data can be shared with the client if required.

CV filtering All candidate CV’s sent to client for consideration

All candidates CV’s are checked against the agreed criteria before being processed to next stage.

Candidate engagement

Client undertakes all candidate engagement including scheduling and conducting telephone and face to face interviews

CV’s are passed to your dedicated recruitment consultant and they will conduct a telephone interview with each candidate using a10 point interview guide. The consultant will then produce a full summary of the results and share it with the client. Expedient will reject and advise unsuccessful candidates. Expedient will submit successful candidate CV’s summary to the client for review with the notes from the telephone interview. Expedient will contact each selected candidate to arrange an interview. Expedient will confirm the interview in writing with each candidate Expedient will prepare and coach the candidate before their interview Expedient will capture all feedback on interview results and record it on the CRM system.

Informing candidates

Client responsible for informing both successful and unsuccessful candidates

Expedient will advise both unsuccessful and successful candidates on behalf of client in writing.

Managing employment starts

Employment offers and start dates are managed by the client

Expedient will help present an employment proposal/offer and channel all questions regarding the salary and associated benefits Expedient will confirm candidate acceptance to the client Expedient will manage start dates with both candidate and client Request references if required Arrange candidate enrolment onto the apprenticeship programme. Monitor candidate over their first 90 days

www.recruitment-apprenticeship.co.uk

www.expedient-training.org.uk

Head Office

Expedient Training Consultancy

2nd Floor

Telephone House

Fenton Street

Lancaster

LA1 1RJ

Telephone:

0333 3442 660

Fax:

0333 3442 661

Documents

Costs and Funding