Enterprise and Business Committee
Inquiry into
apprenticeships in Wales
April 2012
Introduction
The Forum of Private Business is a proactive, not-for-profit organisation providing comprehensive support, protection and reassurance to 18,000 small and micro businesses. We add value to businesses through the collective voice for members in local, central and European government, and the provision of tailored solutions that promote business success.
Apprenticeships are vital to the Welsh economy, as a skilled workforce is needed to support small business growth. Small businesses make up a large part of the economy as they account for 99.2% of all private sector enterprises in the UK and make up 46.2% of total employment[1]. Therefore the Welsh Government must support and incentivise these firms to take on young people if it wants to achieve significant growth in apprenticeship numbers.
This paper will start by focusing on the reasons why small businesses use apprentices and will then touch on the main themes and issues raised by our members, as well as specific questions raised by the committee. Unless otherwise stated, the research or member views referred to in this submission are from our focus groups on apprenticeships (conducted summer 2011) and our training and skills panel research reports from September 2010 and August 2011.
The Forum would be more than happy to provide oral evidence to supplement this written response.
Training methods used by small businesses
Figure 1: Usage of current recruitment methods
“I have tried all of the above with a high degree of success, I prefer to use some kind of trial/internship/apprenticeship to just taking someone on and crossing my fingers as both the employer and employee need to know that there is a good fit.” Panel member response
Our training and skills member panel results reveal government-sponsored apprenticeship schemes are the most frequently used methods of training-based recruitment, with 46% stating that they would use this method. This is even more significant as 31% of businesses would only consider employment from other firms or cannot see themselves employing in the foreseeable future.
Most panel members felt that this was the best method of recruiting as it allowed recruits to get college training as well as practical on-the-job training and enables them to make mistakes on more skilled aspects of the job away from the workplace. The college element also allows businesses a break from ‘babysitting’ apprentices.
General on-the-job training or a more traditional apprenticeships were more useful for some, particularly where no apprenticeship scheme was available locally or for less vocational subjects, where businesses felt that the workplace was the best way to get the skills needed (e.g. customer service/product knowledge).
However, while apprenticeships are popular methods of recruitment, some of our members have encountered problems with the quality of the training provider or the applicant. The current skills system is not meeting all of small businesses needs, an issue which must be addressed. In addition, we feel more could be done to encourage small businesses to take on more apprentices, particularly businesses that do not currently use apprenticeships as a method of recruitment.
Quality of apprenticeships and recruits
Isthe current apprenticeship system providing effective support to the Welsh economy?
Isthe current apprenticeship system meeting the current and future skills needs of employers in Wales? If not, what needs to be improved?
DoCareers Wales and Jobcentre Plus provide effective support for people wanting to find apprenticeships? Does the new Apprenticeship Matching Service, run by Careers Wales, work effectively?
Not all of our Welsh members use the Apprenticeship Matching Service to recruit apprentices. As figure 1 shows while government apprenticeships are popular with members, they are still used by fewer than half of respondents. Some businesses prefer local training schemes, while others run their own apprenticeships, which can be tailored more to the needs of the business.
The problem with apprenticeships is that the quality of courses varies across Wales. The evidence from our members suggests that training provision is patchy – some have had a great experience with apprenticeships, while others have struggled to find the framework to suit their business needs.
The issue for our members is that the majority of courses are not flexible, an attribute which is essential for a small firm. Businesses want courses they can tailor to their needs, as well as the needs of the recruit. A number of businesses at the focus group sessions said they would be more likely to use apprenticeship courses provided by local colleges, if they were able to pick and chose different modules, in order to help create a worthwhile course. Time is also a concern for small businesses, with 71% of Welsh members surveyed as part of Referendum 190[2] research stating that it was ‘very important’ that courses were timed to minimise the impact on their businesses.
There is also a lack of information available to small businesses and therefore they find it difficult to navigate the complex system, which is made up of numerous courses.
“The whole provision area for better this and better that is such a maze with information so complex to understand that it turns people away from looking seriously as it becomes a chore. Everything - like all Government red tape – needs to be simplified and (made) more accessible”. Panel member response
For instance, our members say there is not enough information about the courses on offer or their effectiveness. Information on training and skills is not available to access all in one place. The Welsh Government’s apprentice website page provides a useful starting point for businesses, but this covers mostly government apprenticeship provision and not necessarily courses offered by colleges or other providers in the local area. Small business owners are time poor so are unable to source all the relevant information. Lack of information is one of the reasons small businesses struggle to access courses in the first place, with 50% of respondents to our 2011 panel reporting that access to training and grown worse in the past 12 months.
Data on the effectiveness of courses is especially important because small firms need good quality courses that increase competency. As they have fewer resources to cover an employee that is absent due to training, they cannot afford to waste these resources on training that does not benefit the business.
Some businesses felt that training providers had a role to play in addressing this issue by taking a more proactive role in terms of interaction with the local business community.
“As a managing director, I have yet to have anyone even contact me about skills education.” Panel member response
If colleges had a better relationship with local businesses in the community, they could let them know about the courses on offer and could potentially help to tailor apprenticeship courses to business needs. This could also increase the number of small firms taking on apprentices as the colleges would be able to outline the benefits to the business. Members also feel JobCentre plus could improve its performance, as there have been instances where businesses owners have contacted their local job centre to offer a work experience placement and have had little response. If JobCentres’ want to fulfil their role in supporting the Welsh economy, they must ensure they respond to business queries and assist where possible. It is important for both the small business community and young people that any potential work experience opportunities are maximised.
As well as the quality of the courses and the role of training providers, there is an issue with the quality of recruits. Our panel research revealed that a large number of respondents believe young people are not adequately prepared for the workplace. Business owners were critical about the attitudes of young people and the soft skills they possessed, rather than core skills such literacy and numeracy.