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Why apprenticeships need a shake-up

Jonathan Fitchew, Group CEO at Apprentify Group, takes a critical view of the current apprenticeship model and debates whether it is best fit for the new digital age

Apprenticeships started out as on-the-job training to learn a specific occupation, usually in a trade or industrial setting. Later, modern apprenticeships were designed for a broader range of sectors to give individuals valuable practical skills as well as a recognised educational qualification, and the have long been seen as a respectable alternative to academia.

These new apprenticeships often follow the same format with a broad syllabus of learning that attempts to cover all bases across a specific discipline, such as digital marketing. As we look back on the success of National Apprenticeship Week 2023, we question whether the time come for change. The theme for this year was ‘Skills for life’, but are apprenticeships giving people the right skills for their role with such a broad-brush approach? What are the benefits to employers? Do these skills meet the needs of businesses. In short, does the current model deliver the right results?

Why is the current system not fit for purpose?
Apprenticeships in their current format are a one-size-fits-all qualification. They don’t consider the needs of businesses or the interests or ambitions of the individual. It’s a structured course that has a specific goal, and this format worked well for the original industries where it was used. However, as the range of business sectors using the model has widened, apprenticeships are not adapting in step to meet the new demand.

For instance, there is currently a global digital skills shortage and an acute need for technicians and engineers. However, there has been a 34% decline in the uptake of engineering, manufacturing and technology apprenticeships since 2015. As a result, an inquiry has been launched to understand the reasons for the decline, but it is not a great leap to assume that a drop in numbers is because apprenticeships are simply less attractive to businesses and applicants.

In 2017, the government tried to reform the system to boost applications through the introduction of the Apprenticeship Levy. Any employer in England who spends more than £3 million annually on wages must contribute 0.5% of its payroll to the levy. The government adds an extra 10%, and the funds are kept in an account for employers to spend on training courses and the development of their apprentices. However, in the nine months from May 2020 over £1 billion of expired levy funds were claimed back by the government. This would suggest that the Apprenticeship Levy hasn’t worked as intended either.

Research also shows that there has been a decline in the number of individuals starting apprenticeships in recent years. In 2020 the number of apprentices starting at large businesses in the UK fell by 11%, and those starting at small and medium businesses dropped by 51% and 54% respectively.

What are the reasons for the decline? Clearly the global pandemic forced many employers to adopt new ways of working which limited the opportunity for on-the-job training. Furthermore, the scheme has drawn criticism not only for how funds can be distributed, but also for its structure. Funded apprentices are required to spend a minimum of 20% of their time in the classroom, which restricts practical training. Many business leaders believe this model does not suit their workforce and makes the scheme difficult to implement.

The lack of flexibility within the Apprentice Levy has also been questioned. For example, technical and vocational courses do not currently fall under the scheme, which has led to calls for reform, to give businesses broader control over their apprentices. Allowing employers to use funds for more dynamic training modules will help apprentices develop in much needed areas such as digital, interpersonal and management skills.

What are the benefits of re-imagining apprenticeships?
There’s no doubt there is still an appetite among large businesses for apprenticeship schemes, but in a format that meets their objectives rather than ticking boxes on a syllabus. Developing a hybrid, streamlined model that embeds apprentices into an overall business strategy, which has the full support of stakeholders, would be far more beneficial than the current model.

Educators need to move away from the idea that one-size-fits-all and develop courses centred around specific subjects or themes. It shouldn’t be the case that an apprenticeship can be purchased ‘off-the-shelf’. Each should be different to meet the needs of the employer and the individual, otherwise businesses will continue to struggle to close the skills gap and retain individuals once they’ve completed their course.

Rather than following a fixed syllabus, why is there not an option to select certain elements of the programme that best suit the role or roles that need filling within an organisation? By sticking to a rigid format, it not only deters candidates from starting an apprenticeship but also limits the outcomes, once completed. By offering flexibility it will widen appeal and increase diversity among applicants.

Apprenticeships should offer progression based on the relevant skills that individuals have acquired during their course, plus competitive salary increases and continued training. Without these assurances there’s nothing to stop apprentices walking away, meaning significant investment has been wasted. Managers who think that newly qualified apprentices will have the courage to ask for a promotion are misguided. Most people would far rather avoid the confrontation and take the emotionally easier route of finding another job.

Find the right blend for your organisation
Arguably central to any new scheme should be the importance of matching the right person to the right role. Without this there is the distinct possibility of both employers and apprentices becoming disillusioned with the process and losing interest.

The starting point for employers should be to look at what their business needs and then tailor training to meet that need. For example, if a business requires a data analyst, ensure the learning programme is focused on the practical skills to succeed in that role. This approach will deliver the best outcomes for the business and the apprentice’s own development.

It’s far better to have someone learn how to be the best possible data analyst they can be, a skill that can be utilised by an entire organisation, rather than apprentices completing meaningless tasks as part of a ‘round robin’ tour of each department.

Business leaders should also focus on equipping apprentices with the skills needed for future roles. This should be blended with working on tasks that demonstrate to the apprentice their relevance in the real world. Offering a clear direction of travel within an organisation is far more likely to encourage retention and loyalty. An apprentice’s skills should benefit your business rather than a competitor’s.

 What does the future hold for apprenticeship schemes?
There is a clear need for a radical re-think in the way apprenticeships are managed. The concept of apprenticeships seems the right approach to tackle the challenges of skills shortages, low productivity and the cost-of-living crisis. However, the old teacher’s adage ‘could do better’ applies.

To some extent there is a need to go back to the origin of the practice; give people the skills to do the job the business needs them to do, which benefits both the apprentice and the business. The skills gap is filled, which underpins the future of the business and the apprentice gets a solid career path.

www.apprentify.com

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