The Apprenticeship Levy has arrived, and it’s build up has been dominating business news and encouraging organisations to consider Apprenticeship schemes. Article by Richard Marsh, Apprenticeship Partner Director from Kaplan, an Apprenticeship Training Provider. Historical support for the article comes from Krista Cowman, Professor of History & Director of Research at University of Lincoln.
Many businesses are already on board with Apprenticeships, while significant numbers are yet to experience their benefits. In addition, the introduction of the Levy is still causing some confusion within the business community, and more needs to be done to underscore the value Apprenticeships bring and how businesses will be impacted by the new legislation. Apprenticeships are fundamentally about combining working, learning, and earning. For young people, graduates and career changers, this is an attractive combination, and this should be the case for employers too. The government’s Levy is intended to increase the quantity and quality of Apprenticeships, supported by the new Apprenticeship standards, which will ensure that key skills, work experience and necessary qualifications are gained, with support from training providers.
The concept of Apprenticeships dates back hundreds of years, and it’s worth looking back at their influence and development over time to better understand their importance in today’s business landscape, identifying how employers have adapted and benefited.
Societal views of Apprenticeships
Apprenticeships have always been considered as a structured way of gaining necessary skills by ‘learning on the job’. Dating back to Tudor times and then throughout the industrial age, it was thought that young apprentices would gain knowledge of a particular trade, as well as a sense of what was required to be a good citizen. Apprenticeships have come in and out of fashion since their introduction, driven by changes in legislation and societal views. After their initial popularity, the number of Apprenticeships began to decline by the end of the 19th century, leading to calls for the government and philanthropic bodies to introduce legislation to support them and ensure a robust system that benefited both employer and apprentice. Over the centuries since they began, Apprenticeships have adapted to many trends and changes. Another overhaul was seen in the 1970s, when Apprenticeships were often considered a less academic path, and again in 1995 when Modern Apprenticeships were launched. This merged traditional Apprenticeship models with contemporary employment practices, and was supported by advances in training and tuition.
It is clear from the heritage of Apprenticeships that social views, business opinion and legislation all play a vital role in shaping these programmes. While traditional Apprenticeships originated in trades such as carpentry and textiles, their benefits have since been recognised in corporate environments, seeing their gradual introduction into a broad range of sectors and appealing to individuals from diverse backgrounds. Accountancy, for instance, requires individuals to put theory into practice in everyday scenarios, meaning an Apprenticeship programme of combined office based and formal education is a logical training option for the industry, whilst providing an attractive learning option for individuals.
The employer’s role
In their very early days the importance of good quality Apprenticeships and a reciprocal partnership between ‘master’ (as they were known in the industry) and apprentice was a key element. In the mid-19th century, employers were limited to a maximum of three apprentices at once to ensure good quality training and sufficient attention for each individual. Anybody taking on an apprentice would receive a fee (the premium) usually paid by an apprentice’s parents or a charity. In return, apprentices would receive board and lodgings and training from their masters, while the masters benefited from their free labour, especially valuable in the later years of the term of Apprenticeship when the learners became more skilled, and could be expected to work independently.
Today, the idea of mutual investment between employer and apprentice remains, with the programmes supported and overseen by training providers and the government. In addition, today’s model ensures clear business benefits. The National Apprenticeship Service has found that 89 percent of employers say apprentices make their business more productive, and 75 percent find that Apprenticeships help to lower recruitment costs. 80 percent say that Apprenticeships will play a bigger part in their future recruitment plans.
Working conditions and opportunities
In the 1880s, Apprenticeships, with an employer dedicated to developing a young person’s skills, were seen as the best way of combatting a worrying rise in so-called ‘Blind Alley’ jobs – jobs that offered youngsters comparatively high wages when they left school, then fired them when they turned 18 to replace them with new school leavers. They also provided the promise of longer term prospects in the world of work. Throughout the 19th century many new trades began to offer Apprenticeships, although there were important changes to legislation. The seven-year term for all trades was no longer required, and indentures were replaced with looser, locally determined agreements. These passed the responsibility for determining the terms of an Apprenticeship from the state to the individual employer, although the contracts were still legally binding.
These days, Apprenticeships are an increasingly attractive prospect for school or college leavers and those looking to change career by gaining a qualification through work-based learning. They are also a very credible alternative to other routes, such as traditional university degrees. Apprentices are fully integrated into teams and business structures, treated in a similar way to other employees. HR teams work closely with training providers to ensure the necessary qualifications and ambitions are achieved, carefully monitoring progress and easing integration into office life. Alongside the Levy, there are some great new incentives for businesses to participate in schemes, including a 90 percent subsidy plus £1,000 cash for any under 19-year old given an Apprenticeship, and National Insurance reductions for under-25s.
Apprenticeships for the future
Throughout the heritage of Apprenticeships, social changes and legislative developments have taken place to support the evolution of programmes. However, from the Statute of Artificers standards in Tudor times to the introduction of the new Apprenticeship Levy in 2017, the principles remain the same – providing opportunities and tangible benefits for both employers and individuals. Kaplan is one of the largest and oldest Apprenticeship providers to the financial and accountancy industries. With knowledge and experience from many decades spent supporting training and development, they can advise and assist businesses on today’s Apprenticeship needs.
