apprenticeship reforms: an employer engagement masterclass (28 nov 2016)

Apprenticeship ReformsAn Employer

Engagement

Masterclass

Paula Gibson

Business Solutions Manager

28 November 2016

AGENDA

• The apprenticeship reforms: update on key facts

• Your changing relationship with employers

• Review your employer customers

• Sales and business planning

• Funding for all employers

• PART 1: Non-levy paying employers

• Funding and negotiating price

• Advice for working with non-levy

paying employers

• PART 2: Levy paying employers

• Funding and negotiating price

• Advice for working with levy paying employers

• Quality and ROI

• Approaches to marketing and communications

• Your internal systems and process

• Consultancy services

• Any questions?

UPDATE ON KEY FACTS

• The government has committed to increase the quantity and quality of

apprenticeships in England – reaching three million starts in 2020.

• An employer apprenticeship levy will be introduced

by the government in April 2017.

• The levy applies to any employer with a pay bill

over £3m – 0.5% of pay bill.

• At the same time, the Department for Education

have reformed the funding and learning

delivery arrangements.

• Any provider that wishes to continue to

deliver apprenticeships from May 2017

will need to be on the RoATP.

YOUR CHANGING RELATIONSHIP

WITH EMPLOYERS

• The nature of the provider-employer relationship is fundamentally changing. Employers

are at the heart of these reforms, from designing apprenticeships, to negotiating a price,

selecting a provider and choosing an EPA organisation.

• Having the right processes in place will be key to developing

new apprenticeship business.

• Your employer’s understanding of the new approach will impact on the

way you work. There will be a shift from transactional to a more strategic longer term

relationship based on the wider context of workforce development planning.

• You will need to up-skill your teams to communicate new delivery models,

dual funding systems, the levy, impact on public sector targets,

using the DAS, understanding financial incentives etc.


WITH EMPLOYERS

You will

need to:

• Support your employers in understanding

the shift from frameworks to occupations –

do your Business Development and Sales

teams have the knowledge they need?

Employers will have more control

in designing apprenticeships

• Employer led Trailblazer groups are developing

new occupational Standards which will replace

SASE Frameworks.

• An increase from approximately 250

SASE Frameworks to potentially over

800 Standards.

• Each Standard will have a primary level that

relates specifically to the occupation, however

there are potentially a variety of levels for the

varying skills that underpin the occupation.

1


WITH EMPLOYERS

New apprenticeships are designed to be more flexible

and more effective

• Qualifications are no longer mandatory – the provider and employer

can design a programme to meet the specification that meets the

new Apprenticeship Standard.

• Introduction of end-point assessment – once the apprentice has

completed the on-programme phase and passed their gateway

criteria they will move on to end-point assessment.

• Grading is confirmed at the end-point assessment.

• Employers will benefit because apprenticeships will be relevant

and meet their business needs.

• Colleges and providers will benefit because you can produce a

better, more relevant and higher quality product for your customers.

2You will

need to:

• Carefully define

your on-programme

offer for employers

to ensure it meets

their needs.


WITH EMPLOYERS

Employers will co-invest and have more control

in the delivery of their apprenticeships

• Employers will be investing their own money into apprenticeships and will closely monitor ROI.

• There will be a mix of levy-paying (pay bill over £3million) and non-levy paying employers

(pay bill under £3million).

3

You will need to:

Understand which of your employers will be paying the levy and how much their levy will be.

Employers with a pay-bill over £3million (levy paying)

Pay an apprenticeships levy via PAYE and HMRC – funds go into the DAS account. With 10% additional top-up from government.

Employers with a pay-bill under £3million(non-levy paying)

Co-invest on 1:9 ratio with government for the delivery of ALL apprenticeships.


WITH EMPLOYERS

The funding for apprenticeships will be simplified

• New funding bands will mean a reduction in funding for SASE Frameworks.

• There will be new opportunities in Standards with higher levels of funding available.

Band Band Upper Limit

1 £1,500

2 £2,000

3 £2,500

4 £3,000

5 £3,500

6 £4,000

7 £5,000

8 £6,000

9 £9,000

10 £12,000

11 £15,000

12 £18,000

13 £21,000

14 £24,000

15 £27,000

Framework Name and Level

Framework pathway name

Current funding based on average between 16-18 and 19+

Funding band

16-18 employer incentive

Provider uplift for 16-18 (20%)

Total 16-18 provider incentive

Max. possible total provider funding

Business and Administration (3)

Business and Administration

£5,173 Band 3 £2,500

£1,000 £500 £1,500 £4,000

Electrotechnical (3) Electrical Maintenance

£12,166 Band 10 £12,000

£1,000 £2,400 £3,400 £15,400

New Funding Bands from May 2017 Standards & Frameworks

Funding examples for Frameworks (comparison of current and new funding)

Standard Name and Level Funding band


Total 16-18 provider incentive (inc £1000)

Max. possible total provider funding

Customer Service Practitioner (2) Band 6 £4,000 £1,000 £1,000 £5,000

Installation Electrician/Maintenance Electrician (3) Band 12 £18,000 £1,000 £1,000 £19,000

New Standards equivalents

You will need to: Work with employers to understand which apprenticeships will be relevant and in demand so you can complete financial planning.

4

YOUR NEW EMPLOYER

RELATIONSHIP

40%Closingthe deal

30%Presentproposal

20%Quality

of training

10%Trust

10%Closingthe deal

20%Presentproposal

30%Quality

of training40%Trust

Provider (Supply) LedThe old model of provider – employer engagement

Employer (Demand) LedThe new model of provider – employer engagement

REVIEW YOUR

EMPLOYER CUSTOMERS

Levy paying employers Non-levy paying employers

Characteristics Sign-off on all recruitment plans and new roles can

sometimes take months.

Likely to want to move quickly and can often create

vacancies immediately.

Decision makers HR department / Finance Directors Business Owner

Pain points These employers tend to be oversubscribed for their roles,

particularly if they are a well-known brand. The quality of

the off-the-job training facility does not always match the

standard in the workplace.

These employers tend to have difficulty in finding the right

candidates for the job roles and ensuring roles profiles are

inspiring. This can lead to issues around retention. Off-the-job

training for SMEs is not always relevant for the job roles.

Financial

consideration

How will they spend their levy? Now that the employer is paying they will need to carefully

prioritise where they chose to invest. Higher banded

apprenticeships will cost them more, but what do they need?

Your relationship is

based on:

Trust and building customer loyalty. You should help to

plan their future apprenticeship strategy based on skill

and business needs.

Simplifying the process for employers and incentivising

apprenticeships programme in terms of their ROI and

actual costs.

SALES AND BUSINESS

PLANNING

• Be clear on your own strategy, growth targets,

set KPI’s and goals for your centre.

• Segment your employer customers and

your communication strategy for each:

• Existing employers versus new employers

• Levy paying employers versus non-levy

paying employers

• Public sector employers versus private

sector employers

FUNDING FOR

ALL EMPLOYERS

• Government will contribute £2000 towards the costs of 16-18 apprenticeships –

£1000 for the employer, £1000 for the provider.

• For Frameworks only, there is additional transitional funding (20%) to support

for providers with 16-18 yr old apprenticeship delivery.

• Further funding support and incentives for care leavers, and those with education

and healthcare plans.

• Payment for English and Maths – £471 per qualification, which is not taken

from employers levy and is paid for by government direct to the provider.

• There will no longer be any age restrictions to apprenticeship delivery

after May 2017.

NON-LEVY PAYING EMPLOYERS

FINANCIAL OPPORTUNITIES

• Non-levy paying employers will contribute 10% of the cost of an apprenticeship and the

government will contribute 90% of the cost, in a co-investment arrangement.

• Employers with less that 50 (49 or less), employees will pay no contribution if they take on a

16-18yr old apprentice, or 19-24 year olds who were formerly in care or who have an education

and health Care plan. These are fully funded by the government.

• Government will contribute £2000 towards the costs of 16-18 apprenticeships –

£1000 for the employer, £1000 for the provider.

• Further funding support and incentives for care leavers, and those with

Education and Healthcare plans.

NON-LEVY PAYING EMPLOYERS

CO-INVESTMENT EXAMPLES

How will your Business Development Teams handle co-investment conversation?

Standard / Framework name

Funding band Govt contribution Employer contribution (upfront cost)

Total

funding


Employerbalance

1-49 staff

Standard Customer Service Practitioner (2)

Band 6£4,000

£3,600 £400 £4000 £1000 +£600 +£1,000

Standard Installation Electrician/Maintenance Electrician (3)

Band 12 £18,000 £16,200 £1,800 £18,000 £1,000 -£800 +£1,000

Funding will vary based on the below:

• Is the apprentice 16-18?

• Is the employer a micro-business (49 employees or less)?

• Is the apprentice a 19-24 year old who was formerly in care or has an Education and Health Care plan?

• Deprived area?

Note: Providers can agree to deliver apprenticeships for a reduced cost (the co-investment will still be at a 9:1 ratio). If the cost exceeds the maximum funding band, the additional cost will need to be absorbed by the employer or provider.

ADVICE FOR WORKING

WITH SMEs

• Map out your existing SME customer base – prepare before you go and research the company.

• Consider suitable candidates – SMEs can create vacancies quickly.

• Take time to build a relationship with the SME business owner.

• Build the desire, rather than overcome the objections.

• Make sure you listen 70% and talk 30% of the time.

• Work on the ‘internal sale’ as well as the external sale.

• Communicate the ROI to their business.

• Capture your thoughts and actions immediately after the meeting.

• Make sure the candidate is fully prepared.

• Minimise the administrative load on their business.

WORKING WITH NON-LEVY

PAYING EMPLOYERS

Non-Levy

Paying

Employers

Employer’s own funds

Agreed priceand payment

schedule

Invoicedby provider

Co-investment with government

Calculate how much the employer will need to co-invest and what their incentive payments will be. Negotiate costs with the employer.

Negotiate and agree price and payment schedule with the employer. The Statement of Commitment signed by all parties should ensure roles and responsibilities are clear.

Have you got the right systems in place for the funding arrangements and contracts? SMEs will require a contract and price for each Standard/Framework agreed. The Apprenticeship Agreement establishes a clear contract for the above.

10% of cost will need to be paid up-front to trigger the government co-investment (and to register the start on the ILR).

LEVY PAYING EMPLOYERS

FUNDING OVERVIEW

• Levy paying employers will pay 100% of the costs of an apprenticeship

to providers, out of their Digital Apprenticeship Service (DAS) account.

• Levy paying employers who have exhausted their levy funds,

but who wish to take on more apprentices, will co-invest

with the government at the same 9:1 ratio as non-levy

paying employers.

• From 2018, employers will be able to transfer 10% of

their levy funding to another employer with a digital

account, e.g. an organisation in their supply chain.

LEVY PAYING EMPLOYER

EXAMPLE 1

Employer levy of £12,000.

Total annual levy fund with 10% uplift = £13,200.

Calculating co-investment

• £46,000 cost apprentice training cost - £13,200 annual levy funds = £32,800 that will need to be covered by co-investment.

• Government will contribute 90% of non-levy provision (£29,520).

• Employer will top-up £3,280 in this scenario.

Note: if any apprentices are aged 16-18, then they get the incentive payment.

Standard / Framework name Cohortsize

Funding band

Total employer cost


Total funding

for provider

Framework Business and Administration (3) 4 Band 3 - £2,500 £10,000 £2,000 £12,000

Standard Installation Electrician/Maintenance Electrician (3) 2 Band 12 - £18,000 £36,000 £0 £36,000

TOTAL EMPLOYER COST: £46,000

LEVY PAYING EMPLOYER

EXAMPLE 2

Employer levy of £100,000. Total annual levy fund with 10% uplift = £110,000.

Employer total spend on apprenticeship training is £33,000 less than their annual levy funds available.

Employer will need to consider:

• Funds will expire after 24 months so will they increase training next year to use the funding?

• Do they want to allocate 10% of their levy funding to their supply chain?

• Do they have additional skills needs and can they use their levy funding to meet these needs?

Standard / Framework name Cohortsize

Funding band

Total employer cost


Total

funding

Framework Catering & Professional Chefs – Professional Cookery (2) 4 Band 3 – £2,500 £10,000 £2,000 £12,000

Framework Construction Building – Maintenance Operations (2) 5 Band 7 – £5,000 £25,000 £5,000 £30,000

Standard Adult Care Worker (2) 2 Band 4 – £3,000 £6,000 £0 £12,000

Standard Motor Vehicle Service and Maintenance Technician (Light Vehicle) (3) 2 Band 12 – £18,000 36,000 £0 £36,000

TOTAL EMPLOYER COST: £77,000

SIX KEY STEPS TO HELP A LEVY

PAYING EMPLOYER DEVELOP AN

APPRENTICESHIP PROGRAMME

1. Understand their levy

Calculate their levy allowance and determine

how it will be allocated in line with your business

strategies.

2. Ask if they have a people plan?

Identify any skills gaps or recruitment opportunities

and determine if an apprenticeship is an

appropriate solution.

3. Review current training programmes and

where occupations can be mapped to

apprenticeships

Map new Standards to job roles to identify skills

gaps, support progression and identify recruitment

opportunities.

4. Decide which programmes to deliver

Evaluate which frameworks / Standards best meet

their business needs.

5. Decide how to deliver an apprenticeship

programme

Determine which delivery method is best suited

to their programme

6. Ensuring readiness to deliver

Do they have the internal capability and capacity

to delivery a quality programme for the apprentice?

THE PROCESS FOR

LEVY PAYING EMPLOYERS

Levy

Paying

Employers

Levy paid

Price agreed

Monthly deductions paid

to provider

Co-investment top up –

if insufficientfunds

Provider and employer agree and sign written agreement (including end-point assessment).

Employer flags on DAS –prompts payment schedule.

SFA issues auxiliary agreement for each contract between provider and employer.

Provider establishes learner evidence pack.

Employer sets up ILR registration to allow the funds from the DAS account to be released to the provider.

The provider pays employer any incentive payments.

Employer may need to make cash contribution if levy funds are exhausted.

Employer recruits apprentice (could be internal staff).

Employer selects provider from DAS —initial negotiations take place (it is sensible to have pricing schedules in place).

1 2 3 4

WORKING WITH ALL EMPLOYERS

TO ENSURE THE HIGHEST QUALITY

FOR THE APPRENTICE

Recruitment

• Initial assessment

• Apprenticeshipagreement

• Induction

Putting learning at the heart of apprenticeships

Real experience, practice and problem solving…

• On the job training and learning from and with others (experts and peers)

• Off-the-job education, training and on-line learning

• Coaching, mentoring, formative assessment, review and feedback

• A nurturing, supportive and visible learning environment where

apprentices have a voice

…to achieve productivityand autonomy

Mastery

• Craftmanship

• Resourcefulness

• Routine expertise

• Wider skills and behaviours

• Business-like attitudes

• Functional skills

• Autonomy

Independent end assessment

• Qualifications

• Licence to practice

• Certification

Continuing occupational

& management development

Signoff by

employer

cityandguilds.com/apprenticeships/news-events/making-apprenticeships-work

DEMONSTRATING RETURN

ON INVESTMENT (ROI)

Insights from the City & Guilds Industry Skills Board:

• Completion of apprenticeships in the businesses run by ISB employers ranges from 85% to 100%.

Apprentices stay longer after their apprenticeships than other employees.

• Job satisfaction is enhanced for adults because they take pride in seeing young people come

through and support the company in its decision to deliver apprenticeships.

• In TUI, apprentices perform on average 17% better and stay longer.

• McDonald’s, Xtrac, Compass and National Grid report significantly higher productivity amongst

apprentice-trained staff.

• Optimity is achieving 20% annual growth, driven partly by apprentice recruitment, training and input.

• The view from Nationwide, Barclays, and McDonald’s is that apprentices create innovation

and improve processes.

• Apprenticeships are a way of driving change in the gender mix for a given role.

APPROACHES TO MARKETING

AND COMMUNICATIONS

AWARENESS

• Have you updated your profile on the DAS?

• Do you have a marketing plan in place?

• What is your contract strategy for new non-levy and levy paying employers?

• What is your plan for retaining existing customers?

A

INTEREST

• Do your business development team leaders, managers and sales teams have the relevant knowledge and skills to communicate the value of apprenticeships, an employer’s funding eligibility and your apprenticeship offer?

• Can your team work with employers to understand and help identify their business need based on opportunities and future ambition?

• Are you demonstrating the quality of apprenticeships?

I

DESIRE

• Who will lead on negotiation with employers around price and content? Employers can specify which end assessment organisationthey want the provider to use.

• Are you clear on your pricing strategy?

D

ACTION

• The Apprenticeship Agreement will establish a clear contract for the above.

• Statement of Commitment signed by all parties makes roles and responsibilities clear – employer, provider, learner (or parent if apprentice is under 18 years old).

A

DEVELOPING YOUR MARKETING PLAN

TO STAND OUT FROM THE CROWD

You will need to develop a marketing plan that

is in line with your business objectives.

• What is your customer value proposition?

(consider features, products, processes etc.)

• What makes you different from your competitors?

• Review the college mission statement. Is it

encouraging for commercial organisations?

• What is your USP? (Unique Selling Point)

• How will you engage with customers? Which marketing

channels are most appropriate? (consider direct marketing,

events, advertising, websites, social media, partnerships etc.)

• Does your offer match existing and future skills gaps?

EXTERNAL COMMUNICATION –

COMMERCIAL DEVELOPMENT

AND MARKETING ACTIVITY

Background noise

Assertions of

competence

Illustration of

competence

Face-to-face

Sales

Advertising

PR – general media

Prospectus

Internet

Newspapers

PR – specialist media

Seminars/Events

Network groups

Proposals

Client satisfaction

Targeting programmes

One-to-one meetings

Broad brush

Highly focused/

Client specific

SYSTEMS TO MANAGE EMPLOYER

ENGAGEMENT – ARE THEY IN PLACE?

• Have you got a key account management framework?

• Are you making full use of CRM systems?

• Who are your target list of employers?

• Do you have a structured database?

• Are you using CRM tools to track

employer contact strategy?

IF YOU WANT TO TAKE

THINGS FURTHER WITH US

AREAS OF APPRENTICESHIP

CONSULTANCY AND TRAINING

Apprenticeship ReadinessReview your organisational readiness for the reforms, taking into consideration skills and capabilities, local and national position and future funding requirements.

Defining your Apprenticeship OfferDesigned to help you identify employer demand against local skills gaps now and in the future. Determine how this can be used to help shape your Apprenticeship offer for the new occupational standards.

Employer Engagement CPDSpecifically designed for sales and business development managers within further education, to help develop strategic relationships with levy and non levy paying employers, including developing a USP and pitch preparation.

Support for Teaching and Learning CPDTraining to support assessors moving towards a more Teaching and Learning based role. This will improve Teaching and Learning practices with a clear focus on the apprentice learning experience.

THE APPRENTICESHIP

CONSULTANCY PROCESS

Understanding your needs

Research and review

Define and develop solutions

Implement change

Evaluate impact

For more in-depth

support we can

offer a range

of paid for

consultancy

services.

Any questions?

[email protected]