education & business
Should Berkshire companies take on apprentices?
In these difficult economic times, many businesses have tried to cut staff costs but now, as things are starting to improve, is it time to invest in the future and if so, is an apprenticeship an effective investment? writes Chris Duggan of Griffins
An apprenticeship is a job which incorporates on-the-job training with structured off-job training at a college or training centre. This can be done as day release or in blocks.
There are over 200 different types of apprenticeship in over 1000 job roles from trades as diverse as accountancy, engineering, construction and administration. There are three types of apprenticeship - intermediate, advanced and higher and they usually last for between one and four years.
The minimum wage for an apprentice is £2.60 per hour, increasing to £2.65 per hour from October 31. Most employers pay more than this
up to an average of £170 per week. You as the employer are then responsible for the educational costs for the courses.
Employers taking on 16-18 year old will get 100% of the educational costs met by central funding, although this falls to 50% for 19-24 year olds. An additional £1500 is now available to employers employing less than 250 employees if they take on a 16 to 18 year old.
Here at Griffins, we take on apprentices and have always had positive results. I do have clients, however, that have had a different experience, for example the apprentice not turning up for work
at all. It is extremely important to assess the individual and their temperament and ability. You must spend extra time upfront in deciding if you have the correct person and how they will integrate with your team. Giving the new apprentice a mentor or work buddy also helps as they will communicate better with these people than with more senior people.
Lastly, regularly monitor the apprentice and do not carry anyone who cannot do the job.
Good apprentices more than repay the investment in them over the years and a constant recruitment of apprentices annually can pay dividends as the trainee becomes the trainer.
India: land of opportunity?
India is rapidly moving towards a skills shortage which could halt its economic progress if remedial action is not taken soon. Saionton Basu of Penningtons Solicitors LLP looks at the pitfalls and potential for foreign players in India’s over-regulated education sector
India faces the challenge of leveraging its vast demographic strength by educating and training over 130 million people in the 18-24 age group with employable skills. Current funding models may not be able to accomplish this goal without the participation of the private sector and international financial and strategic partners. As the average household in India spends 5% of its income on education, it is possibly the most attractive counter-cyclical industry for foreign investment.
The education sector in India can be broadly classified into three segments: • K-12 extending from kindergarten to year 12 of schooling;
• Higher education institutions (HEIs) providing undergraduate and graduate-level university education;
• Non-formal institutions (NFIs) including pre-schools (18 months
to three years), coaching classes, and the educational materials market.
Although 100% of foreign direct investment through the automatic route has been permitted in the education sector since 2000, the present legal structure does not allow degrees to be granted by foreign educational institutions in India, thereby restricting independent operations by foreign players. That said, the Indian School of Business (ISB) in Hyderabad is a loose collaboration between Wharton, Kellogg and the London Business Schools. Although it is not recognised by the present regulations, it has a stellar market reputation.
ISB is a case in point of how the market mechanisms have moved far ahead of regulatory change. There is a growing recognition within government echelons that the demand-supply gap in the education
THE BUSINESS MAGAZINE – THAMES VALLEY – MAY 2012
Nevertheless, the current legal and regulatory framework does provide opportunities for joint ventures between foreign education sector players and Indian institutions. In particular, the NFI segment is particularly ripe for foreign investment and for forging strategic alliances, as this operates outside the regulatory mechanisms for the K-12 and HEI segments, which have hindered participation in the past.
sector has to be bridged through opening up greater participation from international players. The Indian government has set in motion comprehensive reforms. Several important bills – relating to accreditation, foreign universities, educational tribunals and unfair practices – have been introduced in parliament.
The education sector in India is closely guarded by the government and several judicial pronouncements have added a very loosely defined ‘not for profit’ tag to it. Accordingly, investments need to be carefully structured so that they cannot be construed as profiteering from students by the ever-zealous regulators. Early stage tax and regulatory advice is a must so that these pitfalls can be overcome.
Details: Saionton Basu, partner
saionton.basu@
penningtons.co.uk www.penningtons.co.uk
Details: Chris Duggan 0118-9235020
c.duggan@griffins.co.uk www.griffins.co.uk
www.businessmag.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60