TRAINING & EDUCATION


THE APPRENTICESHIP LEVY: ARE YOU READY?


Following the Chancellor’s introduction an Apprenticeship Levy, Jill Whittaker,


Managing Director of HIT Training, provider of training and apprenticeships in the Hospitality Sector, provides advice on the impact of this new legislation.


The role of the apprenticeship has undergone a sea change in recent years. No longer is it seen as the


poor relation of the university degree. There


is now significant public support for degree-level apprenticeships as an alternative to the traditional university course, according to research by the Sutton Trust, and a growing body of opinion that vocational education’s time has come: young people want it and employers need it.


Statistics released by the House of Commons show that apprenticeships are on the up, with 492,700 apprenticeship starts in the UK in 2014/2015, 52,300 (12%) more compared to the previous year. The Skills minister, Nick Boles, also commented in 2015: “I want every young person leaving school to view university degrees and high-level apprenticeships as different, but equally valid, choices. Apprenticeships allow all school leavers the chance to fulfil their potential through taking the next step that best suits their skills and ambition”.


The Government has certainly been doing its bit to encourage apprenticeships too – with the announcement that a new Apprenticeship Levy of 0.5% of the pay bill of large businesses will be introduced in April 2017. The Levy will apply to all UK businesses in the Public and Private Sectors and is payable for companies with an annual pay bill of £3million or above. Employers with an annual pay bill less than this will not have


36 | TOMORROW’S FM


to pay the Levy charges, but they will continue to have access to Government funding to support apprenticeships. It is estimated that 2% of UK businesses will have to pay the Levy and there will be a £15,000 fixed annual allowance for employers to offset against their Levy payment. The Government will also apply a 10% top-up to monthly funds that enter levy-paying employers’ digital accounts. So, every £1 will be increased to £1.10 in value. This means that employers committed to apprenticeship training will be able to get more out than they pay into the Levy Scheme.


“41% OF


EMPLOYEES ARE MORE LIKELY TO LEAVE A


POSITION WITHIN A YEAR IF THEY


DO NOT RECEIVE TRAINING.”


But what does this all mean for the Facilities Industry and how can apprenticeships benefit managers? It’s no secret that offering learning and development opportunities for staff members at all levels leads to a more motivated and satisfied workforce. We also know that many sectors across the UK economy are experiencing skills shortages. Yet there are many businesses that haven’t implemented a staff training


strategy, which is not only tailored to the specific needs of the company, but also the requirements for each individual employed.


With research finding that businesses that don't provide training are twice as likely on average to go out of business, as those that do , and with many companies struggling to retain staff, investing in staff training should be a fundamental part of any business strategy.


Employees are arguably the lifeblood of any company and without them businesses will not be able to operate successfully, let alone expand. By investing in training opportunities, organisations will not only experience a more motivated and efficient workforce, but will also retain high- quality staff – 41% of employees are more likely to leave a position within a year if they do not receive training.


An effective method of staff development is through offering opportunities for employees to gain qualifications whilst also continuing to work, and for the hospitality and catering teams in particular, this can be done through apprenticeship programmes. And this is where the Levy funding comes in.


The Levy funding isn't limited to bringing new employees into the catering department, it can also be used to provide training for existing team members and up-skill the whole workforce. There is a plethora of different courses available for all positions within the hospitality and catering teams, from front-of- house managers, to chefs, baristas and bar staff. Apprenticeships are for all ages and all levels from entry through to post-graduate.


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