FEATURE OPINION
HOW WILL APPRENTICESHIP LEVY HELP CLOSE SKILLS GAP?
A good supply of apprentices annually will have a positive effect on the shortage of senior, highly-skilled engineers in the UK, says Jess Penny, general manager of Penny Hydraulics
T
he shortage of senior, highly-skilled engineers across the board in the UK
has been highlighted by figures released in the latest manufacturing purchasing managers’ index (PMI) which has now reached its lowest level in more than three years following the EU referendum. Most students at secondary school level recognise that science and maths subjects could be useful for getting a good job. However, far fewer feel such jobs are attainable or relevant to them. In addition, the profile of those who go on to study particular science, technology, engineering and maths (STEM) subjects and pursue certain STEM careers is too narrow. Women, working class and some minority ethnic groups remain under- represented in some disciplines and occupations, particularly engineering. This not only means a pool of potential talent is being lost but that those industries are missing out on the benefits of a more diverse workforce.
RELEVANT TECHNICAL SKILLS STEM subjects are hugely important; however, much of the current technology curriculum for university and college education doesn’t place enough emphasis on the relevant technical skills needed in today’s manufacturing businesses either. The challenge is that new technologies are emerging at an unprecedented pace and the education system is struggling to keep up with it. Traditionally working in manufacturing meant manual jobs needing vocational skills and on-the-job training. Collaborative manufacturing is
creating a greater need for up-to-date IT and technical skills. Employers are needing to upskill both entry level candidates as well as existing staff with advanced skills. A strong British engineering sector is
vital to the long term sustainability of our economic recovery and increasing the supply of engineers is at the heart of this. As a country we excel in hi-tech
industries but need engineers to make sure the UK stays ahead of competitors. The Government’s Engineering UK report finds that engineering businesses have the potential to contribute an extra £27 billion to the economy every year from 2022 if we can meet the demand for a quarter of a million new vacancies.
KEY ROLE OF APPRENTICESHIPS Apprenticeships can play a key role in creating a more prepared and qualified workforce while offering employers the opportunity to strengthen and diversify their staff, providing a future talent pipeline tailored to the individual business needs. Apprenticeships offer substantial training and the development of transferable skills. Most training is on- the-job working with a mentor to learn job specific skills in the workplace. This means that technical skills vital to
business performance and growth are gained and strengthened, helping to develop our industry as a whole. Apprenticeships bring opportunity to
attract new talent, offer progression and develop a motivated, skilled and qualified workforce. In April 2017 a new levy will require all companies that operate within
Most training is on-the-job working with a mentor to learn job specific skills in the workplace
England to pay 0.5% of their payroll towards funding apprenticeships. There is an allowance of £15,000 so in reality only companies with an annualised payroll of more than £3M will pay the levy. The levy will support existing frameworks as they move toward the employer-led standards. Current frameworks are currently being phased out and expected to be removed completely by 2020. To formulate a new Apprenticeship Standard requires 10 companies to design and submit it. Only when this has been approved can it proceed. This standard can be used by the company who submitted it as well as other companies in the UK. The overall idea being that the levy will support the Government's commitment to improving productivity by increasing the quantity and quality of apprenticeships.
LEAP OF FAITH Employers need to take a leap of faith and make the extra investment on supporting new applicants so they can deliver the skills needed for the business and industry in the long term. The levy could be powerful for closing the skills gap in the manufacturing industry. Some of the investment is a sunk cost which lowers the threshold for making the business case weigh up to recruit apprentices. The Apprenticeship Levy will not solve all of our skills problems but a supply of thousands of skilled apprentices every year will make a positive difference. The levy will definitely help to transform the skills landscape in the UK manufacturing industry. It is not unreasonable to think that every child should have an engineering experience linked to careers and the curriculum with all schools and colleges being held to account through their relevant inspection authority. This should in turn help us achieve the latest Government target of a two-fold increase in the number of Advanced Apprenticeship achievements in engineering and manufacturing technology which will be fundamental in us meeting the forecasted demand for skilled engineers by 2022.
Penny Hydraulics T: 01246 811475
www.pennyhydraulics.com
6 DECEMBER/JANUARY 2017 | FACTORY EQUIPMENT
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