Apprentices - to hire or not to hire?
There has been increased talk about apprenticeship jobs over the last year, with the Government pledging to get more young people into positions with businesses.
But with nearly one in five 16-24-year-olds unemployed, what do apprenticeships have to offer to SMEs?
What is the Government doing?
It is more than a year since the Government pledged a programme of "bureaucracy-busting" changes to the apprentice system.
At the time, Skills Secretary John Denham promised to cut through the red tape to make apprenticeships more appealing to small businesses.
But what has happened?
According to the Department for Business, Innovation and Skills (BIS), the Government has cut back on the need for monthly reporting and keeping paperwork for up to six years, while less demanding regulations on inspection and review visits are being rolled out soon following a consultation.
Taking on apprenticeships
But the main change that has come in over the last few months is the creation of the National Apprenticeships Service (NAS).
This was launched by the Government in April following a lot of talk about bringing the apprenticeship system up to date and encouraging more young people to enrol and learn a trade.
The site features a service allowing firms to search through apprentice vacancies, and also to find apprentices by matching them to employers' areas of interest.
It is responsible for apprentices in England, and provides some of the funding, while the courses themselves are designed by representatives from various industries, in collaboration with the sector skills councils.
"Employers can call the NAS up and have their hands held and be taken through the whole process by a dedicated group of people," said a BIS spokesperson.
"Small businesses are the lifeblood of apprenticeships and we want them to take on more."
There are 180 apprenticeships across a range of sectors, from traditional supporters such as plumbers, builders and hairdressers, to agriculture, education, health, leisure and retail.
Apprenticeships require:
At least 16 hours each week of paid employment, with a knowledge-based element, a competency-based element and transferable or key skills, along with a module on employment rights and responsibilities
Employers must pay at least £95 a week, though the average is £170. In addition there is the cost of supervising and mentoring the apprentice - NAS contributes 100% of training costs for 16-18-year-olds and 50% for 19-24-year-olds.
What are the incentives for businesses?
Well, the aim of apprenticeships is to provide a stream of fresh blood for businesses to make sure that the well of talent does not dry up.
The idea is that businesses get money to train up new apprentices in the skills that the business needs.
According to the NAS:
* Firms that employ apprentices lower their recruitment costs because training staff is more cost-effective than hiring skilled staff
* Training apprentices produces workers with skills that are not available on the external jobs market, allowing businesses to shape their workers into precisely the right people for the job
And the Federation of Small Businesses (FSB) agrees that apprenticeships are vital in fostering skills.
"They can help make small businesses stronger and better equipped to survive the recession, and help the economy recover and provide employment and training opportunities for those looking to expand their skills," a spokesperson said.
"Apprenticeships are an excellent opportunity for employees to get into work and add to their CV, as well as for those with fewer skills to gain business experience.
"Apprenticeships are a way for a small business owner to improve the skills of the workforce and help do their bit in tackling unemployment."
What are the burdens for businesses?
Despite providing the most intimate setting in which to learn a trade from someone with experience in the job, very small businesses can find it especially difficult to set up apprenticeships.
One of the main downsides cited by small firms remains the level of red tape involved - despite the much-vaunted moves made by the Government to cut it.
In summer 2009 the Federation of Small Businesses called on the Government to implement a range of measures designed to stem the increase in youth unemployment and make apprenticeships more attractive to businesses and young people alike.
An FSB spokesperson said that micro businesses were struggling with the administrative burden of setting up apprenticeships and organising training, and that it was also difficult to secure and process financial support.
"Another issue is completion levels - many trainees do not finish apprenticeships which can leave small businesses in the lurch," they added.
New developments
In a bid to address these problems, the Government is providing £7 million to create up to 10 new Apprenticeship Training Agencies.
Effectively designed to act as recruitment agencies, they will hire out apprentices to businesses - the idea being that firms get a more tailored service, while businesses and apprentices alike are protected in case the other pulls out before finishing the training.
The money is also intended to further develop Group Training Organisations, which allow apprentices to be shared between small businesses that are unable to provide their own training.
The florist's apprentice – a good arrangement
"We always need new apprentices throughout the industry. It's the only way to get new staff and for them to get qualifications."
Tracy Tomlinson, owner of the Coventry-based Tomlinson Flower Company, has just said goodbye to three apprentices who had spent up to two years with her business.
They were placed with the florist through KEITS, a private training provider in the floristry, horse car, animal care and horticulture industries.
For Tracy, apprenticeships are crucial to the way florists work.
She says the process of putting learning into practice within a business means the perfect combination of new enthusiasm coming together with the experience from the employer.
"Whatever we are teaching them at the time - for example, wedding design - gives them opportunity to put their own ideas into their constructions," she said.
"And it's all a balance between exploring their ideas, and the day-to-day business of working in a shop."
Tracy said there had been a few hurdles in the paperwork - though this was mostly on the part of the apprentices, as they tried to square their practical experience with the need to write up what they have been doing.
"The intensity of the reporting paperwork can be a bit monotonous for them, but overall it's definitely been a positive experience."
PENCIL IMAGE by Flickr user orangeacid
COLOURED CHALKS IMAGE by Flickr user Francis Bourgouin
FLORIST IMAGE by MORE TH>N BUSINESS
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