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www.apprenticeshipalliances.eu This programme has been funded with support
from the European Commission
Module 1 - The Untapped Potential of
Apprenticeships for SMES
Apprenticeships explained and why Apprenticeships work for SME’s
Introduction
Learning Objectives
1
SME Video Case Studies2
Overview of occupational apprenticeships
Types of Apprenticeships3
SME’s share how their businesses have benefitted from apprenticeships
Learning from Best Practice Models
4
Apprenticeship Alliances
Model 1 Resources
Extra Information Resources
Spotlight on a number of European Apprenticeship Strongholds
5
Apprenticeship Alliances
Apprenticeship is a programme of formal education
and training. It combines learning in a place of work,
with learning in an education or training centre.
On successful completion of a number of phases of
training, apprentices receive professional
qualification in their chosen apprenticeship.
Apprenticeships becoming an increasingly attractive
career path option for learners and a talent pool
source for employers.
Introduction
What are Apprenticeships?
1
The Elements of
Apprenticeships
• It is centred on a formal employment programme that trains
learners to do a specific job and leads to formal qualification
• Programmes last from one to six years
• Pay a salary, usually low wages to start with but increases
with experience and skills
• Includes a mix of on-the-job training and work experience,
and formal, classroom-based learning
1
Apprenticeships offer entry-level experience in a career,
typically
This form of training is with the
employer where the apprentice gets
practical training and experience of
doing the job. In addition to the skills
and knowledge gained, the apprentice
will develop competence, confidence
and the ability to perform to industrial
standards. The apprentice will be
assessed on the ability to perform
specified tasks to pre-set standards. 
How do Apprenticeships work?
- Practical Training (On-the-Job)
Apprenticeship Alliances
1
This form of training based in
training centres or educational
colleges involves learning practical
skills together with theoretical
elements. Apprentices will be
required to pass a series of
Modular Assessments (tests)
throughout this training.
How do Apprenticeships work?
- Technical Training (Off-the-Job)
Apprenticeship Alliances
1
How do Apprenticeships work?
– Typical Apprenticeship Life
Cycle
Apprenticeship Alliances
1
Source: https://careersportal.ie/apprenticeships/traditional_apprenticeships
Introduction Video –
What are Apprenticeships?
Apprenticeship Alliances (RAISE)
1
Overview of
Apprenticeships from
Gov.co.uk
Source: https://www.youtube.com/watch?v=R14D1ieLY5M
Benefits of Apprenticeships for
SME’s
Apprenticeships can help all types of businesses across a wide
range of sectors harness fresh new talent. They can help equip
your workforce with the practical skills and qualifications that
your organisation needs now and in the future and you will enjoy
the benefits of having a loyal and motivated workforce that you
have trained to meet your own specific business requirements.
Many employers have reported that by employing apprentices
they have realised a growth and improvement in productivity in
their businesses. There is also a real sense of contributing to the
skills need of their local economy.
1
Deeper Look at Benefits of
Apprenticeships for SME’s
1. Tailored work force addressing skills gaps – Apprenticeships
afford companies the opportunity to train competent
employees to meet the specific needs of the company (versus
hiring externally)
2. Fresh Approaches - bring fresh, new ideas and add value into
the organisation
3. Opportunities for Peer Learning - passing on skills and
knowledge to an apprentice
4. Support Corporate Social Responsibility (CSR)
1
“The Apprenticeships programme has helped us train and develop the apprentices we need for the long-term success of our business. Our apprentices add to our
organisation making it more effective, competent, productive and competitive by addressing our skills gaps directly.“
Apprenticeship Alliances (RAISE)
- Peter Dixon,
Group Chief
Executive, Phoenix
Energy Holdings,
Northern IrelandSource: https://www.nibusinessinfo.co.uk/content/company-testimonies-apprenticeships
Benefit Key to Long Term Company Success
Productivity Boast and Good
Return on Investment
• 76 % of companies say apprentices provide a higher level of
productivity, while 81% say that they help boost the
productivity of the whole company
• Reliable Investment - While there is a small cost in hiring
apprentices, there’s is usually a helping hand available in the
form of government grants and incentives for companies taking
on apprentices. The model can help save recruitment and
retraining costs. The cost-benefit of a apprenticeships/dual
vocational training is balanced for the company. But an
essential advantage is: expenses in recruiting of personnel can
be reduced because employees are already trained in the
company.
1
Source Populous research - http://www.populus.co.uk/poll/apprenticeships/
“The programme has helped us train and develop the apprentices we need for the long term success of our business. Our apprentices add to our organisation
making it more effective, competent and competitive by addressing our skills gaps directly.“
Apprenticeship Alliances (RAISE)
- Paul Hamill, Head
of HR Kainos,
Northern Ireland
Source: https://www.nibusinessinfo.co.uk/content/company-testimonies-apprenticeships
Benefit Addressing Skills Gaps
Applied Learning
• Applied Learning - Apprenticeships
create powerful learning
experiences to help SME’s drive
business performance and improve
the knowledge transfer from
education/training to a real and
live business environment.
1
“Apprentices are fundamental to our future skill requirements. A key advantage of recruiting an apprentice is their
loyalty and commitment to the company.“
Apprenticeship Alliances (RAISE)
- Jo O’Brien Bentley
Motors in Crewe, UK
Source:
http://www.learndirect.com/business/news-events/press-releases/2013-3/march-2013/how-apprentices-benefit-your
Benefit Develop the career of a loyal member of staff
Committed and Content
Work Force
• Hiring apprentices demonstrates a
willingness to invest in and develop
the workforce. Moreover, one of the
big benefits of training an apprentice
is that it gives the company to
opportunity to shape a young persons
work habits and to retain over time, a
qualified and motivated employee. As
a matter of fact, apprentices often
becoming the most loyal members of
staff!
1
“You need to make sure that anyone you take on will add value to our business, so the rules are no different from any other member of staff. As such, all candidates will gain valuable interview experience even if they are unsuccessful. “
Apprenticeship Alliances (RAISE)
- Tracy Ewen is the
Managing Director of
IGF, Scotland
Source: https://fleximize.com/articles/004884/why-smes-need-apprentices
Benefit Apprentices add value to the organisation
“SME employers can really inspire school kids on apprenticeships, given the opportunity. I regularly visit local schools and this has led directly to my company taking on 16 apprentices in the past 15 Years.”
Apprenticeship Alliances
- Richard Bridgman, Chairman,
Warren Services Ltd and
Chairman, SEMTA East England.
Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises
Benefit Corporate Social Responsibility
Role of Apprentice Employers
Employers play a vital role in the training of apprentices.
The employer is expected to:
•Provide a working environment which focuses on learning and
apprenticeship training;
•Provide a safe working environment which complies with health
and safety regulations;
•Direct and guide student learning through on-site supervision by
a qualified journeyperson;
•And assess the progress of the student and work with education
providers to progress the students career paths.
1
When should SME’s become
apprentice employers?
When they want:
•Employees who competently fulfil the tasks and duties needed in
their company, now and in the future
•A productive and innovative contribution from trainees
•To show social responsibility and contribute to their local
economy and community
•Workers to be loyal to their company
•To save costs for incorporation and retraining.
1
Selling the benefits to
SME’s
• Apprenticeships are a good way of growing your business
and of moulding an employee to fit your company’s needs;
• Recruitment is simpler than you may think, with as much -
or as little - help from your provider as you want;
• The cost of the apprentice salary and incidentals relating to
hiring and managing them is 100% tax deductible;
1
In the UK, some core messages used to recruit Apprentice
Employer SMEs include:
Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises, Jason Holt
Selling the benefits to SME’s
• Apprentices generally have probationary periods during
which they need to show that they are up to the job and,
even after that, if they don’t perform, you are not obliged
to retain them for the duration of the apprenticeship;
• It is possible to recruit first as a standard employee and put
the employee onto an apprenticeship at a later date;
• You can take someone on as an apprentice at any age from
16;
1
Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises, Jason Holt
Selling the benefits to SME’s
cost/benefit of apprenticeships
EXPENDITURE
a. Personnel expenditure for trainees:
» Training allowance
» Legal social
benefits
» Agreed and voluntary social
benefits
b. Personnel expenditure of training
personnel:
» Wages and salaries
» Legal
social benefits
» Agreed and voluntary
social benefits
c. Other costs:
» Rent and energy
1
YIELDS
a. Productive outputs and collaborations
b. Minimisation of personnel acquisition costs
c. Stabilisation of the wage and salary structure
d. Saving of training costs
e. Qualifications to adapt external employees »
Minimisation of miscasting and follow up costs
f. Reduction of fluctuation costs
g. Improvement of the image / of the attractively of
the enterprise
Apprenticeship Alliances
A wide range of reports stress
employers’ demand for workers with
strong occupational skills many of
which cannot be acquired within the
classroom. In the section which follows
we hear from SME’s in a series of
videos as they share their stories of
apprenticeship programmes across
Europe.
SME Video Case
Studies US
Apprenticeships in Practice
2
Margaret Reilly, former apprentice now business owner and apprentice employer
truly knows the benefit of Apprenticeships for SME’s having come through the
programme herself. Her advocacy for apprenticeships is demonstrated by the fact that
she is now an apprentice employer. www. granddesigns.ie
SME Case Study Video
Margaret Reilly, Grand Designs,
Drogheda, Ireland
2
Source:
https://www.youtube.com/watch?v=cS9PxRWGV_4
The benefits apprentices can bring to business are discussed by Diane
Walton, HR Manager for Nimlok, UK.
SME Case Study Video –
Diane Walton, HR Manager Nimlok,
UK
2
Source:
https://www.youtube.com/watch?v=YCKoIfCeTug
Although not an SME, Hitachi have an interesting story to tell about taking on their first
apprenticeships in conjunction with Brooklands College.
SME Case Study Video
Graham Lines, Hitachi,
UK
2
Source:
https://www.youtube.com/watch?v=1na-lgnUV70
Hitachi Case
Study
Continued –
Interview with
an Apprentice
2
Source:
http://www.hitachirail-eu.com/careers/opport
SME Case Studies –
Apprenticeships in Practice
Apprenticeship Alliances (RAISE)
2
Apprenticeship Alliances
There are many different types of
apprenticeships on offer in different
countries. In the slides which follow, we
have a brief look at Poland, UK, Ireland,
France, Spain and the Netherlands.
Apprenticeships are available for new
entrants to a job or to existing workers
significantly changing their job roles
Types of
Apprenticeships US
Spotlight on a number of European Apprenticeship Strongholds
3
 Demand for skilled employees on the labour market
 Strong small and medium-sized enterprises (SME)
 Interest, commitment and capability of companies to train
 Strong and competent representation of employer and employee interests (chambers / labour
unions)
 Broad-based acceptance of VET standards through strong involvement of social partners in
VET and culture of cooperative engagement
 Strong regulatory capacity of government
 Competent VET teachers and trainers
 General education system makes young people ready for VET
What are the macro pre-
conditions for apprenticeships?
3
The French VET system offers several apprenticeship-type schemes and
structured work-based learning programmes, based on alternate schemes and
both work-based and school-based learning.
There are two main apprenticeship schemes in France:
the contrat d’apprentissage -youth from 16 to 25 in initial training under the
Ministry of Education
the contrat de professionnalisation - youth 16-25 years or unemployed in
vocational training under the Ministry of Labour
Types of Apprenticeships
in France
Apprenticeship Alliances (RAISE)
3
The contrat d’apprentissage schemes covers all sectors.
•Service Sector
Hotel and restaurant sectors (12% of contracts)
Business services sector (7% of contracts)
Retail and car and motorcycle repair - 19% of contracts
Industry - 21%
•Construction accounts for 20% of the contracts (where 89% of new apprentices are
employed in small companies with fewer than 50 employees.)
•Hairdressing and beauty care are 6% of the contracts.
Types of Apprenticeships
in France
Apprenticeship Alliances (RAISE)
3
Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
Interestingly, small companies with fewer than 50 employees
remain the primary employers of apprentices, absorbing 77% of
new contracts
Types of Apprenticeships
in France
Apprenticeship Alliances (RAISE)
3
Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
The contrat de professionnalisation scheme also covers all sectors
and again the service sector is the primary user with 79% of new
hirings, including the two largest tertiary sectors: retail, car and
motorcycle repair (24% of new contracts) and business services
(17% of new contracts).
The construction sector accounts for 6% of hirings, while industry
is responsible for 15% of new contracts.
Types of Apprenticeships
in France
Apprenticeship Alliances (RAISE)
3
Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
In the Polish educational system, the dual system apprenticeship is a part of VET and sees
learners spend majority of time acquiring skills at employers’ premises, (mainly
craftsmen) after a contract is signed between an employer and an apprentice (juvenile
worker 16-18 year olds) Learning at school takes place two days a week (theoretical
knowledge: general and vocational). This type of dual system is designed for students
from basic vocational schools (around 61% of them are apprentices/juvenile workers).
The apprenticeship is organised in SMEs, mainly in handicrafts.
Source: https://cumulus.cedefop.europa.eu/files/vetelib/2015/ReferNet_PL_2014_WBL.pdf
Types of Apprenticeships
in Poland
3
There are two forms of apprenticeship training in Poland:
•Occupational training (nauka zawodu) which aims to prepare an apprentice to work as a qualified
worker or a journeyman and covers practical training at the employer’s and theoretical education
realised at school, at the employer’s premises or in Centres for Education and Professional
Development called ODiDZ (this training is classified at ISCED 3 level);
•Training to perform a specific job (przyuczenie do wykonywania określonej pracy) which aims to
prepare an apprentice to work as a vocationally trained worker and may apply only to some selected
activities related to occupational training (this training is classified at ISCED 2 level).
Types of Apprenticeships
in Poland
Apprenticeship Alliances (RAISE)
3
Up until 2012 the Spanish Education system did not have an apprenticeship programme. Today a
significant number of companies participate in the new model of dual VET, enabling students to
combine training in schools with training in real work environments. There are two methods of
practical training in the workplace:
•SIMPLE ALTERNATION combines training time in school and in company, without involving the
academic recognition of time in the company
•DUAL ALTERNATION combines training time in school and in company + the academic
recognition of learning achieved by students for in company activities.
Types of
Apprenticeships in Spain
Apprenticeship Alliances (RAISE)
3
The company hosts the apprentice through the training period,
according to the national VET legal frame, in two phases:
Types of
Apprenticeships in Spain
Apprenticeship Alliances (RAISE)
3
Vocational education and Apprenticeship education in the Netherlands is very advanced and
consists of three layers (Cedefop, 2004). It starts very early (age 12) with the lower strand in
compulsory education : preparatory vocational education . It continues in senior secondary
vocational education and it peaks in vocational, or rather professional, higher education (in
professional universities).
Apprenticeships are very well embedded in the Dutch system, it is no surprise that they cover -
Economy & Trade, Health Care & Welfare, Industry, Logistics & Transportation, Health Care &
Welfare and Agriculture, Beauty Care, Media & Design and Catering & Bakery.
Types of Apprenticeships
in the Netherlands
Apprenticeship Alliances (RAISE)
3
Currently in Northern Ireland there are around 170
approved apprenticeship frameworks with many
more being developed in sectors like professional
services, that are new to the apprenticeship
concept.
Types of Apprenticeships
in Northern Ireland
Apprenticeship Alliances (RAISE)
Source:
https://www.economy-ni.gov.uk/sites/default/files/publications/economy/apprenticeships-guide-for-employers.pdf
3
Types of Apprenticeships
in Northern Ireland
 Agriculture, Horticulture & Animal Care
 Health, Public Services & Care
 Business, Administration and Law
 Media and Publishing
 Education and Training
 Information and Communications Technology
 Engineering and Manufacturing Technologies
3
Apprenticeships have traditionally been associated with technical and practical careers in five
areas: motor mechanics, engineering, printing, electrical work and construction.
The system in Ireland in being reformed though with new apprenticeships being introduced, in
areas as diverse as financial services, accounting, medical devices, software development, travel
agency, butchery, chef, warehousing and plastics technology.
Many of these are areas where there are severe skills shortages. Also, apprenticeships will now be
offered in third-level institutions as well as in further education and training institutes.
Types of Apprenticeships
in Ireland
Apprenticeship Alliances (RAISE)
Source: http://www.apprenticeship.ie
3
Apprenticeship Alliances (RAISE)
The German government is currently helping
18 countries around the world set up
apprenticeship schemes, and some
companies export and adapt the model
themselves.
In the slides that follow we look at how the
German system works and how it has become
ingrained in German company culture.
Learning from Best
Practice Models
USSpotlight on a Germany a European Apprenticeship Stronghold
4
Best Practice Models - Germany
Apprenticeship Alliances (RAISE)
4
In 2014 in Germany there
were 328 government-
recognised training
occupations under the
Vocational Training Act
(BBiG) or the Crafts and
Trades Regulation Code
(HwO). The number differs
slightly each year.
Click on image left to view
list of occupations.
Best Practice Models - Germany
Apprenticeship Alliances (RAISE)
4
In 2014 in Germany there
were 328 government-
recognised training
occupations under the
Vocational Training Act
(BBiG) or the Crafts and
Trades Regulation Code
(HwO). The number differs
slightly each year.
Click on image left to view
list of occupations.
Best Practice Models – Dual System
of Apprenticeship in Germany
Apprenticeship Alliances (RAISE)
4
Germany’s labour market values workers trained for specific
occupations. Most positions, from electricians to nursery-school
teachers, require standard training and certification. Over
500,000 new apprenticeship contracts are concluded every year.
The system developed historically out of the medieval guild
system. It’s base is the concept of “occupation”.
Best Practice Models - Germany
Sources: https://www.ft.com/content/1a82e8e0-04cf-11e7-aa5b-6bb07f5c8e12
http://www.apprenticeship-toolbox.eu/index.php?option=com_content&view=article&id=143:apprenticeship-
system-in-germany&catid=92&Itemid=307
4
In December 2016, the unemployment rate for 15-24-year
olds in Germany was 6.7 per cent, compared with 17.3 per
cent across EU member states.
Germany's youth apprentice schemes have been hailed as
the country's biggest weapon against youth unemployment,
with more than 65 percent of young people starting careers
with vocational training after they finish school.
Best Practice Models - Germany
Apprenticeship Alliances (RAISE)
Source: https://www.cnbc.com/id/100996324
4
“"Germany is close to full employment right now and apprenticeships are clearly something that have helped drive growth - the apprenticeship schemes work very well in the family-run Mittelstand (small and medium sized enterprises -- SMEs) as it provides cheap labor for companies while young people get training."
Apprenticeship Alliances (RAISE)
- Carsten Brzeski,
ING economi
Source: https://www.cnbc.com/id/100996324
Apprenticeships in Germany – spotlight on SME’s
The key to the high employability of graduates from dual programmes in
Germany is, without a doubt, the involvement of companies in the design
and implementation of vocational education.
Companies are so committed to Germany's dual education system that
German companies opening overseas (particularly in the US) are
transferring the system and using it to address skills gaps and training up
local staff with similar apprenticeship models.
Apprenticeships are ingrained in
German Company Culture…
Apprenticeship Alliances (RAISE)
4
Source: http://www.ippr.org/files/publications/pdf/nsaw-case-study-wieland-lezcano-
feb2016.pdf
Stihl, a chainsaw
manufacturer based in
southern Germany, has
exported the dual
education system to the
US.
Apprenticeship Alliances (RAISE)
4
Source: https://www.youtube.com/watch?v=iuX9ATIrlrs
Germany Companies exporting the
German Apprenticeship Model to the
US - Stihl
Manufacturers in the US say
there is a critical shortage of
trained workers in the United
States. In South Carolina, a
German company is training
students in skilled labor
through apprenticeships.
Germany Companies exporting the
German Apprenticeship Model to the
US
Apprenticeship Alliances (RAISE)
4
Source: https://www.youtube.com/watch?v=-Sun5FS6VKw
The BMW factory in Spartanburg,
South Carolina, is offering the
German Dual System to workers
with a program that offers part-time
work, an all-expenses paid associates
degree and near guarantee of a job
and future education down the road.
Germany Companies exporting the
German Apprenticeship Model to the
US
Apprenticeship Alliances (RAISE)
4
Source: https://www.youtube.com/watch?v=zpDAocHVxwM
Wieland, Lezcano and Stiftung in their Case Study of the German Model suggest that
the best way to convince companies to engage in apprenticeship is to provide
economic arguments: training apprentices can be cost-effective for companies.
They argue that for several years now, studies in Germany and Switzerland have
proven this, and a recent ex-ante simulation study in Spain suggests that dual VET can
also be profitable for companies in countries without a long tradition in the dual
system. Similarly, governments looking to promote dual VET should thus focus on
economic arguments.
Replicating Germany Success and
convincing companies to engage
in apprenticeships…
Apprenticeship Alliances (RAISE)
4
Source: http://www.ippr.org/files/publications/pdf/nsaw-case-study-
wieland-lezcano-feb2016.pdf
Apprenticeship Alliances (RAISE)
Model 1 Resources
Extra Information Resources
5
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Module 1 the untapped potential of apprenticeships for sme's

  • 1. www.apprenticeshipalliances.eu This programme has been funded with support from the European Commission Module 1 - The Untapped Potential of Apprenticeships for SMES
  • 2. Apprenticeships explained and why Apprenticeships work for SME’s Introduction Learning Objectives 1 SME Video Case Studies2 Overview of occupational apprenticeships Types of Apprenticeships3 SME’s share how their businesses have benefitted from apprenticeships Learning from Best Practice Models 4 Apprenticeship Alliances Model 1 Resources Extra Information Resources Spotlight on a number of European Apprenticeship Strongholds 5
  • 3. Apprenticeship Alliances Apprenticeship is a programme of formal education and training. It combines learning in a place of work, with learning in an education or training centre. On successful completion of a number of phases of training, apprentices receive professional qualification in their chosen apprenticeship. Apprenticeships becoming an increasingly attractive career path option for learners and a talent pool source for employers. Introduction What are Apprenticeships? 1
  • 4. The Elements of Apprenticeships • It is centred on a formal employment programme that trains learners to do a specific job and leads to formal qualification • Programmes last from one to six years • Pay a salary, usually low wages to start with but increases with experience and skills • Includes a mix of on-the-job training and work experience, and formal, classroom-based learning 1 Apprenticeships offer entry-level experience in a career, typically
  • 5. This form of training is with the employer where the apprentice gets practical training and experience of doing the job. In addition to the skills and knowledge gained, the apprentice will develop competence, confidence and the ability to perform to industrial standards. The apprentice will be assessed on the ability to perform specified tasks to pre-set standards.  How do Apprenticeships work? - Practical Training (On-the-Job) Apprenticeship Alliances 1
  • 6. This form of training based in training centres or educational colleges involves learning practical skills together with theoretical elements. Apprentices will be required to pass a series of Modular Assessments (tests) throughout this training. How do Apprenticeships work? - Technical Training (Off-the-Job) Apprenticeship Alliances 1
  • 7. How do Apprenticeships work? – Typical Apprenticeship Life Cycle Apprenticeship Alliances 1 Source: https://careersportal.ie/apprenticeships/traditional_apprenticeships
  • 8. Introduction Video – What are Apprenticeships? Apprenticeship Alliances (RAISE) 1 Overview of Apprenticeships from Gov.co.uk Source: https://www.youtube.com/watch?v=R14D1ieLY5M
  • 9. Benefits of Apprenticeships for SME’s Apprenticeships can help all types of businesses across a wide range of sectors harness fresh new talent. They can help equip your workforce with the practical skills and qualifications that your organisation needs now and in the future and you will enjoy the benefits of having a loyal and motivated workforce that you have trained to meet your own specific business requirements. Many employers have reported that by employing apprentices they have realised a growth and improvement in productivity in their businesses. There is also a real sense of contributing to the skills need of their local economy. 1
  • 10. Deeper Look at Benefits of Apprenticeships for SME’s 1. Tailored work force addressing skills gaps – Apprenticeships afford companies the opportunity to train competent employees to meet the specific needs of the company (versus hiring externally) 2. Fresh Approaches - bring fresh, new ideas and add value into the organisation 3. Opportunities for Peer Learning - passing on skills and knowledge to an apprentice 4. Support Corporate Social Responsibility (CSR) 1
  • 11. “The Apprenticeships programme has helped us train and develop the apprentices we need for the long-term success of our business. Our apprentices add to our organisation making it more effective, competent, productive and competitive by addressing our skills gaps directly.“ Apprenticeship Alliances (RAISE) - Peter Dixon, Group Chief Executive, Phoenix Energy Holdings, Northern IrelandSource: https://www.nibusinessinfo.co.uk/content/company-testimonies-apprenticeships Benefit Key to Long Term Company Success
  • 12. Productivity Boast and Good Return on Investment • 76 % of companies say apprentices provide a higher level of productivity, while 81% say that they help boost the productivity of the whole company • Reliable Investment - While there is a small cost in hiring apprentices, there’s is usually a helping hand available in the form of government grants and incentives for companies taking on apprentices. The model can help save recruitment and retraining costs. The cost-benefit of a apprenticeships/dual vocational training is balanced for the company. But an essential advantage is: expenses in recruiting of personnel can be reduced because employees are already trained in the company. 1 Source Populous research - http://www.populus.co.uk/poll/apprenticeships/
  • 13. “The programme has helped us train and develop the apprentices we need for the long term success of our business. Our apprentices add to our organisation making it more effective, competent and competitive by addressing our skills gaps directly.“ Apprenticeship Alliances (RAISE) - Paul Hamill, Head of HR Kainos, Northern Ireland Source: https://www.nibusinessinfo.co.uk/content/company-testimonies-apprenticeships Benefit Addressing Skills Gaps
  • 14. Applied Learning • Applied Learning - Apprenticeships create powerful learning experiences to help SME’s drive business performance and improve the knowledge transfer from education/training to a real and live business environment. 1
  • 15. “Apprentices are fundamental to our future skill requirements. A key advantage of recruiting an apprentice is their loyalty and commitment to the company.“ Apprenticeship Alliances (RAISE) - Jo O’Brien Bentley Motors in Crewe, UK Source: http://www.learndirect.com/business/news-events/press-releases/2013-3/march-2013/how-apprentices-benefit-your Benefit Develop the career of a loyal member of staff
  • 16. Committed and Content Work Force • Hiring apprentices demonstrates a willingness to invest in and develop the workforce. Moreover, one of the big benefits of training an apprentice is that it gives the company to opportunity to shape a young persons work habits and to retain over time, a qualified and motivated employee. As a matter of fact, apprentices often becoming the most loyal members of staff! 1
  • 17. “You need to make sure that anyone you take on will add value to our business, so the rules are no different from any other member of staff. As such, all candidates will gain valuable interview experience even if they are unsuccessful. “ Apprenticeship Alliances (RAISE) - Tracy Ewen is the Managing Director of IGF, Scotland Source: https://fleximize.com/articles/004884/why-smes-need-apprentices Benefit Apprentices add value to the organisation
  • 18. “SME employers can really inspire school kids on apprenticeships, given the opportunity. I regularly visit local schools and this has led directly to my company taking on 16 apprentices in the past 15 Years.” Apprenticeship Alliances - Richard Bridgman, Chairman, Warren Services Ltd and Chairman, SEMTA East England. Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises Benefit Corporate Social Responsibility
  • 19. Role of Apprentice Employers Employers play a vital role in the training of apprentices. The employer is expected to: •Provide a working environment which focuses on learning and apprenticeship training; •Provide a safe working environment which complies with health and safety regulations; •Direct and guide student learning through on-site supervision by a qualified journeyperson; •And assess the progress of the student and work with education providers to progress the students career paths. 1
  • 20. When should SME’s become apprentice employers? When they want: •Employees who competently fulfil the tasks and duties needed in their company, now and in the future •A productive and innovative contribution from trainees •To show social responsibility and contribute to their local economy and community •Workers to be loyal to their company •To save costs for incorporation and retraining. 1
  • 21. Selling the benefits to SME’s • Apprenticeships are a good way of growing your business and of moulding an employee to fit your company’s needs; • Recruitment is simpler than you may think, with as much - or as little - help from your provider as you want; • The cost of the apprentice salary and incidentals relating to hiring and managing them is 100% tax deductible; 1 In the UK, some core messages used to recruit Apprentice Employer SMEs include: Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises, Jason Holt
  • 22. Selling the benefits to SME’s • Apprentices generally have probationary periods during which they need to show that they are up to the job and, even after that, if they don’t perform, you are not obliged to retain them for the duration of the apprenticeship; • It is possible to recruit first as a standard employee and put the employee onto an apprenticeship at a later date; • You can take someone on as an apprentice at any age from 16; 1 Source: Making Apprenticeships More Accessible to Small and Medium-sized Enterprises, Jason Holt
  • 23. Selling the benefits to SME’s cost/benefit of apprenticeships EXPENDITURE a. Personnel expenditure for trainees: » Training allowance » Legal social benefits » Agreed and voluntary social benefits b. Personnel expenditure of training personnel: » Wages and salaries » Legal social benefits » Agreed and voluntary social benefits c. Other costs: » Rent and energy 1 YIELDS a. Productive outputs and collaborations b. Minimisation of personnel acquisition costs c. Stabilisation of the wage and salary structure d. Saving of training costs e. Qualifications to adapt external employees » Minimisation of miscasting and follow up costs f. Reduction of fluctuation costs g. Improvement of the image / of the attractively of the enterprise
  • 24. Apprenticeship Alliances A wide range of reports stress employers’ demand for workers with strong occupational skills many of which cannot be acquired within the classroom. In the section which follows we hear from SME’s in a series of videos as they share their stories of apprenticeship programmes across Europe. SME Video Case Studies US Apprenticeships in Practice 2
  • 25. Margaret Reilly, former apprentice now business owner and apprentice employer truly knows the benefit of Apprenticeships for SME’s having come through the programme herself. Her advocacy for apprenticeships is demonstrated by the fact that she is now an apprentice employer. www. granddesigns.ie SME Case Study Video Margaret Reilly, Grand Designs, Drogheda, Ireland 2 Source: https://www.youtube.com/watch?v=cS9PxRWGV_4
  • 26. The benefits apprentices can bring to business are discussed by Diane Walton, HR Manager for Nimlok, UK. SME Case Study Video – Diane Walton, HR Manager Nimlok, UK 2 Source: https://www.youtube.com/watch?v=YCKoIfCeTug
  • 27. Although not an SME, Hitachi have an interesting story to tell about taking on their first apprenticeships in conjunction with Brooklands College. SME Case Study Video Graham Lines, Hitachi, UK 2 Source: https://www.youtube.com/watch?v=1na-lgnUV70
  • 28. Hitachi Case Study Continued – Interview with an Apprentice 2 Source: http://www.hitachirail-eu.com/careers/opport
  • 29. SME Case Studies – Apprenticeships in Practice Apprenticeship Alliances (RAISE) 2
  • 30. Apprenticeship Alliances There are many different types of apprenticeships on offer in different countries. In the slides which follow, we have a brief look at Poland, UK, Ireland, France, Spain and the Netherlands. Apprenticeships are available for new entrants to a job or to existing workers significantly changing their job roles Types of Apprenticeships US Spotlight on a number of European Apprenticeship Strongholds 3
  • 31.  Demand for skilled employees on the labour market  Strong small and medium-sized enterprises (SME)  Interest, commitment and capability of companies to train  Strong and competent representation of employer and employee interests (chambers / labour unions)  Broad-based acceptance of VET standards through strong involvement of social partners in VET and culture of cooperative engagement  Strong regulatory capacity of government  Competent VET teachers and trainers  General education system makes young people ready for VET What are the macro pre- conditions for apprenticeships? 3
  • 32. The French VET system offers several apprenticeship-type schemes and structured work-based learning programmes, based on alternate schemes and both work-based and school-based learning. There are two main apprenticeship schemes in France: the contrat d’apprentissage -youth from 16 to 25 in initial training under the Ministry of Education the contrat de professionnalisation - youth 16-25 years or unemployed in vocational training under the Ministry of Labour Types of Apprenticeships in France Apprenticeship Alliances (RAISE) 3
  • 33. The contrat d’apprentissage schemes covers all sectors. •Service Sector Hotel and restaurant sectors (12% of contracts) Business services sector (7% of contracts) Retail and car and motorcycle repair - 19% of contracts Industry - 21% •Construction accounts for 20% of the contracts (where 89% of new apprentices are employed in small companies with fewer than 50 employees.) •Hairdressing and beauty care are 6% of the contracts. Types of Apprenticeships in France Apprenticeship Alliances (RAISE) 3 Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
  • 34. Interestingly, small companies with fewer than 50 employees remain the primary employers of apprentices, absorbing 77% of new contracts Types of Apprenticeships in France Apprenticeship Alliances (RAISE) 3 Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
  • 35. The contrat de professionnalisation scheme also covers all sectors and again the service sector is the primary user with 79% of new hirings, including the two largest tertiary sectors: retail, car and motorcycle repair (24% of new contracts) and business services (17% of new contracts). The construction sector accounts for 6% of hirings, while industry is responsible for 15% of new contracts. Types of Apprenticeships in France Apprenticeship Alliances (RAISE) 3 Source: https://ec.europa.eu/epale/sites/epale/files/refernet_fr_2014_wbl.pdf
  • 36. In the Polish educational system, the dual system apprenticeship is a part of VET and sees learners spend majority of time acquiring skills at employers’ premises, (mainly craftsmen) after a contract is signed between an employer and an apprentice (juvenile worker 16-18 year olds) Learning at school takes place two days a week (theoretical knowledge: general and vocational). This type of dual system is designed for students from basic vocational schools (around 61% of them are apprentices/juvenile workers). The apprenticeship is organised in SMEs, mainly in handicrafts. Source: https://cumulus.cedefop.europa.eu/files/vetelib/2015/ReferNet_PL_2014_WBL.pdf Types of Apprenticeships in Poland 3
  • 37. There are two forms of apprenticeship training in Poland: •Occupational training (nauka zawodu) which aims to prepare an apprentice to work as a qualified worker or a journeyman and covers practical training at the employer’s and theoretical education realised at school, at the employer’s premises or in Centres for Education and Professional Development called ODiDZ (this training is classified at ISCED 3 level); •Training to perform a specific job (przyuczenie do wykonywania określonej pracy) which aims to prepare an apprentice to work as a vocationally trained worker and may apply only to some selected activities related to occupational training (this training is classified at ISCED 2 level). Types of Apprenticeships in Poland Apprenticeship Alliances (RAISE) 3
  • 38. Up until 2012 the Spanish Education system did not have an apprenticeship programme. Today a significant number of companies participate in the new model of dual VET, enabling students to combine training in schools with training in real work environments. There are two methods of practical training in the workplace: •SIMPLE ALTERNATION combines training time in school and in company, without involving the academic recognition of time in the company •DUAL ALTERNATION combines training time in school and in company + the academic recognition of learning achieved by students for in company activities. Types of Apprenticeships in Spain Apprenticeship Alliances (RAISE) 3
  • 39. The company hosts the apprentice through the training period, according to the national VET legal frame, in two phases: Types of Apprenticeships in Spain Apprenticeship Alliances (RAISE) 3
  • 40. Vocational education and Apprenticeship education in the Netherlands is very advanced and consists of three layers (Cedefop, 2004). It starts very early (age 12) with the lower strand in compulsory education : preparatory vocational education . It continues in senior secondary vocational education and it peaks in vocational, or rather professional, higher education (in professional universities). Apprenticeships are very well embedded in the Dutch system, it is no surprise that they cover - Economy & Trade, Health Care & Welfare, Industry, Logistics & Transportation, Health Care & Welfare and Agriculture, Beauty Care, Media & Design and Catering & Bakery. Types of Apprenticeships in the Netherlands Apprenticeship Alliances (RAISE) 3
  • 41. Currently in Northern Ireland there are around 170 approved apprenticeship frameworks with many more being developed in sectors like professional services, that are new to the apprenticeship concept. Types of Apprenticeships in Northern Ireland Apprenticeship Alliances (RAISE) Source: https://www.economy-ni.gov.uk/sites/default/files/publications/economy/apprenticeships-guide-for-employers.pdf 3
  • 42. Types of Apprenticeships in Northern Ireland  Agriculture, Horticulture & Animal Care  Health, Public Services & Care  Business, Administration and Law  Media and Publishing  Education and Training  Information and Communications Technology  Engineering and Manufacturing Technologies 3
  • 43. Apprenticeships have traditionally been associated with technical and practical careers in five areas: motor mechanics, engineering, printing, electrical work and construction. The system in Ireland in being reformed though with new apprenticeships being introduced, in areas as diverse as financial services, accounting, medical devices, software development, travel agency, butchery, chef, warehousing and plastics technology. Many of these are areas where there are severe skills shortages. Also, apprenticeships will now be offered in third-level institutions as well as in further education and training institutes. Types of Apprenticeships in Ireland Apprenticeship Alliances (RAISE) Source: http://www.apprenticeship.ie 3
  • 44. Apprenticeship Alliances (RAISE) The German government is currently helping 18 countries around the world set up apprenticeship schemes, and some companies export and adapt the model themselves. In the slides that follow we look at how the German system works and how it has become ingrained in German company culture. Learning from Best Practice Models USSpotlight on a Germany a European Apprenticeship Stronghold 4
  • 45. Best Practice Models - Germany Apprenticeship Alliances (RAISE) 4 In 2014 in Germany there were 328 government- recognised training occupations under the Vocational Training Act (BBiG) or the Crafts and Trades Regulation Code (HwO). The number differs slightly each year. Click on image left to view list of occupations.
  • 46. Best Practice Models - Germany Apprenticeship Alliances (RAISE) 4 In 2014 in Germany there were 328 government- recognised training occupations under the Vocational Training Act (BBiG) or the Crafts and Trades Regulation Code (HwO). The number differs slightly each year. Click on image left to view list of occupations.
  • 47. Best Practice Models – Dual System of Apprenticeship in Germany Apprenticeship Alliances (RAISE) 4
  • 48. Germany’s labour market values workers trained for specific occupations. Most positions, from electricians to nursery-school teachers, require standard training and certification. Over 500,000 new apprenticeship contracts are concluded every year. The system developed historically out of the medieval guild system. It’s base is the concept of “occupation”. Best Practice Models - Germany Sources: https://www.ft.com/content/1a82e8e0-04cf-11e7-aa5b-6bb07f5c8e12 http://www.apprenticeship-toolbox.eu/index.php?option=com_content&view=article&id=143:apprenticeship- system-in-germany&catid=92&Itemid=307 4
  • 49. In December 2016, the unemployment rate for 15-24-year olds in Germany was 6.7 per cent, compared with 17.3 per cent across EU member states. Germany's youth apprentice schemes have been hailed as the country's biggest weapon against youth unemployment, with more than 65 percent of young people starting careers with vocational training after they finish school. Best Practice Models - Germany Apprenticeship Alliances (RAISE) Source: https://www.cnbc.com/id/100996324 4
  • 50. “"Germany is close to full employment right now and apprenticeships are clearly something that have helped drive growth - the apprenticeship schemes work very well in the family-run Mittelstand (small and medium sized enterprises -- SMEs) as it provides cheap labor for companies while young people get training." Apprenticeship Alliances (RAISE) - Carsten Brzeski, ING economi Source: https://www.cnbc.com/id/100996324 Apprenticeships in Germany – spotlight on SME’s
  • 51. The key to the high employability of graduates from dual programmes in Germany is, without a doubt, the involvement of companies in the design and implementation of vocational education. Companies are so committed to Germany's dual education system that German companies opening overseas (particularly in the US) are transferring the system and using it to address skills gaps and training up local staff with similar apprenticeship models. Apprenticeships are ingrained in German Company Culture… Apprenticeship Alliances (RAISE) 4 Source: http://www.ippr.org/files/publications/pdf/nsaw-case-study-wieland-lezcano- feb2016.pdf
  • 52. Stihl, a chainsaw manufacturer based in southern Germany, has exported the dual education system to the US. Apprenticeship Alliances (RAISE) 4 Source: https://www.youtube.com/watch?v=iuX9ATIrlrs Germany Companies exporting the German Apprenticeship Model to the US - Stihl
  • 53. Manufacturers in the US say there is a critical shortage of trained workers in the United States. In South Carolina, a German company is training students in skilled labor through apprenticeships. Germany Companies exporting the German Apprenticeship Model to the US Apprenticeship Alliances (RAISE) 4 Source: https://www.youtube.com/watch?v=-Sun5FS6VKw
  • 54. The BMW factory in Spartanburg, South Carolina, is offering the German Dual System to workers with a program that offers part-time work, an all-expenses paid associates degree and near guarantee of a job and future education down the road. Germany Companies exporting the German Apprenticeship Model to the US Apprenticeship Alliances (RAISE) 4 Source: https://www.youtube.com/watch?v=zpDAocHVxwM
  • 55. Wieland, Lezcano and Stiftung in their Case Study of the German Model suggest that the best way to convince companies to engage in apprenticeship is to provide economic arguments: training apprentices can be cost-effective for companies. They argue that for several years now, studies in Germany and Switzerland have proven this, and a recent ex-ante simulation study in Spain suggests that dual VET can also be profitable for companies in countries without a long tradition in the dual system. Similarly, governments looking to promote dual VET should thus focus on economic arguments. Replicating Germany Success and convincing companies to engage in apprenticeships… Apprenticeship Alliances (RAISE) 4 Source: http://www.ippr.org/files/publications/pdf/nsaw-case-study- wieland-lezcano-feb2016.pdf
  • 56. Apprenticeship Alliances (RAISE) Model 1 Resources Extra Information Resources 5
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