Employer Engagement & Apprenticeships UK Seminar 3 rd to 7 th December 2012 - London The Role of the Independent Training Providers - a case study Rob.

Employer Engagement & Apprenticeships UK Seminar

3rd to 7th December 2012 - London

The Role of the Independent Training Providers - a case study

Rob Boucherat – Pearson in Practice

UK Training Industry - Value

• One of the largest and most influential industries in the country. It drives the economy and has recently mirrored its expansion and contraction.

• After 2 years of continuous decline in market – the value rose to £19.5bn in 2010/2011; although less than the £21bn reported in 2007/2008.

• In 2010, Coalition Government announced changes to training in

the UK. The Learning and Skills Council (LSC) was replaced with the Skills Funding Agency (SFA), the Apprenticeship scheme was remodelled and the Train to Gain system was closed.

• Although the training market has been affected by the current recession - forecasts suggest year-on-year growth over the next 5 years, with an expected market value of £21.75bn in 2015/2016.

UK Training Industry - Volume

• Approximately 12,000 private training providers in the UK doubled between 2000 to 2008. Only 1% have over 250 employees - now consolidation with a number of large global corporations - Independent Training Providers employ over 30,400 staff

• Different types of organisation operate as private training providers, and training is often one of a number of services they supply.

• The boundaries between different types of delivery are being eroded by the use of technology and blended learning

• The sectors of the private training market which have performed well recently are IT and financial services. Sector is dominated by 15 training providers, holding 50% of the market.

• Publicly funded training provision aims to raise the qualifications and employability of the workforce and private provision trains employees so businesses improve competitiveness.

Funded Training Providers 2012/13

Provider type Number of providers & % of market Total SFA funding & % of market

Independent Training Provider or employer 518 49.6% £1.4bn 34.4%

FE College 325 31.1% £2.16bn 53.2%

Local Authority 148 14.1% £373m 9.1%

Voluntary Sector 45 4.3% £85m 2.0%

Other (e.g. Ministry of Defence) 8 0.7% £44m 1.0%

TOTAL 1044 £4,071,244,807

50%

31%

14%4% 1%

I ndependent Training Providers/Employers

FE Colleges

Local Authority

Voluntary Sector

Other

Source: Association of Employment & Learning Providers 2012

UK Employer Skills Issues

• Uncertainty – headcount freezes and low growth it is hard to justify the need to “invest today to reap the benefits tomorrow”

• Technology evolving at a rapid pace

• Need to focus on service delivery in different ways from single to integrated solutions – aligning business with technical skills

• Requirements for a high skilled, IT enabled workforce - “a break / fix service does not meet customers evolving needs”

• Considerable gaps in the available talent pool

• High youth unemployment with poor “employability” skills

• A need to ‘grow your own’ staff to support succession planning attracting ‘people with the ability to leave but the desire to stay’

About Pearson in Practice

Pearson in Practice is one of the largest private sector providers of Apprenticeships and vocational training in the UK.Part of Pearson, the world’s leading education company with 2 divisions:

Pearson in Practice Technology – provides training and Apprenticeships for young people with all provision at Advanced & Higher Level.

Pearson in Practice Skills Based Learning – provides training and Apprenticeships primarily to adult learners at levels 1 to 3

We have OFSTED Outstanding Provision & 30 centres nationally. Core to our strategy for 21st Century Skills are Advanced and Higher Apprenticeships in sectors that have not traditionally used them.

Providing 21st Century Skills

New Curriculum

New sectors – CDM, PR, HR, Legal & Contact

Centres

Provision up to level 5

New Curriculum

New sectors – CDM, PR, HR, Legal & Contact

Centres

Provision up to level 5

Commercial Growth

New commercial training in ICT

International expansion e.g. Dubai

Commercial Growth

New commercial training in ICT

International expansion e.g. Dubai

Young People

Focus on 16-24s

Employability skills

Apprenticeships minimum 1 year long

Young People

Focus on 16-24s

Employability skills

Apprenticeships minimum 1 year long

Employers

Employment at the start

Sustainable employment

Flexible provision

Employers

Employment at the start

Sustainable employment

Flexible provision

4 Priorities

Technology Skills Based Learning

Information Technology

Creative & Digital Media

Advertising & Marketing

Legal Services

Construction & Building Services

Logistics & Security

Sales & Contact Centre

Customer Service &Business Administration

Health & Social CareProject Management

Skills into EmploymentInternational

Airport Operations

Financial Services

Public Relations

Human Resource Management

Engage with target employer

Initial meeting with employer Agree

Requirements with employer

Creation ofProject Plan

Apprenticeship framework required

Delivery model(duration & mode)

Additional or newunits needed

Write new units

Accredit unitswith awarding body

Recruit& select candidates for/with employer

Apprentices start Employment & Apprenticeship

Enrol on ourSFA contract

Enrol on employersSFA contract

Apprenticeship delivered on the job & off the job

Employerpays

managed service fee

Pre-employmenttraining if candidates

not ready for Apprenticeship

Our Apprenticeship Process

TalentManagementStrategy

Succession Attraction

Development Deployment

Retention Identification

Talent Strategy & Apprenticeships

Current Trends

• Improved workforce planning and better talent management with Apprenticeships central

• More collaborative working to take positive action on talent

e.g. Printing companies Ricoh, Canon, Kyocera, Xerox, Konica Minolta and Comptia worked with us to design a new Advanced Apprenticeship for Print & Document Solutions

• Higher Apprenticeships attracting young people as an alternative to University http://www.youtube.com/watch?v=xW08uPG6vgk&feature=plcp

• Employers increasing the number of young people taken on - challenging the wisdom of a solely “graduate intake”

Graduates Apprentices

Is a graduate the best fit?Where do they add value?What are their expectations?What number do we need?

Is a graduate the best fit?Where do they add value?What are their expectations?What number do we need?

Is an apprentice the best fit?What frameworks now exist?What are their expectations? What number do we need?

Is an apprentice the best fit?What frameworks now exist?What are their expectations? What number do we need?

Graduates or Apprentices?

With the introduction of new Higher Apprenticeships, many UK employers are considering the balance between their intakes.

Benefits of Independent Training Providers

• Deep understanding of employers & sectors– according to AELP UK ITPs engage with over 300,000 employers we work closely with industry bodies e.g. COMPTIA and PRCA

• Speed to market – able to respond to employers needs quickly e.g. we can deliver a new curriculum area within 10-15 working days

• Consistent approach – national employers appreciate a provider with a single point of contact and consistent delivery

• Complete Flexibility – no academic year restrictions means all year round “roll on” “roll off” delivery - customised to each sector

• Focus on the relationship between the learner and employer - ensuring the solution meets all needs

• High Quality Provision – work with providers that do not compromise quality

Pearson – Always Learning Video

Final Thought

“Our education systems are overlaid with a particular intellectual culture which is promoted by the needs of universities. This culture gives a premium to certain types of academic work and tends to demean practical and vocational work as second class options. Aptitude takes many forms and we have a view of it in education that is too narrow and wasteful. In all these ways the dominant culture of education is oriented towards the last century, not the present one.”

Sir Ken Robinson – Professor Emeritus of Education University of Warwick

Thank You

Rob Boucherat - Funding Policy Director

[email protected]

www.pearsoninpractice.com