CMI: apprenticeships a ‘huge opportunity’ for education providers

Growing employer demand for apprenticeships is creating a “huge opportunity” for education and training providers, according to a new further education white paper published by the Chartered Management Institute (CMI).

25 August 2016

The paper, Skills First: Connecting employers, further education and training providers, lands as more than 700,000 students collect their GCSE results and consider their future education options. 

Skills First is based on discussions from CMI’s July Learning Provider conference, setting out how many trailblazing education and training providers are delivering professionally recognised qualifications to engage employers. It also assesses the opportunities arising from the introduction of the Apprenticeship Levy and future employer needs for professionally skilled workers in a post-Brexit economy.

The conference, attended by representatives of more than 70 education providers, marked the official launch of new level three and level five management and leadership apprenticeships.

In June, the Department of Business, Innovation and Skills (BIS) gave the go-ahead for the apprenticeships, which cover professional qualifications aimed at new team leader and operations manager roles. These apprenticeships are now live and ready for employers to incorporate as part of their management development programmes. The first tranche of level three and five management apprentices are due to start their courses in September.

The schemes were developed by a group of 30 employers led by Serco and Civil Service Learning, and supported by CMI. They add to the Chartered Manager Degree Apprenticeship, which was launched in November 2015, providing a progression route for employers to invest in managers at all levels.

The paper includes data on the scope of need for management apprentices. According to UKCES, nearly 200,000 new management roles need to be filled every year. However, CMI research finds that seven in 10 employers fail to train first-time managers. BIS data show that poor management and leadership costs the UK economy over £19bn a year through lower productivity.

The paper also reveals that 87% of employers report difficulties in recruiting certain key skills, and that 25% of all job openings in 2015 were left vacant because employers could not find people with the right skills or knowledge. Employers recognise the return on investment in apprenticeships, with 70% saying they improve quality and service. 

CMI’s director of strategy and conference speaker Petra Wilton said:

There are huge opportunities for education and training providers to deliver the programmes employers want to grow their people and boost their performance. Employers will need 1.9m new managers by 2024, which means that top of their shopping list must be management and leadership apprenticeships. The Apprenticeship Levy and Brexit will undoubtedly transform employer spending on skills and education providers need to be ready to jump on that.”

For insight into the opportunities being created for education and training providers by the impact of the new management and leadership apprenticeships, Apprenticeship Levy and post-Brexit economy download the Skills First white paper.

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Notes to editors – additional quotes:

Mark Knowles Skills Hub Coordinator, Dudley College

We have been working with CMI for over 10 years and have built up really good working relationships with the CMI staff.

“We engage with a lot of employers – large organisations as well as some smaller ones. We have identified a massive skills gap with their accidental managers and we have helped to get people gradually moving up through their organisations. There are some really good success stories of people going from managing two or three people to managing the whole department for that organisation. It has been amazing to see the progress in some of our learners.

“We will see a massive growth in higher apprenticeships if the Apprenticeship Levy is introduced. Employers are coming to us and saying: ‘If we pay all this money, what can we do with the funding we get in return?’ We’ve brought in a new ‘aspiring managers’ programme that is going to be a pilot. Then we’re going to roll out the new apprenticeship standards over the next three years because our three-year strategic plan is to really grow this in this area.”

Melanie Nicholson Director of Skills, Serco

We deliver apprenticeships in aeronautical engineering, custodial care and marine services and pan sector qualifications in administration, customer service and facilities management. But we are going to have a huge Apprenticeship Levy payment each year so we’re looking at how we can spend that Levy pot internally. We will continue with our apprenticeships, but we are also looking to expand and embed management qualifications.”

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Notes to editors

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