As job vacancies rise, Neil Grundon, Deputy Chairman of Grundon Waste Management, calls for more flexibility in how the Apprenticeship Levy can be used.
Reading the latest unemployment figures released in May made me realise that the UK is in a quandary right now. One of many, I know, but …
On the one hand, for the first quarter of 2022 we are told we have the lowest unemployment rate in nearly half a century. On the other, the number of job vacancies has risen to an all-time high of 1.3 million.
Put simply, more people than ever are now in work, but there are many more jobs going begging – you just need to find the right people to fill them.
And therein lies the crux of my problem. As a business, we are the first to put our hands up and say we often struggle to recruit. The waste industry has always had a poor rap when it comes to making a first impression at careers events, but I think it’s more than that.
Back in the 1990s, the Labour government’s determination that 50% of young adults should go into Higher Education sent future generations out into the working world with a plethora of what I would call ‘interesting’ degrees.
You only have to look at job adverts from just five years ago to see what happened next: ‘Double degree in theoretical physics, desirable, 10 years’ experience required, and working knowledge of mandarin essential’
You only have to look at job adverts from just five years ago to see what happened next: ‘Double degree in theoretical physics, desirable, 10 years’ experience required, and working knowledge of mandarin essential’.
I wonder if these positions were ever actually filled, or did they just encourage graduates to extend their gap year to the rest of their lives?
I blame it all on Tony Blair (I blame most things on Tony Blair, so it was an easy conclusion to make). He encouraged everyone to get a degree in media studies or tap dancing when all we really wanted were decent plumbers, the end result of which is a nation proficient in TikTok and little else.
He’s still banging the drum – maybe he already has a plumber on speed-dial. Only in April did Mr Blair decree that the figure should be seven in 10 teenagers who go on to higher education by 2040.
Apparently, this is all part of a plan to help us compete with ‘high-innovation economies’ like South Korea and Japan.
His comments earned the ire of celebrity chef Raymond Blanc who was quoted as saying students would be ‘better off’ applying for apprenticeship schemes, pointing out that never have so many industries been so short of staff.
Which underlines my point exactly. It’s all very well saying we need brilliant young things to run the world of the future, but we also need to offer opportunities to others who are less inclined towards academia.
A solid way forward
In the rush to find the most perfectly qualified, experienced professionals, have we forgotten to employ those school-leavers who are the ones who break things; who have accidents and forget that Monday is a work day?
Then again, who in their right mind would take on an apprentice chain-saw operator, nail-gunner, or waste operative when you could find a battle hardened 45-year-old instead?
I believe it is incumbent on us all to find more ways to bring the next generation into the workplace and Raymond Blanc is right, apprenticeships do offer a solid way forward. At Grundon, we have welcomed and helped many willing workers through an apprenticeship programme, but I know I’m not alone when I say the current system is unwieldy and not best designed.
As a larger employer with an annual pay bill of over £3 million, we pay the Apprenticeship Levy each month. The funding is aimed at encouraging employers like us to invest in and create apprenticeships. After two years, if the money isn’t spent, it is lost.
As a larger employer with an annual pay bill of over £3 million, we pay the Apprenticeship Levy each month. The funding is aimed at encouraging employers like us to invest in and create apprenticeships. After two years, if the money isn’t spent, it is lost.
In theory, that all sounds like a good idea, but the inflexibility of the apprenticeship programme means it simply isn’t designed for all jobs or qualifications.
Take for instance someone who applies for an apprenticeship LGV driver role. To meet the necessary rules, the apprenticeship must be at least 12 months, yet the reality is the licence can usually be completed much more quickly. Most people who want to gain an LGV licence see it as a springboard to another more lucrative career – they don’t want to hang around on an apprenticeship for a full year.
Apprenticeships also require that 20% of the person’s working hours are spent completing off-the-job training. Again, something that doesn’t easily lend itself to a driver role.
As a result, we have chosen to move away from the apprenticeship route for trainee drivers and instead provide our own funding to put new recruits through commercial driver training courses, whilst also giving them job security for a further two years and a decent wage.
Increased flexibility
It’s a similar situation with our sister company Grundon Sand & Gravel. There are limited to no locally-available apprenticeships within the quarrying sector in our area, meaning we can’t take on new apprentices because the scheme doesn’t offer the flexibility or support we need in the areas that we operate.
There are some success stories, notably with our LGV Technicians apprenticeship. It’s a structured four-year programme, which leads to a NVQ Level 3 qualification in Heavy Vehicle Maintenance and Repair. The only qualification required to sign up is the ability to achieve a Level 2 qualification in English and Maths.
We’re also exploring ways in which the Apprenticeship Levy can be used to upskill existing employees, enabling them to gain new skills and explore future career growth opportunities within the business.
Not all businesses – and not all people – are built for the traditional educational system. Not all roles are suited to a full apprenticeship programme.
What I would like to see, however, is increased flexibility to use the Apprenticeship Levy more wisely, especially at entry level – if the funding could be spent towards helping employees gain relevant NVQs, to my mind that would be money well spent.
Not all businesses – and not all people – are built for the traditional educational system. Not all roles are suited to a full apprenticeship programme.
With so many vacancies going begging – and ever-increasing numbers of people turning to food banks and struggling with the cost of living – there has to be a better way of providing the training and help required to get people into decent paying jobs and to give them a better future.
It must be time to loosen the purse strings on how the Apprenticeship Levy can be used and let us as businesses, determine how that money can better be spent to fill the roles we really need.
If you’ve got something to say about this opinion or would like to submit your own for consideration, email the editor at darrel.moore@ciwm.co.uk
