Why businesses should rebuild the apprenticeships brand

Investment in quality apprenticeships can be positive for young people and employers, as well as driving social mobility and economic growth

The apprenticeship levy was initially received as really positive news by youth employment charities and organisations. This was, surely, a great incentive for major firms to invest in youth, and to create opportunities for those who would otherwise never get the chance to work for a major firm.

That optimism didn't last. With the removal of the upper age limit for apprenticeship eligibility and the creation of a market for Masters-level 'apprenticeships', levy pots (when used at all) inevitably focused on investment in existing staff.

The 'brand' of apprenticeships - understood by the public as a young person putting on their work clothes for the first time and mastering a trade - has been damaged. The generation of bright young people earning and learning in entry-level positions has not materialised.

Yet there is a compelling argument for investing in youth, especially from disadvantaged backgrounds, and for apprenticeships as a driver of social mobility and general economic growth. We can consider this from two perspectives: why it's good for youth, and why it's good for you, the employer.

Good for youth

The Social Mobility Commission's new State of the nation report describes social mobility as 'virtually stagnant', and it's certainly the case that young people from disadvantaged backgrounds face staggering obstacles to meaningful employment.1

My social mobility charity Leadership Through Sport & Business (LTSB) interviews hundreds of candidates for our employment programme. We hear directly from young people how chronic under-investment in careers advice and a mindless emphasis on higher education outcomes can leave those intimidated by university debt unprepared for the working world.

Every year we hear of young people denied access to careers because they haven't had unpaid work experience - denied unpaid work experience because they haven't had previous work experience. Their frustration is evident and justified.

Even those who attend university don't benefit as much as better-off peers. The truth is, not all universities or courses are equal - and that's critical information many young people and parents don't have.

Quality apprenticeships are the answer. They combine the meaningful experience of the working world, recognised qualifications and fair pay for a job that needs to be done. The fairer the pay, the greater the likelihood of a successful apprentice: it means they can work just one job well, rather than two or three exhausted. (To be brief, here: the apprenticeship minimum wage is exploitative and presupposes a family unit to supplement living costs. Not all young people have this.)

Not only do quality apprenticeships transform the lives of disadvantaged young people, but also those of their family and friends. There's a ripple effect of higher expectations, and belief that ability will find opportunity. That belief is vital for the wider wellbeing of society.

Good for employers

There is a business case as well as a moral case. Hiring young people is good for your company, especially when they represent diverse backgrounds.

The case for diversity has been made many times, including by McKinsey.2 Workforces should be representative of the communities they serve and draw creativity from a mix of insights and life-experiences. Young people from disadvantaged backgrounds have huge amounts to offer in this regard.

LTSB has been preparing and supporting bright young people from disadvantaged backgrounds since 2012. We make sure those at risk of under-employment find careers equal to their ambition and ability, and can contribute from their first day on the job. Our family of over 70 major employers - including Grant Thornton, Santander and RSM - attest to the value they provide.

83% of our Impact Report respondents strongly agreed or agreed that their apprentice was a positive influence on the workplace, and 87% that they were effective team members. Further, 90% strongly agreed or agreed that 'recruiting through LTSB is an effective way of finding diverse, capable young people for entry-level positions'.

We're incredibly proud of the case our young people make not only for themselves but for other young people like them. If you're looking for entry-level positions in business and finance or tech, we'd really appreciate the chance to talk about how you can be part of our work – please contact our employment director Debs Barlow.

However, regardless of the role you're looking to fill, consider investing in youth: be part of a transformative change where your business drives the social mobility agenda, and helps makes life just a little bit fairer for those who most deserve it

The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of HECSU/Prospects

Notes

1. Social mobility in Great Britain - state of the nation 2018 to 2019, Social Mobility Commission, 2019.
2. Delivering through Diversity, MicKinsey & Company, 2018.

Written by

Caroline Adair

Chief executive

Leadership Through Sport and Business