COMPASS APPRENTICESHIPS: The Apprenticeship Levy
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How the apprenticeship levy will affect the business and what kind of preparations are being made, as we near April 7th 2017.
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COMPASS APPRENTICESHIPS: The Apprenticeship Levy
- 2. • How it will affect our business • What we are focussing on to make it work • How we are making sure we are ready for April 2017 Apprenticeship Levy
- 3. Who We Are 52% 13% 10% 15% 10% Business and Industry Healthcare and Senior Education Sports and Leisure Defence, Offshore and Remote
- 4. Who We Are
- 5. Our Clients
- 6. How Will it Affect CGUK • CGUK & Ireland are supporting the levy • Help to increase our numbers; it’s more of what we do • Get the business’s attention • Budgeting & workforce development activities NOW • A rough calculation of the levy charge • 3% of the workforce will optimise the Levy • Sectors have been set their targets • Educating business to understand the mechanism
- 7. Launched The 1500 campaign as part of NAW2016 • Enhanced marketing • School leavers into chef roles • Current workforce • Quality programmes Making the Levy Work
- 9. Barista Mastery Journey •3m On Boarding • Buddy with level 2 barista Barista Trainee •12m intermediate apprenticeship in Customer Service • Introduction to Coffee • Barista Skills: Foundation • Brewing Skills: Foundation Barista Foundation •12m intermediate apprenticeship in Team Leading • Barista Skills: Intermediate • Brewing Skills: Intermediate Senior Barista Intermediate •12m advanced adv. L’ship & Management • Barista Skills: Professional • Brewing Skills: Professional • Green Coffee: Fdn/Int • Sensory Skills: Fdn//Int • Roasting: Fdn/Int Head Barista Diploma 3-4 year Barista Development Programme
- 11. (Non) Qualification Route: Supervisor Passport Qualification Route: Team Leader Apprenticeship Two Routes for Team Leaders • Team Leader • Supervisor • Controller • Lead Steward • Sous Chef • Technical Team Leader
- 12. Non Qualification Route: Accelerate Qualification Route: Leadership & Management Two Routes for Unit/ Middle Management • Asst. Manager • BDM • Chef Manager • Contract Manager • Head Chef • Area Manager • Quality Auditer • Unit Manager • Finance Manager • Category Buyer
- 13. Summary • We are getting ‘Levy ready’ • Forecast some obstacles along the way • Provider rush • Age profile of CGUK • Competition – 26 providers • Hours • Success rates Budgeting & workforce development activities need to happen NOW
Editor's Notes
- Diverse services and sectors 60,000 employees 30,000 casual employees 10,000 client locations 3 million customers served per day Business and Industry is our largest sector
- 22 Brands and to give you an idea of our client base We have Levy restaurants – which creates some cross purpose questions – are we talking about levy restaurants or the apprenticeship levy???
- Every week a new client comes to light that I didn’t know about – the Met Office, HMS Belfast, Compass is vast and new business is coming on board all the time
- Our view is to support the apprenticeship levy, it’s a tax, so it’s not helpful, however it’s being introduced for the right reasons. Whether it is the best approach or not, we are embracing rather than opposing the levy. As a large contract holder, we see it as sustained and guaranteed funding. For Compass Group UK & Ireland, the 0.5% apprenticeship levy will mean paying significantly extra to HMRC, however, we see the introduction of the levy as a positive incentive to increase our number of apprenticeships. Our numbers have plateaued in recent years, so the levy with help us do more of what we already do We will be contributing significant costs, 5 times more than our contract value, which is a burden, however we are doing our bit to make it work We have made a rough calculation of the charge – obviously there’s lots we still don’t know - we still don’t know the funding rates, but should soon And we still don’t know the funding arrangements for the devolved nations, so there is some guess work to at the moment but we are planning and working on a target of 3% of the workforce studying (and competing) an apprenticeship at any one time– this figure will ensure we are optimising the levy Engaging with the sector MD’s, Heads of HR’s and HRBP’s has been key in getting the ball rolling and getting the levy on the agenda. The business have been full of questions, the most popular one being ‘how do we get the money back?’ So there has been an education piece that says “As we recruit apprentices into our business we will receive funding back from the Government to support the apprenticeship delivery. These funds will be managed centrally and as such the business should not budget for any return of funds to cover the payroll costs”.
- We have trained 3000 apprentices in the last 5 years, but have set ourselves the ambitious target of creating a further 1500 by the end of 2017. In March we launched the Compass Apprenticeship brand and campaign – “it’s the start of something big” and the campaign has helped to demonstrate our commitment to attract 1500 new apprentices by the end of 2017 In addition to enhancing our external comms, which is aimed at school leavers, we have introduced a large communication plan internally – currently our uptake is 0.75%, so we have 2.25% % of our workforce to engage. What we won’t do is mandate apprenticeships – the quality will suffer, retention will suffer – they’ll be no bums on seat of sheep dip approach within compass A big part of getting ready is robust processes, it’s easy to join and the quality of our offer underpins the programmes
- I’m willing to share our plans to be Levy ready – these are plans I have put in place since I joined the Compass giant at the beginning of the year. Jigsaw Training are our lead provider and we have developed a joint delivery model where we deliver the teaching and learning for our flagship culinary and leadership & management programmes, Jigsaw deliver the FS & Assessment, which is gearing us up to introduce the new standards. Our plans need to include not only the new standards, but also the end assessment – yes, we need to factor in 20% of the costs of delivery will go towards end assessment, but more importantly, as an employer led model, we need to think about being assessment ready – otherwise we won’t know if the way in which we deliver the new standards is right until the end assessment, which may be too late. Another consideration is the resource required to administer the levy. Now is also the time to include your payroll and finance functions, as more detail around the Digital Apprenticeship System emerges. As we have set targets for each of the sectors to work towards, it’s only right the we have an offer to meet their needs. Despite running 16 different apprenticeship programmes, we still have areas where there is no offer in place. We are developing electrical and plumbing routes in for our government services sectors Offshore in Scotland is big for us, as is the demand, Wales partnerships will follow suit Highers won’t necessarily give us volume, but we view the level 4 qualifications as a route in for A level students, in areas such as Finance and HR Whilst I’m not touting for business, tender opportunities are available And finally…
- Barista apprenticeships will give us an offer for a whole new market and a career pathway - we deliver the Speciality Coffee Assn of Europe (SCAE) Barista development programme, so we are looking at how this can embedded into the apprenticeship pathway – added value for the SCAE programmes, added value for apprenticeships – in place in readiness for the start of the levy
- I’m putting this out there, there are differing views to this approach. The cynical view is using programmes we already run to recover the levy, rather than the best way to invest in skills. I firmly believe apprenticeships are the best way to invest in skills, why wouldn’t we enhance our current offer and turn it in to an accredited, credible, quality controlled programme of development, in other words an apprenticeship.
- What we plan to do is keep a non qualification route on the shelf, accepting apprenticeships are not for everyone, but in the case of the team leader development options, the apprenticeship far outweighs the 6 month self led supervisor passport. Based on last years numbers, if ‘all’ the volume went through the apprenticeships, we will accrue £380k of the levy
- The same applies for leadership & management development where we have the Accelerate management development programme running alongside the advanced leadership & management level 3 apprenticeship programme – we are duplicating and offer here, that needs to be simplified. So, Accelerate will go, the apprenticeship will come into the forefront, and we are using our current L&D workshops, to create a 6 month non qualification route for those not wishing to pursue the apprenticeship, but in need of leadership & management training. This would generate a further £220k, based on the Accelerate numbers this year – so half a million pounds of levy optimisation
- Overall I feel in a positive place, I feel we are getting ‘levy ready’ Sourcing the right provider to support is critical, though their may be a stampede of employers all thinking the same, providers may become overwhelmed 90% of our workforce are 24+ so maximising the funding available will be a challenge, apprenticeships will not appeal to all We have 26 training providers/ colleges delivering apprenticeships across our sites – we need to join forces A huge chuck of our workforce are part time, so hours worked is a challenge And, very importantly the quality of our offer – we all know the risks for success rates when significant volume increase occurs THIS IS WHY PLANNING BUDGETING AND WORKFORCE PLANNING ACTIVITIES NEED TO HAPPEN NOW