Construction apprenticeships are the lifeblood of the industry, and we must find a way to make them attractive to youngsters, explains Christian Warden, engagement director at Talentview Construction
While the average university graduate in England builds up £45,000 student debt by the time they have completed their degree, an apprentice could have earned a minimum of £80,004 by working for five years from 16.
So why is it that when apprenticeships provide youngsters with such a financial head start in life, the number signing up is falling?
Latest government figures show 24,530 starts were recorded in construction, planning, and the built environment in 2022/23, down from 26,060 the previous year.
However, apprenticeships are more crucial to construction than ever, given that CITB figures show the sector needs to find an additional 250,000 skilled workers by 2027.
Employer misconceptions
This is one of the great conundrums of our times, so let’s run through a few of the issues.
Many employers, especially SMEs, argue that apprentices take at least a couple of months of training before they become an ‘asset’ to the team, which could decrease overall productivity during that time.
Although there might be an element of truth to this, the benefits far outweigh the disadvantages. Hiring an apprentice provides SMEs with the opportunity to train a youngster in such a way that they understand the processes of your business – how things are done.
They’re an open book, without misconceptions or prejudices that a more experienced worker might have.
Another employer concern that the apprentice might leave once they have gained the qualification is again unfounded, given that a reassuring 90 percent of apprentices stay with the same company after completing their training.
This goes to show that if the employer takes time to mentor the apprentice and remains open to them about their career prospects, the risk of them leaving decreases.
Apprenticeships are also not exclusively for newcomers to the industry. Higher apprenticeships are continuing to grow, and as digitalisation advances and the net zero agenda gains pace and urgency, the variety of apprenticeships will increase.
Firms will need new skills in these areas, and potential apprentices will be attracted to the variety of opportunities available.
Apprenticeships are not just for ‘young people’. Nearly half of all apprentices who started in 2021/22 were aged 25 and over. Many firms may also find they already have employees who could be trained and upskilled via an apprenticeship.
Selling earning and learning
To tackle the skills shortage, the industry needs to come together and promote the learn-and-learn model of training.
Company costs have risen over the last couple of years, but young people also share this burden. Like most, they face ever-increasing house and rent prices and living costs.
Entering the industry via the apprenticeship route will help them avoid student loans to their increasing outlay.
Lydia McGuiness is a Construction Leadership Council (CLC) Young Ambassador, site manager, and former apprentice.
She said: “I always use the phrase ‘earning while learning’ because that’s exactly what it allows you to do. It meant that by the time I graduated at 20, I had saved enough for a house deposit.”
There are also benefits for the employer. If the company is not eligible to pay the apprenticeship levy, it will only pay 5 percent of the cost of training and assessing the apprentice. The government covers the rest.
The apprenticeship levy explained
A common misconception is that all businesses that hire an apprentice must pay the levy.
In fact, only companies with a payroll over £3m are required to pay into the levy at a rate of 0.5 per cent of their annual pay bill. The government tops up 10 per cent of the funds in the account. This money can be used by the company to train and assess their apprentices.
If the company lacks the funds for an apprentice’s training, it will pay just 5 per cent of the outstanding amount, with the government covering the rest up to the funding band maximum.
It’s also worth mentioning that the levy cannot be used towards the apprentice’s wage—just their training.
However, if the business has unused apprenticeship levy funds it can transfer 25 per cent of the unused amount to a business, sector, skill or location of its choice, helping the business close the skills gaps in its sector and location.
CITB has a similar levy, but the rate is lower, and there are exemptions and reductions based on annual payroll.
School and employer engagement
A recent Construction Leadership Council (CLC) webinar, Boosting Routes into Industry, suggested we should be going to schools and colleges to promote the opportunities available to young people.
It is up to construction industry bodies and employers to encourage more schools to tell their students about the fantastic opportunities available in construction.
Although the sector doesn’t initially appear as glamorous as others, as we know, the roles aren’t just defined by hard hats and muddy boots. They can range from biodiversity to tech, building design, sustainability, and many more.
By participating in local job fairs and school visits, we can highlight the benefits of starting a career in the industry and get young people interested in the range of jobs construction has to offer.
Progression opportunities
Many would-be apprentices also cite concerns about whether they will have as many opportunities to progress when completing an apprenticeship as they would when completing a degree.
They might feel that choosing a more vocational study route limits their leadership potential in the minds of employers, but this simply isn’t the case.
After completing a three-year Construction Project Management degree apprenticeship, Lydia McGuiness was promoted to assistant site manager and then landed a job as a site manager for Wates. Her story is not unusual.
The different apprenticeships available, from GCSE standard equivalent to master’s degree level, allow employers to upskill and promote their staff. There really isn’t a limit to progression.
While there is no overnight solution to getting more young people interested in apprenticeships, everyone in construction must find a way. Employers need to play an active role, creating links with colleges and universities to explore untapped potential.
Talentview Construction has been working in this area to provide vital links between employers, education and talent, to get the pipeline moving. Any construction firm can also upload their apprenticeship, graduate or traineeship vacancies to Talentview Construction (TVC) for free.
Through such initiatives, we will convince younger generations of the benefits of apprenticeships in construction and – let’s be clear – the future of our industry depends on it.
