Why Apprenticeships are really bad for business…. in the short term!

Now there’s a headline you don’t see every day. In fact, you’ve probably had the exact opposite headline rammed down your throat at least 30 times already today! (Especially if you’re from a Training Provider. How we love to sell our wares to one and other in Skills, where everybody is selling and nobody is buying.)

Whilst you may initially think that the headline is simply and deliberately intended to grab your attention (which it is), I do also believe every word. In fact, I’d go as far as to say that, I know it to be true (if there is such a thing as truth, I’m starting to believe that it’s all just perspective).

Shocking? Well let me take a few moments to explain and maybe you won’t be so shocked after all. Reading this might even change the way that you think about Apprenticeships.

Part 1 of 4. Selling the unpredictable

When a business makes a decision to take on a new recruit, Apprentice or not, it’s a risk. No matter how good the recruitment process, you simply can’t legislate for all of the possible variables that could affect the success, or not, of bringing a new person into a business.

Not only is it a risk, but there is always a cost. Even when there are no direct recruitment fees paid to agencies or advertisers, the simple fact that a business has invested time in finding, interviewing and inducting a new person into a business, means that there is a cost. Often a significant one. It is certainly never FREE (scowl).

Somebody once told me that, people, are the most unpredictable product in the world. And it’s true. When you recruit a person, to work with lots of other people, i.e. colleagues and customers, sometimes wonderful things can happen. Sometimes, it can be quite the opposite.

Attitudes, behaviours, beliefs, values, prejudices, ages, genders, orientations, ethnicity, knowledge, experience, moods, objectives, goals, agendas….. Getting all of these attributes and characteristics of people, working together harmoniously and effectively, is arguably the most complicated of all sciences (or arts, I’m not really sure which it is. Perhaps it’s a bit of both). Just ask any owner, leader or manager of a business and see what they say.

So… just pause for a moment and think about a business owner/manager’s decision to take on an Apprentice. An Apprentice, who;

• by definition will have limited, or no relevant work experience,
• who may (although not always) be young,
• who may in some instances be unclear about life and career goals, and;
• in some cases may not have yet fully developed an appreciation of the attitudes and behaviours that are required to succeed at work.

(Before you feel the urge to argue with your screen, take a moment to think about the employer’s perception on this. Whether or not, the above statements are correct, the employer’s perception is the most critical thing to address. More often than not, I’ve found businesses to have exactly the perception described here. Even the ones that take on Apprentices)

So, the reality in undertaking this most unpredictable of practices (recruitment) is that recruiting an Apprentice can often feel like the riskiest recruitment of all.

Part 2 of 4. The (il)logical argument

I’ve long been bemused by the standard sell of Apprenticeships to employers, which goes a little something like this;

‘Apprentices are great for business. Random % of employers say so. We’re reliably informed that there’s a bottom line benefit. It won’t cost you anything. And the best bit, you don’t have to pay them much’

Harsh? Possibly. Accurate? In a lot of instances, yes. Plus, as illustrated in Part 1, saying that it won’t cost a business anything is bordering on being an outright lie. And the funny (not so funny) thing is, most businesses know this!

When you boil it right down, most businesses (and owners, leaders and managers thereof) want 3 simple things:

• Less stress (good)
• More time (good)
• More money (good)

Give them one of these things, you’ve got a chance of winning business. Give them two, you’ve got the business. Give them all three, you should have business for life.

Very occasionally, businesses will do something that contravenes the above, simply because it feels like a good thing to do.

Now, this is the crunch. In the short term, taking on an Apprentice typically means;

• More stress (bad)
• Less time (bad)
• Less money (bad)

So, there you have it. This ‘logical’, persuasive argument, based around the ‘benefits’ of taking on an Apprentice, just doesn’t stack up. At least, in the short term!

Part 3 of 4. Short-term tactics vs. long-term strategy

Ask the owners, or leaders of a business, ‘what are the things that you worry about’, or conversely, ‘what are the things that excite you’ relating to their businesses, and the answers can be startlingly different from businesses of different sizes. Interestingly, in businesses of similar size, the most pertinent challenges and opportunities can be strikingly similar, even across very diverse sectors.

At an Apprenticeship event recently, I spoke to a multi-billion pound engineering business about their 25 year technology roadmap, which is already informing the talent that they need to recruit and develop today and over the coming years.

On the same day, I spoke to a business in the same industry, with revenues of c.£6m, that had recently slashed their training budget due to fears that they may not be able to pay staff past the next 3 months. (Interestingly, both will be paying Levy).

Being a small business owner myself, I often speak to other small businesses, where the number one issue is usually cash flow. With many hoping and praying that their recent invoices get paid, or it could be curtains within weeks.

Although it’s not always as simple as this, the size of a business can give an indication of whether the leadership team is likely to be mostly thinking; ‘long-term strategy’ or, ‘short-term tactics’. I find it helpful to think of there being a sliding scale between long-term strategy and short-term tactics, where the sliding scale can move from one conversation to the next. Where the scale resides for most of the time, is the most accurate indicator of the general mindset of the business.

If you’re speaking to a business that is locked into a ‘short-term tactics’ mindset, most likely, Apprenticeships will not be a good fit. If they think it is, be worried!

The mindset of a business, or at least, its owners or leaders, can move. And you can help to move it. As an Apprenticeship Training Organisation, your very future depends on it.

Part 4 of 4. Cost or investment (The Crunch)

Whether through the Apprenticeship Levy, or through the current £1 in, £2 out being operated for new Apprenticeship Standards (and likely to continue in a similar way post April ‘17, for non-Levy paying employers, although the ratio may well change), employers will be directly contributing to funding Apprenticeships in future. Whether they see this as a cost, or an investment, is arguably THE most critical aspect of the whole Apprenticeship Reform agenda.

The following definitions help to illustrate the point:

Definition. Cost – a price that has to be paid to obtain something, e.g. goods or services

Definition. Investment – an investment in an asset that it is hoped will generate future economic benefit (See Return on Investment)

The misnomer that is, ‘free training’, that our sector has binged on for as many years as I can remember is in the final death throws (smiley face). In a world of ‘more for less’, if your training offer is seen as a cost, you will not survive. If what you provide is seen as an investment, I believe that you will not only survive the seismic changes facing our market, but you’ll come out the other side stronger, more fit for purpose, and you never know, you might even have more time, less stress and more money. Surely a future worth fighting for? I appreciate that this is somewhat of a binary view of the world, but I genuinely believe that this is not far from the truth.

The point

I incur costs when I have to, I make investments when I can afford to. Today I invested some of my time in writing this article, as I believe that it might help to change the way a couple of people think, for the better. And it only takes a couple of determined people to change the world (of Apprenticeships :)! Something that matters to me very much, so, a worthwhile investment.

So, have a think about how you can help the next employer that you speak to, to invest in something that matters to them, e.g. giving a young person a chance, help that low paid member of staff to progress their career and improve their life. It might not be the most logical business decision for the short-term, but ask them when they last had fun, or really felt great about a purely logical decision.

Developing genuine insight and understanding is more critical than ever as we move into a world of more choice and different competition. Just look at some of the most successful businesses in the world today and think about what they own. Uber, Amazon, Facebook… they don’t really own anything except a bit of technology and lots and lots of insight!

So, make sure that you take the time to really understand how you can help businesses to achieve what they want to achieve. Ask the right questions, offer the right advice. Don’t simply push your product. If the businesses you're working with are just thinking about ‘getting to Friday’, it’s your role to help them to think about longer-term strategy and investing in the things that will deliver long-term success, i.e. Apprenticeships.

And finally, ensure that you really understand why Apprenticeships might be bad for business in the short-term. Acknowledge it, and do everything that you can to turn this early investment into something of significant value for the business and the Apprentice. You never know, in doing this, you might even change the world (of Apprenticeships :), for the better.