Raising productivity + delivering economic growth = Apprenticeships

Across 2022 and 2023, CMI commissioned two research projects focusing on employers who use management apprenticeships, to understand their value and the impact that they have on organisations and individuals. The researchers from Quadrangle and Savanta interviewed 24 employers and 11 apprentices.

We thought you would find the highlights of this study interesting. You can read more about the study on the CMI website >read more

To find out more about apprenticeships qualifications in leadership & management and coaching & mentoring > read more

The benefits of Apprenticeships

Upskilling existing employees

Apprentices in the Quadrangle research highlighted improvements in skills such as communication, leadership, organisation and confidence. Charlotte, who completed both her Level 3 and Level 5 apprenticeship with Greater Manchester Learning Provider Network, talked about how the scheme has enabled her to be more reflective and politically astute, improving her business acumen, presentation skills, and financial management.

Financial benefits

Management apprenticeships have profound positive effects on organisations, including through implementing cost-saving measures and bottom-line impact. Diamond Hard Surfaces, estimated 10% of administration time was saved thanks to their apprentice Sally’s work on streamlining and digitising the company’s resource planning system. Another apprentice, Brooke, was estimated to have made an impact of over £200,000 on the bottom line of company broadly speaking throughout her time on the programme.

Diversifying the workforce

Through the recruitment of new hires from a more diverse talent pool, organisations are bringing new skills, perspectives, and talents to innovate, upskill, and prepare for the future. Whether this be opportunities for education leavers, those re-entering the workforce or for people with particular characteristics. At Travis Perkins, 38% of the management apprenticeship cohorts identified as female compared to 12% who joined through more “traditional” entry level routes.

Improving retention

Multiple employers spoke about how management and leadership apprenticeships at Level 3 & 5, but particularly Level 3, had more benefit for the company – upskilling employees and improving management practices, whilst management and leadership apprenticeships at higher levels (particularly Levels 6 and 7) were key for retaining senior talent, by investing in key personnel.

Improving Management Quality

Training employees with practical, on-the-job experience can help them develop the skills they need in-line with organisational values, as well as acting as role models for better management skills. One apprentice, Jacintha, shared how she improved her mentorship and line-management, helping her to support new team members who have, in turn, been promoted.

Progression routes

Micronclean set up their Level 3 apprenticeship scheme in 2017, and have seen progression and promotion for between 60-70% of participants, showing how these apprenticeships can prepare employees effectively for promotion opportunities. Another apprenticeship provider shared that previously, it would have taken an employee 15 years to move from an entry level role to branch manager, whereas their apprentices are seeing this change in around 6 years.

What Challenges do Businesses Face?

Both studies showed a series of recurring challenges for businesses across multiple sectors, resulting in a difficulty to adapt to changing landscapes and maintain competitiveness.

• Managerial bad practice and accidental managers across industries, people tend to be promoted into management positions without the necessary training, leading to poor management culture.
• Increasing skill gaps: Through a lack of training and upskilling in a changing landscape, organisations are struggling to adapt and ensure employees have the right skills.
• Lack of a diversified workforce: Certain industries in particular are finding they have a very homogenous workforce causing problems for succession planning, growth and innovation.
• Retention struggles: Employers are increasingly struggling with retention with employees demanding more investment in training and development.

You can read more about the CMI study and additional apprenticeship case studies on the CMI website: Apprenticeship case studies – July 2023 (managers.org.uk)

Apprenticeships – further links

Apprenticeships for employers: Where to start? Our quick 4 step guide will help you to get started >read more

Apprenticeships for individuals: Our apprenticeship programmes, the initial skill scan, personalised learning programme and 1-2-1 coaching >read more

Apprenticeship levy: What is it, how it works and how you can use it to develop your employees >read more

Apprenticeship levy – FAQs: What if I don’t pay the levy, do I have to fund the whole cost? (No – The UK Government will contribute 95% of the cost) and other important pointers >read more