Apprenticeships

APP 123

Written evidence submitted by The Association of Licensed Multiple Retailers (ALMR)

1.0 The Association of Licensed Multiple Retailers is pleased to submit written evidence to the Business, Innovation and Skills Committee inquiry into Apprenticeships.

1.1 The ALMR is the only national trade body dedicated to representing the interests of modern bar and pub restaurant operators. Between them, our 103 members operate just under 11,000 outlets and currently employ 21,000 people in all regions and at all skill levels – from bar staff to managers of multi-million pound turnover outlets.

1.2 Hospitality is also one of the UK’s primary economic sectors. There are 52,000 pubs and bars in the UK, and between them they have a turnover of some £21 billion, equivalent to just under 2% of GDP. Around half a million people are employed directly in pubs and bars alone, with jobs in all regions for all ages and all skill levels. Crucially, the sector provides the first taste of work for many young people and licensed hospitality is the fifth largest providers of apprenticeships, increasingly a route to training and work in the pub trade too. Overall the sector generated one in ten of all new jobs last year in 2011.

Training & Apprenticeships

1.3 Our economy depends on an educated workforce to pull through these difficult times and prosper in the future. The pub and bar industry is no exception and invests heavily in building and maintaining the skills of those that work in the trade across all age groups. The ALMR’s most recent survey of its members noted that this investment amounts, on average, to at least £1,000 per employee in ongoing in-work training.

1.4 Modern food led pubs and bars represent the first taste of working in a commercial environment for many young people. Our workplaces are diverse environments, with college students working next to school leavers, and all drawn from different backgrounds and communities. They all receive effective training and equip themselves with basic skills that benefit them in any workplace environment – such as applying basic numeracy skills, teamwork or new ways in which to meet and exceed the expectations of our customers.

1.5 Anyone that works in a pub has to have some professional training to ensure they comply with the legal and regulatory frameworks that govern our sector. This covers the essential requirements of licensing laws, under age sales and food safety. In addition to this our general managers have training to ensure they understand the responsibilities of being a licence holder and our door staff have training to ensure they operate to the best practice standards of the Security Industry Association.

1.6 Our sector takes these professional standards very seriously and invests in training and support as necessary to see that they are promoted and upheld. As these standards are continually being renewed and updated so it is important that our employees keep pace with developments. This might be applying new technology to our food service offers, engaging with our clientele through social media or being inspired by how other retailers have applied innovative practices to grow successful businesses.

1.7 For this reason, many of the larger companies in the sector have developed their own internal apprenticeship programmes or have formalised their in-house training into nationally accredited apprenticeship schemes. We have provided some case studies to exemplify the range and diversity of this investment as Appendix I.

1.5 The ALMR recognises however, that the majority of employers in the modern pub and bar industry are small and medium sized enterprises who do not have the resource available to develop their own schemes or even run government funded schemes.

1.6 Whatever the size and scale of licensed businesses, the ALMR urges the Government and those involved in the design, development and delivery of apprenticeships, to listen to employers as well as participants. This will help ensure that apprenticeships are responsive and fit for purpose and help businesses develop their workforce to help them succeed in challenging economic times.

Response to Committee terms of reference

2.0 How successful has the National Apprenticeship Service been since it was created in April 2009? Has it helped bridge the gap between the two funding Departments? (BIS and Department for Education).

2.1 Modern pubs and bars are one of fourteen industries in the hospitality sector. Overall the sector provides 1 in 14 of all jobs and the workforce is projected to grow to two million people by 2017.

2.2 It is a diverse sector and until very recently it was covered only by a general catering and hospitality qualification funded by the National Apprenticeship Service. Such a broad apprenticeship failed to meet the needs of many employers and this was reflected in the limited take up and completion of the qualification by employers in the sector.

2.3 The situation is improving however. The Sector Skills Council, People 1st has worked to simplify the qualifications framework over the past couple of years and in partnership with the British Institute for Innkeeping (BII), launched a dedicated apprenticeship for licensed hospitality in August 2011. The qualification covers elements of licensing law, health and safety, first aid, cellar management, and customer service.

2.4 Prior to this ‘pub’ apprenticeship, our members in the licensed trade found that the general catering and hospitality qualifications offered by the National Apprenticeship Service did not really meet their business needs. Consequently, the ability of the National Apprenticeship Service to promote apprenticeships among our members was very limited.

2.5 Even following the launch of a dedicated ‘pub’ apprenticeship, our members are still unclear what the respective roles and responsibilities of the various bodies involved in the branding, management, funding and delivery of apprenticeships are and on what basis they should be liaising with them should they wish to explore apprenticeships further.

2.6 The ALMR hopes that the recently launched Hospitality Guild, funded by the Growth and Innovation Fund will help bring clarity to this landscape as well as disseminate best practice in skills training and apprenticeships in the licensed hospitality sector.

2.7 Another concern expressed by our members is that the development of the apprenticeships framework has largely been focused on the qualifications they provide to participants as a result of this training. Our members are more concerned with the workplace and business skills participants develop in training and how these maximise their contribution to the workplace and provide tangible benefits to employers.

2.8 Greater uptake of apprenticeships in the modern pub and bar sector can be encouraged if central Government recognises and values the skills that underpin commercial success in our modern pub and bar industry.

2.9 The development of apprenticeships has been driven from a desire to provide an alternative to formal education. We agree with the conclusions of the recent NAO report which noted that the Department for Business, Innovation and Skills has not provided sufficient clarify on what success will look like in the medium to longer term. With the Department for Education, BIS can and should do more to define its strategy to deliver the apprenticeship programme and monitor progress against the outcomes it intends to achieve.

2.10 In particular, the Department and NAS have not done enough to explicitly target those frameworks, levels of qualification and age ranges likely to have most impact on the economy. We would urge an evidenced based approach to the development of future strategy, investment and policy.

3.0 Is the extra funding promised by the Coalition Government necessary for apprenticeships? How can this funding best be spent?

3.1 The extra funding promised by the Coalition Government is essential if new bespoke apprenticeships like the one formulated by the BII are to prosper and flourish. It is particularly vital if the take up of apprenticeships amongst smaller employers is to be encouraged. Our members already invest and offer professional training to their employees and benefit from understanding how apprenticeships will complement rather than compete with existing schemes.

3.2 Our members would also welcome the ability to access the additional funding without some of the constraints that are currently imposed on existing support. When accessing funding for apprenticeships there are a number of constraints which are not always clear, and our members find it very difficult to manage their commercial businesses well if they are unable to forecast accurately.   

3.3 However, perhaps the most pressing funding issue limiting the take up of apprenticeships in our sector is that the tariff is set at a lower rate for the BII ‘pub’ apprenticeship than for the general catering and hospitality apprenticeship. The difference between the two tariffs is as much as 50% and it is no surprise, therefore, that take up and returns are greatest in the general hospitality programme.

3.4 The NAO report on apprenticeships expressed concern that tariffs were being set without sufficiently robust information on the cost of provision. Whilst funding rates are intended to be sufficient to meet providers’ delivery costs, this is not always the case and the NAS lacks reliable evidence to support their estimates of these. As a result, the Agency and Service are not in a position to judge whether providers are generating a surplus or a loss. We recommended that the NAS and Government should develop a robust evidence base to underpin ta4riff structures.

4.0 Are apprenticeships of a high enough quality to benefit apprentices and their employers? Should there be more Level 3 apprenticeships?

4.1 Apprentices are valued members of the workforce in our modern bar and pub restaurant industry. Employers in the licensed trade who have developed their own schemes have seen improvements in productivity, staff retention and overall business performance.

4.2 However, some of our larger members who have developed their own schemes express reservations about rolling their initiatives out more broadly due to uncertainties around government funding and support. Others maintain that the standards of their internal training schemes remain higher than those available through those that are publicly funded.

4.3 The ‘pub’ apprenticeship scheme launched by BII in August 2011 provides a Level 2 Qualification and the industry is keen to explore the benefits that it will provide, particularly if the ‘tariff’ issue (above) is resolved.

4.4 However, our members are keen to see Level 3 and 4 apprenticeships made available and await with interest BII plans to launch schemes with these levels in 2012. These apprenticeships are particularly suitable for training the next cadre of business managers who are typically aged between 18 and 24. While there are numerous qualifications currently available in licensed management none are officially accredited or recognized outside of the industry.

4.5 The ALMR considers that higher-level nationally accredited qualifications would help to attract more business-minded people to the industry as well as improving the skills base and promotion chances of those already working in the sector

5.0 Apprenticeship bonuses – how should they function? Will they encourage the involvement of more small and medium sized businesses to take on apprentices? If not what will?

5.1 In November 2011, the Government announced that it would offer employers with 50 employees or fewer up to £1500 for taking on an apprentice aged between 16 and 24 years old.

5.2 However, most pubs cannot realistically take on anyone full time under the age of 18. There are constraints on working hours/equipment and machinery that 16-18 year olds can use and although some of the larger businesses employ 16 and 17 year-old apprentices working in their kitchens and as waiting staff, most of the smaller pub businesses cannot afford to employ someone who cannot also serve behind the bar.

5.3 While the apprenticeship bonus might have some effect, the ALMR urges that the initiative should extended to cover all the apprentices small employers take on, not just a single apprentice, especially as this is not likely to exceed two or three per business.

5.4 In addition, there are many over-25 year-olds working in our industry that would benefit as much or even more from access to apprenticeship schemes as 16-17 year-olds. Employers in the licensed hospitality sector should be incentivised to take these older employees on.

5.5 There are a number of other initiatives that might have a greater impact and encourage small employers to involve themselves in apprenticeship schemes. These are as follows:

5.6 The ALMR have mentioned the importance of the resolving the tariff issue for the BII ‘pub’ apprenticeship (above) which would encourage its take up among small and medium sized enterprises in the licensed trade.

5.7 The ALMR welcomes measures announced by the Government in September 2011 to introduce a "payment by outcomes" approach and eliminate in-year changes to contract values, a number of data returns and reduce audit requirements needed from employers. The ALMR would encourage the Government to remain vigilant on exploring ways to further reduce red tape and beaurocracy for small businesses in this area.

5.8 The ALMR would also like to see greater effort made to accredit existing in-house training programmes (providing quality standards in design and delivery can be met) and asks that Government do not adopt a one sector fits all approach when developing tighter guidance for those involved in apprenticeship frameworks. One of our larger members noted that the 45 apprenticeships they currently offer within their business would dramatically increase tenfold if the company were able to map and successfully accredit their in-house programmes.

5.9 In addition, the ALMR would like to explore whether larger, more experienced businesses might provide mentoring to help SMEs adopt and manage apprentices and deal with the paperwork involved in running the schemes. Alternatively, the ALMR considers that SMEs in our industry would benefit from a dedicated support officer in the first phase of setting up an apprenticeship scheme.

6.0 Is the current funding arrangement for training of apprentices of 100% for 16-18 year olds and 50% for 19-24 year olds appropriate?

6.1 As noted above, most bars and pub restaurants do not employ anyone under the age of 18. As part of the process of ensuring that apprenticeships are tailored to meet employer needs, the ALMR would like to funding arrangements reflecting the specific dynamic of the industry in which they operate.

6.2 In the case of modern bars and pub restaurants we would like to see fully funded apprenticeships for 19- 24 year olds rather than for 16-17 year olds. The ALMR also considers that it would be appropriate to offer more funding to over-25s, especially those with no qualifications or who haven’t progressed through further education. This may encourage the creation, offering and take-up of management and other higher-level apprenticeships.

7.0 Conclusion

7.1 The licensed hospitality trade values apprentices. Properly configured, the ALMR considers that apprenticeships provide our workforce with robust, transferable skills that benefit our industry. This allows employers to build on employees’ capabilities with additional training programmes tailored to their own business systems as appropriate.

10 February 2012

APPENDIX – CASE STUDIES

Apprenticeships case study: Spirit Pub Company

Apprenticeships at Spirit Pub Company

· Spirit is a strong supporter of young apprentices currently hiring 199 young apprentices (18-24) compared to just 51 apprentices over the age of 25

· They are planning to hire more apprentices of all ages and their vision is to have one apprentice in every pub – a total of 890 apprentices

· Apprenticeships form a key part of training and skills development at Spirit. The majority of young people in their business come through the apprentices programme rather than through a graduate programme

The apprenticeships programme at Spirit

· In response to many of the barriers and difficulties Spirit faced when hiring apprentices, they decided to develop a unique programme to suit their needs

· All of Spirit’s new hires are entitled to apply for an apprenticeship after first completing an initial 13 week in-house induction within the business.

· This is a fairly unusual and unique approach with only two to three other big players in the industry running a similar programme

· Those who complete the induction will in effect have already done a proportion of the apprenticeship programme through their everyday job before starting the apprenticeship

· After completing their first apprenticeship employees are offered a number of further apprenticeships or equivalent qualifications for each step in development throughout their career

Spirit HR Director Karen Caddick said:

"Spirit Pub Company places a great emphasis on supporting and training young apprentices and our business is reaping the rewards – motivated, confident and engaged staff, who stay with us in the long-term. The programme is so successful; our goal is now to have an apprentice at every one of our sites in the future.

"We want to build a reputation of the hospitality industry being a place where people can build a career. Apprenticeships and further qualifications allow people to progress through the organisation in a structured and supportive manner and at a pace to suit their ambition and goals. Apprenticeships have greatly reduced turnover and 83% of our employees who start an apprenticeship are still with the business six months after finishing the programme, meaning stability for learners and the business.

"We welcome the Government’s proposal to support businesses to take on young apprentices. Young people are facing a tough time and we believe that apprenticeships can give them the right training and skills for career progression. It is also a valuable investment in the future of our business. However, it can be a complex and daunting process for many businesses and more information and guidance must be provided."

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Apprentice case study 1: Fay Hargreaves

Fay Hargreaves joined Spirit Pub Company in February 2008 and is one of the company’s great apprentice success stories.

Fay had left formal education and started to work in a pub whilst she thought about what she wanted to do. The Apprenticeship in Food and Beverage was offered to her and she decided to undertake this. Fay has since gone on to win national recognition and is an ambassador for the company.

Fay holds Level 2 qualifications in Food and Beverage and is currently a Team Leader. She was Highly Commended in the National Work Based Learners Awards 2010 and has won a Silver Proud Award which is part of the company’s own recognition scheme.

Now aged 20, Fay has already moved from her role as a team player to a team leader in just 2 years, is able to hold shifts in a general manager’s absence and has been seconded into the company’s investment team as a trainer.

In addition, Fay attended the launch of the Apprenticeship Week at the Houses of Parliament in April and has been asked to represent Spirit Pub Company on the panel of judges for the 2012 Work Based Learner Awards.

Fay Hargreaves, Team Leader, Spirit Pub Company says:

"I was invited onto the apprenticeship programme by my general manager at the time. It’s definitely delivered my expectations and also exceeded them. I just think it’s a brilliant programme and would recommend an apprenticeship to any other young person who is not sure what route to take to get their feet on the ladder.

"If any of my colleagues, or even those outside this business, wanted to enrol on the programme, I’d say just go for it! It gives you an extra skill level and has built my confidence, it would build everyone else’s too."

Apprentice case study 2: Josie Walker

Josie joined Spirit in March 2010 after deciding to leave formal education in favour of a work-based learning approach and has never looked back.

She progressed from her starting role as a team player at the Butley Ash, Macclesfield to a team leader in the space of just 14 months whilst undertaking her level 2 Apprenticeship in Food and Beverage. She is now completing the Team Leader Apprenticeship qualification.

Josie was named the Best Apprentice of the Year as part of Spirit’s internal reward scheme and was invited to attend the launch of the Apprenticeship Week at the Houses of Parliament in April.

Now aged 20, as part of her role she holds shifts in the general manager’s absence and trains staff and demonstrates best practice at other pubs in the local area.

Josie Walker, Team Leader, Spirit Pub Group said:

"I first heard about the apprenticeship programme through my general manager. I liked the fact that I could learn and earn at the same time, and also felt that I’d come across a lot of life skills that would benefit me in the future.

"The apprenticeship is much more than I expected. It motivates me to come to work. Yes, the workload is hard, but I get to learn all of these new skills, because I’m actually here, learning.

"I feel really valued. From working with the front of house team, to working with the kitchen staff, I get a lot of support – especially from my general manager and the training provider. It brings out the real person in you – you get real, hands-on experience with life skills and it’s definitely beneficial, both to you and others. I have no regrets at all about doing an apprenticeship, this is the career path for me – I love it!"

Stonegate Pub Company

Dawn Vale – Head of Leisure Machines

"I never end a day without the feeling that I have achieved something".

With no two days the same, Dawn Vale finds herself fully immersed in the operation and management of the machine side of the hospitality business. "One day I find myself working through a tender, another I am an interior designer ensuring our investments have the right machine mix and are in the best locations to suit our customer requirements", said Dawn who finds the most satisfying part of her role being out in the pubs and supporting the people who run them. "For me, this is without a doubt where the real rewards and job satisfaction comes. I never end a day without the feeling that I have achieved something."

Dawn started her career with the Rank Group in 1997 as a Customer Service Clerk and through dedication, hard work and a passion for the industry has climbed the career ladder now working with the country’s largest privately held managed pub operator in the UK.

"I wanted to join an industry that would enable me to develop my career and offer me opportunities. It has always been my belief that you’re a lucky person if you can do a job that you love and combine it with a passion for the quality of the product and service that you deliver. Well, the leisure and hospitality industry has enabled me to do just that"

Throughout her career Dawn has progressed through training and personal development programmes which have enabled her to gain management qualifications ranging from higher level NVQ‘s to a Post Graduate Certificate in Hospitality Leadership.

Jim Gray – Area Manager

"Being part of a team with a real sense of camaraderie got me hooked on hospitality".

From an aspirational 16 year old working in a kitchen to an Area Manager looking after 12 sites contributing £2Million profit to the business Jim Gray has worked his way up in the industry gaining knowledge, experience and qualifications on the way.

"I started as a 16 year old pot washing in my local Harvester" said Jim, "And working in a fast-paced environment and being part of a team with a real sense of camaraderie got me hooked on hospitality." It was through that introduction to the business that motivated Jim to progress through the ranks whilst undertaking a two and a half year college course.

Jim then spent a spell in the Alps working as a chef and made the decision to further his qualifications undertaking a degree in Hospitality Management. The degree took him to placements in hotels in France and Austria and by the age of 22 he was running a hotel in Chatel, France.

Jim then joined Yates’s in 1999 as Deputy Manager and by 2002 he was picking up awards, winning Assistant Manager of the Year within the business. Having spent time in bars in Central and West London Jim then moved to York to manage the Yates’s in the city. Under Jim’s management the business rocketed to the second highest business turnover in the company.

With consolidation taking place in the industry and the formation of Laurel Pub Company Jim was given the responsibility of looking after seven bars in the North East. He held this position for 18 months prior to being promoted to Area Manager in June 2010.

"It’s been an amazing journey. Working in this industry has enabled me to experience many different roles and locations. I’ve been involved with two new pub openings, multi site management, resolving licensing issues to managing and motivating teams. Throughout that time the companies I have worked with take time to reward their people – I’ve won awards, enjoyed incentives and even been rewarded with holidays in recognition of the part I have played in the success of the business", said Jim. "The role I now hold enables me to have the flexibility and the framework to grow a business which is hugely rewarding and it brings the biggest satisfaction to me daily when you see business succeed."

Lorna Crawford, Holding Area Manager

"I really have not made this journey on my own but have been supported by a fantastic team"

Lorna began working in pubs in the summer of 2002 prior to heading to the University of Glasgow to study English and Theatre Studies. During her first year Lorna was working in a full-time promotional job but found herself drawn back to the pub industry. "It was when the smoking ban was introduced in 2006 that I decided to move back to pubs", said Lorna, and I enjoyed the role so much that I opted to continue working in the pub as an alternative gap year and it was during this time that I was promoted to Assistant Manager".

Lorna graduated with an MA in English and Theatre Studies in 2007 and at the same time was offered a relief management position running bars. "My studies were leading me to my preferred profession, a playwright, however my love of the hospitality business was something that I knew I would enable me to enjoy a challenging and satisfying career in this sector".

Lorna was appointed to her first bar management position in 2008 following a year holding the position of Assistant Manager. Her career has gone from strength to strength picking up the prestigious accolade of Licensee of the Year in Scotland by the leading trade title Scottish Licensed Trade News on the way. "Winning the award gave me the confidence in my ability to continue to strive in this profession and to look to further progress. I really have not made this journey on my own but have been supported by a fantastic team both those in my business and others who work within the company."

Sarah Barnett, Area Manager

"Three of my managers went on to run their own La Tasca's – developing them was a real passion". 

Sarah got bitten by the hospitality bug at age 14 when she started waitressing at her father’s golf club. Throughout her university years she worked part-time in various bars and night clubs part time, loving the work and the social side of the business. Following her graduation Sarah managed a health food café for a friend and whilst in this role she learnt that another friend had been made General Manager of a La Tasca restaurant. "My pal asked me would I go and help her out in the business as an assistant", said Sarah. "I hadn’t had much restaurant experience so thought it would be a good opportunity to work with an experienced operator and learn everything about this side of the industry." Sarah started there in 2002 and progressed up the ranks eventually taking over as General Manager at the Glasgow site.

Whilst at La Tasca, Glasgow, Sarah built a great team around her and developed her team enabling three of her managers to move up the ranks and run their own La Tasca restaurants. "I believe it is crucial to develop your team in order to enable you to have time to drive the business forward", said Sarah.

Sarah’s outstanding performance was recognised and she was given extra business responsibilities and gained status as a centre of excellence. "This role meant I would train new General Managers and occasionally Area Managers.  I also acted as a mentor to new managers, and assisted with the business operations to ensure brand standards were met."  Eager to progress Sarah constantly demonstrated her enthusiasm to improve that of her own career progression opportunities but also that of other employees. "I designed a management induction programme for our area to ensure we were professionally inducting our new recruits and giving them the best chance of success."  

Sarah then moved into area management, and was approached by the MD of Slug and Lettuce and offered the opportunity to move into trainee area management for the bars side of the business. "I have now been an Area Manager for Slug for 2 years.  I have seven sites – all in the Manchester area, which has made the trainee role very manageable.  It’s challenging, it’s great experience and I feel I have really been invested in and have grown professionally". 

Kerry Rossall, Manager, Yates’s

"A three-week stop in the UK turned into a life changing career"

In 2006, Yates’s Manager Kerry Rossall was on a short trip to the UK en route to Ibiza when she decided to undertake a few weeks work in a pub. "I handed out my CV in loads of pubs, bars and restaurants in Romford and only two businesses got back to me; one of which was Yates’s, where I took up an Assistant Manager role," said Kerry, "That three-week stop turned into a life changing career".

Kerry’s enthusiasm and energy was recognised and she was soon promoted to Deputy Manager and was given the training and development that would help her further to progress her career. Kerry then moved to Leicester Square learning the intricacies of the legal operational side of the business of the flagship Yates’s in the Square. By 2009 Kerry was appointed to her first pub in Cheltenham "It’s great, I love it and I haven't looked back since."

Along the way Kerry has received HQ support and training which underpins her professional development, "The great thing about working in this business is not only do you get the support from the HQ teams, but you also get amazing support from the General and Area Managers in the company".

David Crow – Area Manager

"The hospitality industry is flexible enough to enable you to have an interesting and diverse career wherever you are in the country."

In 1992 David had a career dilemma – stay on in education or start in the world of work. "I realised that I would struggle to pay for University and so after a few months of starting my A-Levels I started to look for work,"

David joined Scottish & Newcastle Retail on its Youth Training Scheme, gaining excellent insight into the office side of the retail industry as he moved between a range of departments. It was a period of turmoil in the industry but at the end of his training in 1994, David was appointed to an operational admin support role. In 1995 David moved across to the Management Accounts team.

Things moved rapidly for David and by 1996 he was appointed Stock Controller, "I was responsible for ensuring efficient stock control within approximately 30 pubs and ensuring managers adhered to company policies and procedures in relation to cash and stock," said David.  "I worked closely with the Area Managers and Pub Managers in the North East to maximise unit profitability."

 

From 2000, David spent 18 months as a trainee Area Manager , learning how to understand the operation side of the business assisted by guidance from experienced peers. By 2002 David was running 20 pubs in and around Nottingham.  In 2004, with the sale of the business to Spirit Group other opportunities opened up and David gained more experience moving around the business. "I then decided to step back and take a year sabbatical" said David "And on my return I secured a Retail Business Manager role working with brands that, a role that was new, exciting and challenging. My previous experience and training had put me in good stead."

In 2010 David moved to Stonegate Pub Company as an Area Manager moving closer to his home roots in the North East. "It’s been a fab journey, and it’s good to be on home turf now I have a family. The hospitality industry is flexible enough to enable you to have an interesting and diverse career wherever you are in the country."