Apprenticeships

APP 133

Written evidence submitted by Elmfield

1. Context and strategic drivers

Three strategic drivers form the context for Morrisons Apprenticeship programme:

• Social mobility powered by opportunities for progression at work

• A study by the Policy Research Institute at Leeds Metropolitan University, commissioned by Morrisons, provided the evidence base and starting point for the programme

• The study identified job mobility and career development pathways as the two key factors in social mobility though work

• Economic growth dependent on skills – the Leitch review

• Level 2 target – Morrisons is well ahead of the game by qualifying 75% of its workforce to this level

• Level 3 shift of balance – Morrisons has created a platform in the workforce to progress a significant proportion of the workforce to Level 3

• Level 4 target – Morrisons is already making a direct contribution to this target through its workplace degree programme, linked to Higher Apprenticeships

• Focus on employment opportunities for young and disadvantaged

• Morrisons will create 7,000 new jobs p.a. for unemployed 16-24 year olds

• 1,000 new jobs will be filled by chronically socially excluded people, including the ex-homeless, over a three year period

1.1 Purpose of Morrisons involvement in Apprenticeships

Morrisons’ involvement in Apprenticeships is designed to produce systemic outcomes:

• Support social mobility by offering all retail employees the chance to:

• Gain a nationally recognised qualification with real currency in the labour market

• Tackle issues such as numeracy and literacy which are a roadblock to careers

• Create clearly structured pathways :

• For new entrants and existing staff

• To develop the skills and gain the qualifications that allow them to progress

• Enable Morrisons – alongside other large companies – to play their part in:

• Putting right the failures of the education system

• Proactively supporting people who are unemployed and unqualified into jobs with training, qualifications and prospects

1.2 Ambitions over the 5-year cycle

Morrisons Apprenticeship programme was designed from the beginning as a 5-year cycle of development, starting with a platform at Level 2 with progression opportunities built in through access to Level 3 and Higher Level Aprenticeships thereafter.

Morrisons ambition over the 5-year cycle is to produce the following outputs:

	Total	To date	To come
Unemployed people into jobs & qualifications	50,000	26,250	23, 750
Of which, 16-24 year olds	25,000	12,500	12,500
New entrants gaining L2 QCF/Apprenticeship	80,000	40,000	40,000
Staff who have improved numeracy /literacy	75,000	35,000	40,000
Staff progressing to L3 QCF/Advanced Apprenticeship	20,000	-	20,000
Staff progressing to Higher Apprenticeship/FD	3,000	-	3,000

These outputs will be delivered at a significant value for money discount and will produce a sizeable socio-economic impact.

2. Key facts about the Morrisons Apprenticeship programme

2.1 Achievements to date

Morrisons Apprenticeship programme has already delivered substantial outputs:

• 100,000 employees have completed either a QCF Level 2 Retail Diploma or an Apprenticeship since the programme started in October 2009

• Over 12,500 have completed an Apprenticeship

• Over 20,000 are currently on an Apprenticeship

• Thousands of additional employees are on the programme without any government funding, including 12,000 Apprentices

• Around 60% of everyone enrolled had no previous qualification at level 2, and half of these had no prior qualification at all

• 84% of everyone enrolled on the Apprenticeship needed help in numeracy and/or literacy to reach the expected standard

• More than 50,000 people have started a new job in Morrisons retail stores since the programme started

• Over half (53%) were previously unemployed

• Almost 3 in 5 (58%) are 16-24 year olds

2.2 Value for money

Morrisons Apprenticeship programme represents unrivalled value for money:

• Morrisons spends significant amounts every year on developing its workforce, through training, coaching, mentoring and other developmental activities.

• The funds provided by government via Elmfield’s contract with the Skills Funding Agency have paid for the additional activities required for the Apprenticeship.

• The unit cost of the Apprenticeship in Morrisons is significantly lower than the cost of an Apprenticeship obtained at normal rates.

• A significant proportion of the programme budget has been spent on improving employees’ numeracy and literacy.

2.3 Quality

• The success rate for the first 12,500 employees to complete the Morrisons Apprenticeship is 83% – 6 points higher than the national average of 76%

• The learner satisfaction rate is above the average at 8.8 (av. 8.4)

• The Apprenticeship is of an appropriate duration

• Average duration for employees already completed is 32 weeks

• Average once all have completed is expected to be 54 weeks

• Ofsted judged the programme as satisfactory overall, but good (Grade 2) for ‘outcomes for learners’ and ‘capacity to improve’

• Impact on learners (Ofsted):

• "gain confidence and self-esteem which enhance their work"

• "develop good work-related skills and practices"

• "access a training programme that is well structured"

• Morrisons has won retail employer of the year awards for the last two years running, for the quality of its training

3. How the Morrisons Apprenticeship programme works

The Apprenticeship is a fully integrated partnership between Morrisons and Elmfield:

PROCESS

· Employees acquire the knowledge to do the job

· They develop their skills through practice at work

· Coaching and assessment ensure good performance

· Guidance and mentoring build confidence and motivation

· Numeracy and literacy problems are identified and tackled

· Skills and knowledge are accredited to national standards

OUTCOME

· This creates competent, confident, career-minded people

UNDERPINNED BY

· Quality assurance, certification, administration

3.1 Apprenticeships and career pathways

Morrisons Apprenticeship programme is linked to the career pathways for employees. Morrisons also supports pre-Apprenticeship employability training, to ensure that people currently unemployed or new to work have the chance to gain the necessary employability skills for a job and a career in retailing.

Pre Apprenticeship	Apprenticeship	Higher Apprenticeship
Unemployed and excluded	Frontline colleague (Intermediate Apprenticeship)	Trainee Supervisor (Career Development)
Pre-employment experience	Frontline specialist (Advanced Apprenticeship)	Junior Manager (Management Training)
Pre-employment training		Department Manager (Further opportunities)

The programme is designed to take people:

• From excluded to included

• From unemployed to employed

• From unqualified to qualified

• From shop floor to top floor

4. Future developments

Morrisons Apprenticeships is evolving, to include:

• Intermediate Apprenticeship as the normal standard for everyone coming into a frontline job in Morrisons retail stores

• Advanced Apprenticeship for everyone who progresses to a role as customer champion or supervisor

• Higher Apprenticeships/Foundation Degrees for 18-24 year olds with the ability and aspiration to succeed

• Numeracy and literacy training provided for everyone who wants it and can benefit

• At least 50% of new jobs in newly-opened stores to be filled by unemployed 16-24 year old NEETs

• Vacancies in existing stores to be prioritised towards 16-24 year olds and the disadvantaged

4.1 The socio-economic impact

Morrisons Apprenticeship programme will have a powerful impact on individuals, the economy and wider society:

• Apprenticeships produce material increases in earnings for people who complete them

• The lifetime wage premium to individuals ranges from £73,000 to £103,000

• Businesses benefit from improvements in productivity, employee retention and flexibility

• The economy benefits from the multiplier effect of increased spending and tax contributions

• Society benefits from savings in welfare, health and other areas of spending, when people are in sustainable employment. To give a single example, for every 1,000 young people in the NEET group employed by Morrisons through its Apprenticeship, the country saves £56 million* in welfare costs alone

* Based on data from a 2010 study by the University of York for the Audit Commission

23 March 2012