Research reveals that firms are missing out on Apprentice Levy

New research has shown that large numbers of employees and businesses in the North West still know nothing about the Apprenticeship Levy.

The research suggests that the entire workplace is simply not grasping the opportunities of the new training initiative.

According to independent research commissioned by Alliance Manchester Business School, 39% of employers and 57% of employees in the North West know nothing about the Apprenticeship Levy.

The YouGov survey also revealed that more than one in three GB businesses (42%) are worried about maintaining quality teams in the next two years.

Findings also indicate that many businesses are doing little to improve staff retention.

Nearly a third of businesses in the region (30%) admitted to offering no formal professional development for employees despite 80% of North West employees saying quality training is an important factor when deciding whether to leave a job.

This comes as statistics show UK plc is still lagging behind its G7 counterparts in productivity, something the Chartered Management Institute (CMI) suggests is down to poor management training.

Previous research by the CMI found that businesses with effective management and leadership programmes are on average 32% more productive.

Dr David Lowe, programme director, MSc Management Practice, Alliance Manchester Business School, said: “This survey clearly shows that the limited awareness of the Apprenticeship Levy spans the entire workplace, with employees as well as business decision makers knowing very little about it and therefore the opportunities it offers.

“On one hand employers are not presenting professional development options to staff while workers are likewise not approaching their employers for the opportunity to complete management programmes because they either don’t know it’s a possibility, or don’t think their company would support it.

“Meanwhile, GB is continuing to miss out on the growth opportunity provided by a highly skilled management force.”

Of the employers in the region that are aware of the scheme, 26% see it as a tax on business and 34% report that it has made no difference to the training they offer.

One factor that could explain the lack of engagement, could be a perceived cost barrier. Nearly two thirds (64%) of employers don’t offer external training to staff as they believe the cost is prohibitive. This is despite most businesses qualifying for either fully or part funded apprenticeships via the Levy.

Dr Lowe continued: “If maintaining a quality team is really such a threat to business as leaders are telling us and leaders want to increase productivity, it is essential that this lack of formal development across businesses is addressed. Businesses must take the need to upskill their team seriously.

“Quality leadership development is an excellent way to supplement the skills of individuals with talent, technical ability or industry know-how, with those of quality management which will ultimately reap results for the business.

“The Apprenticeship Levy is ready and waiting to alleviate skills, retention and productivity issues for business, but leaders need to act now to join the dots.”

The Apprenticeship Levy is an automatic payment taken from all UK businesses with a wage bill of more than £3m per year.

The funds are then available for two years to be spent on apprenticeship training from entry level through to master’s degree level.