Apprenticeship expansion offers 'huge' benefits to Scottish employers

In the late-1990s, there were fewer than 2,000 apprentices in Scotland. Today, there are around 40,000 apprentices in training, working with around 11,000 employers. The last decade has seen a major strategic expansion of apprenticeships led by Scottish Government and supported by the European Social Fund (ESF).

ESF funding enabled the creation and rapid expansion of Foundation Apprenticeships, where senior-phase school pupils earn a recognised qualification while spending time out of school at college or with a local employer, and Graduate Apprenticeships, which provide work-based learning opportunities up to Master’s degree level for new and existing employees.

Together with the expansion of Modern Apprenticeships, they offer thousands of Scots access to high-quality, work-based learning pathways. Working with partners, including colleges, universities and independent training providers, Skills Development Scotland (SDS) successfully oversaw the implementation of drawing down just under £60million of the c£61million ESF funds available to us.

I’m pleased to say that we met 100 per cent of our agreed outcomes. SDS officials worked tirelessly alongside our colleagues in Scottish Government to ensure access to and positive outcomes from the funding, meeting the stringent eligibility rules. Our final ESF claim, submitted last November, was made last month.

Although ESF money is no longer available, we remain committed to developing and growing a world-class and inclusive work-based learning system in Scotland, continuing to work with Scottish Government, employers, learning providers and partners to innovate and maximise all available opportunities. There is no doubt apprenticeships have played an important part in Scotland’s drive for economic success, unlocking potential and providing skills for the future.

They also have huge potential to address the persistent skills gaps reported by employers across Scotland, helping unlock the economic potential of generational opportunities in industries across Scotland, including shipbuilding, advanced manufacturing, offshore wind, oil and gas decommissioning amongst many others. Designed by employers, for employers, apprenticeships not only help the economy, but also provide greater opportunity for people to progress in life and work.

(Image: Sandy Young)

These are real jobs, backed by employers who contribute £10 for every £1 of public money spent, and because Modern Apprenticeships and Graduate Apprenticeships are paid jobs, they generate tax income for the exchequer. For every £1 of public investment, the Scottish exchequer gets £4 to £5 in return. Apprenticeships also have a disproportionately positive impact on poverty and inequality. For example, 24 per cent of starts are from the top two quintiles of Scottish Index of Multiple Deprivation and 15.3 per cent of starts have an impairment, health condition or learning difficulty.

The latest Modern Apprenticeship annual statistics show that uptake is at the highest ever levels from those who identified as being care experienced (2.3 per cent), disabled (17 per cent) and from an ethnic minority (4.5 per cent). Achievement rates for these groups also increased year on year. We are also continuing to work with a wide range of partners to encourage more women and girls to take up apprenticeships.

Last year saw an increase in female representation in STEM frameworks, and we’re working to increase female participation in traditionally male-dominated sectors. This is obviously very positive for the individuals involved, but employers also benefit as by creating diverse and inclusive workforces, their apprentices help them to adapt and sustain their businesses.

Across the country, businesses of all sizes are developing their workforce by boosting productivity, increasing staff morale and improving retention with apprenticeships. Around 90% of apprentice employers are small to medium sized businesses, and over 50% are micro-businesses with fewer than 10 employees. In an SDS employer survey on the benefits and value of apprenticeships, 96 per cent said they would recommend apprenticeships; 87 per cent said they wanted to continue recruiting apprentices.

Increased productivity was reported by 83 per cent of employers, 79 per cent said apprenticeships boost staff morale and 72 per cent said it improved staff retention. In broader terms, apprenticeships are providing the skills to meet the challenges of today’s world of work. Technological advances, changing demographics and a greater emphasis on human skills, called meta-skills, will continue to shape the skills needed in the future.

The meta-skills fostered by apprenticeship learning – self-management, social intelligence and innovation – will be more important than ever before. When recruiting, Scottish employers have cited meta-skills as the attribute most sought in candidates, with 70 per cent rating it as ‘significant’ or ‘critical’. We also receive real-time feedback from apprentices, which tells us their experiences are overwhelmingly positive.

According to our latest insight, 94 per cent of Modern Apprentices in training said they were satisfied with their apprenticeship and likely to recommend them. Three-quarters of those in training said they planned to stay with their current employer, and after three months of completing their apprenticeship, 87 per cent were still working for the employer they started their apprenticeship with. It’s no coincidence that high-performing economies like Germany, Switzerland and Austria have well-developed and respected apprenticeships systems.

If Scotland can learn from these nations and place a renewed and increased emphasis on workforce development through apprenticeships, together with our excellent colleges, universities and other pathways to employment, I have no doubt we’ll reap the benefits for generations to come. 

Visit: apprenticeships.scot