Making the most of apprenticeships

UK businesses could gain additional £18bn revenue from apprenticeships

A new report from the Centre for Economics and Business Research (CEBR) has revealed that consumers prefer to do business with businesses employing apprentices.

The report, launched to mark the start of National Apprenticeship Week, is part of a national drive to promote the benefits of apprenticeships. Events across the country will celebrate the success of apprenticeships that have been transformed over recent years so they are more responsive to the needs of employers and learners.

The Benefits of Apprenticeships to Businesses study finds that offering apprenticeships were perceived by two-thirds of the public as contributing to society and providing opportunities for young people, with 5 million consumers more likely to make a purchase from an apprentice employer.

One in four consumers say they would go as far as even paying more for goods and services offered by companies that employ apprentices. Aggregated across key sectors in the economy, this price-premium would equate to an additional £18 billion a year in consumer spending.

National Apprenticeship Week will also see the launch of a new mentoring service for small businesses interested in taking on apprentices will be launched by small business champion Jason Holt CBE.

Today’s research also highlights a number of other financial benefits firms employing apprentices can enjoy, such as increased long-term productivity. A typical apprentice delivers productivity gains of over £10,000 per annum, rising to almost double that in the construction and planning, and engineering and manufacturing sectors.

Moreover, the research demonstrates that even before an apprentice is fully qualified, many businesses will see economic benefits of offering apprenticeships. The figures show that while training, each apprentice in England is estimated to deliver an average positive net gain of £1,670 per annum to their employers.

Business Secretary Vince Cable said: “In launching National Apprenticeship Week we are celebrating the 2.1 million apprenticeship starts since 2010 and the positive impact they are having on businesses around the country.

“The benefits of apprenticeships are clear – they make a vital contribution to the economy, boost business productivity and give people the skills they need to get on in the world of work.

“As this research shows, there has been an important shift in the attitudes towards apprenticeships with businesses, consumers, and young people recognising the significant opportunities they can offer.

Skills Minister Nick Boles said: “This research is further proof that apprenticeships deliver for businesses as well as providing life changing opportunities for young people.

“National Apprenticeship Week gives us the opportunity to raise the profile of apprenticeships and traineeships, and to celebrate the important role they play in our economy. I encourage people of all ages and employers of all shapes and sizes to find out more about apprenticeships and how they can deliver for them.”

The CEBR report examines the benefits that apprentices offer businesses both while they are training and long after they have completed their apprenticeships:

A quarter (25%) of consumers said that they would be more likely to pay more for goods and services offered by businesses employing apprentices, with the most popular services to pay a premium on being a plumbers’ visit, a meal or a haircut
Consumers are prepared to pay between 1.2% and 2.0% extra as a price premium –the aggregate gain in consumer spending if these premiums are realised is £18 billion per annum
The benefit to an employer of hiring an apprentice is the value of the economic output produced by an apprentice, plus any subsidies received, less wage and training costs. This equates to an average of £1,670 per annum for the average apprentice in England but can rise as high as £13,824 and £9,721 for team leadership and management, and business administration apprentices respectively
Productivity gains from employing an apprentice long-term average at £214 per week, ranging from £83 in the retail sector and £114 in health, public services and care, up to £401 in construction and planning, and £414 per in engineering and manufacturing

Scott Corfe, co-author of the report The Benefits of Apprenticeships to Businesses, said: “Previous Cebr research has demonstrated the impact of apprenticeships to the economy and the country as a whole, but this report proves that hiring apprentices has a hugely positive impact on employers themselves. Not only do apprentices contribute to the productivity of a company from day one, but consumers are more likely to switch to brands and firms that employ apprentices.”

As part of National Apprenticeship Week, employers are being encouraged to share their reasons for employing apprentices on social media, with #100reasonswhy.

HR and Training Manager, Steve Starling from Suffolk based JEB Engineering Design has already taken part and commented: “We’ve been recruiting apprentices for over 35 years. Many staff members in senior positions here started out as apprentices, including our Managing Director. We believe our future success is dependent on a strong, sustainable apprenticeship programme.”

To find out more about National Apprenticeship Week go to

www.gov.uk/naw2015.

Hot Air!

Keir hits out at UK Government’s inaction on aviation

Edinburgh Western MSP Colin Keir accused Westminster of treating Scotland’s air passengers ‘with contempt’ when PM David Cameron visited Edinburgh Airport yesterday.

The Prime Minister David Cameron welcomed yesterday’s announcement of the £50 million redevelopment of the airport’s immigration and baggage reclaim facilities – a move that will triple capacity for bigger long-haul aircraft – but SNP MSP Colin Keir, whose Edinburgh Western constituency includes Edinburgh Airport, has hit out at the Prime Minister and his UK government coalition’s lack of action on aviation issues.

Mr Keir said: “Every long haul passenger arriving at Edinburgh Airport will appreciate this investment. I do find however the Prime Ministers audacity in welcoming investment into an industry which has been improving despite mismanagement from Westminster. The London Treasury has been fleecing travellers who fly through Scottish airports for years to the tune of millions of pounds thanks to Air Passenger Duty (APD). His government because of electoral reasons hasn’t made a decision regarding which airport in London will be upgraded to act as a modern UK hub. The effect of this is that when there is poor weather or emergencies its Scottish flights that are cancelled first because of space issues at Heathrow and Gatwick”.

“Travellers to and from Scotland deserve a better deal that’s why I commend the management at Edinburgh Airport in bringing more direct flights to the city. It is obvious the UK have done very little to improve the plight of those who have to use London such as local business people. Mr Cameron’s government cannot keep treating Scottish passengers with the contempt they have shown over the past years”.

The 50 million expansion to Scotland’s busiest airport will see Edinburgh triple its space for long-haul aircraft.

Edinburgh Airport, which currently handles 10 million passengers a year, will build a second baggage reclaim area and immigration hall to cater for hoped-for further growth in long-distance flights.

The work, which starts next week, will also include new stands for aircraft to park with ‘air bridges’ to link them to the terminal. The expansion will take four years and is expected to create up to fifty new jobs.

Airport chief executive Gordon Dewar said: “The work we’ll be carrying out over the next four years will transform our airside facilities, tripling our capacity to handle bigger aircraft and paving the way for the next ten years of increased international connectivity.

“We’ll effectively be creating a new international facility for our airlines, and underpinning our future aspirations to increase passenger numbers, enhance their experience and be one of the leading European airports for our size.”

Keir welcomes airport’s record success

2014 was another record-breaking year for Edinburgh Airport, with a total of 10,174,684 passengers flying from the airport over the year – a 4% increase on 2013. Colin Keir, MSP for Edinburgh Western constituency which includes Edinburgh Airport, welcomed the news and said the airport is a ‘global success story’.

The airport passed the historic 10 milion mark on 23 December.

Mr Keir said: “Despite difficult trading conditions, Scotland’s busiest airport continues to grow. Perhaps the most impressive statistic is the 89% rise in direct long haul flights. Along with the environmental advantages of direct flying the passenger gets a better deal by cutting down on the obscene Air Passenger Duty (APD) which they would be required to pay if they use another UK airport such as Heathrow.

“I’m delighted that passengers are voting with their feet and using this, one of the capital’s business assets. I am aware of the major financial investment made at the airport as well as the efforts of management and staff to produce a first class experience for travellers. When the airport works well it has a tremendous knock-on effect to the local and national business community and, with more direct flights, business and tourist travellers benefit through lower costs and faster journeys. I welcome today’s great news and congratulate everyone who is making Edinburgh airport a global success story.”

New Year, new support for small businesses

Innovate funding to help small businesses grow

Most small businesses awarded Innovate UK funding from January 2015 will automatically receive business support to help them grow faster. The new growth support offers small and medium-sized businesses (SMEs) the chance to:

participate in a growth workshop
complete an online diagnostic of their business
discuss their business needs with a growth expert to develop a growth plan

Based on the results, SMEs will gain opportunities to get:

coaching
mentoring
entrepreneurial skills training

This will cover areas such as:

developing a business model
sales
strategic marketing
access to finance
leadership
change management

Innovate UK will meet the costs of this SME growth support. It will be provided by different organisations depending on where the SME is based:

in Scotland Scottish Enterprise and Highlands and Islands Enterprise

This growth support is being offered after a successful pilot project showed that businesses that combined our funding with additional business support were able to grow their businesses more quickly.

SMEs that combined funding from Innovate with business coaching:

saw an average 26% increase in turnover
created an average 4.6 new jobs

Mentoring and training in business skills also helped businesses to gain confidence and to make the most of their potential.

One of the companies that took part in the pilot was Bolton-based Bindatex, an innovative small business that is set to more than treble it’s turnover after receiving funding support from Innovate UK and business coaching.

Founder Chris Lever (pictured above) said: “It helped to take me out of the day-to-day production and think more strategically about how I was going to continue moving the business forward. I now have a clearer picture of where I want the business to go.”

See latest funding opportunities

Job experts out and about to spread work message

Jobcentre staff are getting out and about and taking work support direct to jobseekers as part of a new blitz targeting unusual locations –from football clubs to prisons and homeless shelters.

Employment numbers have reached a record 30.8 million and the number of people on the main out-of-work benefits is the lowest it’s been for a quarter of a century and now Jobcentre Plus Work Coaches – the government’s ‘army of jobs experts’ – are heading out to meet the public in children’s centres, youth hubs, homeless shelters, and rural work clubs to offer targeted support to people who need it most.

This more direct approach to helping jobseekers back to work has also seen roaming Work Coaches partnering up with professional football clubs, including Arsenal, Everton, and Tottenham Hotspur, to set up schemes that help young people build confidence and skills to prepare them to find work.

And they are setting up shop in prisons across the country to help prisoners who are soon to leave custody prepare for a new life away from crime and in work.

New figures released last week show that an average of 1,500 more people were in work every day over the last year and the number of people on the main out-of-work benefits is down by more than 850,000 to under 4 million – the lowest it has been since 1990.

Employment Minister Esther McVey said: “Our hardworking Jobcentre Plus staff have made a huge contribution to Britain’s jobs success this year. By doing things differently, and getting out to where jobseekers are, they’re helping thousands into work every day.

“We have broken record after record in 2014 – with huge falls in youth and long-term unemployment and the highest number of women in work on record.

“This new approach is working. What we can see at the end of the year is that our welfare reforms are ensuring that people have the skills and opportunities to move into work.

“But behind these record figures there are countless stories of individual hard work and determination – stories of people turning their lives around, of families who are now feeling more secure over the Christmas period with a regular wage, and of young people escaping unemployment and building a career.”

Specialist Work Coaches are based in prisons across the country where they can help parolees sign up to Jobseeker’s Allowance up to 6 weeks before they are released. Once they sign up, they are automatically placed on to the Work Programme to help them build up skills and experience.

The Work Programme is designed to get the hardest to help jobseekers back into work and has now helped 368,000 long-term unemployed claimants find sustainable work.

Jobcentre Plus staff have also helped budding entrepreneurs to set up more than 60,000 new businesses through the government’s New Enterprise Allowance scheme, which helps jobseekers, lone parents and people on sickness benefits, with a good idea, to start up their own business.

Since 2011, more than 360,000 people of all ages have taken up opportunities through employer-led sector-based work academies, or work experience placements through Jobcentre Plus, to give them a job taster and a guaranteed job interview.

In Bootle, Merseyside, Jobcentre Plus has staff working from the local Youth Hub to provide guidance and advice to young people in the area and to offer chances to gain skills and experience through Sector-based Work Academies – which are employer-led training courses that lead to a guaranteed job interview.

And in Scotland, Stranraer Jobcentre Plus staff have established weekly work clubs in rural areas to provide help on budgeting, mock interviews, CVs and cover letters, and job applications.

Have you been supported into work this year? Has Jobcentre Plus helped you start your own business? Get in touch!

Politicians call for action to save Leith-based Pelamis

Wave goodbye? Local politicians say Pelamis must be saved

Edinburgh Green and Labour parliamentarians are calling for their respective governments to support a troubled local technology company before foreign rivals step in.

Green MSP Alison Johnstone has urged the Scottish Government to intervene to secure the future of wave technology firm Pelamis, which entered administration last week.

Questioning the Energy Minister at Holyrood yesterday,she said there was a real danger that Scotland would lose a global leader in the development of the technology to an overseas buyer, and end up importing wave technology in future years.

Pelamis employs 56 staff, with most based in Leith.

Alison Johnstone, Lothian MSP said: “Pelamis has been a global pioneer in wave technology and a leading Edinburgh company, which we cannot afford to lose. We hear so much about Scotland’s renewable energy potential but we will not reap the rewards without support to turn research into commercially-ready technology.

“Pelamis is a highly respected company which has built up a huge amount of expertise. I urge the Scottish Government to use every possible means to support this company and its employees at this uncertain time.”

North and Leith MP Mark Lazarowicz has also expressed concern and is urging Wstminster and Holyrood to work together to rescue the company. Speaking today, the Labour MP said: “The UK is currently the world leader in marine energy and the expertise of Pelamis Wave Power – based in Leith – has won it grants and awards from the UK and Scottish Governments: I want to see them act now to put together a rescue package.

“I have raised the urgent need to try and save Pelamis in a meeting with the Secretary of State for Scotland and contacted the UK Energy and Climate Change Secretary urging him him to act.

“Scotland and the UK have Europe’s greatest wave resources, but we run a real risk that if wave power technology isn’t given the long term guarantees of support that it needs, other countries will become the leaders in the technology.”

He also raised his concerns in a debate on fracking in Parliament where he referred specifically to the situation affecting Pelamis, and said after the debate: “Supporting pioneering renewable energy technology is what governments should do, instead of giving generous tax breaks to fracking.”

Pelamis Wave Power has been awarded grants for development of its pioneering technology by the UK Department for Energy and Climate Change and earlier this year its Chief Executive, Richard Yemm, was awarded the Scottish Government’s Saltire Prize for marine renewable energy.

Keir welcomes New York flights

Flights from Auld Reekie to Big Apple next summer

Colin Keir, the MSP whose Edinburgh Western constituency covers Edinburgh Airport, has welcomed the news that American Airlines will be launching daily flights between Edinburgh and New York’s JFK Airport.

Mr Keir said: “This is great news for Edinburgh Airport and more widely for Scotland. I congratulate the management of Edinburgh Airport for securing this direct service to one of the world’s leading financial centres. One of the benefits of direct flights is that the Air Passenger Duty (APD) is less for travellers who don’t have to fly to another UK hub airport such as Heathrow or Gatwick. It will be a huge boost for business and tourism and I am sure this will prove a very successful destination.”

The new service will launch next summer and run between May and September.

Selex on target with Eurofighter contract

Finmeccanica, parent company of Crewe Toll-based Selex ES, has won a multi-million Euro contract to develop radar for the Eurofighter Typhoon. The deal is expected to secure around five hundred jobs in Edinburgh.

The contract, signed yesterday in Edinburgh by the European consortium Eurofighter GmbH andinter-governmental agency NETMA (NATO Eurofighter and Tornado Management Agency) to develop the electronically scanned Captor-E radar for the Typhoon, will bring Finmeccanica an order worth more than €400 million.

Finmeccanica will develop, produce and integrate the new radar through its companies Selex ES and Alenia Aermacchi.

“I am particularly proud of the contract signed today”, said Finmeccanica’s CEO and General Manager, Mauro Moretti. “It is further evidence of how the products and services provided by Finmeccanica Group represent cutting edge technological solutions capable of guaranteeing high performance levels in line with the best market standards”.

“The production of the new Captor-E radar will be managed, in the role of project leader of the Euroradar Consortium, by Finmeccanica-Selex ES which, together with Finmeccanica-Alenia Aermacchi, will also jointly integrate it into the aircraft. Today’s signing represents an important step forward towards the future prospects of the Eurofighter programme since the aircraft upgrade will enable it to compete more effectively on international markets”.

Finmeccanica-Selex ES will produce the new radar at its facilities in Edinburgh and Nerviano (Milan) while Finmeccanica-Alenia Aermacchi (Turin site), in the radar integration phase, will be responsible for the navigation systems.

Finmeccanica Group is responsible for over 60% of the electronics on board the Eurofighter Typhoon, roughly 20% of the aerostructures, and for the training and simulation activities for both the four Partner Nations (United Kingdom, Italy, Germany and Spain) and export market customers.

Selex ES – formerly Ferranti – remains one of the biggest employers in North Edinburgh.

Ready, set, go! The Graduate Journey

Get ready, 2015 Graduates – your future awaits! Whether that’s a future of internships, experiencing other cultures, or as yet to be decided, your final year of University is the time to get this all under way. It might feel intimidating – adding more to the to do list than simply “pass 4th year” is a troubling prospect, but having the future you want depends on what you do now. What will it hold for you? (writes Sophie Craik).

Internships

As a current Intern with Eden Scott, I know first hand how valuable the experience of an internship can be. If you’re going into 4th year and haven’t yet managed to secure an internship, it’s not too late but it is crucial that you try to get one, even if it’s only for a few weeks. The fact that you went out of your way to track one down will really stand out to employers upon graduation, and the reason everyone says it’s important for your knowledge and skills? That’s because it is. If there’s one piece of advice that can be given in the hunt for internships, it’s “just ask”. If you’ve got a great CV, personal website and skill set, you might make a company realise that they could benefit from an intern just as much as you would love to have the experience. Make yourself known to them, and don’t be disheartened – if at first you don’t succeed, email, phone and email some more!

Shorter term work experience placements are also a really good way to build up different types of experience throughout your final year and in the summer after graduation. This will also help you to make connections in the industry and see what company cultures you fit best with. This is an especially useful tactic if you see your future in London or another big city – living expenses for a full internship can be difficult if you can’t stay with family members or have to support yourself, but a few weeks can be manageable if done on a budget. If hostels aren’t your thing, Room for Tea offers an alternative by connecting those with spare rooms in London with people coming from out of town for internships and placements.

Graduate Schemes vs Entry Level Roles

When it comes to grad schemes, it’s best to follow the mantra “apply early, apply often”. Before the applications can start though, you need to know the lay of the land. For example, for 2015 some schemes won’t open until January of that year, whereas others have a deadline of October 2014 – just a month after you’ve returned to Uni. If you’ve already decided on an industry you want to be a part of upon graduation, now is the time to sit down with a trusty spreadsheet and get organised. Even a column of the company name, the deadline and a link to the application page/mechanism will make you feel a little more on top of things.

If you haven’t gotten to that stage yet, dedicate a few days to completely immerse yourself in the world of grad schemes. Some great websites to find them include Milkround and Target Jobs, but don’t let these limit you – if there’s an industry or company that you have an interest in, add them to your spreadsheet and find out if they have a graduate scheme. If you can’t see one listed, there’s no harm in asking – some companies may not have specific graduate channels, but will still hire graduates they see potential in.

Of course, the graduate scheme route isn’t for everyone – if you would prefer to have more responsibility from the beginning and the opportunity to work your way up, then you may be more suited to an entry level role. They tend to be less structured in terms of training, mentorship and guidance, and yet this can be ideal for self starters who prefer to impress through hard work and networking.

Gap Years

Taking a gap year after University is the perfect opportunity to see the world and travel for an extended length of time, especially so if you are heading towards a career that doesn’t offer very much time for travel in the future.

To have the most successful gap year possible, 4th year needs to be spent saving – how much depends on where you’re going. Travelling around Asia, for example, can be relatively cost effective once the flights have been purchased, whereas America or Europe can be more expensive in terms of living costs. You might be able to work on your year abroad, but again, this must be planned well in advance to ensure you have the correct visa and haven’t missed out on any employment opportunities.

Many employers value gap years in job applications, but only if they are pitched in the right way. You don’t have to be doing something constructive with the whole time you’re away – everyone’s allowed some downtime. It is important, however, to be able to demonstate how the experience has strengthened you as a person in terms of skills, experience and global understanding, and so planning activities that you will be involved with accordingly is important to factor in.

Whether you already have your graduation journey all mapped out, or you’re leaving things a little more open ended, the most important thing to remember is to never be closed to an opportunity – you never know which path might be a shortcut to your dream future!

Sophie Craik

City’s social enterprises making a splash!

ONE of Edinburgh’s best-known social enterprises, Re-union Canal Boats, played host to the new Monster branding ‘Buy the Good Stuff’ to encourage Edinburgh citizens to buy more from local social enterprise businesses.

‘Buy the Good Stuff’ is a call to action to the general public to consider how they shop around the city and can really make a difference by purchasing from social enterprises. Over 150 social enterprises are trading in Edinburgh, from cafes and retail, to creative industries and leisure generating income and reinvesting their profits into the community for social or environmental benefits.

Edinburgh is the first place in Scotland to run such a marketing campaign which goes citywide this September. Adverts for ‘Buy the Good Stuff’ will be appearing all over town including on the side of five Lothian Buses.

Linsay Chalmers, network coordinator, Edinburgh Social Enterprise Network commented: “We want to let people know that you can buy fantastic products and services from social enterprises and do your bit to make the world a better place at the same time. Social enterprises get excellent ratings from customers and, as our strapline says, they plough monster profits back into the community too.”

Pat Bowie, manager of Re-union Ltd, added: “We’re really pleased to be involved in the launch of Scotland’s first social enterprise brand. ‘Buy the Good Stuff’ will make it easier for people to find social enterprises and is something that all Edinburgh social enterprises can get behind.”

Councillor Frank Ross, Edinburgh’s Economy Convener, said: “Social enterprise is a key and influential part of our city economy and has the potential for significant growth. We have many highly successful businesses running throughout the city and we want to encourage consumers to consider their purchasing options. We recognise through this new campaign, that we can really build on the fact that these businesses offer a very attractive competitive product or service with community at their heart.”

Lorna Baird, social enterprise adviser with Business Gateway, said: “Here at Business Gateway we support a wide range of businesses including those that generate profit for social good – better known as social enterprises. We are delighted to be supporting the ‘Buy the Good Stuff’ campaign as it will not only put social enterprises on the map but also help raise awareness of the incredible work they do in Edinburgh and beyond.”

Find out more about Buy the Good Stuff at www.buythegoodstuff.co.uk and @SocEntEdinburgh