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Home Business Electrical firms highlight financial ‘double whammy’ hampering apprentice ambitions

Electrical firms highlight financial ‘double whammy’ hampering apprentice ambitions

SELECT apprentice survey cover

NEW research has revealed that high wages and a lack of employer funding are the biggest obstacles to Scotland’s electrical businesses recruiting apprentices.

The findings come from a new survey by SELECT, the country’s construction largest trade association. 52% of respondents said this financial ‘double-whammy’ was the main reason for not taking on an apprentice or adult trainee.

87% claimed that current government support was inadequate or very poor, with 21% admitting they don’t plan to employ an apprentice over the next three years, and 53% saying only increased funding support would encourage them to recruit again.

One member said, “The employer funding we get compared to other construction trades is pitiful, despite the high amounts we contribute.” Another said, “This is the first time in 13 years that we won’t be taking on an apprentice due to the combined impact of wage increases, National Insurance and pensions.” A third added, “More help with employer funding is essential. With wages increasing and the time apprentices spend away at college, it’s a massive outlay for any business.”

The survey was undertaken to collate member views and help paint an accurate picture of the current Modern Apprenticeship in Electrical Installation. Answered by electrical businesses of all sizes across Scotland, its key findings included:

  • 67% claiming that the cost of funding should be shared equally between the employer and government
  • 65% disclosing that they would support the introduction of a training levy to support electrical installation apprenticeships
  • 56% saying they would be willing to engage with local politicians to raise awareness of apprenticeship issues faced by employers.

On the positive side, 78% said their experience of working with the Scottish Electrical Charitable Training Trust (SECTT) was good to excellent, with 79% giving the same verdict on the quality of education provided by colleges and training centres. When it came to training itself, 86% said they thought the current four-year apprenticeship model was the correct length, while 57% said that the existing Modern Apprenticeship should be the sole route into the industry.

Sharon Miller, SELECT MD, said, “These findings echo our own warnings and ongoing feedback from members that the cost of recruiting apprentices and adult trainees is becoming a big disincentive for employers. Industry already makes a significant cost contribution to apprenticeships in Scotland, employing and paying apprentices from day one.

“Upskilling the next generation is more crucial than ever and workplace apprenticeships are a vital part of ensuring we produce excellence in skills. It is really worrying to see contractors say they are unlikely to employ a learner solely due to the outlay involved. Without apprentices coming through the ranks and being comprehensively trained, there simply would be no electrical industry in the future, with all the implications that would have for our wider society.

“We know that the Scottish Government is currently reviewing training provider contribution rates, so there is a clear opportunity to create a win-win. By increasing apprenticeship numbers and funding for the next five years, government could tackle both youth unemployment and the construction skills crisis, which in turn will increase economic growth across Scotland.

“We will therefore continue to work hard behind the scenes on our Members’ behalf, speaking to government to drive a more positive approach to employer funding which is crucial if businesses are not to be discouraged from investing in our future skills base.”