UK employers are failing to prepare for the impending launch of the Apprenticeship Levy, according to latest research from ManpowerGroup, the world’s workforce experts. In a survey asking 1,000 UK employers about their awareness and understanding of the Apprenticeship Levy, the majority of employers reported little or no knowledge of the impending changes, while many misunderstood who would have to pay.
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Research from ManpowerGroup shows that two thirds of employers knew little or nothing about the Apprenticeship Levy coming into effect from 6th April 2017. We also looked into employer preparedness for the changes and how the introduction of the new system will impact hiring and found that:
Read the white paper for the full results from the research and our advice on how to prepare for the introduction of the new apprenticeship system.
All employers operating in the UK with an annual pay bill over £3 million will be required to pay the new Apprenticeship Levy. There will also be changes in the way the government funds apprenticeships in England, which will affect all English employers, regardless of size.
Coupled with some other reforms and changes to the qualifications available, the introduction of the Apprenticeship Levy is the most fundamental overhaul of the apprenticeship system to date, designed to help deliver three million new apprenticeship starts by 2020. Employers will be encouraged to use the levy to develop the skills of their workforce so that they can more successfully grow their businesses, become more competitive and increase their productivity.
Workforce planning tends to focus on known, rather than unknown, circumstances. This may work well for a period of time, but what happens when political upheaval affects resources? Or demographic shifts impact talent pools? One change can fundamentally alter workforce plans overnight.
As technological disruption and political changes continue at pace, we can be certain than uncertainty lies ahead. Companies will need to adapt, so they can keep the business running smoothly with one hand, while preparing for a different and uncertain future with the other.
In today’s world of work, companies must plan for unpredictability and need to be ready for change. This means understanding ongoing talent availability, planning for variations in demand, and developing a framework that accounts for large-scale change.
It may require significant effort to get the necessary buy-in and resources. However, the returns are likely to justify the effort. After all, by planning for uncertainty and anticipating change in this way, employers can develop a flexible, yet resilient, workforce strategy to futureproof their businesses.
In this new whitepaper, we discuss how employers can prepare for an uncertain tomorrow, through strategic workforce planning. We look at the impact of Brexit on the workforce, and explore how data can be harnessed to plot out the future and plan for workforce shifts.
”Ticking time bomb”. “Staffing crisis”. “Brain drain”. These are just a few of the ways the media has described the UK’s clinical skills gap in recent months.
To ensure patients receive safe and effective treatment, it’s vital that we close this skills gap. After all, without the required numbers of front-line staff, neither the NHS nor private healthcare providers will be equipped to deliver the healthcare services that our lives depend on.
Major transformations are needed to ensure the healthcare sector can meet future healthcare demands. As a result, both the NHS and private healthcare providers need to look at their approach to talent afresh. They need to review their short and long-term approach to how they attract and secure new recruits; nurture and retain existing workers; and how they organise their overall workforce too.
But, first things first. Before we can address this skills crisis, we need to understand its root cause – the micro and macro-level forces that drive today’s clinical skills gap. Let’s take a look at five of the key forces in more detail:
According to the Health and Social Care Information Centre, people aged 85 or more make up just 2% of the population. However, they constitute almost one in five (18%) of hospital bed days. As the UK’s population continues to age, this trend is forecast to increase. Whilst the ageing population is testament to the quality of care our healthcare system provides, this same healthcare system is set to feel the strain. After all, the longer individuals live, the more treatment they’re likely to require – so the more staff the healthcare system will need to deliver it.
Nurses in the UK have an average age of 42 years old, with the age profile steadily growing older over the last 20 years. Added to this, the Institute for Employment Studies found that 29% of nurses are aged over 50. When these workers come to retire, who will plug the gap? It’s vital the sector takes action now to build and maintain a robust talent pipeline that will overcome the future loss of these skills.
A study commissioned by consultancy firm McKinsey found that the UK spends around £6 billion a year on the medical costs of conditions related to being overweight or obese. If the current trend continues, this could rise to £10-12 billion in 2030. Cost aside, these illnesses take many clinical hours to treat. This puts an additional burden on the healthcare sector to find and retain the skills required to deliver this care.
The average drop-out rate among nursing students at universities in England is more than 20%. On some courses, the attrition rate is as high as 50%. Yet the Government is set to replace bursaries with loans for student nurses, midwives and allied health professionals. With attrition rates already so high, it’s hard to see how the prospect of accruing thousands of pounds worth of debt will support in bringing these numbers down.
Both the NHS and private healthcare providers draw from overseas talent pools in order to find the qualified clinicians they require. In fact, the research mentioned earlier from the Institute for Employment Studies found that 13% of nurses in the UK come from overseas. In light of Brexit, it’s unclear what the UK’s immigration policies will look like after Article 50 has been implemented. Consequently it’s also unclear how this vital source of talent will be affected.
Now’s the time to act. Partnering with both the NHS and private healthcare provides alike, we’re the UK’s largest recruiter of permanent doctors, nurses and allied health professionals in the UK. In the last year alone, we recruited 1,750+ clinically qualified professionals for clients nationwide, drawn from a base of practitioners with an existing ‘right to work’.
Find out more about our recruitment expertise in the healthcare sector.
Labour market tension, increasing talent mismatch, and technological disruptions are creating new challenges and opportunities for organisations. This reconfigured labour market requires a new approach to talent. Added to this, skilled talent is increasingly looking for flexible ways of working; the gig economy is gathering pace; and portfolio careers are on the rise.
As a result, progressive organisations are recognising the need to break down the barriers between their permanent and non-permanent workforces. Future workforce strategies will call for enterprise-wide implementation, regardless of what type of contract workers hold. A new mindset of Total Talent Management is emerging, where employers recognise that harnessing a fully blended workforce enhances their competitive edge.
In its absolute form, the entire workforce is united in a fully comprehensive talent management programme. But on the journey to this target state, adopting a more holistic approach to the workforce can be undertaken with different levels of sophistication; to enhance efficiency, boost productivity and yield cost benefits.
By taking a more extensive view of their workforce and embracing a truly blended working population, companies can exercise more flexibility and adapt more easily to alternative ways of working to secure the talent they need. Employers can focus on attracting, engaging and retaining the right person with the right skills, regardless of how they need to be employed.
At ManpowerGroup Solutions, we are proud to be taking a number of organisations on their journey towards Total Talent Management. We’re augmenting their approach to talent, and helping them to achieve an inclusive approach to how they structure and manage their workforce.
To do this, we’ve developed a strategic model for evaluating all talent engagement sources, including direct employee, contingent labour, and contracted services. It provides a configurable decision strategy that helps organisations to determine the optimal talent engagement channel for a worker.
Our process starts with a landscape overview of existing talent management processes. By combining detailed insights and defined processes, we formulate a strategy that aligns our client’s workforce with long-term company goals and short-term key initiatives. This will bridge the gap between current-state realities and future-state requirements, and will identify organisational changes that will start their Total Talent journey.
From there, we work with clients to map out their short- and long-term journeys towards complete Total Talent Management.
For more information on Total Talent Management and the benefits this approach could realise for your organisation, please contact our Workforce Solutions Director: [email protected].
This article first appeared in the sixth edition of The Human Age newspaper.
We were proud to actively contribute to the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, from 17-20 January 2017.
Throughout our 13 year strategic partnership with the WEF, we’ve shaped global and regional industry agendas, contributed to effective policy making, collaborated with like-minded companies, and shared our insights and perspective on the world of work.
The theme of this year’s Annual Meeting was ‘Responsive and Responsible Leadership’. ManpowerGroup’s focus was on three key drivers that are impacting global labour markets in the Human Age:
Jonas Prising, ManpowerGroup CEO and Chairman, led ManpowerGroup’s delegation to the WEF Annual Meeting. This included Mara Swan, Executive Vice President, Global Strategy and Talent; Stefano Scabbio, President Mediterranean and Eastern Europe; and Alain Roumilhac, President of ManpowerGroup France.
ManpowerGroup led and participated in a number of high-profile panel events on topics including: shaping the future of education and skills; how corporate culture can attract and retain Millennials; women’s economic empowerment; technology’s impact on the workforce; the future of artificial intelligence; and shaping the future of gender equality.
Jonas is the Steward of the Future of Education, Gender and Work Global System. He also co-chairs the World Economic Forum Regional Business Council on Europe and the Digital Transformation of Industries for the Professional Services industry. Mara is a member of the Future of Education, Gender and Work Global System and an expert on gender parity.
To learn more, please visit: manpowergroup.com/wef2017
This article first appeared in the sixth edition of The Human Age newspaper.
We’re operating in a world of constant evolution. Technological, political and structural changes create opportunities. However, in many communities, people feel disenfranchised and disconnected. As a result, too many individuals look ahead and cannot see how their circumstances will improve.
ManpowerGroup believes businesses have an important role to play in enhancing people’s lives. To help keep people employable for the long term and to drive workforce sustainability, organisations need to invest in up-skilling programmes that align with business needs. It’s not a nice to have – it’s business critical.
This is exactly the foundation that ManpowerGroup was built on. For nearly 70 years, we’ve led the way in providing meaningful and sustainable employment for millions of people around the world.
We help individuals to up-skill and adapt to new ways of working. This means they have broader employment opportunities and can choose paths that create a better life. To do this, we partner with governments, NGOs and our clients. We get people ready for work, help them up-skill, and improve diversity in integrated and inclusive workforces. We don’t just do this because it’s the right thing to do, but because it increases the success of our clients and accelerates our business performance.
This strong ethical foundation is at the core of all ManpowerGroup operations. It runs throughout every part of our organisation. We invite you to examine a few of the ways we’re improving workforce sustainability in all four corners of the world:
Our team in Malaysia has partnered with the Government to train and find roles for over 300 graduates through our ‘Recruit, Train, Deploy, Manage’ graduate programme.
In Thailand, we partner with more than 30 leading education institutes, the Office of the Vocational Education Commission and the Ministry of Education to help graduates to be employable for the long term.
Furthermore, in Spain, we’re supporting Unilever to pilot their summer youth employment programme, which aims to create a brilliant future for 10,000 young people in Europe.
In the US, we’re helping our workers earn college degrees, at no personal cost, and while they work. In the last two years, we have helped 122,000 individuals increase their earning potential. This has been achieved through a unique combination of on-the-job training and education.
In France, we deliver assessment and training opportunities in high-demand skills for more than 60,000 individuals through our FuturSkill brand.
Last year in India, our Experis brand trained 1,000 graduates in IT skills. We helped them to learn the skills we know employers are looking for, including testing, Java and mainframe expertise.
Through a dedicated refugee programme, our team in the Netherlands offers refugees retraining and long-term employment as interpreters.
ManpowerGroup Brazil filled 15,000 positions for one of the highest profile sporting events in the world in the summer of 2016. Our diverse workforce included individuals from nearby favelas and more than 150 people with disabilities.
And in the UK, we’ve helped 180,000 individuals transition into civilian life after leaving the Royal Navy, Army, Air Force or Marines.
In short, ManpowerGroup is developing employability for tomorrow’s talent. We’re building new skills for a fast-changing world of work. And we’re nurturing diversity in the workplace. Because we believe meaningful and sustainable employment has the power to change the world.
This article first appeared in the sixth edition of The Human Age newspaper.
Whether you’re reading this in your office, on your daily commute, or in the comfort of home – take a look around you. Everything you see made it there thanks to the logistics sector.
According to the FTA, the logistics sector employs a total of 2.35 million people in the UK, either directly or indirectly. That’s a huge number, accounting for nearly 8% of the UK workforce. From drivers and distributers, to supply chain managers and warehouse operatives – it’s the sector that keeps the country moving.
With UK consumer spending on the rise, demand on the logistics sector will continue to sky rocket in the coming years. To seize this opportunity and grow their businesses, employers need to have the best talent on board. Where the logistics sector is concerned, that’s where the challenge lies.
Our recent Talent Shortage Survey found that drivers are the second-hardest to fill job in the UK. Part of the reason for this is the fact that the logistics workforce has an ageing population.
The FTA reports that 64% of LGV drivers in the UK are aged over 45. To put this into context, in the wider economy, just 46% of workers are in this same age category. At the same time, there are not enough young people entering the sector. So, inevitably, as older workers exit the workforce, employers have a void to fill. In short, one of the ways to mitigate skills shortages is to inspire more young people into the industry.
Why aren’t enough young people considering a career in logistics? One of the main explanations is perception. Talk to someone about what it’s like to work in the logistics sector, and you’re bound to hear all kinds of stereotypes, half-truths, and fake news. This certainly isn’t helping the sector to appeal to young people.
Take pay as an example. Public perception seems to be that driving is a low-paid career choice. Yet, LGV drivers can expect to earn around £30,000 a year, well above the UK’s average salary of £26,500. There’s also a perception that working in logistics is just about driving. However, there is a long list of roles that are essential to the supply chain – materials planning, production, transport management, purchasing and operational management, to name a few.
Before we can address these perceptions, we need to understand where they come from. One source is parents. There’s still a minority which entrench certain ‘old fashioned’ stereotypes, and discourage young people from considering logistics as a career path. Those that don’t discourage young people from pursuing this career path don’t always encourage it either. We need to re-educate this generation on the vast, fulfilling logistics careers that are out there. This will mean they can become industry advocates for the next generation.
Does the industry’s poor perception also sit with the way careers have traditionally been promoted within schools and further education? Yes, undoubtedly. There’s a clear need to improve the image of working in logistics, so it more closely reflects reality. Improving education in this way will help to encourage new people into the industry.
At Manpower, we’re doing our bit to help. We work in partnership with Think Logistics, an industry-led initiative that’s redefining the perception of working in logistics. As part of this partnership, we work with schools to deliver workshops which teach young people about the different career pathways that are available within the sector. We show them that it’s a diverse, fast-paced industry with very fulfilling career opportunities.
My colleague Mick Skerrett – Driver Development Manager at Manpower – is the current Vice Chair of Think Logistics. He has been instrumental in changing perception of the logistics industry. The feedback we’ve received from the young people themselves and their schools has been fantastic. We’re looking forward to doing even more to help in the months and years to come.
We’re proud to be doing our part to improve the image of working in logistics. But we know there’s a lot more to be done. I’d love to learn more about any other initiatives that share a similar aim, and perhaps we can learn from one another – feel free to contact me directly on [email protected] if you’d like to discuss.
To find out more about our expertise in warehouse and logistics recruitment and workforce planning, visit manpower.co.uk/warehouse-and-logistics or email us at [email protected]
The survey results for this quarter report that:
ManpowerGroup Employment Outlook Survey
ManpowerGroup Employment Outlook Survey Infographic
Every quarter, we survey a representative sample of over 2,000 UK employers, asking them how they anticipate employment changes in their location over the next three months. This infographic highlights the key takeaways from the Q2 2017 report, including a regional heat map of jobs outlook.
Click here to download the pdf.What do the percentages mean?
The % of employers anticipating an increase in headcount – the % of employers expecting to decrease in headcount = Outlook Percentage
Seasonally adjusted – Seasonal adjustments are applied to research data to remove employment fluctuations that normally occur at the same time each year, such as the end of a school term or a change in season.