A recent report has lifted the lid on the importance of degree apprenticeships to SME-size businesses by highlighting the critical role they play in driving productivity, social inclusion and tackling the skills gap.
The findings come from Manchester Metropolitan University, a University Vocational Awards Council (UVAC) member organisation, which conducted the study using data from over 5,000 apprentices and more than 600 employers.
From a recruitment perspective, 93% of firms are investing in higher and degree apprentices to bolster their talent pipeline, whilst 91% agreed they help address skills gaps within their business. SMEs specifically regard them as vital, with 58% claiming they bring new talent to their organisation.
The report also provides an insight into the potential impact of the government’s proposed changes to the Apprenticeship Levy, which aims to shift funding priorities towards lower-level and new foundation apprenticeships for young people and those at the start of their careers.
Removing funding from higher level apprenticeships such as those at level 7 could be detrimental to employers and impact opportunities for young people, especially when you consider over half (51%) of all level 6 apprentices in the study are aged 24 or under whilst 37% are 20 or under.
James Walker, Director of Apprenticeships at Manchester Metropolitan University, said: “As a leading provider of degree apprenticeships, we have developed programmes in close collaboration with a range of employers since their inception in 2015.
“Our Force for Impact report shows that these programmes have been transformative, enabling thousands of apprentices to access high-quality training in roles where there are vital skills shortages.
“Our data shows how vital it is to protect essential training pathways while safeguarding the future of workforce development in a range of sectors where specific skillsets are needed.”
The report also explored the impact of degree apprenticeships on social mobility. Over a third (38%) of apprentices in the study are from underserved communities, 19% are from an ethnic minority and 12% disclosed a disability. A surprising 61% of degree apprentices revealed they were the first generation in their family to attend university.
The research highlighted the career and earning potential degree apprenticeships offer, with 63% of qualified apprentices from across a broad range of sectors now earning £40,000 or more. Those completing a degree apprenticeship experienced median salary increases of 44% during the programme, resulting in 70% of employers reporting productivity gains as a result.
Dr. Mandy Crawford-Lee, chief executive for UVAC commented: “As the voice for over 80 universities delivering higher and degree apprenticeships, we believe this report is further compelling evidence of the need for the government to invest in them more. The research clearly highlights their role in boosting economic growth, whilst enabling employers of all sizes to address skills gaps, recruit new talent and increase productivity.
“It was also very encouraging to see the role they’re playing in tackling social inclusion. One finding that really stood out to me was that 23% of those surveyed in the report were from underserved communities and yet are now earning an average salary of £53,350.
“We’d urge any SME employer across any sector to download the report to see how degree apprentices can support their business.”
The ‘Force for Impact’ report is now freely available to view online at www.mmu.ac.uk/study/apprenticeships/force-for-impact. Further information on UVAC is available at www.uvac.ac.uk.