Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission

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Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Apprenticeship
Action Plan

Mid-West Regional
Skills Forum
Submission
Mid-West Regional Skills Forum Submission   1
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
2
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Contents

 ContentS                                              Page

 Introduction                                                 4

 Background                                                   6

 Industry Skill needs                                         7

 Submission outline                                           9

 SeCtIon 1
 governance and operational Framework for                     10
 apprenticeships
 SeCtIon 2
 Funding of                                                   12
 apprenticeships
 SeCtIon 3
 Increasing Participation in                                  13
 apprenticeships
 Summary Comments                                             15

 appendix 1 – Case Studies                                    16

 appendix 2 – List of Participating Companies/organisations   22

                                                                   3
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Introduction
The Mid-West Regional Skills forum (MWRSF) is part of a national network of nine
fora established by the Department of Education and Skills (DES) to foster and
develop stronger links between enterprise and education and training providers
(ETP).

The creation of the MWSRF reflects the strong focus on the skills agenda as part of
Government policies such as the National Skills Strategy (2025) and the Regional
Enterprise Plans (REPS), which focus on enhancing regional economic growth and
increasing job opportunities.

The primary activity of the forum is to engage with industry; capture their training
needs; inform on existing programme provision and funding supports if applicable;
and identify skill gaps. The skills data gathered from employers, together with the
surveys completed forms the basis of this submission on the new apprenticeship
action plan.

Apprenticeship learning offers significant potential as a route both for new hires and
upskilling of existing talent. The forum actively engages in advancing the promotion
and development of apprenticeships as part of the national Generation
Apprenticeship strategy.

Mid-West apprenticeship activity
In 2018 the MWRSF co-hosted with Limerick and Clare Education & Training Board,
as part of European Vocational Skills week, the Mid-West Apprenticeship &
Traineeship Careers Showcase in the South Court Convention Centre. Close to
2,500 senior cycle students, parents and career changers attended the showcase in
2019.

This annual event is now the largest showcase of apprenticeship programmes
nationally with participating employers across industry sectors promoting career
pathways. In response to feedback from industry, employers and educational
providers the MWRSF launched a pilot Mid-West Apprenticeship App to facilitate
greater visibility of employers participating in apprenticeship programmes in the
region.

4                                                                     Apprenticeship Action Plan 2021-2025
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
This new digital platform provides employers with the opportunity to promote
apprentice careers across respective industry sectors at no cost while it also offers
future apprentices an overview and visibility of the participating companies in their
region or locality.

The forum worked closely with the Hospitality Education and Training Centre in
participating in the inaugural generation apprenticeship competition in 2018 and also
assisted in the development of the commis chef apprenticeship programme currently
running in the centre.

Other initiatives to actively promote apprenticeship career pathways include the
co-hosting with Education and Training Boards of on site industry visits for
members of the Institute of Guidance Counsellors throughout the region and across
sectors.

Mid-West Regional Skills Forum                                                          5
Submission
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Background
Work based learning or apprenticeships have played an important role in Ireland’s
economic development for decades. Significant changes to Ireland’s apprenticeship
system came in more recent years with the launch of a National Skills Strategy 2025
and the establishment of a National Apprenticeship Council.

The task of the new National Apprenticeship Council was to oversee the expansion
of apprenticeship programmes. In addition to the traditional craft-based
programmes, other industry sectors were invited to form industry consortia in
partnership with education and training providers to develop suitable programmes
between 2-4 years in duration to meet current and future skill needs.

Sectors such as ICT, Pharma, Logistics, Manufacturing, Retail and Hospitality
responded and now offer earn and learn career pathways, albeit with relatively low
take up in apprentice numbers.

The increase in apprenticeship programmes has been welcome and indeed
necessary to meet industry skill needs. However, the absence of greater numbers of
companies in particular SME’s and Micro Enterprises employing apprentices has
stifled original targets set of 50,000+ apprentices engaged in work-based-learning
by 2020.

6                                                                   Apprenticeship Action Plan 2021-2025
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Industry Skill needs
Businesses need people with creative and problem solving skills along with the
knowledge to make a positive impact in the workplace. Prior to Covid-19, Industry was
already facing into a period of change when it came to future skills needs. Industry
4.0, increased digitalisation and the Internet of Things (IOT) continue to rapidly
reshape job roles.

Climate change is also now impacting business processes and employees will
require upskilling to meet new job tasks arising from changed work practices and
employment opportunities in the green economy.

Pre Covid-19 a record 2.36 million people were at work according to the CSO quarterly
Labour Force Survey (LFS Q4, 2019) with unemployment at 4.6% nationally. The
ESRI has forecast that Ireland now faces a challenging period with unemployment
rates expected to be as high as 20% and youth unemployment to exceed 50% as we
approach the autumn of 2020.

Existing data shows that countries with strong dual vocational education and training
systems such as Germany have low youth unemployment rates (5.5%) in 2019.

Despite the global economic challenges arising from Covid-19, acute skill shortages
remain in many industry sectors particularly in STEM with consistent vacancies
across ICT, Bio Pharma, Engineering and Med-Tech roles.

Mid-West Regional Skills Forum                                                          7
Submission
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Snapshot of Vacancies in the Mid West September 2020

250

200

150

100

 50

    0

Reports published by the Expert Group on Future Skill Needs (EGFSN) also indicate skill shortages,
most notably, in areas such as Construction, ICT and Design. In addition, new technologies as outlined
in the Governments ‘Future Jobs Ireland 2019’ report offer new employment opportunities in Fintech,
Data Analytics and the Green Economy.

Internationally acute skill shortages are influencing companies and their talent acquisition strategies in
recent years. Notable corporate brands including IBM and Amazon have abandoned the necessity of
new hires holding degrees in favour of company designed apprenticeships. Global insurance giant Zurich
adopted a similar talent acquisition approach of earning and learning as a key part of their talent
development strategy.

Closer to home companies, including Regeneron, whose bio processing plant is based in Limerick, are
seeking to hire graduates at level 6 on the national framework of qualifications (NFQ) and facilitate
continued upskilling in the development of a highly skilled workforce.

8                                                                     Apprenticeship Action Plan 2021-2025
Apprenticeship Action Plan - Mid-West Regional Skills Forum Submission
Submission outline:
The submission format presented aligns with the three main themes and sections as
outlined in the Apprenticeship Action Plan Consultation document to include,

•      Governance and Operational Framework,
•      Funding of Apprenticeships
•      Increasing Apprenticeship Participation.

To facilitate the views of industry and employers the forum undertook a series of
engagement and communication activities that included,

Industry Webinars:
•      Limerick for Engineering,
•      Limerick for ICT,
•      Hospitality Forum
•      Freight & Logistics
•      Direct employer survey engagement
•      On-Line Communications via Regional Skills website, ezine and social
       media channels namely LinkedIn and Twitter.

The responses received together with proposed suggestions and proposals have
been summarised across the three principle thematic areas. Industry quotes that
accurately reflect the submissions received are also included to add validity to points
identified. In addition, a number of case profiles outlining the financial challenges have
been included as an appendix.

Mid-West Regional Skills Forum                                                               9
Submission
Section 1.

governance and operational Framework for
apprenticeships

                  Issue Identified                                      Suggested Solution

Apprenticeship consortia proposals can only be           An open call process should be put in place so that
made once a formal call process is opened which          when Industry, together with an education provider,
does not facilitate the agility required to respond to   identify a skills need/gap, programmes can be created
new programme development for emerging skill             to fill this skills need without the requirement to wait for
needs.                                                   a formal call process.
The length of some craft programmes (4 Years) is         Possible reconfiguration/compression of training
considered too long and the time period spent off site   schedule
where practical training is not required is also not
reflective of learning needs. This is particularly
relevant in the post-COVID learning world.
The period of time spent ‘off the job’ training can be   Integrate the ‘off the job’ training with the working week
difficult for employers as they may need to backfill     e.g. two days on site, three days off site as this would
positions thus adding to overall costs.                  negate the need to backfill positions, possible option of
                                                         employer providing one day leave similar to Logistics
                                                         programme
There is no requirement for an apprentice to remain with Possible financial penalty if apprentice leaves
the employer following their qualification. This can make employment within twelve months of qualification
employers reluctant to hire new apprentices as they
invest up to four years training an apprentice who can
then leave their employment immediately once they are
qualified. This issue was particularly noted amongst the
micro-enterprise and SME sector.
New apprenticeship programmes have been launched         Prior to programme sign off there should be
in recent years without sufficient employer engagement   evidence-based Industry support and employer
and agreement to hire apprentices resulting in low       commitment to employ apprenticeships in identified
numbers applying for these new apprenticeships. This     regions where the skills are required, delivery
is clearly evidenced in the low numbers registered       should
especially in the non-craft programmes.                  reflect a strong regional sectoral enterprise base this will
                                                         reduce low participation numbers and provide greater
                                                         value for public money.
                                                         Engagement with Regional Skills Fora should be
                                                         required/encouraged as part of all future programme
                                                         development
Elongated 10 step process for new apprenticeship         Create a more streamlined process to allow for
programme validation is too cumbersome and can           faster development and delivery of programmes
stifle the creation of new programmes within a
reasonable time period

10
Apprentices are included in staff numbers,         Consideration of ‘Apprentice Employee’ status with all
(company head count) albeit not fully productive   statutory employment rights but designated as an
until training completed.                          active trainee/learner and facilitates employer hiring
                                                   apprentices without impacting on head count

Mid-West Regional Skills Forum                                                                              1
Submission                                                                                                  1
Section 1.

governance and operational Framework for apprenticeships

                  Issue Identified                                          Suggested Solution

 Communication regarding off the job phase from the          Consideration should be given to moving
 ETBs is currently via letter                                this communication online via email.
 Time period of notice given to apprentices for their block Introduction of an online booking system where the
 release is too short, in some cases only two weeks’ apprentice would be able to see all available places in
 notice is given                                            Education and Training Centres nationally and choose
                                                            their own location and date, similar to the NCT Booking
                                                            system
 Within the Tech industry there is an inability to respond   Regarding specific skills needs in the Tech sector,
 to rapidly changing skills needs due to the current         inter- nationally certified programmes are already
 opera- tional framework for developing new                  available
 programmes                                                  e.g. ISTQB.org. This would negate the need to develop
                                                             new programmes from the ground up which can take too
                                                             long in a rapidly changing sector
 The Tech Sector in particular has highlighted that in       One year apprenticeship programmes with
 some instances two year apprenticeships are too             pathway options for further upskilling
 long
 In some instances Craft Apprentices are not                 Digital Skills should be included as part of off the job
 being equipped with the necessary digital skills            learning
 that are required in the future workplace

 Only the workplace mentor can sign off on an                Flexibility for mentors to assign assessment sign off to
 apprentices’ assessment                                     other colleagues (subject matter experts) who are
                                                             qualified, albeit not in the specific trade, but have
                                                             significant industry expertise in a particular subject
                                                             matter. E.g. computer management systems taught by
                                                             a company’s IT manager but are unable to sign off as
                                                             they are not the workplace mentor.
 More support is needed for workplace mentors                The training of the workplace mentor should be
                                                             reviewed, while a workbook is provided for this role, it
                                                             should be supplemented with access to online
                                                             training modules developed by Solas on
                                                             Mentoring/Coaching of young people, communication
                                                             skills etc.

                                                                                                                        11
Mid-West Regional Skills Forum Submission                                       Apprenticeship Action Plan 2021-2025
10
Section 2.

Funding of apprenticeships

                 Issue Identified                                        Suggested Solution

The financial and temporal costs of hiring an              On and off-the-job apprenticeship salary to be covered
apprentice versus graduate hire is prohibitive             by the state for all apprentices aged between 16-25 for
especially for SME’s and Micro Enterprises see             2 years (SME’s & Micro Enterprises)
Appendix 1 (case examples) There is an economic            Provision of allowance towards the cost of obtaining
challenge associated with apprenticeships above Level      necessary IT hardware provided as part of
6, due to the earning power of individuals, combined       programme costs.
with evening/blended study options at significantly
reduced costs to both the employee and employer, see
Appendix 1 (case examples)
No financial differentiation between multinational         Improved financial incentives for SME’s and micro
company and a micro enterprise when hiring apprentice.     enterprises to hire apprentices.
This does not reflect that these small businesses
account for over 90% of all enterprises.
Non-craft apprenticeships are not as financially           Training grant or off the job allowance be made
attractive to employers as pre-2016 craft                  available for post 2016 programmes for multinational
apprenticeships                                            companies
The increase in National Training Fund levy, through       Clawback employer PRSI contributions for all
Employer’s PRSI, is adding a very significant burden       apprentices.
to Employers.
Off the job phases incur extra costs for                   Suggest a travel and subsistence allowance for
apprentices, especially when they are required to          apprentices who are required to travel long distances for
travel/rent accommodation for this phase.                  their off the job phase.
Block release for up to six months on ICT                  A reduction/integration of off-the-job requirements
programmes is not favoured as the new hire is costing      from week blocks to shorter durations with option for
the employer from day one but off site for the first six   agreed weekly on the job on-line time periods
months. This issue was particularly raised by SME’s
and Micro Enterprises

      “
              A company participating in the apprenticeship programme
               needs to have suitably qualified personnel to support the
              training of the apprentice and as such is investing valuable
               resource in the apprentice. In our case, hiring apprentices
             will not eliminate the requirement for other positions and so
                   it is an incremental cost. Therefore the Government
                     financial support is critical to the feasibility of the
                                                 programme.

12                                                                           Mid-West Regional Skills Forum Submission
Section 3.

Increasing Participation in apprenticeships

                   Issue Identified                                            Suggested Solution

 The principal impediment to increasing apprentice               Consideration of new digital app similar to existing
 numbers is the lack of visibility of participating              Mid-West Apprenticeship App to assist potential
 employers across the different industry sectors.                apprentices in choosing career route and help
 Potential apprentices have to search aimlessly to find a        employers source new talent
 registered      apprenticeship           employer.
 Potential apprentices and influencers (parents,
 guidance counsellors) should be able to access and
 identify employers either locally or nationally that offer
 apprenticeship learning in their chosen sector

 Inconsistencies with accessing information within               New communication protocols between ETB training
 ETB training centres to advise potential apprentices if         centres and Post Primary Schools, Intreo offices,
 they are referred by a guidance counsellor/Intreo               Career Changers on apprenticeship career pathways
 officer
 There are currently insufficient cross sectoral employer        Increased emphasis needs to be placed on digital
 and apprentice testimonials on digital platforms                platforms on the availability of these programmes
 advocating career opportunities, particularly for               and the career opportunities available
 non-craft programmes
 Evidence of issues arising within predominantly family          System similar to FE and HE sector that takes into
 owned micro enterprises of hired skilled labour without         account ‘recognition of prior learning’ (RPL) for those
 formal accreditation                                            with industry experience and skills and no accreditation
                                                                 Option to formalise and provide accreditation to existing
                                                                 persons in predominantly indigenous Micro Enterprises
                                                                 who have the practical skills but lack formal
                                                                 accreditation which will impact on future sustainability
                                                                 of enterprise without the need to undertake 4-year p
                                                                 rogramme of learning

 Industry awareness of opportunities to establish con-           A focused communications campaign to heighten
 sortia and design programmes to meet skill needs is             awareness that apprenticeship learning is not just for
 low, particularly for upskilling existing talent at levels 7-   new hires but also for developing existing talent
 10 on the NFQ.
 Low participation rates among women and those with              Due to companies, in particular tech/fintech companies,
 disabilities                                                    changing their remote working policies during the Covid
                                                                 pandemic, new avenues have opened for those who
                                                                 were heretofore locked out of the labour market due to
                                                                 childcare issues, disabilities etc. Suggest targeted
                                                                 campaigns to recruit apprentices from this cohort.
 General lack of awareness of the opportunities                  Targeted advertising campaigns after Leaving
 available under the Apprenticeship Programme                    Certificate results, on TV, radio, local and national
                                                                 media, advertising apprenticeships and directing
                                                                 audiences to the Apprenticeship website/social media
                                                                 page.

14                                                                                 Apprenticeship Action Plan 2021-2025
Section 3.

Increasing Participation in apprenticeships

                 Issue Identified                                     Suggested Solution

According to the most recent Higher Education           Creation of Pre-Apprenticeship programmes in
Authority report (February 2019) on progression and     collaboration with industry sectors. More one year
completion rates amongst students, 75% of students      ‘taster programmes’ to allow learners get an overview
complete their course of study, this drops to 55% of    of the different options available at the apprenticeship
students in the Computing sector                        level. They can then choose to undertake an
                                                        apprenticeship in the particular sector that interests
                                                        them.
Lack of visibility within the regions reflecting the    More regional strategic focused enterprise
industry sectors operating within particular regions    roadshows with regional employers to support
                                                        various sectors i.e. Construction, ICT, Hospitality, Life
                                                        Sciences etc.
Lack of information for employers seeking information   Registers should be compiled within Training Centres of
on potential apprentices                                all those potential future apprentices who contact the
                                                        centre expressing an interest in becoming an
                                                        apprentice.

      “                        The big opportunity that I see is for
                     apprenticeships in non-craft / trade areas. I see a
                                         future need for more
                   “technician type” roles given the increased level of
                    technology being deployed and especially with the
                                         evolution of Industry
                   4.0 & Digitalisation. I really like the “blended learning”
              approach but the Government need to heavily subsidise these
                   programmes to make it attractive to hire apprentices.

Mid-West Regional Skills Forum                                                                                     13
Submission
Summary Comments

Talent availability is the number one determining factor for employers in choosing where to locate and or
expand their operations. In an increasingly globalised environment, talent development and acquisition is
the key ingredient for company productivity and competitiveness.

In a world of rapidly changing skill needs the apprenticeship learning model is uniquely positioned unlike
traditional undergraduate programmes. Apprenticeship learning provides business sectors with a
platform to lead in the design and delivery of new programmes, in partnership with an education
provider, that accurately reflect their future skill needs.

A consistent theme expressed by employers has been the mismatch between graduates’ skills ready
capabilities versus practical daily work tasks. The apprenticeship model of learning offers that unique
practical on-site experience as part of the programme outline in contrast to the work placements for third
level students which can often be inconsistent and unrelated to their area of study.

Covid-19 has also disrupted learning methodologies and the provision of online learning and resources
is an opportunity to minimise the time periods for apprentice employees to be off site thus making future
programmes more attractive and conducive for employers.

The overriding concern from employers surveyed in the preparation of this submission centred around
additional financial supports. Without assistance being provided to alleviate the financial burden
associated with apprenticeships, it is difficult to see the continuing support from employers to participate
and hire into the future.

Ireland has a strong reputation as having a highly skilled workforce with a priority focus on continued
professional development and upskilling. In addition, collaboration between Industry and education
providers has been consistently developed through the network of Regional Skills Fora established
under the National Skills Strategy 2025.

Once published the new five-year apprenticeship action plan will be an integral part of our economic and
social development as Ireland recovers from the effects of Covid-19.

All those employers who completed the surveys and/or participated in webinars expressed positive
sentiments and encouragement towards the apprenticeship model of learning. There is undoubtedly a
clear appetite from employers to engage with apprenticeships if the model is both responsive and agile
to meet their current and future skills needs.

The New Apprenticeship Action Plan presents a significant opportunity to address both skills shortages
in key sectors while simultaneously addressing our rising unemployment figures in particular those aged
15-24.

If Ireland is to remain competitive, we must create a skills ecosystem that enables talent to develop and
flourish. Achieving this will future proof the country and our industrial base in a constantly changing
business environment. The new five-year apprenticeship action plan can contribute towards ensuring
that future graduates and learners have the required ‘21st century skills’ to make them not just work
ready but skills ready.

16                                                                     Apprenticeship Action Plan 2021-2025
appendix 1:

Case Study #1:

Company a - 2 year cost of €688,000
(10 apprentice - €555k for 3 @ L7)

o        total number of employees:                               Approx. 1050
o        total number of “original” apprentices:                  1 (started Sept 2018)
o        total number of “new” apprentices:                       7
         •      3 * Industrial Electrical Engineer (L7)           (internal participants - 2016)
                - 0 taken on in 2017, 0 planned for 2018
         •      7 * Manufacturing Technician (L6)                 (all external hires)
                - 8 additional planned for 2018                   (all to be externally hire)

    Manufacturing technician apprentice (Level 6):
    Displays a cost differential of approx. €19,000 over 2 years (per apprentice) to qualify a
    person to be position-ready versus Further Education options pursued via evening or
    distance options.

EConoMIC CHAllEnGES (EMPloyER):
example below is per Manufacturing eng (Level 6) apprentice over 2 years:

•     Employee salary                                             €24,000
      o       No shift allowance, as on Days
•     Academic fees (€1500 pa):                                   €3,000
•     Travel & Accommodation:                                     €0
•     Total                                                       Approx. €27,000
Note: Equivalent qualification via LIT is €5,750 @ 100% refund

EConoMIC CHAllEnGES (EMPloyEE):
example below is per Manufacturing eng (Level 6) apprentice over 2 years:

•     Parking fees: €8 per day * 5 days per week * 30 weeks      = €1,200
•     More expensive canteen: €10 * 5 days per week * 30 weeks = €1,500
      extra cost to the apprentice                               approx. € 2,700
Note: No parking fees for evening courses. No need for canteen due to short duration.

Mid-West Regional Skills Forum                                                                     15
Submission
Industrial electrical engineerapprentice(Level 7):
    Displays a cost differential of approx. €185,000 over 2 years (per apprentice) to qualify a
    person to be position-ready versus Further Education options pursued via evening or
    distance options.

EConoMIC CHAllEnGES (EMPloyER):
example below is per Industrial electrical (Level 7) apprentice over 2 years:

•        Employee (+ backfill and shift allowance) wages/salaries:     €186,000
         o       €35k + 33% shift allowancep.a. (* 2 Level 6 Techs)
•        Academic fees (€2400 pa):                                     €4,800
•        Travel & Accommodation:                                       €0
•        Total                                                         Approx €191,000

Note: Equivalent qualification via LIT is €5,750 @ 100% refund
      Polymer Processing (Athlone IT) would add T&A of approx. €9,000

         •      @ €40 per night, plus company mileage rate
         •      This would more than offset the cost of a fully qualified Engineer, while leaving the
                “potential apprentice” in old role – minimising disruption to business
                o       While role is difficult to source, €185,000 over 2 years makes it the
                        moreeconomically feasible option.

EConoMIC CHAllEnGES (EMPloyEE):
example below is per Industrial electrical (Level 7) apprentice over 2 years

•        Parking fees: €8 per day * 5 days per week * 30 weeks    = €1,200
•        More expensive canteen: €10 * 5 days per week * 30 weeks = €1,500
         extra cost to the apprentice                             approx. € 2,700

Note: No parking fees for evening courses. No need for canteen due to short duration.

Mid-West Regional Skills Forum                                                                          17
Submission
Case Study #1:

 Comparison:
 Company a with Limerick It are running a Beng in Manufacturing technology (nFQ Levl
 7 – Major Award) for 48 Process Technicians (currently Level 6 qualified) for approx.
 €150,000 over 2 year period (same timeframe as apprenticeship model). this is to meet
 the skills gap identified by the company and also being addressed by the Level 7
 Manufacturing Technician apprenticeship, but at significantly reduced costs.

 In the above example, there is no need to back-fill colleagues, which is the single
 biggest finan- cial impact.

 Summary:
 For Company a, the economics(above) would encouragedirection of high-potential
 individu- als to achieve desired qualifications via evening/distance courses rather
 than apprenticeship model. Concern exists that this will stifle apprenticeship above
 NFQ Level 6.

 the issue above does not exist were new headcount is hired; however new-hire
 apprentices
 will prove difficult to source for apprenticeships above NFQ Level 6, due to earning
 potential.

18                                                           Apprentic es hip Ac tion P la n 2021-2025
appendix 1:

Case Study #2:

Company B
We currently have 2 employees participating on the manufacturing technician
apprenticeship and we are looking to add two more to the next round in 2018. this new
manufacturing technician apprenticeship has allowed us to reward employees who have
shown initiative
and desire to progress.

We currently pay the operator going rate to ensure our people can participate and
progress. the costs are much higher than the traditional apprenticeships and future
participation will be challenging.

as listed below some costs are similar – sign-on fee, laptops, mentoring and cover for off-
the-job training, which is covered through full pay so our people can afford to participate.
this cost is in the region of €120000, €60000 more than the traditional schemes due to
covering participant’s salaries when on off-the-job training.

TRADITIonAl APPREnTICESHIP CoSTS PER APPREnTICE

•       Sign on fee €1500
•       accommodation covered for off the job training when required, or travel costs
•       training allowance covering for the off the job training – no salary cost to the organisation

nEW APPREnTICESHIP/ PER APPREnTICE (PA)

•       Sign on fee                                                      €2400
•       accommodation costs if required 15x€80 (estimated)               €1200
•       Salary covering off the job training                             €5800

CoMMon CoSTS

•       Salary when on site
•       equipment/tools/laptops etc.
•       Mentoring

Mid-West Regional Skills Forum                                                              19
Submission
appendix 1:

Case Study #3:

Company C - 2 year cost of €100,000
(8 apprentices)

o        total number of employees:                                   630
o        total number of “original” apprentices:                      0
o        total number of “new” apprentices:                      8
         •      2 started Sept 2017
         •      6 started Jan 2018
         •      All Manufacturing Technician (Level 6)- Internal applicants
o        additional planned for late 2018

    Manufacturing technician apprentice (Level 6):
    Displays a cost differential of approx. €12,500 over 2 years (per apprentice) to qualify a
    person to be position-ready versus Further Education options pursued via evening or
    distance options.
    Including backfill give negative cost of €40,000 (per apprentice) over 2 years versus FE.

EConoMIC CHAllEnGES (EMPloyER):
example below is per Manufacturing technician (Level 6) apprentice over 2 years:

•        Employee (+ backfill & shift allowance):                     €14,474
         o     €24k pa + 17% shift allowance (for first 4 weeks)

note: €24k pa + 17% shift allowance(Backfill – see note in Summary)
•      Academic fees (€1,500 pa):                               €3,000
•      IT equipment                                             €750
•      Travel & Accommodation:                                  €0
       total                                                    approx. €18,224

Note: Equivalent qualification part time via LIT/GMIT is €5,750
•     This would more than offset the cost of a fully qualified Technician, while leaving the “potential
      apprentice” in old role – minimising disruption to business
      o      While role is difficult to source, €103,000 over 2 years makes it the more economically
             feasible option.

20                                                                        Apprenticeship Action Plan 2021-2025
Case Study #3:

EConoMIC CHAllEnGES (EMPloyEE):
example below is per Manufacturing technician apprentice (L6) over 2 years

•       Parking fees: €8 per day * 5 days per week * 30 weeks                = €1,200
•       More expensive canteen: €10 * 5 days per week * 30 weeks             = €1,500
        o      Work canteen is subsidised, plus shift worker not in as often

        extra cost to the apprentice                                approx. € 2,700

Note: No parking fees for evening courses. No need for canteen due to short duration.

level 7 apprenticeships (including Industrial Electrical Engineer) were considered, but excluded
due to the negative cost implications for the business

Summary:
Company C saw the apprenticeship scheme as an opportunity to allow the company to
fill Manufacturing Technician roles that had been hard to fill. It also recognises its high
performing operators by assisting them to further their careers within the company and
as such 6 participants began the apprenticeship in September 2017.

as the apprentices are existing employees, the company is continuing to pay salary
costs, plus 17% shift allowance for the first 4 weeks of block release.In addition, the
educational institutions have specified lap tops are required for each trainee, which
has cost the company an additional €6,000.

We have initially tried not to replace the headcount, but this is resulting in significant
overtime costs, further increasing the cost to the company. If we increase the number
of Level 6 apprentices significantly, this would put additional strain on employees to
meet overtime requirements and potential issues with Working Time directives. For this
reason, a backfill has been included into the costs above.

Mid-West Regional Skills Forum                                                                     21
Submission
appendix 2:
list of Participating Companies/organisations

naMe                                 SeCtoR
Aughinish RUSAL                      Manufacturing
Chemstore                            BioPharma
Cliffs of Moher Visitor Experience   Tourism
Cook Medical                         MedTech
DC Autospares Ltd.                   Services
Design Pro Automation                Manufacturing/Engineering
Dromoland Castle                     Hospitality
Dunvara Design                       Construction
Fiserv                               ICT
F4 Energy                            Manufacturing
Fundrock Management                  Financial Services
General Motors                       ICT
Gerard Daniel Worldwide              Manufacturing
Johnson & Johnson                    MedTech/Manufacturing
Kerry Group                          Agri Food
Kostal                               Manufacturing/Engineering
Limerick 2030 Company                Property Development
Lufthansa Technik                    Aviation
Lufthansa Technik Turbine            Engineering
Modular Automation                   Engineering
Northern Trust                       Financial Services

22                                                   Apprenticeship Action Plan 2021-2025
list of Participating Companies/organisations

naMe                                    SeCtoR
Northern Trust                          Financial Services
O’ Connors Bakery                       Food Production
O’ Dwyer Transport and Warehousing      Logistics
Panalok Engineering                     Engineering
Radisson Blu Hotel                      Hospitality
Revive                                  Manufacturing
Rigney Engineering                      Engineering
Samco Agricultural Manufacturing Ltd.   Manufacturing
Shannon Coil Springs                    Manufacturing
Shareridge                              Engineering
SPA Transport                           Logistics
South Court Hotel                       Hospitality
Strand Hotel                            Hospitality
Takumi Precision                        Manufacturing
Technopath Distribution                 Logistics
Thormac                                 Manufacturing
Transact.com                            ICT
Weener Plastics                         Manufacturing
Willis Steel                            Manufacturing
WP Engine                               ICT

Mid-West Regional Skills Forum                               23
Submission
Mid West Regional Skills            joeleddin@regionalskills.ie
Forum ManageR                                 @skillsmidwest
Joe Leddin                               www.regionalskills.i
                                         e
24                         Apprenticeship Action Plan 2021-2025
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