Why letting your Levy build could be a problem
The lack of clarity surrounding the Apprenticeship Levy
left many organisations in limbo; either on the back foot trying to play catch
up by putting ‘panic’ provisions in place, rather than ensuring best return on
investment or as with many larger businesses, those who are prepared but
planning levy spends in such detail, that come 24 months’ time there’ll be too
There are 3 types of organisations particularly vulnerable
to Levy build up:
The Highly Skilled:
Being an organisation that has many highly skilled, highly
paid workers such as a Sports Clubs, Solicitors and Logistics organisations,
equals the obvious dilemma; too much Levy for too few-a-people. Whilst writing it
off may seem like the only option, there are ways to be smart when investing
Team Leading programmes are a great way to build confidence
for those with future management potential. Higher Management Apprenticeships
are a great way to consolidate more senior managers learning, providing them
with knowledge and skills to make difficult decisions, access to a wealth of
online resources and free CMI Membership.
More than anything increased training brings morale to your
business, so rather than seeing it as a bad thing, use it to your advantage.
Use it, or lose it.
The Large Employer:
Larger employers also face the problem of slow moving Levy
negotiations, with various departments and facets of the business involved,
developing a thorough plan for the Levy is a time consuming task but the longer
this drags on the more the Levy builds.
There are so many options it can almost be overwhelming and
choosing a provider that is the right cultural fit is often challenge. Moving
forward with one aspect of the business is better than no action at all. Pilot
schemes are a great way forward, for larger organisations to test the water
with a Training provider. Piloting a sample of your customer service advisers
in one call centre or just the recruitment of new Apprentices is a great way to
get a feel for fit. Like buying a new pair of shoes, you wouldn’t walk out the shop
without trying them on, so why do the same with your training provider?
Some sectors such as Retail and Recruitment are more
vulnerable to higher staff turnover than others. This can leave employers
thinking: ‘why bother training people if they will take the skills we’ve taught
them elsewhere?’ Training is proven to increase employee retention rates as
learners feel they are being invested in for the long haul. Recruiting bright
young talent into your business and training them from the ground up, is a
great way to build employee loyalty. They, as people, feel they are being
invested in from the beginning and you can use training to mould them for the
future; they learn their job, your way.
Want to know more about managing your Levy? Download our Managed Service Factsheet or call 0808 100 1155 and speak to one of our friendly,
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