Persistent skills gaps are likely to hinder an employer’s ability to innovate or function at its full potential in terms of resilience, productivity, as well as profitability. So, what is available to employers and, how do we work with those individuals who are potentially looking towards the logistics sector as a potential career? This paper explores some of those options.
THINK LOGISTICS
Since 2015 Logistics UK has been an active sponsor of Think Logistics. Think Logistics is the industry-led, not-for-profit project involving some of the UK’s best-known transport and logistics companies. Started in 2013, Think Logistics has grown rapidly and promote the logistics profession to 11 – 22 year-old people across the country in schools and colleges providing, workshops, work placements, mentoring and internships. Further information regarding future events and support can be found on their website.
LOGISTICS UK SKILLS AND EMPLOYMENT ADVICE HUB
In addition to Logistics UK’s ongoing work with government and other stakeholders concerning support for training and apprenticeships, to help members fill existing and new vacancies, Logistics UK’s has developed an online Hub looking at skills and employment. The Hub contains practical advice and information for employers and employees to assist in recruiting or training to become the sector’s next generation of employees, whilst also providing resources to help explain the world of logistics and identify opportunities. The website can be accessed here.
LOGISTICS UK EMPLOYMENT ACTION GROUP
We have set up a dedicated group for members to help guide our policy campaigns and communications work on employment and skills. An important current focus is to ensure that planned improvements to the apprenticeship system are implemented. The government is piloting schemes to allow apprentices to work for multiple employers during the duration of the scheme, and to allow previous training to be considered. We are also calling for direct training funds via interest-free loans or grants for trainee HGV drivers to help meet this pressing skills gap. In the long term we are engaging with the National Skills and Productivity Board to ensure the challenges in logistics are recognised in national government strategies. Please contact us to get involved at logistics.org.uk/skills.
APPRENTICESHIPS
Apprenticeships are an option to upskill existing staff – think warehouse to wheels programmes – or bring in new talent. Logistics-specific options include warehouse operative, traffic office, LGV Driver, HGV mechanics and International Freight Specialist. Although the 20% off-the-job training rule (England only) can make an apprenticeship appear difficult to navigate, covering this is easier than you think. There are plenty of tips available on the GOV.UK website.
Currently the LGV driver includes Cat C licence acquisition, however a new apprenticeship to include the additional Cat C+E is in development and could be available later this year.
APPRENTICESHIP LEVY
The Apprenticeship Levy was introduced on 6 April 2017, its aim being to increase the number of people training at work by imposing a 0.5% tax on UK employers with payroll costs of more than £3 million, minus an Apprenticeship Levy allowance of £15,000 per financial year. Employers are given a rolling 24-month deadline to spend paid levy amounts or risk losing them.
INCENTIVE PAYMENTS FOR HIRING A NEW APPRENTICE
As part of the government’s COVID response, employers will be able to claim an incentive payment for hiring a new apprentice between 1 August 2020 and 30 September 2021. From 1 April 2021, the incentive payment is being increased; for every apprentice that is a new employee to your business, qualifying employers will receive a £3,000 incentive payment (no apprentice age restriction). This incentive payment can be used towards salary, equipment, travel expenses or could pay for the extra Cat C+E licence if required. This is an increase from the original incentive payment of up to £2,000 which ends 31 March and is in addition to the £1000 incentive employers already receive for hiring an apprentice (terms apply check GOV.UK).
You can apply for the new £3,000 incentive payments from 1 April 2021 until 30 September 2021, after you have added the new apprentice to your digital apprenticeship service account. Incentive payments are normally paid in two instalments and processing could take up to three months.
HIRING AN APPRENTICE WHO HAS BEEN MADE REDUNDANT
You can also use the new government service to help you hire apprentices who have been made redundant. Many of these apprentices may already have the skills and knowledge you need. Hiring a new apprentice in this way could mean you have a work-ready apprentice who can quickly add value to your business. If you hire an apprentice that has been made redundant, you can also apply for incentive payments for hiring a new apprentice as detailed above.
NATIONAL SKILLS FUND
The Chancellor announced £375 million for the National Skills Fund at the Spending Review in November 2020. This includes £95 million of additional funding for a new Level 3 adult offer and £43 million to expand skills bootcamps.
From April 2021, any adult aged 24 and over who wants to achieve their first full Level 3 qualification, which is equivalent to an advanced technical certificate or diploma, or two full A levels, will be able to access a number of fully funded courses. Courses will be available in a variety of lengths, and include gateway Level 3 diplomas in logistics, warehousing and the supply chain.
KICKSTARTS
Another initiative to help young people into work is the Kickstart scheme, for 16-24 year olds on Universal Credit (or at risk of long term unemployment). Employers of all sizes can apply for funding to cover 100% of National Minimum Wage for up to 25 hours per week, for a total of six months plus associated National Insurance contributions. Employers can spread start dates up until 31 December 2021. There is further funding available for training which could be used for forklift or Cat C licences. The rules have changed since the scheme was first introduced and there is now no minimum number required for the programme and individual businesses can apply directly for the grants. However, employers may choose to use a gateway training provider to help navigate the funding.
Full details of apprenticeships, the incentive payment, list of Level 3 qualifications and the Kickstart programme are available on GOV.UK
Funding for skills is devolved so each country will have their own version of the programmes, however variations of the schemes are available UK wide.
FUTURE RECRUITMENT
There are positive signs for logistics recruitment. Logistics was rightly recognised as a key sector that continued throughout the pandemic, providing stable jobs with some sub sectors seeing massive recruitment drives. Employees are seeing the benefit of working in a key worker sector and early signs are that those businesses that are investing in apprenticeships are getting a positive response to recruitment campaigns. Following the difficulties of the past year, logistics could finally be seen as a great career choice.
*www.logistics.org.uk/skills
