Making the move to apprenticeship standards impacts on nearly all areas of delivery and operations. One area that can keep apprenticeship providers awake at night is getting the finances right.
For example, how do you assess whether a particular apprenticeship standard is financially viable for you to deliver?
To help you answer that question, we’ve pulled together a list of costs you’ll need to take into account when developing financial models for apprenticeship standards. It’s not exhaustive, but should give you a good basis to work from. So here goes…
1. Pre-programme activity
- programme set up costs (staff time to develop a new standard, learning materials)
- marketing (including writing and graphic design, social media, website)
- events and activities to engage learners and employers
- what it costs to engage the employer from initial meeting through to learner start
- employer ONA and skills scan
- learner engagement/recruitment activities including support with Find an Apprentice and the Apprenticeship Service
2. Learner sign up and induction
- application processing, sifting and shortlisting
- learner interviews, assessments and tests
- interviewing to shortlist and support with subsequent stages
- learner induction, registration and briefing
- health and safety, prevent and safeguarding responsibilities
Example (1 and 2 above) – calculating staff hours per apprentice / per vacancy (average hourly rate for the relevant job role incl. on-costs)
3. Programme delivery
- delivery model – preparation of materials, resources and staff training, travel and expenses
- equipment required – technical and training, phones and ICT
- progress checks, reviews and assessments of progress against targets
- employer engagement during the delivery process
- validation of progress of each learner
- trainer and assessor costs, observations, evidence reviews, meetings
- pastoral care and support opportunities, including IAG
- mock and actual end-point assessment
- value-added/commercial offer courses
Example – calculating staff hours per apprentice / per vacancy (average hourly rate for the relevant job role incl. on-costs). Decide on average frequency (e.g. 2 hours every 6 weeks through an 18-month apprenticeship). Work out cost per course / session.
4. Completion of the apprenticeship
- certification processing – claiming, issuing, awarding for individual on-programme qualifications (Certification for end-point assessment is organised by the End-Point Assessment Organisation)
- exit interviews including IAG and reporting of findings for continuous improvement
- destination tracking
- celebration activities
Example – calculating cost per apprentice
5. Quality assurance and performance management
- management of infrastructure, policies, procedures, training and development
- staff management and development – recruitment, appraisals, professional development and quality and consistency
- communication, meetings and team building
- quality assurance, data management and reporting
- Ofsted and other quality awards
- contract management and audit, ESFA registers and procurement
- financial analysis and reporting, budgeting, forecasting, planning, payments administration, claims management, invoicing, bad debt management
- IT – systems, support, equipment and infrastructure
- account/relationship management (for larger/levy-paying employers)
6. Professional affiliations
- awarding body registration
- professional body registration
- e-portfolio license
- cost of end-point assessment
Many of these items (for 5 and 6 above) are fixed costs that cannot be broken down and directly attributed to a single apprentice, however understanding what they are will mean that you can see how much apprenticeship income you will need to earn to cover the running costs. This could then be attributed per apprentice / employer (e.g. fixed costs of xx per apprentice as an employer may ask the question)
Other resources you may find useful
We’ve developed a range of resources through the Future Apprenticeships programme:
Looking for support to deliver apprenticeship standards?
Take a look at our events, consultancy or come and speak to us about other support on offer through Future Apprenticeships.
Tim Chewter: tim@strategicdevelopmentnetwork.co.uk