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Brexit will create biggest skills vacuum ever faced, unless we act now

Thursday 15 June 2017

On Monday June 19, the UK and the European Union (EU) will sit down for the first time to discuss how we will depart from the institutions we’ve been entrenched in for over 40 years.

Those negotiations will take around two years to complete but in reality the process will be much longer than that.

Like most things associated with Brexit, there is a cloak of uncertainty surrounding it which will end up stifling the development of businesses and employers.

The biggest area to be affected by the outcome of Brexit is the labour market.

Why? There is now a political consensus that freedom of movement for EU citizens will end.

Access to European workers will be both more expensive and much more uncertain, while labour restrictions being placed on organisations poses a very real problem for post-Brexit Britain.

So, how should businesses deal with threats? By turning them into opportunities, of course.

One of the ways that can be done is through apprenticeships. With unfettered access to the European labour market ending, businesses need to look to long-term domestic solutions for their workforce.

By training people through an apprenticeship, tailored learning can be delivered to employees, which will benefit businesses both in the immediate and the future.

Apprenticeships will help to change the fortunes of UK productivity.

Despite consistent economic growth over the last few years, the UK is the worst country in the G7 for productivity.

Even Italy – which has shown no improvements in the last decade – is still significantly ahead of us.

Apprenticeships address skills shortages within companies, they upskill the workforce, and they reduce staff turnover. The result of which is increased productivity and being able to attract some of the brightest local talent to join and stay with the business.

Brexit should be the wake-up call for companies to invest in young people in the local area, and it’s never been easier to do so.

The government is investing £3 billion to create three million apprenticeships by the year 2020.

A new ‘Apprenticeship Levy’ – funded by big businesses – means the government will contribute at least 90 per cent of the apprenticeship training costs for businesses with an annual paybill of less than £3 million.

Alex Ford, CEO of CT Skills said: “The companies who I believe will flourish in a Brexit Britain are those who make an irresistible offer to attract new recruits.

“Those recruits will be inspired by the prospect of working for a company that is going to test them, invest in them and expand their skills.”

 

To make use of the new government funding, businesses are required to form a partnership with an authorised training provider.

CT Skills is a large Independent Learning Provider with over 20 years’ experience delivering training solutions to businesses in the East Midlands.

In 2016, we provided training to over 3,000 learners across Nottinghamshire and Derbyshire alone.

Contact one of our dedicated business development managers to arrange your free initial consultation on 0115 959 9544 or email info@ctskills.co.uk.

 

By Jarrad Johnson, PR & Communications Executive