Apprenticeship Wage Progression Research A report to the Cornwall Apprenticeships Campaign Steering Group Final Report 17 th February 2015 Robert Rush PFA Research
Sample - Age 45% 4 35% 4 34% Ongoing (34%) Completed (66%) 3 25% 25% 24% 2 15% 5% 14% 15% 14% 11% 4% 4% 1% 1% 16 to 17 18 to 20 21 to 25 26 to 35 36 to 45 46 to 55 56 or over
Sample Subject/Activity Business administration Accounting Construction / building Health and social care IT, Software, web and telecoms Engineering Children and young people's workforce Agriculture / animal care Vehicle maintenance and repair Hairdressing Catering and professional chefs Management Customer service Plumbing and heating Sales and telesales Electrician Hospitality Food and drink (manufacturing) Warehouse and storage 4% 4% 2% 2% 1% 1% 1% 9% 8% 7% 7% 12% 1 2% 4% 6% 8% 12% 14%
Sample Sectors of Employment Construction Housing Healthcare Engineering & Manufacturing Education Retail & Services Local Government & Administration Agriculture, conservation & animal ICT & Digital Automotive Catering, Food & Drink Accounts Care sector Business services Marine engineering Finance & Banking Leisure, Hospitality & Tourism Legal Community & Voluntary Services 1% 2% 2% 4% 4% 5% 6% 6% 7% 12% 11% 2% 4% 6% 8% 12% 14%
Apprenticeship Level 4 35% 3 25% 2 37% 24% 26% 31% 34% 32% Undertaking Achieved 15% 5% 5% Intermediate Advanced Higher Don't know
Employment Status (Completed) 10 9 8 96% Same company, same job, 6 Same company, different job, 17% 7 6 5 Different company, same job, 1 4 3 2 Different company, different job, 7% 1% 2% 1% Employed In education Unemployed Other
Wage on Start of Apprenticeship 9 8 7 6 Total Ongoing Completed Average Average Average 6.30 5.30 6.60 7.00 6.00 5.00 5 4.00 4 8 85% 3.00 3 2 2.50 2.60 2.60 2.70 2.40 2.60 6 2.00 2 17% 11% 6% 9% Lower than NMW Minimum Wage Higher than NMW 1.00 0.00
Wage Progression (Ongoing) 10 9 8 7 6 5 4 3 2 3 5% 14% 8 6% 5 48% 38% 17% 17% In first year In 2nd year In 3rd year Four+ years (5) (3) (8%) (8%) One wage rise Two wage rises Three or more wage rises 1 st : Average 5.80 / hour 2 nd : Average 5.90 / hour 3 rd : Average 7.80 / hour Now: Average 5.70 / hour % of participants in apprenticeship by duration (so far) 79% of participants in apprenticeship for more than 12 months have had at least one wage rise
Wage Progression (Completed) 10 9 8 7 6 5 4 3 2 24% 58% 9% 7% 16% 32% 34% 34% 3 16% One year 2 years 3 years >3 years (21%) (5) (18%) (9%) One wage rise Two wage rises Three or more wage rises 1 st : Average 5.90 / hour 2 nd : Average 6.50 / hour 3 rd : Average 7.40 / hour At End: Average 7.80 / hour % of participants in apprenticeship for duration 66% of participants in apprenticeship for more than 12 months had at least one wage rise
Wage Progression (All Participants) 10 9 8 7 6 5 4 3 2 19% 5 8% 16% 7% 42% 39% 36% 37% 16% 6% One year 2 years 3 years >3 years (32%) (45%) (14%) (8%) One wage rise Two wage rises Three or more wage rises 1 st : Average 5.90 / hour 2 nd : Average 6.40 / hour 3 rd : Average 7.40 / hour At End/Now: Average 7.10 / hour % of participants in apprenticeship for duration 69% of participants in apprenticeship for more than 12 months have/had at least one wage rise
Average Hourly Wage by Age
Summary 96% still in employment after finishing their Apprenticeship - c.f. 86% nationally 77% still with the same employer - c.f. 67% nationally 89% started on or above National Minimum Wage (8 of those currently in apprenticeships and 95% of those completed) Clear evidence of wage progression - vast majority experience pay rises - average wage greater than NMW
Some positive feedback As I was employed when I started my apprenticeship, I was never on the apprentice wage. After completing my apprenticeship, I was offered a permanent job with fantastic future prospects. Great prospects. Am now living in Bristol working for GKN Aerospace as a welder and training for a team leader role. It's about the long term benefits of the apprenticeship, I am still working in my old part time role, but I now have to other part-time jobs in addition, which I wouldn't have if I hadn't completed my apprenticeship. If I was able to redo the last 2 years, I would not have chosen anything other than an apprenticeship. It has opened doors for me, increased my skill set and given me the confidence and drive to achieve further in life.
Some other feedback Tend to feel at the moment with the number of hours worked a week that my wage does not reflect my abilities after nearly 2 years, however I do believe that it's possible my wage will go up at the end of the apprenticeship. I was on national minimum wage throughout the entire time I was working at that job. As a deputy manager, my wages haven't changed since I completed my apprenticeship as I still work for the same Company. I enjoyed the course but was disappointed not to receive a pay rise on completion. This probably has more to do with my employer than my apprenticeship though!
Contact Details PFA Research Ltd W. pfa-research.com T. 01326 375705 Robert Rush E. robert.rush@pfa-research.com M. 07710 332614