The future of Apprenticeships About TP A proud

The future of Apprenticeships

About TP ● ● A proud history that can be traced back to 1797 Over 2000 branches nationwide Approximately 30, 000 colleagues Proud history of developing people with our current CEO being a Management Trainee 38 years ago

Our pre levy position on Apprenticeships What ● Two schemes (retail level 2 and Team Leader level 3) ● Currently just over 200 Apprentices on programme ● Recruited almost 600 over the last 5 years How ● ● ● Internally delivered Direct Grant Organisation (one of under 60 employers) Graded good by Ofsted Excellent senior leadership buy in making the scheme hugely successful 92% of graduates that complete the level 3 scheme make it into supervisor or above

A list of questions as long as my arm Our approach to paying the levy; how the pot will be distributed and claimed back. ● ● What does each business pay? Should all businesses use apprenticeships (aligned to a specific business need)? How should we manage the pot, centrally or locally? How will we approach other L&D spend (central and Divisional)? How we treat the levy; as a tax and continue with business as usual or as an investment and work to maximise the return. ● ● How much are we willing to invest in the short-term to maximise the levy return in the medium to long-term? How quickly can we make the required changes and how much change is manageable? What this could mean for our existing Apprenticeship programmes and other L&D activity; Minimal change required or an opportunity to improve quality and return. ● ● ● How should we organise ourselves in the future? Should we continue to deliver a range of activities We will always require bespoke, tailored and modular development to serve the business agenda; how much should we allocate to this?

Preparations for the levy go way back Understanding the business needs Analysing our existing L & D Taking a view Making the decisions Getting it done ESFA released the funding guidelines for Employer Providers

Understanding the business needs ● Target specific business skills shortages; strengthening the pipeline and increasing retention ○ Strengthen succession for Assistant and Branch Management in all Divisions, reducing recruitment costs, developing for change, updating new skills and accelerating performance. Currently all Divisions are experiencing challenges in recruiting operational managers ○ Drivers - LTO of c 18%, 48% of Group drivers in 2015 were over the age of 51 with 15% being over the age of 61 ○ IT - LTO 10. 8% - 119 recruits in 2017 AOP - hard to fill engineering roles and attracting technology candidates to a builders merchant ● Utilise entry level Apprenticeship programmes to attract a more diverse population ○ c 28% of 2014 and 2015 MA’s female v Other operational ABM recruitment stands at 10. 6 % ● Become a more attractive employer through providing comprehensive development opportunities with recognisable qualifications at all levels and a credible alternative to university, therefore reducing costs to recruit and increasing retention and engagement measures ● Strengthening skill sets for existing colleagues and building future skills requirements ● Reducing the time it takes to become a Manager across the Group ● Making talent more mobile across the Group

External pipeline Analysing the existing L & D Colleague Assistant Management Branch Management Head of/RD Drivers Apprenticeship Management Apprenticeship Programme Fast Track Management Programme MBA Internships (£ 0) First line Management Programme Management Development programme Branch Apprenticeship IT Apprenticeships Graduate programmes i. Learn Internal Development Senior Leadership Academies Functional specific training Senior Management Development programme Senior Leadership Framework Evolve In role development for Management Systems training - Basic Modular training for in role development Existing Apprenticeship (in scope with minor change) Modular (in scope with significant change) Programmes (in scope with minor change) Modular/on-line (out of scope) *Costs are based on 2016 budget

Taking a view and making the decision 2017 Maintain Convert existing Apprenticeship programmes Maintain 2017 volumes 17% + 2018 2019 Improve Change Covert all ‘in scope with minor change’ programmes Maintain 2017 volumes 67% Convert all ‘in scope with significant change’ programmes Increase the volumes TBC

Apprenticeships or internal training? Apprenticeships accessible internally and externally. Level 2 Apprenticeship Level 3 Apprenticeship Level 5 Apprenticeship Level 6 Apprenticeship Drivers Delivering to our customers Assistant Management Managing a Team Branch Management Leading a Business Multi-site Management Leading Leaders Warehousing Distributing our products Counter Serving our customers Colleague i. Learn Online learning and development Modular Level 7 Apprenticeship Academies Functional specific training Branch Management Assistant Management Evolve In role development for Managers Systems training In role training Modular (in scope for ‘Change’) Modular/on-line (out of scope) Head of/RD MBA Internships Short placement linked to key project deliverables for students studying MBA Senior Leadership Framework Tailored Development

The wider impact on L & D The to do list ● Re-addressing our L&D Operating model ● Looking at the balance between Group and Divisional delivery ● Building wider understanding of Apprenticeship design, delivery, funding and admin The good news ● The modern day L&D obsession with programmes - L&D will be moving away from programme based delivery outside of apprenticeships and focusing on identifying clear needs using modular based development to fix The warning ● Will businesses continue to invest? ● Invest in your technology based learning

A working example Existing Assistant Branch Manager Current Colleague transitioning into a ABM role Managing a Team Assistant Branch Manager Apprenticeship programme External in with 3 years experience in Serving Customers Modular based training to fill the gaps Having difficult conversations to challenge behaviours Learning to plan & manage workloads to make the team more effective Developing good commercial relationships with loyal customers Existing Branch Manager Current ABM transitioning into a BM role External in with 3 years experience in Managing a team Leading a Business Branch Manager Apprenticeship programme