The new Growth and Skills Levy is set to open more doors for young people to access funded learning when entering the workforce. This is positive news. But the proposed withdrawal of the Level 7 levy could create a highly concerning skills vacuum.
In our fast-paced world, essential skills can stagnate as senior teams tackle everyday crises and challenges. Level 7 Senior Leader Apprenticeship (SLA) programmes give employees the space and structure for deep thinking, strategic engagement and work-based learning, surrounded by a network of peers. An active, experiential style of teaching can enable new learning to be directly applied to real-world business challenges.
However, announcements at the most recent Labour Party Conference suggest that the Level 7 SLA standard is likely to be withdrawn from levy funding in the near future. Instead, levy funding may be focused on the development of younger learners. This is laudable as a strategy to support young people’s readiness for the workplace. But firms must not forget the importance of continuing professional development for their existing managers.
Read more: How HR professionals can build a culture of lifelong learning
Why leadership development matters
More than ever, today’s complex business environment requires leaders to grapple with existential challenges relating to performance, sustainability, and new technologies. In the World Economic Forum’s (2023/24) top 10 list of skills needed in the workplace, analytical thinking takes the number one spot. Creative thinking comes in at second place. According to the World Economic Forum’s prediction, analytical and creative thinking will retain the top spots for required skills over the next five years.
Decisions made in boardrooms and executive suites can steer companies through choppy waters or cause them to run aground. As managers progress to senior leadership roles in their companies, the ability to react and adapt to future developments is vital. Strong analytical, creative and critical thinking skills lie at the heart of good decision making. It is therefore alarming to note that these are precisely the areas where a clear skills gap exists.
Employers are understandably concerned that levy funding changes could widen this gap. Many have seen first-hand the immense value of management apprenticeships, particularly in areas such as strategic and operational leadership, and future planning. That’s why it’s critical for employers to continue investing in skills-based learning.
How to navigate a changed learning landscape
Businesses need to think through their talent management strategy, and conduct essential skills audits, so that employees can continue to benefit from the transformative learning experiences that Level 7 apprenticeships offer. These programmes will still be available but probably not accessible through levy funding.
Read more: How Circle Health Group uses apprenticeships to cure talent shortages
There is a smorgasbord of professional development options to explore. Learners can complete shorter, customised or open corporate development courses, as well as MBA or MSc qualification programmes. Internal and employee-led training may also bridge the learning gap, especially when combined with development opportunities provided by professional bodies. In the meantime, making the most of Level 7 levy opportunities before they are withdrawn is a no brainer for businesses.
Looking ahead, it’s vital that employers maintain a commitment to skills building and personal development. By acting quickly to make the most of current funding, and investing in learning when this is withdrawn, they can equip senior and future leaders with the skills needed to make big decisions in our fast-changing, complex world.
If there’s one piece of advice I would give to employers today, it’s this: contact learning providers to seek help navigating these changes. Specialists are well-placed to find learning opportunities that will have a meaningful impact on your businesses, and your teams.
Anne Dibley is an associate professor and head of post-experience and apprenticeship programmes for Henley Business School
