Are Apprentices the new Graduates?AGR conference- March 2014

Date: March 2014Prepared by: John Morewood

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Our Start point• We aim to differentiate ourselves from our competitors by providing

a superior service• We always ran graduate programmes – many award winning• In 2010 our engagement levels were close to best in class ,

our customer service levels were no different from our competitors

and customer recommendation scores were trending down• Feedback received that we were only providing professional qualifications for our graduates and

colleagues in regulated wealth roles

Action taken• We decided to look at professionalising our workforce with various initiatives including apprenticeships • We became the first major bank to deploy apprenticeships in the UK• The aims were professionalising the workforce and to build a non graduate development proposition

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Call to action 2010

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Background- 1600 started programme in England Scotland and Wales since Sep 2011700 apprentices a year v 135 grads

External Recognition

Awarded “2” Ofsted inspection with “elements of outstanding in all areas

2013

Completion rates much better than national average HSBC Overall Success Rate 88%HSBC Timely Success Rate 86%

Nat Av72%56%

Apprentice of the Year (Target Awards)Winner of the NAS, Newcomer Employer of the Year Award. City & Guilds Top 100 Apprenticeship employer

2013

Framework split of current apprentices (vast majority level 3 )

Providing Financial Services

56%

Customer Service 23%

Business Administration

13%

IT 4%

Management 4%

Inclusion Apprenticeships

HSBC norm population

Age- 16-24 45% 16%

Ethnicity-Non White English

24% 17%

Gender 64% 70%

Feedback

Learners who would recommend programme to a colleague

97%

Learners who believe programme met/exceeded expectations

95%

Line managers who believe programme meets business needs

98%

% retained post programme since 2011 97.4%

Apprentices outperform non apprentices More higher rated , fewer lower rated

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Internships

Work experience schemes- 1 week- Traineeships

TalentSenior grades

Graduate Development programmes

The aim is to increase capability and be open to all

Graduates not on Development programmes

Non Graduate programmesApprenticeships

TalentJunior/ Middle

gradesDevelopment

opportunities inc Higher

apprenticeships

SpecialisedApprenticeshipsAt level 4

458 achieved so far- What does the future look like for the

apprenticeship class of 2014?

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• 700 apprentices a year –in 2014 500 new to bank. 135 grads• Further needs to professionalise• Post scheme there will be a common approach for professionalising junior talent.

Higher apprenticeships yes. Master degrees possibly but not immediately after university

Hints and Tips

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• The scheme has to deliver business need – define metrics• The scheme has to fit into resourcing, development and talent management strategies• Close monitoring to ensure quality is key.