Why T-Levels should be on businesses radar in 2023

Why T-Levels should be on businesses radar in 2023

By Holly Evans (she/her/hers) , Senior HR Consultant at JourneyHR

After a tumultuous few years, business leaders could be forgiven for thinking that 2023 would herald a return to calmer waters but while many have shifted their focus from survival to growth, they continue to face significant challenges. 

Data from Gartner revealed the ripple effects of the pandemic-induced ‘Great Resignation’ are still being felt across the board, with half of leaders surveyed expecting competition for talent to increase over the next six months, despite the economic downturn. With employees continuing to look elsewhere, it comes as little surprise that almost three quarters of medium-sized businesses said skills and employee shortages pose a problem for them.

Started in part by the digital transformation that has swept across businesses in recent years, and exacerbated by Brexit and the Covid-19 pandemic, the skills shortage is only set to get worse. According to the Learning and Work Institute, the UK skills shortage will cost the country £120 billion by 2030 with a shortfall of 2.5 million highly skilled workers.

The changing dynamic means it’s vital that employers rethink their approach to recruitment and retention. Up until now, many companies have viewed training, upskilling and re-skilling as a ‘nice to have’ but going forward, leaders will need to think carefully about where the workforce of the future will come from and have a talent strategy in place that gives them a competitive edge.

To help plug the skills shortage and bridge the gap between education and employment, the government has worked alongside businesses to create alternative qualifications for young people in the shape of T Levels. Still in its infancy, T Levels are designed to meet the needs of industry while creating a unique opportunity for younger generations to gain new skills and experience.

What are T Levels?

Launched in 2020, T Levels are two-year courses offering the perfect blend of classroom learning and ‘on the job’ experience.

Offered as an alternative to A Levels for those aged 16-19, and endorsed as the equivalent to three A Levels, T Levels have been developed in collaboration with employers and education providers to meet the needs of different industries, while preparing students for entry into skilled employment, an apprenticeship or further study.

Employers have helped to define the skills and requirements for each T Level course, ensuring that students develop the technical knowledge and skills needed by employers for that particular industry. While students may have an idea of what their chosen industry entails, T Levels provide exposure to the various different roles and expertise within the sector, providing students with a much broader understanding of different career paths and options available to them.

In addition to a technical qualification, students will take part in a nine-week industry placement with an employer, focused on developing students’ practical understanding of the role and refining their knowledge and behaviours to ensure they are ‘work ready’. Students will also be required to gain a maths and English qualification if they have not already achieved those at GCSE.

There are currently 16 different T Levels on offer and by September 2023, a total of 20 subjects will become available meaning there’s something for everyone - from Digital and Design to Business and Administration.

While there’s no legal obligation or expectation to pay students, businesses can do so if they wish and providing some sort of payment, even if it’s a small sum, can be a great motivator and help students with their travel and subsistence costs.

It’s estimated that Generation Z and Generation Alpha (those born after 2010) will make up around a quarter of the UK workforce by the end of this decade. T Levels offer a new and exciting pathway to students, providing them exposure to working life while enabling businesses to equip younger generations with the skills needed for the future.

The benefit to businesses

Nearly half of HR leaders say recruitment is a top priority but 36% admit that their sourcing strategies are insufficient for finding the skills they need.

If organisations do not have the right skills in place, their ability to grow, modernise and be profitable is at risk. A skills shortage can also have a detrimental impact on existing employees, with a report by the Open University and British Chambers of Commerce showing that 72% of organisations said a skills shortage is causing increased workload on other staff. With stress and burnout rates high, it’s critical that businesses look at other ways to nurture and grow talent.

T Levels provide employers with a great opportunity to tap into the next generation of workers. Many are looking for talented young people to enter their organisation and supporting students with an industry placement can be a great way to attract early ambition and inspire more people to enter that industry.

By exposing students to the realities of working life, employers can feel more confident that students will enter the workplace with the technical knowledge, soft skills and experience employers need. At the same time, existing employees can benefit by mentoring students and honing their own managerial / support skills.

Importantly, working alongside education providers will help industries break down barriers which unfortunately still exist. The issue of diversity and equality has climbed up the business agenda in recent years and while great strides have been made to improve business’ diversity and inclusion practices, we still have some way to go.

A gender pay gap continues to dominate, with men earning on average 8.3% more than women. Women hold just 41% of management roles in the UK workplace, falling to 38% among women in senior business leading positions.

Research has shown that people are often deterred from applying for certain roles for fear that they do not fit a particular mould. For example, a poll by the Institute of Coding showed that 56% of youngsters felt the tech industry needs to be more diverse and inclusive, with one in 10 put off looking for a career in the sector because they do not see themselves represented.

The creative industry has also shown it needs to do more to attract and nurture a diverse set of candidates. Ethnic minorities make up 16% of the UK advertising workforce, but just 1% of black talent are in C-suite positions. Meanwhile, 20% of UK advertising professionals attended fee paying schools versus a national average of just 8%. By reaching out to schools and encouraging everyone, regardless of gender, ethnicity, race or background, to consider a career in their industry, employers can play an important role in driving forward social mobility and diversity and start to build stronger foundations to create a level playing field.

Of course, there are potential challenges for businesses to consider. Committing to T-Levels requires time and commitment. Leaders also need to have a project that is worthwhile and adds value to the business and the student. As T Levels are so new, there’s little in the way of tried and tested experience.

But for businesses, T Levels offer a smarter, more cost-effective approach to recruitment, essentially offering leaders a flexible way to engage with talent before directly hiring them. There’s also a huge reputational bonus; businesses that back T Levels will be part of a broader group of employers showing their commitment to the future of young people and the future of their own industry. Investing in local talent will also ensure that businesses are building the skills and expertise within their local area.

For businesses that are interested in the T Level, they can register their interest through the YouGov page.

Throughout 2022, JourneyHR supported over 50 of our clients with the talent shortage in several different ways including hiring over 200 roles across our client portfolio, implementing apprenticeship schemes to tackle barriers around social mobility and racial diversity, creating school leaver programmes to access a more diverse talent pool and rolling out paid internships.   In 2022 we also partnered with our clients to upskill existing employees on critical skills like management and leadership. We understand that solutions to the talent shortage will be unique depending on the sector and company culture so if you’re interested in how JourneyHR can help your business I’d love to hear from you so drop me an email at hollyevans@journeyhr.com.

“It’s estimated that Generation Z and Generation Alpha (those born after 2010) will make up around a quarter of the UK workforce by the end of this decade. T Levels offer a new and exciting pathway to students, providing them exposure to working life while enabling businesses to equip younger generations with the skills needed for the future.”