40 | JANUARY 2022
Skills
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OVER EIGHT IN 10 TRADESPEOPLE TAKE ON APPRENTICES OR STAFF
• 83 per cent of tradespeople with rising workloads have employed or plan to take on new staff or apprentices to manage this .
• Eight in 10 tradespeople ( 80 per cent ) have seen an increase in their workloads since July 2021 .
• Concerningly , just one in five ( 20 per cent ) tradespeople are aware that it is a legal requirement to take out employers ’ liability insurance if they hire an apprentice or employ staff .*
Over eight in 10 tradespeople who have seen an increase in their workload have added or plan to hire new staff or apprentices , with nearly a third ( 31 per cent ) intending to or already boosting their teams by five or more , according to new research from Direct Line business insurance . 1
For most tradespeople , business has been booming . 80 per cent have seen an increase in their workload since July compared with the first six months of this year , which is driving the decision to hire staff and apprentices .
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Six in 10 ( 60 per cent ) tradespeople feel optimistic about young people ’ s prospects in their sector should they choose to pursue it
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This willingness to take on new staff is also likely to stem from broader positivity about the outlook for trades . Six in 10 ( 60 per cent ) tradespeople feel optimistic about young people ’ s prospects in their sector should they choose to pursue it . Of these , more than two in five ( 41 per cent ) believe the industry won ’ t become redundant for a long time , while 35 per cent think people carrying out improvements to their homes will keep demand high for tradespeople ’ s services .
When on the hunt for new staff , the most common way tradespeople find new talent is by asking current staff or contacts for recommendations ( 40 per cent ), followed by advertising on a job website ( 36 per cent ). More than a third ( 35 per cent ) have worked or would form a partnership with a training provider to take on an apprentice and deliver a comprehensive skills programme .
Tradespeople are also open to hiring people with different career backgrounds . Nearly half ( 47 per cent ) would hire someone who had previously worked in a separate industry .
When asked about the sectors they would be most willing to hire from , manufacturing was the most popular ( 45 per cent ), followed by agriculture ( 21 per cent ) and finance ( 21 per cent ).
This openness to workers from other industries could be explained by nearly half of tradespeople ( 48 per cent ) stating there is a shortage of labour in the industry , with the top
Table One : Industries tradespeople would be most willing to hire from ( outside of the trades ) – Direct Line business insurance , 2021
Industries
Manufacturing
Agriculture
Finance
Professional Services
Hospitality
reason being a lack of desire among young people to train in the trade sector ( 36 per cent ).
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When taking on apprentices , there are certain steps tradespeople are legally obliged to take - but in some cases there is an alarming lack of awareness
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Another problem is that tradespeople don ’ t always feel confident about training new staff and apprentices . A quarter ( 25 per cent ) don ’ t feel like they or their employer are equipped to train apprentices or new team members . The most common reason for this is a lack of confidence in their own skill set
( 35 per cent ), followed by not having enough time to dedicate to it because they are so busy ( 33 per cent ).
When taking on apprentices , there are certain steps tradespeople are legally obliged to take – but in some cases there is an alarming lack of awareness . For example , it is concerning that only one in five ( 20 per cent ) tradespeople know that they need to take out employers ’ liability insurance before onboarding an apprentice . Only a quarter ( 24 per cent ) know that they need to issue them with a contract , while only 31 per cent are aware that they need to be allowed out of work to attend classes .
Jane Morgan , SME Business Manager at Direct Line business insurance , stated :
“ It is promising to see how positive the landscape is looking for tradespeople , as well as their desire to take on apprentices and new staff .
Percentage of tradespeople who ’ d be willing to hire employees from a different industry
45 per cent
21 per cent
21 per cent
20 per cent
19 per cent
‘ it is promising to see how positive the landscape is looking
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“ It is , however , important that tradespeople familiarise themselves with the obligations involved in taking on apprentices , such as the legal requirement for employers ’ liability insurance to cover them against any claims made by apprentices or employees during their employment . * For this reason , they should notify their insurer if they intend to hire apprentices or new staff .
“ Direct Line business insurance offers a range of products and services aimed at tradespeople - from Employers ’ Liability insurance to our Tools and Van Cover .”
www . directlineforbusiness . co . uk
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Opinium survey of 2,000 UK adults , conducted 9th-12th November 2021 ( 220 of those surveyed work as tradespeople ) * There are a few exceptions to this rule . You don ’ t need employers ’ liability insurance if all your employees are related to you and the business is not a limited company and if you employ independent ( self-employed ) contractors . To find out more about the legal requirements around employers liability head to our website here : https :// www . directlineforbusiness . co . uk / small-business-insurance / employers-liability-insurance