June 1 2022

T Levels: A guide to the benefits for employers and recruiters

There’s a new initiative that could help solve the skills gap crisis. 78% of the largest employers say their business is negatively impacted by a shortage of skilled workers. In this guide to T levels for employers, we’ll show how this new qualification could create an abundance of skilled talent for the future.

Where will tomorrow’s talent come from?

From upskilling current employees to focusing on employing global talent, there are many ways organisations are trying to close the skills gap. However, these tactics don’t solve the issue entirely.  

A recent report from the Harvey Nash Group found that 67% of global digital leaders are falling behind with the pace of change because of the shortage of talent.

Add to this the fact that by 2030 nearly 20% of workers in the UK could lacks the skills needed for their jobs.

The manufacturing, construction and engineering sectors are suffering

The skills gap is affecting nearly all industries. However it’s been extra tough on the manufacturing, engineering, construction, retail, and digital sectors.

There are many recruitment methods to help organisations stand out from the rest. Plus, it’s good practice to create a learning culture in your organisation to help fuel the talent pipeline.

But it can still be extremely hard to find workers with the skills that organisations crave.

There needs to be a solution to provide people with the right skills in these industries. On the job training can be expensive and means lower levels of productivity until the worker is fully trained. 

T Levels offer hope to struggling industries

So what if students could gain a qualification combined with practical experience direct steered by employers? 

The unique nature of T Level qualifications makes this possible. We’ve created this quick guide to T Levels for employers so you can discover what T Levels are and how your business could benefit from those with this qualification.

How do T Levels work in industry?

The T stands for technical. One T level is equivalent to three A levels, meaning that universities will offer places to those holding one of these qualifications.

However, T Level qualifications are not the same as A Levels. T Levels are a mix of classroom study and practical (and highly sought-after) skills acquisition. Meanwhile A Levels are purely academic.

What industries have helped shape T Levels? 

Students can choose to study a T Levels in the following industries:

  • Digital production, design, and development
  • Education and childcare
  • Building services engineering for construction
  • Digital business services
  • Health
  • Science

From September 2022, schools and colleges will offer even more subjects including those relating to engineering, manufacturing, and finance. Check out the full list on the official T Levels website.

Six benefits of T Levels for employers

You might be asking what makes the T Level so special. Here’s why.

In a nutshell, it’s the industry placement. This placement is key in teaching students the practical skills needed to make them more employable later on.

Let’s take a look at six reasons why your organisation could benefit from T Level placements:

1. Designed in partnership with employers

The fact that industry placements are designed in collaboration with employers means that employers can guide students to learn the skills their businesses are crying out for. 

Consequently, those who complete T Levels will be well-placed to fill entry level positions. T Levels should be able to create a generation of job seekers who correspond to what employers need.

2. Hosting organisation can help guide training

The business hosting the placement will collaborate directly with the college or sixth form and have a direct role in training and moulding that student’s technical skills.

3. Faster onboarding of new employees 

The industry placement is longer and more in-depth than work shadowing or work experience. Comprehensive work experience allows T Level students to hit the ground running.

The placement makes up 20% of the course and lasts 45-50 days. It’s key in providing T Level holders with the basic skills necessary to enter the job market and hit the ground running.

4. Be ahead of the curve

The latest developments and industry trends are often developed and researched in the classroom. When it comes to T Levels, students will bring the latest classroom-based knowledge to their employer or placement host. They will bring a fresh new perspective whilst learning practical skills.

T Levels should ensure that the next generation of job seekers hit the workplace prepared and ready to provide employers with the skills they desperately need. Industry placements will enable employers and recruiters to tap into the emerging talent pipeline, while supporting the skilled workforce of the future.

5. Cost-effective recruitment

T Levels offer a cost-effective recruitment source and can improve the recruitment pipeline to your business. By hosting a student on an industry placement, employers have the opportunity to see what the young person can offer. 

Organisations don’t have to employ the student afterwards, although many do. That’s because they have the skills they need.

In addition, the T Level student isn’t entitled to receive a salary during the placement since it’s a requirement of the student’s study program.

Financial incentives: T Level guide for employers

A guide to T Levels for employers wouldn’t be complete without drawing attention to the potential financial benefits.  

The Government has introduced a financial incentive to employers. As of May 2022, employers can claim £1,000 per T Level student they offer an industry placement to.

Employers can claim for up to 20 placements. There are no stipulations about how this money is used.

As demand for these T Level placements is increasing, the process might change. You can check the Government website for up to date information.

T Levels could become important for talent retention too

A talent pool ravaged by COVID-19, Brexit and a skills gap worsened by the fast pace of technology has left HR teams with a recruitment headache. We know struggling to recruit is detrimental to business.

A Korn Therry study in the U.S. has outlined the potential financial impact of the skills gap. The study suggests that unless decisive action is taken, the talent shortage could result in about $8.5 trillion in unrealised annual revenues.  

To prevent this downward spiral, employers will need to use every tool in the book to prevent the skills gap from impacting their business. The T Level may well be one more tool worth considering.

T Level guide for employers: Key takeaways

  • The T Level qualification is a government-backed initiative designed to tackle the skills gap.
  • Employers can claim a financial incentive for developing future talent.
  • The industry placement is key in giving employers a say in what skills potential future talent needs.
  • Employers will have cost-effective access to untapped, up and coming talent sources.

How we can help

When it comes to reducing turnover rates, offering your employees on-demand pay can be a win-win solution.

On-demand pay allows employees to access a portion of their earnings when they want to cover unexpected costs. This financial buffer helps to reduce financial stress which can distract employees and lead to increased rates of absenteeism.

If you would like to find out more about how on-demand pay could help your employees with zero cost to your business, please contact us.