Apprenticeships offer both employees and employers many benefits, not least no debt for apprentices, unlike under graduates choosing university of having the financial burden of student loans which can take years to repay. As such, many employers are now choosing this route over alternatives such as employing university graduates or taking on employees without any structured vocational training. We have previously covered the benefits of an apprenticeship to an individual – to view this article click the following link Why should you choose an apprenticeship?
Building Skills and Keeping Staff
A skills gap is currently affecting many organisations and companies in the UK, meaning it is hard to fill vacancies. However, by recruiting apprentices, you can train people to have the exact skills you need for your business, resulting in a highly productive workforce. Another option is to offer apprenticeships to your existing staff as a way of improving their ongoing training.
Apprenticeships help provide skilled workers for the future
An apprenticeship allows you to diversify and freshen up your workforce. Apprenticeship training helps employees to improve their skills, which will benefit your company in the long term. On average, 90% of apprentices stay on in their place of work after completing an apprenticeship. Any company with an apprenticeship programme in place is likely to be viewed as a forward-thinking organisation, who is investing in its people. Apprentices provided with a structured training plan, helps them to be fully embedded into the company more quickly. The apprenticeship will also ensure that the skills developed are matched to what the company requires in both the short and long term to support your growth. As well as boosting productivity, apprenticeships can also help companies to compete in the modern marketplace. Using apprenticeships fills any gaps within an apprentice’s skillset and allows the business to source future managers and leaders internally as they will have developed a strong company ethos.
Apprentices increase staff loyalty and retention
Employees who have been trained in-house tend to be highly motivated, committed to the company and supportive of its business objectives. An apprenticeship encourages employees to think of their job as a career and to stay with the company for longer, reducing recruitment costs. Offering an apprenticeship to an existing member of staff shows that you invest in people and see them as an integral part of your workforce, investing in their future career development. In turn, this boosts employee’s confidence, and capability making them feel valued. In short, they feel satisfied and integrated into your business, so are expected to stay with you for longer.
Cost – Effective Training
Apprenticeships are considered highly cost-effective as a form of training, because young people are contributing to the workplace while they are in training and learning the ropes. Research studies carried out have found that Employers who have an established apprenticeship programme reported that productivity in their workplace had improved and that apprenticeships improved the quality of their product or service. Therefore, all parties are benefiting from Apprenticeships (employer and employee).
Another cost advantage for employers is that, whilst you are expected to pay your apprentices wages, funding is generally available to businesses to cover the approved apprenticeship training costs.
You can get help from the government to pay for apprenticeship training and assessment. The amount you get depends on whether you pay the apprenticeship levy or not. You will pay the apprenticeship levy if you’re an employer with a salary bill over £3 million each year.
As an employer who doesn’t pay the apprenticeship levy, you will need to pay the training provider directly for training your apprentices. You only pay 10% towards the cost of training and assessing your apprentice. The government will pay the rest (90%) up to the funding band maximum. They’ll pay the funds directly to the training provider.
Extra support for small employers training younger apprentices
Employers with fewer than 50 people working for them the government will pay 100% of the training costs, up to the funding band maximum and will receive £1,000 grant payable in two instalments, for an apprentice who is aged between:
- 16-18 years old
- 19-24 years old and who has previously been in care or who has an Education, Health and Care plan provided by their local authority
For up to date details on how much it is going to cost you click on the following link: https://www.apprenticeships.gov.uk/employer/how-much-is-it-going-to-cost
Apprentices can free up existing staff time
As a business grows, experienced staff often find their time is taken up by smaller tasks when they should be concentrating on the more skilled areas of their work, which has a more beneficial impact on the business. Delegating these more junior tasks to an apprentice allows them to learn, while freeing up valuable time of your more experienced staff. This more efficient allocation of work should make your business more productive.
I hope you enjoyed this month’s blog. Feel free to check out previous blogs and let us know what you want next month’s topic to be by emailing email@example.com with your suggestions. Yours might feature so look forward to reading your ideas.