The biggest challenge facing scaling businesses is often not motivating and retaining staff; it’s finding great talent in the first place.
Recruiting graduates is an established route to sourcing motivated, competent and affordable talent, but employers shouldn’t ignore the potential of apprentices. For employers who have to pay the Apprenticeship Levy (those with a wage bill of £3m or more), employing apprentices could help them offset the cost of the levy by using their allowance to upskill their workforce. For non-levy payers, the government’s 90% contribution to the cost of training can help them develop future leaders at a lower cost.
Advantages of apprenticeships
- Apprenticeship programmes generally combine work and class-based training, although much of this will have moved online during the coronavirus pandemic. For employers, this means that apprentices will be building skills that are directly relevant to their business while also developing their theoretical knowledge.
- Apprenticeships aren’t only for school leavers. Being able to qualify up to bachelor degree level and above means that existing employees can develop their skills and strengths through apprenticeship training.
- Investing in people through long-term training plans often leads to improved motivation, commitment and loyalty. Not only do businesses retain the value of their investment for longer, but they can also reduce the significant time and cost involved in recruiting and onboarding replacement hires.
- For small businesses, having access to government funds without having to pay the cost of the levy makes training apprentices a cost-effective way of developing talent.
- For many, the ever-increasing burden of student loans makes the opportunity to obtain a high-quality, nationally recognised qualification while also earning an attractive alternative to university. The competition for the brightest apprentices could soon match graduate recruitment. Building a successful apprenticeship programme now could help employers attract the best talent for years to come.
Small businesses gain from the Apprenticeship Levy
The ‘co-investment’ scheme for employers with an annual pay bill of less than £3m means that the government and employers share the cost of training apprentices, with the government paying 90%. Qualifying small employers will therefore be able to benefit financially from the new approach to training and won’t have to pay the levy.
Apprenticeships will be available in many professions
Apprenticeship programmes are being developed across various disciplines, including Digital, Science, Legal, Finance and Accounting, Sales and Marketing, Business and Administration, Procurement and HR.
Apprenticeships will be available at seven different levels. Level 3 is equivalent to 2 A-Levels, while Levels 6 and 7 equate to a bachelor’s or master’s degree. It is already possible to fully qualify as an accountant through the Apprenticeship scheme.
Arrangements differ across the UK
Different arrangements for apprenticeship programmes and funding apply in Wales, Scotland and Northern Ireland.
Protecting the ‘Apprenticeship’ brand
Employers access government co-investment funding through appropriate apprenticeship training providers.
A new criminal offence means it is unlawful for a training provider to offer a course or training as an apprenticeship if it is not a statutory apprenticeship under the new provisions. This means employers can be confident they are paying for high-quality, regulated training.
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