Apprenticeships

Good for your businessJodi Fair

April 7, 20232

Why apprentices would be good for your business

These are the bottom line business benefits:

– Clear return on investment

– Greater productivity

– Lower recruitment costs

– Lower training and retention costs

– Increased employee satisfaction

– Greater loyalty and quality of work

April 7, 20233

What is an Apprenticeship?

A work-based training programme designed around the needs of employers, which leads to nationally recognised qualifications.

Can be a new recruit or existing member of staff.

Offered at three levels, Apprenticeships (level 2) and Advanced Apprenticeships (level 3) and Higher Apprenticeships (level 4) usually lasting from 1 to 4 years.

There are over 190 types of Apprenticeships suitable for almost every type of job role from retail to engineering to healthcare and for every size of business.

April 7, 20234

What is an Apprenticeship?

The Apprenticeship framework comprises on and off the job training

The frameworks are designed and developed by Sector Skills Councils to ensure the training is industry relevant.

The National Apprenticeship Service helps to fund the training.

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Why an apprentice would be good for your business

Clear return on investment

Research shows 70% of businesses employing an apprentice agree they made a valuable contribution during their training period

Apprentices productivity tends to be higher compared to other employees

Employing an apprentice costs from only 11% - 50% of a more experienced worker and pays back after 2 - 4 years, depending on the sector.

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Why an apprentice would be good for your business

Greater productivity

– Research shows 81% of businesses employing apprentices agree that they bring higher overall productivity.

– It also shows 66% believe their apprentices help them to be more competitive in their businesses.

Case Study: BT estimated their engineering apprentices are 7.5% more productive than non apprentices and generated a higher annual net profit of over £1300 per apprentice compared to non-apprentices.

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Why an apprentice would be good for your business

Lower recruitment costs

Research shows:

– Respondents believe that their Apprenticeship programme helps them fill vacancies more quickly, and that Apprenticeships attract a better calibre of job applicant.

– 59% report that training apprentices is more cost-effective than hiring skilled staff

– 59% believing that Apprenticeships lead to lower overall training costs and 53% feeling that they reduce recruitment costs.

Employers also get free advertising with Apprenticeship vacancies online attracting a wide audience of potential candidates.

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Why an apprentice would be good for your business

Lower training and retention costs

– Government funding is available towards the cost of training. This funding frees existing training budget to be used in other areas.

Case Study: Compass plc reported significant reductions in training and recruitment costs due to higher staff retention rates since introducing Apprenticeships. Apprentice progression into management positions within the company has also saved on management recruitment costs.

Case Study: BAE Systems apprentices who start their working life with the company have a higher commitment to the overall aims and objectives of the company (87% retention rate).

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Why an apprentice would be good for your business

Increased employee satisfaction

– Apprentices strengthen the workforce through increased employee satisfaction leading to higher staff retention and progression

– Compared to non-apprentices, apprentices show higher level of employee satisfaction and lower absenteeism rates.

Case Study: BT’s apprentice teams show the highest level of employee satisfaction, currently 85% - significantly higher than non-apprentice teams and their retention rates are 95% higher than their sector averages.

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Why an apprentice would be good for your business

Greater loyalty and quality of work

Research shows:

– 57% report a high proportion of their apprentices going on to management positions within the company.

Case Study: Over 80% of British Gas’ gas servicing and installation managers joined the company as apprentices.

April 7, 2023Apprenticeships: A great idea for your business11

The cost is lower than you might think!

If your apprentice is aged between 16 and 18, Government funding will cover the cost of their training. If they are aged over 19 the employer may be required to make a contribution towards the training cost.

The employer pays the Apprentice a salary reflective of industry rates and experience. The minimum wage is £95 week but the average is £170 a week.

They can be a new recruit or an existing member of staff.

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Some easy next steps

• Speak to the NAS representative here todayor•Call 08000 150 600 or •complete our online enquiry form at apprenticeships.org.uk

•Your Apprenticeship representative will call to arrange a meeting.

•Your Apprenticeship representative will help you identify a suitable learning provider.

•Discuss your specific needs with the learning provider.

•Confirm the number of employees who will start Apprenticeships.

•Start the recruitment process – new apprentices can be recruited using Apprenticeship vacancies online.