Five ways employers can benefit from welcoming apprentices into their organisation

The UN’s World Youth Skills Day occurs every year on 15th of July. While this year’s theme is “Skilling teachers, trainers and youth”, we wanted to mark it by shining a light on the positives that training apprentices can bring.

Apprenticeships represent a popular way into the UK’s workforce, with hundreds of thousands of apprentices starting out each year. It is also a viable pathway for older workers making a career change.

According to the UK government, almost four out of five employers reported improved productivity due to apprentices. And three-quarters of employers found that apprenticeships helped raise the quality of their product or service.

With university fees placing an enormous financial burden on undergraduates, apprenticeships are an attractive choice for many young people finishing school.

But let’s take a look at what’s in it for employers, too! Here are five of the most valuable benefits:

1.     Target the skills gaps in your business

Because there is a huge range of apprenticeship courses available (more than 600), you can target specific skills gaps in your business, and fill them with ambitious young people who want to do the best for themselves and you.

From digital marketer to business and legal assistant, early years child carer to dental nurse, there will be something for almost any business. So however you want to grow, or hire, you should be able to find a training programme to suit you.

2.     Take advantage of valuable funding

Larger firms have to pay an apprenticeship levy of 0.5% of their annual pay bill, but most SMEs do not (their payroll has to exceed £3 million per year to become liable). Such SMEs can benefit from the funding it generates, though, to the tune of 95% of the training and assessment costs.

When you think about it, this is incredibly valuable: helping you gain the next generation of skilled workers at a huge discount to what you would otherwise pay in training and development.

3.     Avoid expensive recruitment costs

While apprentices are not without their costs, they can certainly offer you a significant discount on traditional recruitment costs, whether you would have paid a recruiter or spent the time doing it yourself.

The national minimum wage also allows for lower rates to young and new apprentices. For 16-18-year olds, and those aged 19 or over in their first year of apprenticeship, the national minimum wage rate is £5.28 per hour (although you can pay higher if you want to). Once they are 19 or over and have completed their first year, it rises to the main national minimum wage rate for their age range.

4.     Offer clear pathways for progression

Apprenticeships do not just have to be for new hires. You may have young (or older) people in your business in junior roles, but who are very keen to progress. You may risk losing them if you cannot cater to this desire, but apprenticeships offer a structured pathway to the development they seek.

Not only does this satisfy their needs, but also helps you work towards your next cohort of high-calibre staff.

5.     Welcome the next generation into your culture

Okay, this may feel like a two-edged sword at times, with generational clashes; and Gen Z having a reputation in the eyes of many of lacking qualities such as resilience. But pick the right ones, and they will bring new skills, energy and passion to your company that will help carry your business forwards.

They will learn a lot from you, and there will be things you pick up from them, or come to rely upon to keep your business connected to its market over time.

Help with apprentices, learning and development

Apprentices are, of course, just one way of delivering learning and development – a key aspect of your people management. If you would like to explore options for making your team the best they can be, speak to the experts at The HR Dept.