It’s no wonder over 250,000 workplaces in England offer apprenticeships!
The benefits of apprenticeships and traineeships are becoming increasingly obvious to more and more businesses.
It’s a fact that apprenticeships develop a motivated, skilled and qualified workforce. Businesses that offer apprenticeships view them as beneficial to their long-term development. According to the British Chambers of Commerce, most employ an apprentice to improve the skills base within their business.
With the expansion of higher and degree apprenticeships businesses can now access the higher-level technical skills vital to business performance and growth. Employers have the opportunity to attract new talent, offer progression and develop a motivated, skilled and qualified workforce.
1. Improve productivity while reducing costs
Apprenticeships boost productivity by helping businesses to expand the skills available in the organisation.
A news story published by Gov.co.uk titled 'UK businesses could gain additional £18bn revenue from apprenticeships' explains that the average person completing an Apprenticeship increases productivity by £214 a week. These gains include increased profits, lower prices and better products.
2. Fully funded training
If your apprentice is aged 16 - 18, 100% of the cost of apprenticeship training is available. A small contribution towards the cost of training is available if the apprentice is aged 19 or over. Companies can apply for fully funded training through a training provider that has a contract with the Skills Funding Agency (SFA). More information on funding for training can be found on the Government website.
In some areas, grants are available for employers taking on an apprentice. For example, if you’re an SME in the Tees Valley area, did you know that up to £3,500 is available to you for employing Apprentices? Check out the Tees Valley Apprenticeship Grant for Employers (TVAGE) here.
3. Fresh ideas and innovation
Because apprentices tend to be fresh out of school or college, they can bring new ideas, new trends in the industry and up-to-date research from their studies into your business, which busy companies may struggle to keep pace with. They can also bring new ways of thinking into the workplace and motivate other member of staff to help the business move forward.
4. Free recruitment solution
According to job site Monster.co.uk, the average recruitment cost of filling a vacancy using internal or external recruitment methods is reckoned to be around a whopping £4,500! And if you go to a traditional percentage fee agency, and your hired candidate leaves within the first month, you could easily lose thousands of pounds.
High quality training providers can help you with the entire recruitment process at no cost.
The Government's Employer Guide to Apprenticeships and Traineeships reports '75% of apprentice employers say the programme has helped cut recruitment costs. 80% say that apprenticeships will play a bigger part in their future recruitment policy.'
5. Cost effective and greater ROI
The affordability of apprentice programmes often results in a greater return on investment than graduate programmes as many organisations find that productivity among apprentices can be greater than graduates. Apprentices aged 16-18, or who are in the first year of their apprenticeship, must be paid a minimum of £3.30* per hour. All other apprentices are entitled to the National Minimum Wage for their age i.e. £5.30 per hour for apprentices aged 18-20, and £6.70 for those 21 and over. However, businesses are encouraged to pay more.
You can find out more about the National Minimum Wage and National Living Wage rates here.
6. Upskill existing staff
Did you know than apprenticeships aren’t just for new staff and you can use an apprenticeship to upskill existing staff? Existing staff can obtain a nationally recognised qualification whilst working on the job too.
There are many benefits to training existing employees including increased motivation, increased productivity, increased confidence and increased knowledge, all which contributes to a satisfied workforce resulting in decreased retention rates and lower staff turnover.
7. More motivated and satisfied workforce
Charted Institute of Personnel and Development (CIPD) conducted a report and highlighted that nearly every employer that took on an apprentice (96%) reported benefits to their business including increased employee satisfaction and engagement as a result of hiring an apprentice. Apprentices have made an active choice to learn from, and work with, you.
8. Improve brand image and company reputation
In the same CIPD report mentioned above, 81% of consumers said they favour using a company which takes on apprentices.
Mike Thompson, Director Early Careers at Barclays said: “There were numerous soft benefits which help brand and reputation, which we’re very proud of. Our apprentices are so articulate and have great stories and narratives to share. They’re a success inside and outside of Barclays.”
9. Lower turnover rate and greater loyalty
The Learning and Skills Council surveyed businesses throughout the UK on benefitsof hiring an apprentice (Populus, January 2009). Of those surveyed 74% said that apprentices tended to be more loyal, remaining at their company longer than non-apprentices. Apprentices recognise the investment you, their employer, are making in their career and development. They will display more loyalty to you, and help foster a similar atmosphere in their team.
10. ‘Grow your own’ future workforce
An apprenticeship gives you the opportunity to mould your apprentice’s development to fit your processes and practices. They are work-based training programmes, designed with employers, which combine on and off the job learning and development activities. Employers have full control over what activities and tasks their apprentice participates in in-house and what they will learn during off-the-job training.
Here at Profound Services, we do everything we can to make taking on an apprentice as simple as possible. Our Business Development and Learner Engagement Teams will be there to help you through the entire process.
If you want more information on how we can help your business, contact Profound Services on 0191 587 4570 or email firstname.lastname@example.org