Apprenticeships benefit businesses in so many ways
Having a well-trained and effective team is the foundation of any successful business, and for this reason, more and more employers are realising the benefits that Apprenticeships can bring to their organisations. This can either be through employing new members of staff as Apprentices or via existing employees furthering their skills and knowledge and gaining accredited professional training through Apprenticeships.
Developing future talent for your business through Apprenticeships
Apprenticeships provide exceptional training especially in light of the new Apprenticeship standards that are replacing the SASE Apprenticeship frameworks. It is expected that all frameworks will gradually be replaced with standards by 2020 in line with Government Apprenticeship reforms. Standards begin and end with assessments, comprise both on and off-the-job training, and are tailored to each individual profession, instead of being multi-occupational.
Therefore, Apprenticeships enable your business to take on new talent and train them your way, around your industry, business processes, company culture and structures. What better way to build your workforce than to bring talented and enthusiastic new employees into your organisation and mould them into skilled employees. Employing Apprentices builds loyalty as your Apprentices know that you’re prepared to patiently train them and invest in their future.
According to the National Apprenticeship Service survey 2017, 96% of employers that take on an Apprentice report benefits to their business. 80% of companies who invest in Apprenticeships reported a significant increase in employee retention.
Upskill your existing staff through Apprenticeships
Apprenticeships are also an effective way to upskill your existing workforce. Enrolling your employees on to relevant Apprenticeships such as Business Administration, Customer Service, Management and Team leadership and other sector-specific Apprenticeships will enable them to gain accredited qualifications and develop role-related skills and knowledge relevant to your organisation. This can only help to boost performance in their own roles and progress into other higher roles within your business. According to the NAS survey, 72% of businesses report improved productivity as a result of Apprenticeships, and 77% of businesses agree that Apprenticeships make their workplace more productive.
Apprenticeships increase a company’s bottom line
Investing in your employee’s training through Apprenticeships can also have an effect on your organisation’s finances. According to the National Apprenticeship Service, an average person completing an Apprenticeship increases productivity by £214 a week. A research study carried out for the Centre for Economics and Business Research (Cebr) found that, on average, each apprentice brings a gain in productivity of more than £10,000 per year for their employer, with figures for some sectors being even higher.
Also, National Apprenticeship Service data has shown that 81% of consumers favour using a company that takes on Apprentices. You can even calculate the return on investment for an Apprenticeship on your business on the organisation’s website.
Regularly analysing the performance and outcomes of your Apprentices will allow you to see the current and future benefits to your business. Your performance metrics will depend on what is important in your specific business context. For example, if high staff turnover is an issue in your sector, you could track the length of time that Apprentices remain with the business. If you have a significant skills gap, you can monitor the percentage of unfilled roles in the company, and whether Apprentices are promoted to fill these positions.
Furthermore, as companies receive funding for each Apprentice they take on, it means they don’t have to spend as much to recruit new staff.
Cost effective training
For non-levy paying businesses (those with a pay bill of under £3 million per annum), 90% of training costs for apprentices are Government funded via co-investment.
If you are an employer with fewer than 50 employees, the Government will pay the full cost of training Apprentices aged 16 - 18. Apprenticeships. Find out more about Apprenticeship funding for non-levy paying employers.
For Apprenticeship Levy paying employers, employers can benefit from this investment in training new Apprentices or current employees. The Apprenticeship levy is charged at a rate of 0.5% of an employer’s pay bill and only valid for employers with a pay bill of £3 million or over. Each employer will receive an allowance of £15,000 to offset against their levy payment.
We work with a variety of employers to provide Apprenticeship training solutions including leading financial sector employers Optionis. Optionis is an employer that clearly recognises the value that Apprenticeships play in building their long-term talent pipeline and achieving their business objectives.
Helen Pedder – Optionis Group Head of HR tells us -
"At Optionis, our Apprentices are an integral part of our business and we’re heavily invested in their professional training and development. We’ve seen first-hand the positive impact that our apprentices have had, not only to the long-term goals of the business but in building their own successful careers".
Revitalise your organisation
Recruiting new enthusiastic talent to your team via Apprenticeships can often bring new energy into the workplace. This can have a knock-on effect on other employees and bring new ideas into the company.
So why not invest in your business, and invest in Apprenticeships? By doing so you’ll be investing in the future, your future and your employees’ future. After all, in the words of Zig Ziglar -
“The only thing worse than training employees and losing them is to not train them and keep them!”