Apprenticeships are well known but perhaps under utilised in the SME community. The perception is that they wouldn’t provide value or would perhaps cost too much for the business to consider.
Employing an apprentice can provide a fantastic return on investment and fill many knowledge or skill gaps within an organisation. With over 190 different apprenticeships available there is certain to be a course that is relevant to your sector and with the government providing the funding for apprenticeships for employees under 19, or 50% for 19 and over, and an apprentice minimum wage of £2.50 per hour for apprentices under 19 or in their first year of apprenticeship there is plenty of scope for return on investment.
Recently a study by the Learning and Skills Council highlighted some of the benefits very nicely. Of those surveyed:
· 81% said that employing apprentices generated higher overall productivity for their company.
· 66% said that their Apprenticeship programme made them more competitive in their industry.
· 92% said that their Apprenticeship programme better motivated staff and increased job satisfaction.
· 74% said that apprentices tended to be more loyal, remaining at their company longer than non-apprentices.
Another study by Sheffield University measured the long term financial benefit to investing in Apprenticeships. A Level 3 Advanced apprentice will generate an additional lifetime benefit to themselves and their employer of £105,000 compared to someone who does not gain an Apprenticeship. The Level 2 additional benefit was £73,000.
An example of the multitude of benefits that an apprenticeship can bring, especially to SMEs, was recently bought to our attention. A small hairdressing business in Oxfordshire who we occasionally work with took on an apprentice. The apprenticeship they were looking at was a single year course and therefore could be entirely undertaken at the apprentice minimum wage of £2.50. We assisted them in interviewing for the position in order to assure they selected the right candidate and were lucky enough to have several good candidates to choose from. The final selection was a young lady of 19, although this meant that they only received 50% of the courses funding we both felt her enthusiasm and motivation for the opportunity made her the best candidate. Since beginning the course she has proven her value repeatedly with the client even estimating she has in 8 months recouped the cost of the course fee, and will have resulted in a net profit for the business (including taking account of wages and contributions) within 10 months.
For more information on apprenticeships schemes please feel free to contact us or visit http://www.apprenticeships.org.uk
