Apprenticeships of all types have shown an increase in popularity in recent times, and the reasons are not hard to spot. As the Big Apprentice Survey of over 2000 apprentices (ref. 1) in 2024 showed, apprentices principally value the opportunity to build work experience while gaining a qualification, the career possibilities and access to opportunities that working for a good employer bring. Less commonly cited advantages include the chance to network with others in similar positions and the alternative route to higher education.
Younger apprentices and those from disadvantaged backgrounds, often cite these programmes as a way into their chosen sector and company, when other routes may be denied. “Apprenticeship programmes allow companies to recruit new talent across the spectrum, whatever their age or circumstances”, says Kiran Kapur, CEO of CMC. “Career paths that might ordinarily be the preserve of graduates can be opened up, boosting social mobility.”
So to return to the first question, what’s in it for the employer? Hard pressed companies with increased employment costs of late may well be looking to squeeze maximum productivity from their workforce, and view with suspicion any initiative that seems to negate that. However, CMC believes that companies that hesitate to hire apprentices due to initial costs overlook the significant medium and long-term benefits. Companies should reconsider any doubts over apprenticeships and embrace them as a valuable investment.
Many employers are unaware that existing staff members are eligible to undertake apprenticeships during their regular employment. Facilitating apprenticeship programmes for current employees provides a structured approach to workforce development, enabling organizations to enhance their teams’ competencies. This approach also supports employee career advancement by offering formal training and nationally recognized qualifications.
According to statistics from apprenticeships.gov.uk, 78% of employers reported that taking on apprentices helped them to improve productivity, while 74% said apprenticeships helped them improve the quality of their product or service. This boost in productivity and quality naturally can lead in turn to increased revenue and customer satisfaction.
The costs of apprenticeships can be highly subsidised. Depending on the size of the organisation payroll bill, the fees for putting an employee through an approved apprenticeships will be at least 95% funded by the government, and this rises to 100% for those with higher wage bills as they will already be paying the apprenticeship levy. CMC finds that a lot of larger businesses don’t realise they have funds reserved and available for this.
While a precise figure for the financial benefit of apprenticeships will differ according to the sector and organisation, estimates typically suggest that after deducting costs an apprentice wages, training, and other expenses – the net economic value generated is £2,496 during their training period alone. (Ref 3).
Apart from the financial advantages, apprenticeships are an effective way to address specific skills shortages in various industries. By training apprentices, whether from the existing workforce or new hires, companies can develop the vital skills their industry needs now and in the future.
Apprentices can be a good source of new perspectives and innovation, bringing fresh ideas and new approaches to businesses. They will each bring their own set of skills and this injection of new energy can lead to improved internal processes. For example (though by no means a rule), young people in particular may bring a more digital-first perspective, while older ones can draw on more years of experience.
Of course, apprentices need support to make the most of the opportunity. An agreed time for study, either at work or at home, should be set and respected. Pressures over priorities between work and study is one of the most common issues experienced, especially in the early weeks. Regular reviews with the employer and with the training provider are essential for apprentices to receive the feedback and guidance they will need, especially if this is their first experience of the world of work. Contact with peers can also be highly beneficial. CMC runs group sessions for apprentices at similar stages of their courses.
In CMC’s experience, a majority of employers confirm that apprenticeships help them develop skills relevant to their organization. By investing in apprentices, training and developing them in-house, companies can cultivate a skilled workforce tailored to their specific needs, reducing the need for costly external recruitment. They can effectively grow the talent they need from within and build a more loyal workforce.
Employers that invest in the development of their employees are more likely to retain staff since a motivated and skilled workforce is less likely to look for a better opportunity elsewhere.
Summary
When presenting the case for apprenticeships to company bosses, the focus should be on the key points that initial costs are more than offset by long-term cost savings through reduced recruitment expenses and increased productivity. Government support and incentives are available that offset initial costs.
If this weren’t enough, organisations supporting apprentices benefit from enhanced reputation among their investors and customers. Apprenticeships at first sight may appear to be another expense, but are in fact a strategic investment in the company’s future success and competitiveness.
References
- Association of Apprentices
- apprenticeships.gov.uk
- The St Martin’s Group 2021.
