Apprenticeships: A Win-Win for Employees and Businesses?
Apprenticeships: a win-win for employees and businesses?
23 February 2023
The UK government has launched a levelling up project which aims to generate jobs, boost economic growth and revamp cities. But could apprenticeships be the solution to fix these issues? This article touches on the skills shortage, government funding and effects within the workforce to highlight the ways in which apprenticeships can benefit both employees and businesses.
Apprenticeships are jobs that include practical training, work experience, and role-related studies. They are suitable for anyone over 16, living in the UK, from school leavers to university graduates. Normally apprentices will spend around 80% of their time doing hands on work and 20% studying for their apprenticeship qualification. Degree apprenticeships are also available, which follow the same format with apprentices using their 20% study time towards gaining a degree.
Apprenticeships can be a great way to be in the field from the get-go, surrounded by professionals in the industry. Unlike studying full time university degrees, they do not result in debt or hefty fees. What is more, people undertaking apprenticeships are paid for the work they do, including annual leave. Additionally, apprenticeships are a way stand out to employers via gaining work experience before starting another job. They can also lead to businesses offering workers longer term roles after completing their apprenticeships. For example, 30% of senior managers at Rolls Royce started there as apprentices.
Businesses can choose to either hire new workers as apprentices, or to upskill their already existing workers. Data from HM Government states that 86% of employers found that apprenticeships helped with the development of skills relevant to their organisation and 78% of employers found that apprenticeships helped them improve productivity.
Businesses may be concerned about the time and resources spent on training employees via apprenticeships schemes. Fortunately, in the UK, the government provides support to fund apprentices. If your business is already levy-paying then funds in the account can be spent on apprentices. Businesses that do not pay levies can still receive funding towards apprenticeship training from the government. Learn more about financial support towards apprenticeships here. Moreover, Estio, an apprenticeship training provider, calls for businesses to view hiring apprentices as a long-term strategy to future-proof the organisation. They state that investing in apprenticeships yields a greater return in the long run than the resources that business spend on them.
Apprenticeships are a vital step in addressing skills shortage for many businesses. Nationally, the skills shortage is a struggle that many businesses face, with 55% of employers having difficulty attracting candidates with the right skills, and this percentage increases to 78% for small firms. Yet, skills are what most businesses primarily look for, with 80% of employers prioritising skills over degrees. Offering apprenticeships is therefore important to address this issue since training for apprenticeships can be based on the needs of the business.
Offering apprenticeships to already existing employees can also save money by avoiding recruitment processes. Training employees with relevant skills through apprenticeships also improves motivation and long-term commitment amongst employees and contributes to retaining talent. Moreover, having engaged and well-trained staff has the positive knock-on effect of them being able to effectively coach and mentor other employees.
Collectively, apprentices who qualified in 2019 are predicted to contribute £7 billion to the economy by the end 2029. Therefore, it seems that increasing the number of apprenticeships offered is not only a win-win for workers and businesses, but also for society as a whole by boosting the economy. As our society endures the cost-of living crisis and continues to recover from the pandemic, businesses should make use of apprenticeship funding opportunities and generate the benefits for themselves and workers.