What’s the ROI of apprenticeships?
The biggest asset to businesses today is skills.
Businesses around the country are struggling to recruit the skills they need, so more are developing skills in house – either by training new recruits or upskilling existing staff. One of the most popular ways to do this is through apprenticeships.
There are hundreds of apprenticeship courses available to train your staff – from software development to social care. Apprentices learn on the job, so they’re performing their role from the moment they start. And if you pay the apprenticeship levy, training is already paid for. It’s a no brainer. But other than filling your skills gap, what other returns do apprenticeships bring?
Apprentices bring new energy, ideas and enthusiasm to the workplace, which has a knock-on effect on other employees. This boosts performance and increases productivity across the business.
The numbers don’t lie. In a recent research paper by the Department for Business, Innovation and Skills (BIS), companies reported huge financial returns on their investment in apprenticeships. For every pound invested in a level 2 apprenticeship, £26 was returned – and this increased to £28 for level 3 apprenticeships.
With apprentices, you can train them your way – your processes, company culture and ways of working. You have talent on the job from day one, so you can mould them into skilled employees who follow your best practice.
Increased profile in the local area
Offering apprenticeships is a great way to improve your company image and raise your profile in the local area. As many employers rely on their local talent pool, this is a great way to improve recruitment too.
Apprentices are loyal employees. They’ve learned how your business works and have seen the time you’ve taken to train them and invest in their future. This means they're more likely to stay with your business for longer. In fact, 80% of companies who invest in apprenticeships reported a significant increase in employee retention.
Increased high-level skills development
Apprenticeships aren’t just for entry-level recruits. There are hundreds of degree-level apprenticeships available to develop high-level skills in your business. It means you don’t have to offer high salaries to attract graduates you’ll have to retrain anyway. You can develop the exact skills you need in house.
These high-level apprenticeships are great for attracting talented new recruits, or upskill your existing employees – so you can develop the future leaders of your business.
So there you have it: 5 big fat reasons to invest in apprenticeships.
Investing in apprenticeships delivers all kinds of returns – financially, culturally and socially. They’re a fantastic opportunity for businesses and individuals alike. And there’s never been a better time to invest.
If you have a wage bill over £3 million a year, you’re already paying the apprenticeship levy, and have funds sat in your Apprenticeship Service account to be spent on training. Funds only stay in your account for 24 months, so you’ve got to use it or lose it!
To find out more about hiring an apprentice, download your free employer starter pack. It covers everything you need to know about apprenticeships – from recruitment to responsibilities.
This article includes research and opinion sourced by OneFile at the time of publication. Things may have changed since then,
so this research is to be used at the reader's discretion. OneFile is not liable for any action taken based on this research.