Apprenticeships are long-term training programmes that combine on-the-job training with education. Taking on an apprentice can have a positive impact on your business.
But, as with all staffing changes, some planning is needed to ensure a recruit — and the wider team — can adapt and thrive. Lee Murphy, managing director of The Accountancy Partnership, a digital practice who work with more than 13,000 SMEs, has identified the top five benefits of bringing an apprentice on board. Who can hire an apprentice and what are the first steps? On-the-job training and support is provided to an apprentice by an employer and there are legal requirements too, such as paying the apprentice the appropriate minimum wage. In England, apprentices are aged 16 and over and must be in the role for at least a year and a maximum of five years, depending on the level the apprentice is studying. There are differing rules for Wales, Scotland and Northern Ireland, so be sure to check before committing to an apprenticeship scheme. It is vital to understand the training standards and qualifications needed for the apprentice role. This may involve collaborating with schools, colleges or other educational institutions. Usually, businesses are required to partner with accredited training providers who offer relevant programmes. This can boost the quality of training and support provided. Bridging the skills gap There are varying routes into a chosen career. What has become apparent in recent years is many employers do not value a degree, they value skills. However, university is still a destination for millions of young people after school. This path is being reconsidered and young people are choosing vocations and work-based learning over academia and amassing a huge student loan debt that could take decades to repay. To find the right apprentice, businesses should advertise the apprentice position through various channels, such as online jobs boards, careers fairs and at educational institutions. Young people looking for an apprenticeship are likely to be dedicated to a role and vocation, making them perfect employees to teach and benefit from their employment. Take time to carry out thorough interviews to gauge a candidate’s suitability for the role and how committed they are to learning and development. A comprehensive onboarding process will help an apprentice to familiarise themselves with the culture, policies and procedures of a business. Assigning a mentor or supervisor is a good idea and this will help with managing the responsibility of work and education. Funding The funding available for hiring apprentices depends on whether a business is eligible to pay the Apprenticeship Levy. If a business doesn’t pay the levy, 5% of the training and assessment costs are paid directly to the training provider. The government will pay the remaining 95%, up to the funding band maximum. If the levy is paid, the business will receive funding towards the cost of training and assessment, as well as an additional 10% of government funding. UK businesses hiring an apprentice may be eligible for the Apprenticeship Levy if the company’s pay bill is more than £3m per annum. The Levy is 0.5% of the total pay bill for the year. Future-proofing a business The alliance of youth, education and work creates a culture where new ideas can be nurtured within a company, leading to innovation and further success. It’s vital to determine the skills and roles within the business that would benefit from a trainee or apprentice, and forming a clear job description has the mutual benefit of ensuring the company fulfils its obligations to the apprentice and nurtures talent to progress the company. Developing a structured training programme that combines on-the-job experience with formal learning should include a clear progression path, including milestones and assessments, to track the apprentice’s and company’s development. Good reputation Creating a positive and inclusive learning environment by providing clear communication, constructive feedback and plenty of opportunities for hands on experience will ensure the company is held in high regard and talked about fondly. These are the ingredients to a good reputation and will help with continuing a successful apprenticeship programme that is at the forefront of key stakeholders’ minds. Lowering unemployment Apprenticeships are one of the most valuable tools to help reduce unemployment and underemployment for young people. According to the Office of National Statistics, the unemployment rate for 16-24 year-olds in the UK was 13.2% in the three months to February 2021, compared to 4.9% for the whole population. Apprenticeships mean young people can earn while they learn, and are also a good way for young people from disadvantaged backgrounds to forge a career and make money. A study by the Social Mobility Commission found apprentices from lower socio-economic backgrounds can earn up to 16% higher than their peers who did not do an apprenticeship. It is clear to see that offering apprenticeships contributes greatly to business growth and society, bringing young people into the workplace while fostering a dedicated learning environment for all. By Lee Murphy, Managing Director of The Accountancy Partnership5 Benefits Of An Apprentice For Your Small Business, By Lee Murphy, Managing Director Of The Accountancy Partnership
