Apprenticeships have become an essential part of workforce development, providing businesses with a unique opportunity to train employees from the ground up.
Employers who invest in apprentices benefit from a skilled, dedicated workforce while also enjoying financial and operational advantages. Apprenticeships offer businesses a sustainable method of recruitment, helping bridge skill gaps while encouraging employee loyalty.
Studies show that 86% of employers said apprenticeships helped them develop skills relevant to their organisation, according to the UK Government’s Apprenticeships Evaluation Report.
Whether you’re looking to upskill existing employees or bring in fresh talent, apprenticeship programs offer numerous advantages for employers.
In this guide, we’ll explore the key benefits and why more businesses are turning to apprenticeships as a strategic investment supported by the latest research.
What are the benefits of apprenticeships for employers?
Your people are your best asset, by equipping them with the right skills, you can future-proof your workforce and achieve your business goals.
1. Cost-Effective Workforce Development
One of the biggest advantages of apprenticeships is their cost-effectiveness. Unlike traditional recruitment, apprenticeships allow businesses to train new talent at a lower cost. Many apprenticeship schemes come with government funding, reducing the financial burden on employers.
The Apprenticeship Levy in the UK, for instance, helps businesses offset training costs through government contributions. Hiring apprentices is often more affordable than hiring fully qualified staff, making it an attractive option for budget-conscious companies.
Research by the Centre for Economics and Business Research (CEBR) found that apprenticeships generate an annual return of £34 billion to the UK economy. So, this equates to the UK economy gaining £21 for every £1 invested in apprenticeships. This highlights how investing in apprenticeships can lead to long-term financial gains for businesses.
2. Improved Employee Retention
Apprenticeships create a strong sense of loyalty among employees. Since apprentices are trained within the company, they develop a deep connection to the business and its values. Studies show that employees who start as apprentices are more likely to stay with the company long-term, reducing turnover and recruitment costs.
According to the British Chambers of Commerce, 75% of employers state that apprenticeships have helped lower recruitment costs.
According to the National Apprenticeship Service, 80% of companies that invest in apprentices report an increase in employee retention. Reports suggest that 65% of apprentices remain with their employer after completing their training.
Employees who have progressed through apprenticeships tend to be more engaged, leading to better overall job satisfaction.
Did you know, there’s no upper age limit for apprenticeships? They aren’t just for new employees and are an excellent tool for developing your existing workforce. This means businesses can:
- Support career progression for current employees.
- Develop in-demand skills within their teams.
- Ensure long-term business sustainability by fostering internal talent.
3. Tailored Skill Development
Unlike traditional hiring, where employees come with pre-existing skills that may not perfectly align with business needs, apprenticeships allow employers to shape employees to fit specific roles. This means businesses can train apprentices in the exact skills required, ensuring they meet operational demands while aligning with the company’s culture, values and company objectives.
A report from the British Chamber of Commerce found that 86% of organisations using apprenticeships are expecting an increase or are committing the same number of learners in their organisation over the next twelve months.
4. Increased Productivity and Efficiency
Apprentices gain hands-on experience while working, meaning they can contribute to business operations right from the start. With structured training, they become productive members of the team faster than new hires who may require lengthy onboarding periods. Over time, apprentices develop into highly skilled workers, improving overall efficiency.
A report from the UK Department for Education revealed that 76% of employers reported improved productivity as a direct result of apprenticeships.
This is supported by the British Chamber of Commerce, with 81% of apprentice employers saying they make their businesses more productive. The average apprenticeship completer increases business productivity by £214 per week.
5. Enhanced Innovation and Fresh Perspectives
Apprentices bring fresh ideas and new perspectives to the workplace. Young apprentices, in particular, are often more digitally literate and adaptable to emerging technologies. Businesses benefit from their innovative approaches and enthusiasm, leading to creative problem-solving and improvements in processes. According to a study by the Sutton Trust, apprenticeships play a crucial role in fostering workplace innovation, as businesses benefit from fresh thinking and a diverse talent pool.
6. Access to Government Funding and Incentives
To encourage businesses to invest in apprenticeships, the UK government offers financial support, including:
Apprenticeship Levy Funding
If you run a smaller business, you can receive government funding support that will cover 95% of the costs for training an apprentice. If your business has a payroll of £3 million, you can use the funds you’ve set aside (known as your levy) to pay for the training of your apprentices.
Incentive Payments
Employers can receive a £1,000 government grant to support your apprentices in the workplace if, at the start of their apprenticeship training, they are one of the following:
- 16 to 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- 19 to 24 years old with an education, health and care (EHC) plan
- 19 to 24 years old and have been in care
You can be spent on any costs related to their employment, e.g. salary, travel costs or uniform.
National Insurance Relief
Businesses that employ apprentices or enrol an existing employee on an apprenticeship training programme may not need to pay Class 1 National Insurance contributions if the apprentice is:
- Is under 25 years old
- Is on an approved UK government apprenticeship
- Earns less than £967 a week (£50,270 a year)
7. Enhance Your Brand Reputation
Consumers and stakeholders increasingly prefer businesses that invest in skills development. According to the British Chambers of Commerce, 81% of consumers favour companies that employ apprentices. With 88% of employers stating that apprenticeships lead to a more motivated workforce. Supporting apprenticeships demonstrates your corporate social responsibility and commitment to industry growth.
8. Foster a culture of lifelong learning
There’s one key trait that sets apprenticeship talent apart: they are eager to learn and grow alongside your business.
Not every employee shares this mindset. Many resist training, even as new skills. With a shortage of fresh talent to bridge these gaps, the challenge only grows.
That’s where apprenticeships come in, fostering a culture of lifelong learning. By developing future-proof skills, apprentices not only strengthen your workforce but also inspire others to upskill.
For apprentices themselves, the benefits are clear: a fully funded, recognised qualification and the digital expertise to secure their future.
Begin your apprenticeship journey with Whyy? Change
There is so much information and so many options out there, that it can be difficult to know where to start. That’s why we come to meet with you and learn about your business and team.
We undertake a Training Needs Analysis with you so that you have a clear picture of what training would help you move both your team and your company forward.
Often what you need can be different from your initial thoughts. We have saved companies £00,000s which they would have spent on unnecessary or inappropriate training.
If you require funding or have questions about how it all works, we can help. Let us do the leg work, apprenticeships don’t have to be confusing, let’s chat about training.
If you would like to upskill your team with an apprenticeship, a short course, or a professional qualification, then please get in touch today. To find out more, head over to our apprenticeship courses page, download our courses brochure or drop the team an email on info@whyychange.com.
