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How could hiring an apprentice benefit your company?

By aspiration | 15 May 2019 | Category: Blog
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In recent years, an increasing number of young people have turned to apprenticeships in order to gain practical experience alongside studying for professional qualifications. An apprenticeship is both time and cost effective for young people as they are paid a wage, subject to their level of experience, and avoids the high costs associated with university and higher education.

As well as offering great career prospects for young people, many businesses could also gain from hiring an apprentice. Here are our top reasons as to why apprenticeships are mutually beneficial for both candidates and employers:

  • Whilst an entry-level apprentice wage is lower than that of a normal employee, short-term costs should not be the main motivation for deciding to start an apprenticeship scheme. However, a well-chosen apprentice with a determined and hard-working attitude could be a great long-term investment for your company.
  • Although not all apprentices are school leavers, the majority are young and with an apprenticeship usually being their first experience of long-term employment, they are keen to learn and volunteer ideas. Having fresh perspectives are valuable for any company in order to improve productivity and employees’ experiences.
  • Equally, with many being new to the workplace, investing in an apprentice’s training tends to result in company loyalty; this boosts employee retention and saves on further recruitment costs. Likewise, the fact they’re getting paid for their time and are subject to the same conditions as other full-time employees tends to boost morale and maintain a positive work ethic.
  • Also, apprenticeships are time-effective as well as cost-effective for both employers and employees. In industries such as health and social care and childcare, an apprentice will learn valuable practical skills from real-life scenarios which are reinforced by their studying. So, in many instances, as a business you can gain educationally and practically skilled workers in a shorter time than it would take to train a university graduate.
  • Moreover, whilst you do have to finance an apprenticeship this cost is subsidised by the government. If your business has a pay bill over £3 million, then you will have to pay the apprenticeship levy to the government: this will be paid at 0.5% of your wage bill. However, the government will pay a 10% top up fee of your contributions. Plus, if you exceed your levy allowance then you are still eligible for 90% funding toward further apprentices.
  • However, if you are not paying the apprenticeship levy, then as of April 2019 costs for the employer have been halved from 10% to 5% for all new apprenticeship starts, with government funding rising to 95% provided to cover the remaining costs.

At Aspiration Training, we can assist you in setting up an apprenticeship scheme and understanding the costs involved. You can also visit our frequently asked questions for employers

If you would like more information or have any questions, get in touch with us.

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