There's no doubt the government, through its representative
body, the National Apprenticeship Service (NAS), would like as many
small businesses as possible to take on apprentices.
Apprenticeships, says the NAS, can fill skills gaps, improve
the bottom line and motivate staff.
And the evidence for small and medium-sized enterprises is
fairly compelling.
But most SMEs will be mindful of the costs involved in hiring a
relatively untrained employee, especially during the current tough
economic times.
There are lots of arguments, however, to suggest that there are
clear financial benefits to businesses. Apprenticeship schemes will
probably be of interest mostly to businesses offering a service or
a trade - hairdressers, hotels, bars, plumbers, electricians, engineering, warehouse businesses and so
on.
And, for many, the apprenticeship scheme would seem to make
financial sense. But, it's worth bearing in mind the full costs of
hiring someone, not just the headline wage - there are plenty of
ancillary costs too - public liability insurance, or increased
contractor's insurance, for example.
Even so, a study by the University of Warwick Institute
of Employment Research found that the cost of offering an
apprenticeship are regained fairly quickly by
businesses.
Other research by Sheffield
University measured the long-term financial benefit for
businesses from apprenticeships. It found that 'A Level 3 Advanced
apprentice will generate an additional lifetime benefit to
themselves and their employer of £105,000 compared to someone who
does not gain an Apprenticeship. The Level 2 additional benefit is
£73,000.'
For many smaller businesses, hiring an apprentice may be just
the solution needed if they are finding the economic environment
tough AND yet they need extra staff. The bottom line is that
apprentices are relatively cheap to hire and there is financial
help available to assist with training them.
The minimum wage for apprentices is £95 a week, although, say
the NAS, many employers prefer to pay more. The average
salary is approx £170 a week.
Businesses that take on a 16-18 year old apprentice pay only
their wage - the government meets the costs of training in
full.
NAS research shows:
- 80% of those employers who take on apprentices say they make
the workplace more productive.
- 81% of consumers favour a company that takes on
apprentices.
- Over 100,000 employers offer apprenticeship places in more than
190 job types.
- 88% of employers who employ apprentices say that they lead to a
more motivated, satisfied workforce.
- 83% of employers who employ apprentices rely on these
apprentices to provide the skilled workers they need in the
future.
- 20% of employers say they will take on more apprentices to help
them through the tough economic conditions.
So, what are apprenticeships?
They are described as work-based training programmes that lead
to various levels of nationally recognised qualifications and they
can be designed for new and existing employees.
The apprenticeships themselves are designed by the Sector Skills
Councils (part of the Skills for Business network), and the
National Apprenticeship Service helps to pay for the training.
Representatives from appropriate business sectors work with the
Sector Skills Council to design training course content.
The types of apprenticeship are highly varied and cover
accountancy to textiles, engineering to veterinary nursing,
business administration to construction and many more. There are
more than 190 types of jobs available.
Most of the training is in-house and learning is on-the-job, but
there is often some additional course work at a local
college. The length of the apprenticeship depends on the
previous experience of the apprentice, the qualification aimed at
and the industry sector, but usually they are between one and three
years long.
Apprenticeships usually fall into one of three
categories:
- Those equivalent to Level 2 (or GCSE level).
- Advanced Apprenticeships, equivalent to Level 3 (or
A-levels).
- Higher Apprenticeships - the equivalent of a foundation
degree.
Clearly, apprenticeships should not be regarded merely as a
source of relatively cheap employees. They certainly demand a level
of commitment from the employer. And there are what the NAS
describes as 'not insignificant associated costs' on top of the
salary paid. There is the cost of supervision, support
and mentoring that need to be put in place to help the
apprentice.
But the National Apprenticeship Service will match employer's
commitment to hiring apprentices by covering in full, or in part,
the training costs. For 16 to 18 years olds, training is 100%
paid for by the NAS, for apprentices 19 to 24 years old, the
contribution is 50%, and for apprentices aged 25 and over, there
may be a contribution for specific places.
If you believe your business may benefit from taking on an
apprentice, further information is available at the NAS website
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