According to the AAT (“the UK’s leading qualification and membership body for accounting and finance staff”), your business could be missing out if it doesn’t currently employ an apprentice.
The organisation reckons that every time a business takes on an apprentice, “its bottom line gets a boost of more than £2,000”, while lack of awareness of available government support is a key reason why more small and medium-sized businesses aren’t employing apprentices, who, it estimates, “delivered £1.8bn of net economic benefits to UK organisations in 2012/13”.
The claims are based on a research report called The Value of Apprentices, compiled by the Centre for Economics and Business Research (Cebr). It found that apprentices offer UK firms “a significant return on their investment”, with economic output usually far exceeding associated wage and training costs. Even after wages and training is accounted for, every time a business takes on an apprentice, on average, they gain by £2,000, according to the AAT.
But the research also found that awareness among businesses (particularly small firms) of government support for those who take on apprentices was poor. About 60% of small businesses surveyed by The Department for Business, Innovation and Skills in August 2013 lacked basic knowledge of the “government’s programme of support for businesses that take on apprentices”. For example, businesses with fewer than 1,000 employees that haven’t hired an apprentice in the past 12 months and take on one apprentice (aged 16 to 24) could receive a grant of £1,500 per apprentice from the National Apprenticeship Service.
Jane Scott Paul, AAT Chief Executive, comments: “Take-up of apprenticeship schemes has grown sharply over the past five years, as more and more organisations enjoy the benefits that apprentices can bring to the workplace. This is benefitting their businesses and bolstering economic recovery and growth.
“We now need to do more to engage with smaller businesses – to break down the misconceptions and make it easier for smaller enterprises to unlock the full potential of training apprentices and to gain specific skills relevant to their business.
“Our research clearly reveals that apprentices, far from being a cost to business, are often a tangible benefit and, what’s more, they’re flourishing in non-traditional sectors such as business, administration and law. By quantifying the value of apprenticeships in this way we hope to encourage all sectors of business to open up their recruitment policies and address the skill shortage.”
With it being National Apprenticeship Week this week, maybe it’s time you found out more about the business benefits of taking on an apprentice?
It’s hardly the greatest time to be a young British adult, trying to make your way in the cruel new world in which we find ourselves.
Punitive fees and budget-busting living costs mean a university education is set to once again become the preserve of society’s wealthier members. With households under immense pressure, many parents (even those who would be considered fully paid-up members of the middle classes), simply can’t find the money to pay for their sons and daughters to go to university.
Hard luck. Welcome to the real world, you might say. Why not go and get a job like the rest of us? Well, things aren’t that easy. As reported by the Mail Online in late January, according to a study by the Work Foundation, youth unemployment in the UK has increased at a faster rate than any country in the G8 since the start of the recession five years ago.
Indeed, out of the countries that make up the OECD (Organisation for Economic Co-operation and Development), only Spain and Greece have higher rates of youth unemployment than the UK (currently standing at about 1m). Youth unemployment here in the UK among 15 to 24 year olds increased by a staggering 35 per cent between 2008 and 2011, compared to an average of 15 per cent in the G8 countries (ie Canada, France, Germany, Italy, Japan, Russia, UK and USA). The politicians should hang their heads in shame for failing young people so badly, you might say.
According to the Work Foundation report, during the same period youth unemployment decreased in Germany, Russia and Japan, which, said the report’s authors, suggests that youth unemployment problems in the UK couldn’t be attributed entirely to the recession, other factors have clearly played a part.
One of the report’s author, Lizzie Crowley, said: “'The government should focus on those policies that have been shown to work, cherry-picking the best responses from other countries and adapting them to the needs of the UK labour market.”
Many experts see apprenticeships as a useful weapon in the fight against endemic youth unemployment in the UK and elsewhere. The Work Foundation report recommended that the government should do more to encourage larger businesses in particular to sign up to an apprenticeship agreement.
Another report published recently by the Centre for Economics and Business Research claimed that 3.8m people will complete an apprenticeship in the next decade, contributing £3.4bn to the UK economy a year in productivity gains by 2022.
Secretary of State for Business, Innovation and Skills, Vince Cable, said: "This research confirms the economic importance of apprenticeships and sends a clear message that they deliver for employers, individuals and the economy. I want to see more small and medium-sized businesses reap the benefits of apprenticeships, which is why we have introduced a £1,500 incentive for SMEs who take on a young person.”
Deputy Prime Minister Nick Clegg said apprentices were “vital to Great British business”. He continued: “They are at the heart of our drive to provide employers with people who have the skills needed for their businesses to prosper and compete, often in a global market.”
This week, National Apprenticeship Week (NAW) 2013 is taking place. According to the National Apprenticeship Service, which organises NAW: “Apprenticeships deliver real returns, helping [you] to improve productivity and be more competitive. Training apprentices can also be more cost-effective than hiring skilled staff, leading to lower overall training and recruitment costs.
"Apprenticeships deliver skills designed around your business needs, providing the skilled workers you need for the future. They also help you develop the specialist skills you need to keep pace with the latest technology and working practices in your sector.”
Although many employers choose to pay more, the National Minimum Wage for apprentices is £2.65 per hour, making them an affordable option for many firms. There are even grants available to some employers. Maybe it’s time your business joined the fight against youth unemployment and took on an apprentice. Looks like the politicians need all the help they can get.