Apprenticeships can provide immediate operational gains and long-term strategic advantages for organisations of all sizes. In this blog, we outline the various ways in which apprenticeships add value to employers and deliver sustainable return on investment.
Recruitment and training
Traditional recruitment can be expensive, and when you’re hiring an experienced professional, you’re not just paying their salary, but also a variety of other costs, such as recruitment agency or advertising fees. In addition, you may need to invest further in their development with commercial training courses and certifications.
Hiring an apprentice can substantially reduce these costs. Firstly, many training providers will provide a recruitment service free of charge. They can advertise your vacancy, screen candidates and organise interviews on your behalf.
Secondly, the majority of your apprentice’s training costs will be covered. For apprenticeship levy payers, the training is funded via the organisation’s levy pot. For SMEs, the government funds 95-100% of the training costs, depending on the age of the apprentice. When compared to commercial training, which can cost many thousands of pounds, apprenticeships are a highly cost-effective solution.
Productivity, retention and quality
Extensive government and industry research demonstrates that apprenticeships have far-reaching and tangible positive outcomes for businesses of all sizes and industries, with 96% of employers with apprentices experiencing at least one benefit from taking on apprentices
Productivity and quality: 74% of employers say that apprentices improve product or service quality, and 78% say that they improve productivity. Apprentices can often reach full productivity faster than external hires because their training is fully aligned to business needs and involves direct application to the workplace.
Samantha Burrows, Senior Associate at Aconveyancing, said: “We have been able to create a team of apprentices with varying levels of experience that can support the company as they work through the apprenticeship. This supports other team members to be more productive; transactions get dealt with quicker, which results in happy clients, recommendations and positive industry reviews.”
Retention: 69% of employers say that employing apprentices improves staff retention, and 73% of employers say that staff morale is improved by having apprentices. Apprentices have significantly higher retention rates than general or graduate hires. In addition, the effect that apprentices have on morale, in terms of bringing fresh energy and ideas, means that retention rates can improve beyond the apprentice, across entire teams and organisations. With the cost of replacing employees estimated to average £30,000, reducing turnover can have a significant impact on the bottom line.
Amanda Hunt, Learning and Development Specialist at Davies Group, said: “Apprenticeships are a great undertaking not only for the learner but the business, as it strengthens our overall business strategy of developing our people. It offers an opportunity to all employees, and with that comes increased retention with a workforce that is continually increasing its knowledge.”
Other apprenticeship benefits
Improved productivity, quality and retention are all direct ways in which apprenticeships deliver ROI. But there are also indirect ways in which apprenticeships can positively impact an organisation and create further financial returns:
Reputation and brand
- Investing in high-quality apprenticeship programmes shows that your organisation is committed to skills development and social responsibility
- It also improves recruitment for other roles, as individuals want to work for companies that invest in their people
- This can lead to positive media coverage and industry recognition
- 25% of consumers are willing to pay more for products from a business that employs apprentices.
Building a skills pipeline
- You’re creating a talent pool of staff who understand your business, values and systems
- You’re developing future managers and leaders from within, creating brand ambassadors who can positively impact your organisational culture.
Claire Dowd, Finance Operations Assistant at Pinsent Masons: “The accounting apprentices at Pinsent Masons provide invaluable day-to-day support to our teams. After completing each module, the apprentices use and build upon their learning, which adds immediate value to our business. The experience gained with these apprenticeships allows for future progression within our firm, and they are helping to shape our future workforce.”
Increased innovation
- Younger apprentices bring fresh ideas and digital fluency
- There’s a reduced ‘we’ve always done it this way’ mentality
- Knowledge can be transferred across different generations of workers.
Improved customer service
- Well-trained and engaged apprentices deliver better customer experiences
- There’s more consistency in the quality of service
- Long-term customer relationships are built on stable and knowledgeable staff.
Tracey Wilson, Operations Director at Blue Cube Corporate Travel Management, said: “Well-trained travel consultant apprentices contribute to superior customer service. Their ability to handle client requests, resolve issues promptly, and personalise travel experiences enhances customer satisfaction.”
Corporate social responsibility
- An investment in an apprentice demonstrates commitment to social mobility and local community development
- They can also attract socially conscious clients and partners
- As well as support the government’s skills agenda.
Invest in an apprenticeship today with Damar Training
The true return on investment in apprenticeships is found in the long-term value it creates for your organisation. It’s about building a skilled workforce that’s future-proof against industry shifts. An investment in apprenticeships is an investment in the future of your organisation.