Whether developing the skills of a current member of staff or recruiting a new individual, apprenticeships are a great, cost-effective way to develop your workforce, increase productivity, reduce recruitment costs, address skills gaps and improve your bottom line.

Hiring an apprentice

Whether developing the skills of a current member of staff or recruiting a new individual, apprenticeships are a great, cost-effective way to develop your workforce, increase productivity, reduce recruitment costs, address skills gaps and improve your bottom line.

Apprenticeships are work-based training programmes, designed around the needs of you, the employer. Apprenticeships are available at four levels, from Intermediate (NVQ Level 2 or equivalent) right through to Degree Apprenticeships (Level 6/7). They usually take between one and four years to complete, but the duration depends on the level of apprenticeship, the apprentice’s ability and the industry sector.

Apprentices grow flexibly with your business as they develop in their role. And because they are learning qualifications relevant to your industry, they will soon start to deliver exceptional return on investment. Anyone over the age of 16 can apply to do an apprenticeship, whether they are just leaving school, have been working for years or are seeking to change careers.

An apprenticeship will enable your business to:

• reduce overall training and recruitment costs
• harness fresh new talent
• address future skills gaps
• keep pace with the latest technology and practices
• improve staff morale
• increase staff retention and loyalty
• keep skills in-house and pass them from one generation to the next
• improve productivity.

How are apprenticeships funded?

If you have less than 50 employees and an annual payroll of less than £3 million, you will need to pay a 10% contribution to the cost of apprenticeship training for apprentices aged over 19 and the government will fund the remaining 90%. For apprentices aged 16-18 (and those aged 19-24 who are care leavers or have an education, health and care plan), the government will fund 100% of the cost of the apprenticeship training.

If you have more than 50 employees and an annual payroll of less than £3 million, you pay 10% of the cost of the apprenticeship training. The remaining 90% is funded by the government (up to the upper funding band limit).

If you have a gross annual payroll bill of over £3 million, you will need to pay the apprenticeship levy. This means you will pay 0.5% of your wage bill above £3 million through your PAYE scheme to HMRC to pay for apprenticeship training. You can then access these payments through the online Apprenticeship Service portal to fund your apprenticeship training with your chosen provider.

Incentive for hiring a 16-18 year old apprentice

To support employers with the cost of supporting a 16-18 year old apprentice (and 19-24 apprentices who have left care or have an Education, Health & Care Plan), the government is currently offering a £1,000 incentive.

For the latest information on hiring an apprentice and funding, click here.