Could your business benefit from an apprentice?

4 minute read time.

It’s National Apprenticeship Week and as people focus in on the opportunity that this brings for young people, we take a look at the benefits for businesses. According to research, 80% of managers think apprenticeships are an important route to grow their business and those with apprentices were five times more likely to believe the company would expand rapidly.

So, if you’re interested in taking on an apprentice, we look at the key things you should consider.

The benefits

There are many reasons you might want to take on an apprentice. Here are just a few of them.

Business benefits

From improved productivity to helping the local community, employers see many benefits to their business. In fact, research found that 77% of employers believe apprenticeships make them more competitive and 80% of companies saw a significant improvement in employee retention.

There’s good news for sales too. The same research found that 81% of consumers favoured using a company which takes on apprentices.

A new outlook

If your business struggles to adapt to new technology or is targeting a youth market, having an apprentice can offer real insight and help to shape future developments. As apprentices are often new to the world of work, they often have a fresh approach and could offer new ways of working that could have a positive impact on your bottom line.

The financial opportunity

There are several incentives to taking on an apprentice, as the government is encouraging companies to introduce new opportunities. These include:

  • Savings on National Insurance: from April 2016, employers will no longer need to make Employer National Insurance Contributions for any apprentices who are under the age of 25.
  • Grants for some employers: if you have fewer than 50 employees and haven’t enrolled an apprentice in the last 12 months, you may be able to claim an Apprentice Grant for Employers (AGE). This offers £1,500 per apprentice, up to a maximum of five grants. You can find out more about this on the government’s website.
  • Help with training: if you provide formal study as well as employment, the government may provide up to 100% of the costs of training. Find out here.

What you must offer

This may all sound appealing, but before you start your recruitment, it pays to understand how an apprentice scheme works. As an employer, here’s what you need to do:

  • Offer a scheme that’s between one and four years long: the timing depends on the level of qualification the apprentice is studying for.
  • Give your apprentice at least 16 hours of paid employment per week: this is the minimum amount you can offer and many apprentices work 30 hours or more.
  • Pay minimum wage: this is currently set at £3.30 an hour for apprentices aged 16-18 or those 19+ who are in their first year. Other apprentices need to be paid the National Minimum Wage for their age.
  • Offer annual leave and comparable terms to other employees: the minimum level of leave is 20 days paid holiday a year, plus bank holidays. You must also pay sick pay and offer the benefits that other employees receive.
  • Provide training and opportunities: this includes ensuring your apprentices work with experienced staff, have opportunities to learn job-specific skills and can study for a work-based qualification during their working week.
  • Ensure you both sign an apprenticeship agreement: this explains information about the length of the apprenticeship, what training you’ll offer, what qualifications they would receive and their working conditions.

How to recruit the right apprentice

As with all recruitment, it’s essential that you find someone who is a great fit for your business. But there are a few differences with recruiting an apprentice. Here are our tips:

Think about what you need and what you can support

You may already know where the skills or capacity gaps are in your business. If not, consider what you might need.

You’ll also need to ensure you can meet the mandatory requirements we listed above, especially in terms of length of commitment. The government has a guide to help small businesses to recruit their first apprentice.

Know how to find the right person

There are a number of ways you can advertise your vacancy:

  • Contact the National Apprenticeship Scheme: they can assist you with the process of recruiting an apprentice. Fill in their form to get more information.
  • Advertise your vacancy: you can do this just as you would for any other job.
  • Post your vacancy for free through your training provider: they should be happy to help you post your vacancy on the apprenticeship vacancies website, where it will be see by up to half a million people who are looking for an opportunity. You can find a training organisation here.
  • Approach an existing employee: if you already employ someone who you think may be interested in an apprenticeship, ask them. Apprenticeships offer the opportunity to get a qualification alongside their work, so it can be appealing.