02nd Dec 2024

Apprenticeship vs Internship: Which Is Best for Your Business?

Apprenticeships Employers Blogs

If you’re familiar with internships, you might wonder how apprenticeships compare. While both offer valuable work experience, there are key differences between the two.

Apprenticeships provide a structured programme that combines on-the-job training with formal education, while internships typically focus on providing shorter, hands-on experiences without formal training.

In 2023, there were 752,100 apprentices employed and 337,140 new apprenticeship starts – which shows that many employers are increasingly turning to apprenticeships to enhance the skills of their workforce.

If you’re interested in learning more about the similarities and differences between apprenticeships and internships - and which option is best suited for your business - we have it all covered in this blog!

What is an apprenticeship?

An apprenticeship is a structured, government funded programme that blends hands-on work experience with formal education, allowing people to gain practical skills while earning a wage. You may think apprenticeships are normally taken by young people – however according to the latest data, under 19’s only account for 23% of apprenticeship starts, as apprenticeships are open to all ages.

The government funds apprenticeships through the apprenticeship levy to help cultivate talent in a variety of trades and industries, from construction and manufacturing to IT and finance. Particularly, apprenticeships help young people develop skills they need to enter a specific industry.

Apprenticeships typically last from one to four years, depending on the field. During this time, apprentices work alongside experienced employees, learning skills and gaining a qualification.

The core benefit of an apprenticeship is its tailored nature - businesses can train apprentices specifically for roles within their organisation, ensuring that new hires have the skills, knowledge, and work ethic necessary to thrive in that environment.

What is an internship?

In contrast, internships are short-term work experiences, often lasting anywhere from a few weeks to a few months. Internships are designed to provide individuals (typically students or recent graduates) with exposure to a particular field or industry.

Unlike apprenticeships, internships may not always include formal education and are usually focused on providing a snapshot of professional life. Internships can either be paid or unpaid, though paid internships are becoming more common as businesses recognise the importance of fair compensation.

Internships offer companies a chance to evaluate potential hires in a real-world setting, allowing them to assess interns' abilities, work ethic, and cultural fit before offering permanent positions.

Difference between internship and apprenticeship

There are many differences between internships and apprenticeships, including:

Aspect	Apprenticeships	Internships
Duration	Typically last 1 to 4 years	Usually last a few weeks to a few months
Training	Includes both on-the-job training and formal education, developing soft skills and specialised skills.	Primarily hands-on experience with minimal formal education
Commitment	Requires a significant long-term commitment from both parties	More flexible and short-term
Compensation	Apprentices are generally paid, with government subsidies often available	Can be unpaid, though paid internships are becoming more common
Outcomes	Leads to a formal qualification or certification	Rarely provides official credentials

Essentially, the difference between an intern and an apprentice is, an intern isn’t undergoing long-term formal apprenticeship education, nor are they protected by the rights of an apprentice.

Apprenticeships are mainly designed for employers seeking long-term employment and upskilling solutions, while internships are usually for short-term projects.

Drawbacks vs benefits of apprenticeships for employers

One of the most significant advantages of apprenticeships is the ability to shape future employees according to your company’s specific needs.

By providing apprentices with both education and practical experience, businesses can develop a pipeline of skilled workers who are already familiar with their operations.

Other key benefits include:

Advantages of apprenticeships	Details
Tailored skill development	Apprentices are trained specifically to meet the unique needs of your business, ensuring they have the right skills from day one.
Long-term talent pipeline	Apprenticeships help businesses develop a skilled workforce with higher retention rates, as apprentices are more likely to stay with the company that invested in their training.
Government support	The UK government covers training costs for businesses hiring apprentices, lowering the overall cost of apprenticeship programmes. Find out more about apprenticeship funding, eligibility & rules here.
Enhanced reputation	Hiring apprentices and supporting local talent improves the company’s community standing, boosts reputation as a socially responsible organisation, and helps attract top talent. This can also enhance stakeholder relations and long-term success.

While apprenticeships offer many benefits, they also come with certain challenges. For example:

Drawbacks of apprenticeships	Details
Higher initial costs	Apprenticeships require significant upfront investment in training, wages, and management time, which may be higher than the short-term costs of internships. However, apprenticeship wages are typically lower than regular wages.
Time commitment	Most apprenticeships last around a year to a year and a half, requiring businesses to make a long-term investment in time and resources.
Management resources	Mentoring and training apprentices demands time and effort from experienced staff, which can divert resources from other key tasks.

Drawbacks vs benefits of internships for your business

Internships can be a great way to meet short-term staffing needs, especially when your business has temporary projects or fluctuating workloads. Some of the key benefits of internships include:

Benefits of Internships	Details
Flexibility	Internships are short-term, allowing businesses to bring in fresh talent for limited periods without the long-term commitment required for apprenticeships.
Low-Cost Labor	Interns are often paid less than full-time employees, and some internships can be unpaid. However, offering paid internships is more ethical and beneficial in the long run.
Fresh Perspectives	Interns, particularly students or recent graduates, often provide new ideas, enthusiasm, and up-to-date knowledge from their academic studies.
Potential Future Hires	Internships allow businesses to evaluate potential future employees in real work situations, helping determine if they are a good fit for the company.

However, internships also have their downsides:

Drawbacks of Internships	Details
Limited Skill Development	Due to their short duration, internships may not provide comprehensive skill development, impacting the overall effectiveness of interns in specific roles.
Preference for Apprenticeships	Many potential employees may prefer apprenticeships over internships, as apprenticeships offer more structured training and the opportunity to earn a qualification.
No Formal Qualification	Interns typically don’t receive a formal qualification upon completion of their internship, which may make the experience less appealing compared to apprenticeships.
High Turnover Rates	Interns can lead to high turnover rates and inconsistency in team dynamics and productivity.
Less Company Loyalty	Due to the temporary nature of internships, interns may feel less loyalty to the company, potentially leading to a lack of engagement and commitment.

Internships vs apprenticeships: Which is best for your business?

When to choose apprenticeships

Apprenticeships are an excellent choice for businesses focused on long-term talent development. They provide industry-specific skills, ensuring that apprentices acquire the expertise needed for their roles in a range of industries.

Also, apprenticeships often lead to high employee retention rates, as apprentices are more likely to remain with a company that invests in their development. This commitment to nurturing talent also fosters growth potential, preparing apprentices for future leadership roles within the organisation.

We recommend choosing apprenticeships if you’re dedicated to building a talented team and want an employee who will help build your business in the long term. If you have a member of staff who you want to upskill - an apprenticeship can be the perfect pathway.

When to choose internships

On the other hand, internships are ideal for short-term projects or when businesses require low-cost labour. They offer a flexible solution for companies needing temporary help for specific projects or fluctuating workloads.

Internships also allow businesses to evaluate potential candidates in a real-world setting, making it easier to assess their fit for future employment.

Why apprenticeships are the better long-term investment

Apprenticeships are a more sustainable long-term investment for businesses who want to take employment and talent development seriously.

They focus on skilled talent development, ensuring that companies build a workforce equipped for future challenges. From a financial perspective, apprenticeships are cost-effective over time, as higher retention rates lead to lower recruitment costs associated with employee turnover.

The UK government offers support and funding opportunities for businesses that hire apprentices, further reducing the overall cost of training. Plus, apprenticeships are legally entitled to a lower salary - one of the government incentives implemented to encourage employers to hire apprentices.

Finally, apprenticeships help address industry-specific skill gaps by providing tailored training that enhances the overall skill level within a sector, making them a valuable asset for businesses aiming for growth and stability.

How Total People’s apprenticeship programmes can benefit your business

Our apprenticeship programmes are designed to provide businesses with a comprehensive solution for building a skilled workforce tailored to their specific needs.

By partnering with Total People, businesses gain access to expert guidance and support throughout the apprenticeship journey, ensuring that both employers and apprentices receive the necessary resources for success.

If you're ready to invest in your workforce and secure a brighter future for your business, explore how Total People’s apprenticeship programmes can help you achieve your goals. Get in touch today.