How can the automotive sector address an ageing workforce?

Hiring apprentices can help your business overcome the skills shortage and recruitment crisis.

Did you know that by 2040, nearly one in seven people in the UK will be over the age of 75? 

The ageing workforce is an issue facing most industries, but especially automotive and engineering, where 71% of businesses reporting an internal skills gap report it being from engineering or technical skills. At a time where new, greener technology is becoming a necessity, businesses can’t afford to be left behind.

Recruiting apprentices can be a convenient and cost-effective method to ensure you are hiring young, motivated and well-trained employees who are developing the most up-to-date, relevant skills in the sector.

Recruitment

The cost-of-living crisis is affecting all area of business, especially recruitment budgets. Combined with low unemployment rates and fierce competition for skilled workers, businesses are struggling to fill vacancies.

In fact, according to the CIPD’s Labour Market Outlook for Spring 2023, 45% of transport and storage businesses had hard-to-fill vacancies, with 65% anticipating recruitment problems in the next six months.

However, apprentices can be a cost-effective way to solve your recruitment issues. If your businesses’ annual wage bill is less than £3m, you’re eligible for 95%-100% funding for the cost of hiring an apprentice, via the apprenticeship levy. 

This can save you significant money on both recruitment and training. You may also be eligible for grants and government incentive payments depending on your industry, business size and apprentice. Find out more about apprenticeship funding here.

Skills

With the Greater Manchester Transport Strategy aiming to provide one million more sustainable journeys every day by 2040, now is the time for local businesses to invest in training their workforce in the latest green technology.

However, less than half of new engineering recruits have the necessary technical or soft skills needed to keep pace with the latest technology. There’s a danger that the skills shortage will only increase with a loss of expertise when the more experienced members of the workforce retire. 

Simply put, you can get immediate access to the talent pipeline by recruiting apprentices. 

Apprentices on Total People’s Commercial Vehicle study programmes are trained in all aspects of both passenger vehicle and heavy goods vehicle technology, including mechanical and electrical systems.

All of our Engineering programmes combine full-time work with part-time study, which includes attending our engineering training workshops to learn practical and technical skills. 

By recruiting apprentices and helping to train them in the latest skills and emerging technologies unique to your business, you can future proof your business with a highly motivated, well-trained and loyal workforce able to keep you at the forefront of this ever-changing sector. 

If you’re interested in recruiting apprentices or want to find out more, Total People can help you every step of the way. Our dedicated team can design bespoke recruitment plans to suit your specific needs, while our free recruitment service includes advertisements on the Total People and National Apprenticeships Service websites.

Get in touch via our website or call us today on 0333 242 8630.