Is it worth hiring an apprentice?

Apprenticeships Employers General News Blogs

Taking on an apprentice in your business can feel like a significant commitment and investment (of both time and resources) so it’s easy to see why many business owners ask, “is it really worth hiring an apprentice?”

In this article, we’ll discuss the benefits of apprenticeships for businesses as well as address common concerns employers often have before hiring an apprentice for the first time.

What are the benefits of hiring an apprentice? There are many benefits of apprenticeship schemes to employers of all sizes. Total People offers a wide range of guides and resources to help you make the most of hiring a new apprentice, or even upskilling your current employees.

Hiring apprentices or upskilling staff with apprenticeships can help you:

Upskill staff and close the skill gap

Apprenticeship programmes are an excellent way to level up the skills and abilities of your existing workforce. By training staff to become better equipped to carry out their roles, you can raise the performance level of your business.

Getting started with staff apprenticeships is easy with Total People. We offer full support and guidance and will help you match your staff development and business goals with an apprenticeship programme that works for you.

Reduce recruitment costs

The Apprenticeship Levy is a funding resource available to businesses of all sizes which allows employers to find fantastic apprentices to join them, without the hassle and extra cost of traditional recruitment channels.

If your pay bill is less than £3 million per year, the Apprenticeship Levy enables you to train new talent in a cost-effective way; you only need to pay for 5% of the total training costs – the Government pays for the rest. If you’re an SME (Small- Medium Enterprise) you could pay even less, through the levy’s co-investment scheme, which allows larger businesses to transfer up to 25% of their levy funds to another small business.

Train and retain your staff

While apprenticeships are an excellent way to bring new talent into your business, they’re also likely to boost staff retainment within your organisation. Being able to track progress and align their apprenticeship with their personal development goals means that employees get to see the value of their training in real time.

This increased motivation and job satisfaction – alongside the professional recognition and opportunities to continue their development post-apprenticeship – means better staff retention and less spending on recruitment for your business.

Future-proof your business with apprenticeships

Hiring an apprentice with Total People is a strategic decision that not only allows you to address and close any obvious skill gaps within your workforce; it can also play a big part in future-proofing your business by preparing the next generation of business leaders.

With clear and direct learning, supported by a dedicated Learning Coach, apprentices at Total People are equipped with the training and expertise needed to progress and improve within their roles.

Apprenticeships also facilitate a continued cycle of learning and progression planning, enabling individuals with leadership potential to focus on strengthening their skills progress into further learning routes. The hands-on experience your apprentices receive while working with you also means that their practical skills and abilities will be tailored to their role within your business.

So, by investing in apprenticeships for new or existing employees, you cultivate a workforce that are the best at what they do, while also securing your business and operations for the future.

Common concerns about apprenticeships

Hiring an apprentice as a Sole Trader

Sole Traders are eligible for the same level of funding for apprenticeship schemes as businesses with fewer than 50 employees – i.e. 100% funding for apprentices aged 16-18 and 95% funding for apprentices aged 18+. However, Sole Traders must first register as an employer with the HMRC to receive an Accounts Office reference number that will enable them to pay apprentices through the PAYE system.

Learn more: Can your business use apprenticeship schemes?

Recruiting an apprentice

The process of recruiting an apprentice can seem daunting to many employers – however, there is plenty of help available. Total People Connect is our apprentice recruitment service, free to any businesses who plan to use us as their apprenticeship training provider. We help employers advertise their vacancies, review CVs, select candidates, prepare interviews, and provide post-interview feedback.

Funding Apprenticeship Training

Many small businesses may be put off apprenticeships because of the costs associated with training an employee. However, SMEs with a wage bill below £3 million are eligible for 95-100 per cent apprenticeship funding from the government.

Apprenticeship Wages

As an employer, you must pay apprentices at least the minimum apprenticeship wage rate of £4.81 if they are under 19 OR over 19 and in their first year of the apprenticeship. If your apprentice is over 19 and has completed the first year of their apprenticeship, you must pay them at least minimum wage for their age.

Apprenticeship grants can help towards the cost of taking on an apprentice including wages and equipment, minimising the financial risk to your company and allowing you to grow more effectively.

Training apprentices

We get it; you’re an expert in your industry, not a training specialist. While your business is responsible for providing real-life, hands-on industry experiences, our training advisors will support you and your apprentice with a programme of learning and one-to-one sessions that builds to an industry-recognised qualification.

This allows you to focus on running your business, rather than training employees.