Partner Article

Why an apprentice is right for your business

Thanks to increased Government investment and changing views, we are now seeing something of an apprenticeship renaissance in the UK.

According to the latest figures from the Department for Business, Innovation & Skills (BIS), there were more than half a million apprenticeship starts last year in England alone – more than double the number there were five years ago.

However, while a lot of progress has been made in promoting the apprenticeship route to young people as an alternative to university, many SMEs still hold the view that apprentices simply aren’t for them.

There is still an impression that only large firms with HR departments can afford the time and resources to take on apprentices, and that hiring an apprentice presents a big risk to a small business.

As a firm of only four employees, we have been involved in training programmes and apprenticeships for several years now, and our experience has shown that most of the concerns expressed by other firms are unfounded.

As with anything, time and money are of course required to get the best results, but taking on an apprentice can bring benefits that far outweigh the investment.

Often SMEs fall into the trap of thinking that hiring an apprentice is a long-term commitment that will deliver few results in the short or medium term; this is a genuine concern when you are a small business and every investment needs to make a return. However, in our experience, apprentices make a positive contribution even before they are fully qualified.

This is validated by research from the Association of Accounting Technicians (AAT) which has found that each apprentice you recruit delivers an average £2,000 boost to your business’ bottom-line. This is after wages and training costs have been deducted and, crucially, while the apprentice is still in training.

I think one of the reasons apprentices make such a positive contribution is the fact that you can train them in the specific skills your business requires while instilling the values of your organisation. Hiring an apprentice is your opportunity to cherry-pick the brightest and the best and to develop and nurture them to match the needs of your business.

They also, we have found, tend to have the right attitude and ambition to be an asset. They are with you because they have a genuine desire to learn and get ahead – and those are exactly the kind of people who can take your business forward.

One of our apprentices, who is still in training, was recently involved in the Accountancy UK World Skills Final at the NEC. She learned a great deal from participating in the competition and became a more confident employee as a result, gaining skills that were instantly transferred to our business on her return.

No matter what success your apprentices achieve, one of the biggest concerns for SMEs is the cost involved. There is no getting around the fact that taking on an apprentice is going to cost both time and money in training and wages, which can put off a small business. However, as AAT’s research has shown, having an apprentice can have a positive and rapid effect on your bottom line, and there is help out there to ease the financial burden.

In many cases the cost of training is fully or partly covered by Government. The amount depends on your sector and the candidate’s age, but training costs for many 16- 18 year olds are 100% covered. In addition to the training costs there are also grants available for companies that would otherwise not be in a position to take on a trainee.

As a result of the various benefits they bring we have come to rely on our apprentices as both a necessary part of day to day activity, and a vital component of future growth. We recently employed our first apprentice as a full time member of staff, and look forward to doing the same with our second in the next year.

We are not the only one to notice the difference that apprentices have made to our business. We have found that our reputation has grown greatly as a dynamic organisation that is a good place for young people to work. Aside from our apprentices, we have been offering work placements to people from five local colleges, which has increased our standing in the community.

Echoing our positive experience, a BIS study from August last year found that employers have reported a 72% increase in productivity and service quality since taking on apprentices, which we believe is a reflection of the great work ethic and drive we see in young trainees.

Any business that is nervous about hiring apprentices need only look at the statistics. A bottom-line boost of more than £2,000 for each apprentice hired is hard to ignore. So don’t be held back by the received wisdom, take the leap and give an apprentice the start of a long and productive career with your business.

This was posted in Bdaily's Members' News section by Glen Patterson .