Apprentices may be a smart investment

With employers finding it hard to recruit good skilled workers and both the inflationary and government-imposed increases to staff costs, there are many advantages to taking on an apprentice.

With the increase in minimum wage being so much higher than inflation, many employers may be put-off employing young people.

And understandably, an 18 per cent increase for 16-17-year-olds and 16.3 per cent rise for 18-20-year-olds, who will not have much experience, may reduce the opportunities for the next generation to gain the experience needed to progress.

However, there are many reasons why employers should look to offer these age groups an opportunity and an apprenticeship might be the ideal way.

The benefits of taking on an apprentice include the opportunity to develop skills according to needs of the business. If you’ve spotted skill gaps or areas of potential, you can use an apprenticeship scheme to train up new employees in these areas from day one.

Going down the apprenticeship route is a good way of attracting new talent. Apprentice outputs usually surpass their associated costs to the employer, delivering a net benefit to during their training.

Apprentice outputs usually surpass their associated costs to the employer. The Federation of Small Businesses says the estimated yearly gain for employers in the UK is between £2,500 and £18,000 per apprentice during their training period.

Apprentices are eager to learn and are enthusiastic about the qualification they’ve chosen and they can bring new perspectives to your business, especially if they are younger and familiar with new technologies.

Going down the apprenticeship route can also be a way of reducing staff turnover and recruitment costs. And giving a young person the chance to develop will also improve your company’s image.

There are financial benefits to hiring apprentices, including financial assistance with the cost of training.

Depending on your business size and eligibility, most apprenticeship training costs are either fully or partially (95 per cent) funded by the government, helping you to upskill your team on a budget.

Also, there is no National Insurance to pay for someone under-25, if the salary is under £50,270.

It is important to remember that when hiring an apprentice, employers must use the correct apprenticeship agreement, rather than using a standard contract of employment.

• To discuss any issues raised by this article please contact me on 01772 430000