It takes work, but it's worth it
The Chartered Management Institute carried out a survey with over 500 businesses and found that despite 40% of businesses finding apprenticeships hard to access:
- 79 per cent of employers said apprentices quickly delivered a positive return on investment
- 84 per cent appreciated that hiring apprentices would improve their reputations as employers
- 69 per cent said apprenticeships were an effective way of developing management skills
- 92 per cent say that teamwork and interpersonal skills were improved by apprenticeship programmes
- 84 per cent believe problem-solving and analytical thinking skills were enhanced through the schemes.
Customers love apprentices too!
A study, carried out by YouGov on behalf of the National Apprenticeship Service (NAS), found 80 per cent of consumers favour an organisation that has a fair trade agreement with its suppliers, strong environmental credentials or employs young apprentices. Another example of how apprentices are good for the bottom line of your business.
Return on Investment
A study by the University of Warwick Institute of Employment Research found that the costs of Apprenticeship training are recouped relatively quickly, and that where the investment is nurtured, the returns are significant.
- for Business Administration Apprenticeships, employers will see a return on their investment in under a year.
- for Engineering, the initial high costs are recouped two years after the apprenticeship is completed.
- for Construction, again the initial high costs are recouped two years after completion.
- for ICT, the costs are recouped in six months.
The research took into account training and employment costs so where the training is fully or part funded by the LSC, the return on investment is even higher and therefore achieved much quicker. See the whole presentation here.
Another study by Sheffield University measured the long term financial benefit to investing in Apprenticeships. A Level 3 Advanced apprentice will generate an additional lifetime benefit to themselves and their employer of £105,000 compared to someone who does not gain an Apprenticeship. The Level 2 additional benefit is £73,000. This represents a gain of £16 for every £1 of taxpayers' money.