How apprenticeships could help to upskill your workforce

It’s no secret that the UK economy is struggling with a skills and talent gap and for many businesses recruiting and retaining talent is number one priority, and therefore many are looking to invest more in upskilling the existing workforce.

Karen Roberts, Assistant Principal Apprenticeships & Employer Engagement from Cheshire College - South & West outlines how apprenticeships could be the answer to many businesses’ recruitment and retention issues, and how they could be the ideal solution to the need to upskill existing teams and therefore investment in the businesses and team’s future.

Different types of apprenticeships

There is a misconception that apprenticeships are for post-GCSE school leavers only, when in fact, there are a variety of apprenticeship routes to suit various levels and ages, explains Karen. We find when speaking to business leaders that many don’t realise how apprenticeships can be a complete game-changer for their business! In fact, those businesses looking to upskill their teams, for example, pushing employees up to management level, could take advantage of an apprenticeship, which would come as little or no cost at all to the business.

Anyone over 16 and not in full-time education can apply for an apprenticeship. Programme lengths vary and can take between one and four years, depending on the level of study, the sector and the apprentice’s initial ability.

The cost of putting an employee through an apprenticeship

One barrier to businesses training their employees is the worry of cost. Many have had to tighten their purse strings in the past few years, so the additional cost of training courses isn’t always possible for SMEs.

There are ways in which businesses can put their teams through apprenticeship courses for little or no cost. If a business does not pay into the Apprenticeship Levy, which we will touch on later in the article, the government will fund 95% of the cost of training an apprentice. With just a 5% contribution required from the employer, this usually equates to a few hundred pounds. If a business employs fewer than 50 people, that contribution increases to 100% for apprentices aged 16-18 or aged 19-24 with an education and healthcare need. However, in England, an employer that has an annual bill of more than £3m will pay monthly into the Apprenticeship Levy. This levy is an amount paid at a rate of 0.5% of an employer’s annual pay bill and this includes related companies and charities. This therefore means that if the employer wishes to put team members through an apprenticeship scheme, it will cost them nothing at all as the business would be eligible for an Apprenticeship Levy allowance, plus a 10% top up from the government. Further guidance on this can be found on the Gov.uk website.