Apprenticeships in a small business
MGAPP001 MAR2017 Forum of PrivateBusiness
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Apprenticeships in a small business Find out what is involved in taking on an apprentice, including how to find a scheme and how much to pay apprentices. To help you get started, we’ve put together the following guide to some of the sources of help and information available to small businesses.
Benefits of taking on an apprentice Apprenticeships are popular with our small business members, with 77% of members on our training and skills panel saying they use them as a cost effective way of recruiting new staff, whilst enabling businesses to address skills shortages and improve productivity. Benefits could include: •
An affordable way of recruiting and helping to your business. As well as paying a lower hourly rate, an Apprenticeship Grant for Employers worth £1,500 per apprentice (up to 10 apprentices) may also be available. Conditions apply.
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Fill skills gaps, particularly in new digital skills and help develop innovative new ideas within your organisation.
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Train up future managers. Apprenticeship schemes can be one way to develop and train the managers of the future by training someone in the style of your business.
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Social benefits, such as reducing unemployment in your local area and also inspiring a future generation of business owners by passing on entrepreneurial skills and experience.
Finding an apprentice A great place to start for information on apprenticeships is the National Apprenticeships Service, which can advise you on available apprenticeship schemes, suitable training providers and financial support available. You can register your interest with them here and find a training provider.
“Almost 9 out of every 10 apprenticeship employer hoping to achieve business benefits tell us that apprenticeships deliver – including 75% reporting that it has helped their business improve the quality of their product or service.” Gov.uk
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Other types of work experience Some small businesses may not have a need for an apprentice or cannot make the commitment of one to four years involved. Another option is to offer a short-term work experience placement for a young person, an adult looking for a career change or for someone who is long term unemployed. Such placements enable small businesses to take on temporary staff as an extra pair of hands who can help support the work of permanent staff. If you have a placement to offer, contact your local job centre, school or college.
Red tape As well as lack of information, red tape can be an issue for small firms offering both apprenticeships and work experience. If you already comply with what is required by law to run a small business, such as health and safety and employment law, then you should not have to undertake any extra compliance measures. In some cases minor alterations may be needed, such as updating of risk assessment policy for businesses not currently employing young people. Your local job centre or training provider will often be able to assist to make sure your business is prepared so that any placement runs smoothly.
Always take advice IMPORTANT: If you take on an apprentice as an employer you must ensure you have an apprenticeship contract drawn up and signed by both parties. Otherwise you will be legally obliged to pay the national minimum wage rate, rather than the £3.40 an hour apprenticeship rate (2016/17). Also, the way in which apprentices can be dismissed is different to normal employees, so you may need to make sure that you have a term in your contract that enables you to dismiss them for poor performance. We encourage all members to call our membership helpline on 01565 626001 before taking on an apprentice to discuss the options available to you. There are also other steps to follow, such as ensuring the young person is mentored by an appropriate employee and that a training programme is in place, to enable both parties to get the most out of the placement. If there are no performance indicators included in an apprentices contract before they start, then small firms can get into difficulties if an apprentice does not perform. That’s why we urge our members to contact our helpline prior to taking on an apprentice. Our team of business advisers will be able to help you to create a contract of employment and to ensure you are aware of any other requirements beforehand.
“Apprenticeships are set to deliver over £100 billion to the UK economy by 2050” Centre for Economics and Business Research
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Accidents, prosecutions, or other adverse health and safety events may never happen to you, but if they do, the effect on your business and its ability to grow could be catastrophic. Membership of the Forum can also help you protect your business from such risks. Membership includes: • An unlimited helpline offering practical guidance on employment law, health and safety, marketing and business development • Protection for your business with our legal expense insurance, worth up to £50,000 per section of cover • Tailored advice and member services to save money, make money and help your business grow • Getting your views on pressing business issues heard by policy makers • The Health and Safety Guide - including customisable forms and templates • Access to a health and safety consultant partner to provide specific, tailored support if required By leading you through new and ever evolving legislation we leave you free to concentrate on what you do best, running your business. With memberships starting from only £14.50 per month it’s the best decision you can make for your business today!
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