“Well-run apprenticeship schemes deliver huge benefits for organisations,” says Lizzie Rowley, Senior Skills Policy Adviser at the Chartered Institute of Personnel and Development. “They can help companies meet their medium- and longer-term technical skills gaps. They can improve workforce productivity. And they can also improve staff retention rates because apprentices tend to be ‘stickier’ than the general workforce.”

Traditionally, apprenticeships are associated with school leavers and those early on in their careers, but apprenticeship funding can be used to cover the training costs of any eligible employee, from new hires to existing staff, junior employees to board members. There are more than 700 apprentice standards covering a wide variety of jobs. “There’s a real myth that apprenticeships are just for manual trades,” says Gareth John, FCA, Chairman and Director of training organisation First Intuition and member of ICAEW’s Education and Training Board. “But you can do data analytics or coding under an apprenticeship, for example. The accountancy profession has also really embraced apprenticeships and the legal sector is now doing the same.”

Start with good planning

Organisations looking to develop an apprenticeship programme should do so in the context of a proper workforce strategy and plan. “There’s no point putting apprentices into your business without understanding what skills gaps are faced, where the business is looking to achieve growth and where there may be succession planning issues,” Rowley says. “Once you understand this, you are better placed to determine which particular roles in your organisation might be suitable for an apprentice and, if you’re recruiting them into your business, ensuring that there are proper job descriptions attached to those roles.” 

Alignment between finance and HR functions is imperative in making these assessments. Apprenticeships come with significant funds, which need to be taken into account in any analysis. For companies with a payroll bill below £3m, the government will meet up to 95% of the training costs (or up to 100% in some circumstances), which is funded by the apprenticeship levy. The levy is paid by larger companies that exceed the £3m threshold and amounts to 0.5% of their annual payroll bill. Large companies subject to the levy can also use their own levy pots to cover training costs. “For a lot of large firms, their levy contributions effectively become their training budget,” says John. “There is, however, an element of use it or lose it because, after two years, any unused funds go to central funding.”

Businesses can also investigate sectoral and local support for additional funding and advice. For example, in the construction sector, the Construction Industry Training Board provides grants for apprenticeships. Meanwhile, the West Midlands Combined Authority has set up the Apprenticeship Levy Transfer Fund, to which large local businesses can direct a proportion of unused levy payments to fund 100% of apprenticeship training costs for SMEs. For businesses looking to access these, local growth hubs or chambers of commerce are often a good first port of call to find out more information. The government also recently announced that larger firms who pay the apprenticeship levy will be able to transfer up to 50% of their funds to other businesses, whereas previously the threshold was 25%. 

But, despite all the funding available, Rowley cautions against businesses converting all training programmes into apprenticeships. “It can be tempting for businesses to think, ‘We have this training need and we have this pot of money. Let’s convert that into an apprenticeship’, but they can end up creating inefficient and ineffective programmes. An apprenticeship takes at least 12 months and there are six hours of off-the-job training per week, so in some cases a shorter, modular approach might be more appropriate. Employers must ensure they use the right learning vehicle to meet their skills needs.” 

Create a robust programme

When designing an apprenticeship programme, choosing a training provider is key. “There’s a huge training provider market,” says Rowley. “It is therefore absolutely critical to do your due diligence when selecting a partner. Look at their OFSTED ratings and talk to a few providers before making that selection. You need to be confident that you can have a good relationship with your partner and that the quality of their training will be up to scratch.”

An experienced training provider is also well-placed to help organisations with programme design. Employers are obliged to ensure that apprenticeships meet the apprentice standard, which sets out the knowledge, skills and behaviours that the apprentice is expected to cover as part of their training. “A good training provider will sit down with the employer at the beginning and help them map out the programme to make sure it will cover all the knowledge, skills and behaviours required,” says John. “They can help identify if anything is missing and suggest solutions. So, for example, could an apprentice do a secondment to get additional knowledge?”

Establish good recruitment practices

When it comes to recruiting apprentices, advertising the vacancy as an apprenticeship provides some valuable additional routes for promoting the role, as well as the traditional channels used. This includes the government’s Find an Apprenticeship website, as well as the Universities and Colleges Admissions Service new Apprenticeship Hub, which launched in October 2023 in a move that aims to significantly raise the profile of apprenticeships as an alternative training pathway to degrees. 

It is good practice to conduct eligibility checks for the apprenticeship early on in the recruitment process. “Sometimes organisations do not check a candidate’s eligibility for the programme in advance, but if they can’t sign them up once in place, this only leads to frustration and wasted time,” says John. 

It is also important to recruit new apprentices into the appropriate apprenticeship level, as some standards include up to four different categories – from intermediate up to degree. “If an apprentice starts at a level that’s too high, they might struggle to cope and withdraw from the programme, but if you start them too low, the programme will probably bore them and their engagement will drop off,” states John. “However, an experienced training provider can assess the background and the ability of prospective learners so they start at the most appropriate level to ensure that they will then go on to succeed.”

Manage apprentices for success

Once an apprentice is recruited, it is vital that a robust structure is in place to encourage completion of the apprenticeship. Data from the Office of National Statistics shows that the current achievement rate for all apprenticeships is 54.6%, which means that just under half do not stay the course and that the employer is getting a poor return on investment. 

“The three main reasons for non-completion are that insufficient learning time was given, the training was of low quality and the apprenticeship was poorly organised,” says Rowley. Therefore, it is essential that these elements are addressed when organisations approach the management and support of apprentices. 

When an apprentice starts, the organisation and the apprentice sign the apprentice template, which confirms the individual employment arrangements between the two parties. This includes the commitment to the required six hours of off-the-job training each working week. To make sure this happens in practice, it is crucial to have buy-in from both senior management and line managers. “Everyone needs to be aware that an apprenticeship is not just a job; it is a job and training,” says Rowley. “The line manager needs to factor in the time off for training. They also need to allow the apprentice to deploy their training in their day-to-day work. Without this, the apprenticeship is unlikely to be a success.” 

Organisations also need to consider whether extra support is required. “This is particularly the case if the apprentice is a school leaver,” notes Rowley. “If they are, you need to be very cognisant of the fact that they will need additional support and mentoring.”

Another potential pitfall is failing to communicate with the apprentice about the amount of work involved. “Apprenticeships are well-regarded, prestigious qualifications,” says John. They require the learner to demonstrate determination and hard work – that’s why they’re so valuable. Sometimes, we get learners who don’t realise how much work they would have to put in and it comes as a shock to them.” As such, setting expectations from the outset is paramount. 

As apprentices navigate their training programme, it is important to ensure that there is regular communication between the learner, the employer and the training provider. “This tripartite communication is key,” states John. “The earlier any potential issues can be identified and dealt with, the more likely the learner will then stay on track and complete their programmes.” 

Build on success

The final step is the end-point assessment that looks at whether the individual has developed the necessary skills, behaviours and knowledge outlined in the standard. Passing this is a real cause for celebration and companies should look to share that success. “Highlight the apprenticeship programmes as being something with real kudos,” says John. “When apprentices succeed in aspects of their programmes, congratulate and reward them, tell the whole company and put it in the company newsletter.” 

Of course, completing the apprenticeship is just the beginning. Companies that successfully support their apprentices through their training will have motivated, talented individuals who understand how the organisation works and are ready to be a long-term asset in forging the company’s growth.