Why should companies hire an apprentice?
Apprentices have proven to bring great value to a business. By hiring early talent using a structured training programme like an apprenticeship, it significantly improves the chances of the person succeeding. By investing in your early talent, you’ll develop a workforce that’s got skills that match the needs of your business. In fact, 76% of employers said that productivity has improved and 75% reported that apprentices improved the quality of their product or service. (source)</p>
Incentives are also available if you take on apprentices who are:
- 16-18 years old or
- 19-24 years old with an Education Health and Care plan or
- 19-24 years old and a care leaver
You’ll receive £1000 split between two payments after month three and month twelve. You only receive this incentive once per learner, so if you’ve already received this incentive with another training provider then you won’t receive it again.
How are apprenticeships funded?
Apprenticeships are now funded by the Apprenticeship Levy. Businesses with an annual payroll of over £3 million pay 0.5% of their annual payroll into a digital account. The funds are then only redeemable on approved apprenticeship training. This levy cannot be spent on an apprentice salary and can only be spent on the apprenticeship training with your training provider.
How do SME’s benefit from the levy?
If you’re a business that sits under the £3 million threshold, if you take on an apprentice you’ll only be required to contribute to 5% of the cost of the apprenticeship, this is called co-investment. For example, this would mean that a £12,000 Digital Marketer apprenticeship would cost you £600 and the government covers the remaining 95%. Payments come out in quarterly instalments. Also, if you’re a business with 49 employees or less, the government will cover 100% of the costs.</p>
Can an existing employee go on an apprenticeship?
Existing employees can undergo apprenticeships. With the levy brought greater flexibility on who is eligible to go on an apprenticeship. As long as the person will be gaining substantial new skills, then they’ll be eligible to go on the programme. For example, if the employee wants to go on the Level 3 Digital Marketer Apprenticeship and has a marketing degree, then they are still eligible to apply.
Whether you're looking to hire a new apprentice, up-skill an existing employee, or expand your own skills and start your career, an Arch apprenticeship with AVADO guarantees to provide apprentices with the skills to become confident and competent in their field. Find out how by speaking to a member of the team today.