If you’re an organisation or the owner of a business and want to take on a new employee, grow your team or upskill existing staff, have you thought about an apprenticeship?

There are many ways a work-based apprenticeship can benefit your workforce, from more knowledgeable and satisfied employees, to cost-saving and increased productivity. It’s all covered in this blog, so you can make an informed decision on whether an apprenticeship is the correct route for your business.

1. Workplace productivity will increase

According to HM Government’s Apprenticeships service (apprenticeships.gov), employers who have an established apprenticeship programme reported that productivity in their workplace had improved by 76%, whilst 75% reported that apprenticeships improved the quality of their product or service. That’s a whole lot of hard work and impact from your workforce.

2. Your employees will feel more satisfied

In a recent UK survey, (The Circular Board) feeling appreciated ranked highest in a list of job satisfaction factors, more so than salary and work-life balance. By taking on an apprentice or developing an apprenticeship programme, you are sending the message to your employees that you appreciate them and value their personal and professional development. You are also giving potential employees the opportunity to gain relevant skills and build their career, to progress.

3. Your staff retention will improve

Employees who have greater job satisfaction and feel they’re progressing in their careers are 20% more likely to still be working at their companies in one year’s time (TINYpulse). Following on from the above point, if your workforce feels more satisfied and appreciated, they will be happier in their roles which will lead to a lower staff turnover.

4. Your recruitment costs will be lower

If your churn is high, you’ll know all too well the cost implications of hiring a new employee. On average, losing an employee costs 33% of their annual salary (Employee Benefit News). By taking on an apprentice or introducing an apprenticeship programme, you are investing in long term employee development and retention. This will reduce your outlay on recruitment each year, where you could re-invest into professional development, instead.

5. You could receive funding

Employers are not required to pay National Insurance Contributions for apprentices under the age of 25 on earnings below the higher tax rate of £827 a week (£43,000 a year). Additionally, £1,000 payment is available to both the employer and provider when they train a 16- to 18-year-old, as well as £1,000 payment to both the employer and provider when they train a 19- to 24-year-old who has previously been in care or who has a local authority education, health and care plan.

6. You can access levy transfers

If your pay bill is over £3 million a year, you must pay the apprenticeship levy from 6 April 2017. If your pay bill is less than this, you will not need to pay the levy. At least 90% of non-levy-paying employers’ apprenticeship training and assessment costs in England will be paid for by the government. The government will ask you to make a 10% cash contribution to the cost, paid directly to the provider, and the government covers the rest (up to the maximum agreed funding band).

Furthermore, apprenticeships can be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer. Transferred funds are used to pay for 100% of the training and assessment costs of the apprenticeship up to the funding band maximum.

Transferred funds cover the cost of the whole duration of the apprenticeship and these will be paid on a monthly basis.