With the wrap up of National Apprenticeships Week 2021, KBM will review some of the most common topics discussed during the event. This week, we look at the benefits of apprenticeships for employers.

Developing new skills tailored to your business

As businesses grow, additional support will be needed to fill identified skill gaps within the organization. With currently 600 apprenticeship standards approved for delivery to date (26 Feb, 2021), businesses are able to use the wide range of apprenticeships scheme to hire new talented individuals to help fill the skill gap, simply by choosing the right type of apprenticeship standard and training provider to suit their business needs. Employers can also upskill their existing employees, which provide them with greater career opportunities.

Studies have shown that 86% of employers said apprenticeships helped them develop skills relevant to their organisation.

Boosting business productivity

Apprentices are eager to learn from more experienced team members and are enthusiastic about their qualification, which in turn supports the business. Studies from employers have shown a 78% improvement in productivity in their organization, and a 74% improvement in quality of product or services after introducing an apprenticeship scheme.

An apprentice can also bring new perspectives to businesses, especially if the apprentices are younger and familiar with new technologies; or if they are older and have a wealth of relevant skills and experience to offer.

Loyalty and succession planning

Employers with a wage bill of less than £3 million will not be subjected to the apprenticeship levy. As Non-levy paying employers, these organisations will still be able to access funding from the government which covers 95% of the cost towards apprenticeship training.

Another option to receive apprenticeship funding would be through a transfer of levy funds from other organisations.

What is Levy Transfer?

Levy-paying employers with a surplus of levy funds are able to make a levy transfer, which is to transfer a portion of their unused apprenticeship fund to other employers.

KBM Training and Recruitment

To help organisations utilize levy funds efficiently, KBM as a training provider has a dedicated team to advise and assist employers through the entire process for apprenticeships from start to finish.

Providing free consultation and recruitment services, KBM helps employers to pre-screen apprentice candidates, to ensure they possess the necessary requirements set by the employers and are passionate to commit to the programme. Offering a diverse range of pre-employment training, KBM supports learners with tailored programmes to ensure they are job ready to meet the needs of your business.

You may have heard this old joke before:
The CFO asks the CEO: What happens if we train them and they leave?
The CEO then asks the CFO: What happens if we don’t and they stay?

An apprenticeship training goes much deeper than the mere ROI (return on investment) concept. A good training will give renewed enthusiasm and vision, and businesses will benefit from having more motivated, focused and positive employees.

Studies have shown that 90% of apprentices starting their career at a company would choose to stay after completing their qualification. This is an added bonus because they would already be familiar with your business and have the right knowledge and skills.

Apprentices cost less

Hiring apprentices can be a cost-effective way to support the development of new talent and skills within an organization. As an incentive from the government to help businesses grow, employers will be eligible to receive £2,000 for every new hire starting an apprenticeship from 1 August 2020 to 30th April 2021 (aged 16 to 24), or £1,500 for anyone aged 25 and over.

This is in addition to the existing £1,000 payment to employers for apprentices who, at the start of their apprenticeship, are between 16 and 18 years old, or under 25 with an education, health and care plan or has been in the care of their local authority.

Most apprenticeship training costs are either fully or partially (95%) funded by the government, allowing businesses to upskill their team on a budget.

Additionally, if an apprentice is under the age of 25, employers may not have to pay the employers NI (National Insurance) contributions on their earnings up to the new Apprentice Upper Secondary Threshold, which means more savings for employers.

KBM Training and Recruitment

To help organisations benefit the most out of their apprenticeship hires, KBM as a training provider has a dedicated team to advise and assist employers through the entire process for apprenticeships from start to finish.

Providing free consultation and recruitment services, KBM helps employers to pre-screen apprentice candidates, to ensure they possess the necessary requirements set by the employers and are passionate to commit to the programme. Offering a diverse range of pre-employment training, KBM supports learners with tailored programmes to ensure they are job ready to meet the needs of your business.

To find out more about the benefits of apprenticeships for employers, or to learn more about our apprenticeship trainings, email us at apprentice@kbmgroup.co.uk or contact us directly at 020 3621 6315