Achieving the benefits

of apprenticeships
A guide for employers

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Published by National Apprenticeship Service
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NAS-P-170047 October 2018

 Achieving the benefits of apprenticeships

Welcome to this guide

to achieving the benefits
of apprenticeships.
The National Apprenticeship Service exists to help
employers and individuals value apprenticeships.
We know from working with employers across many
sectors and industries that apprenticeships work, and that
employers benefit in many different ways from employing
apprentices.
The introduction of the apprenticeship levy and the move to
employer-led standards have put businesses in the driving
seat. More control of funding, the chance to collaborate
on new standards as a Trailblazer, and the introduction
of higher and degree apprenticeships mean that there
has never been a better or more exciting time to consider
apprenticeships.
For the apprentice, apprenticeships offer the chance to
gain valuable skills, higher earning potential and improved
life chances. Higher and degree apprenticeships allow
apprentices to gain university-level qualifications while
working. There is no limit to how high and how far an
apprentice can go.
In this guide, we will share with you some hints and tips on
how to realise the benefits that apprenticeships deliver, how
to measure the success of your apprenticeship programme,
and some inspiring stories from employers. We want to
make apprenticeships work for you.

Keith Smith,
Director of Apprenticeships,
Education and Skills Funding Agency

To find out more about apprenticeships,

search for ‘employing an apprentice’ on GOV.UK,
or call (free phone) 08000 150 600 to speak to an adviser.
02 03
Achieving the benefits of apprenticeships Achieving the benefits of apprenticeships

The benefits that apprentices What do employers say? 1

can bring to your business
96% of employers with apprentices 67% of employers say that
have experienced at least one benefit employing apprentices improved
from taking on apprentices, and most their image in the sector.
can count at least 8 benefits.

Raise
staff morale 69% of employers say that employing
Match 25% of consumers are willing to pay
apprentices improved staff retention.
the skills more for products from a business
Reduce 65% of apprentices stay working for
of employees that employs apprentices.2
staff turnover the company that trained them when
to the skills they complete their apprenticeship.
you need
74% of employers say that

Improve
The apprentices improved products or
service quality, and 78% say that they
73% of employers say that
staff morale is improved by

benefits of
Increase improved productivity. Apprentices
your company having apprentices.
your diversity become highly skilled even before
image they finish their training.
employing “There’s a real buzz in the office
around apprentices as people

apprentices The average length of

time an apprentice stays with
increasingly see the benefits they can
bring. Apprenticeships also give staff
Create a opportunities to supervise and mentor
talent pipeline Upskill Siemens is 26 years! people – opportunities that they
across your existing staff previously may not have had.”
organisation Womble Bond Dickinson, winner at
“As a result of the speed of change
National Apprenticeship Awards 2016
in the technology industry, we knew
we had to take action to address the
Attract
Improve your digital skills gap. The combination
the best 86% of employers said that
productivity of gaining high-level skills and full
candidates apprentices helped to develop
exposure to the industry proposed by
relevant skills for the organisation,
degree apprenticeships seemed like
and to fill the skills gap.
the obvious solution.”
Capgemini, Apprenticeship Trailblazer

1
Unless otherwise noted, statistics on this page are taken from the 2017 Apprenticeships evaluation survey (n=4004 employers).
gov.uk/government/uploads/system/uploads/attachment_data/file/659710/Apprenticeships_evaluation_2017_employers.pdf
2
The Benefits of Apprenticeships to Business (2015), Centre for Economics and Business Research.
04 05
Achieving the benefits of apprenticeships Achieving the benefits of apprenticeships

How to measure the What is the return on investment

for apprenticeships? The Centre for Economics and
benefits of apprenticeships Return on investment describes the Business Research calculated that on
profits that a company can make from an average an apprentice generated an
Measuring the impact of apprentices investment. In the case of investment in annual return of £1,670
within your company does not have to Track your apprentices’ success apprenticeships, businesses get a direct in 2013 to 2014.5
be difficult or demanding. For instance, – The percentage of apprentices who financial return on the up-front investment
key performance indicators (KPIs) can be complete their apprenticeship. they make in training and staffing costs.
used to monitor apprentices’ performance Apprentices perform productive work
during their apprenticeship. The same – The percentage of apprentices while completing their apprenticeship, and
offered a job with the business on Most apprenticeships generate a net
indicators can be used to compare and there are savings to be gained from lower
completion of their apprenticeship. overall benefit to the employer
contrast apprentices’ performance with recruitment costs and lower salaries.3 For
within a few years.6
that of other staff as part of existing – The percentage of apprentices non-apprenticeship levy-paying businesses,
business processes. still with the company three or 90% of training costs for apprentices are
five years after completing their government funded via co-investment.
How can you evaluate the benefits
apprenticeship, compared with There are also indirect financial returns
of apprenticeships? Financial services firm Pepper first
overall staff turnover. arising from employing apprentices. For
Regularly analysing the performance and introduced apprenticeships in
– The number of apprentices from example, high staff morale is a known 2015. They measure the retention,
outcomes of your apprentices will allow
socially disadvantaged backgrounds benefit of employing apprentices, as progression and productivity of
you to see the current and future benefits
or who have a learning difficulty or is increased productivity and therefore their employees. The apprentice’s
to your business. Your performance metrics
disability compared with the total higher profits overall. Members of the productivity marker is reached when
will depend on what is important in your
across the organisation. public are also willing to spend more workflow and quality assurance
specific business context. For example,
with businesses that they see as socially tracking systems demonstrate that
if high staff turnover is an issue in your – The percentage of employees who responsible, including apprentice apprentices are doing as good a job
sector, you could track the length of time are promoted internally from former employers.4 as more experienced staff. In the
that apprentices remain with the business. apprentices, particularly at senior
If you have a significant skills gap, you can For an in-depth look at return on two years Pepper have been offering
levels.
monitor the percentage of unfilled roles investment in apprenticeships, see: apprenticeships, they have found
in the company, and whether apprentices – The number of unfilled skilled that apprentices are fully productive
roles with the company and the – Employer Investment in Apprenticeships in 8 months, with an estimated
are promoted to fill these positions. Some
percentage of skilled roles filled by and Workplace Learning: The Fifth 18 months’ retention required to
suggested metrics are in the box to the right.
former apprentices. Net Benefits of Training to Employers break even on the investment,
Study, (2012) Department for Business, including the cost of training.
For more advice and guidance – The percentage of apprentices who Innovation and Skills.
on evaluating apprentices’ are satisfied with their employer or
performance, call (free phone) their apprenticeship programme. – The Benefits of Apprenticeships to
08000 150 600 to speak to an adviser. Businesses (2015) Centre for Economics
– Employee satisfaction over time, and Business Research.
comparing apprentices and other
staff. – The RoIe of Apprenticeships (2014) 3
The National Minimum Wage for an apprentice is lower than for
The Institute of the Motor Industry. other staff. See gov.uk/national-minimum-wage-rates for more details.
4
The Benefits of Apprenticeships to Business (2015), Centre for
Economics and Business Research.
5
The Benefits of Apprenticeships to Business (2015), Centre for
Economics and Business Research.
6
Employer Investment in Apprenticeships and Workplace Learning:
The Fifth Net Benefits of Training to Employers Study (2012),
Department for Business, Innovation and Skills.
06 07
Achieving the benefits of apprenticeships Achieving the benefits of apprenticeships

Case Studies7 Case Studies

Improving staff retention Filling the skills gap

In 2008, Siemens became a

training provider for its engineering
apprenticeships, allowing them to Nestlé recruited 69 individuals – a
a significant
A shortage of nurses is
hips
develop and implement apprentices mix of new entrants and existing
the NHS. the evo lving
area of challenge across that are directly suited to employees – to apprenticeships in
,
spitals NHS needs of the business. Martin Hottass
Lancashire Teaching Ho
2017, with each programme built
r Siem ens Prof essi ona l
e of the largest General Manage around one of the new Trailblazer
Foundation Trust is on Education UK, com men ts, “W ith apprenticeship standards. Nestlé
of England. In
trusts in the north west
to
apprenticeships, we have the flexibility believe that the traditional view of
d a Level 3 e of our current
2016, the trust introduce ensure we can mee t som apprenticeships as being primarily for
hip. skills requirements, as well as 8build the new entrants to the workforce no
Pre-nursing apprentices relevant skills for the future”. longer applies in the modern world.
tice Business
Andrew Stone, Appren Siemens have contributed to 10 Jill Coyle, Apprentice Programme
shortage of Trailblazer standards for engineering
,
Manager, explains, “The Lead at Nestlé, explains, “Standards
well known. But including a Level 6 Power Electron ics
nurses across the NHS is
have been written by industry, for
is also a problem. apprenticeship and a Level 7 Power industry, meaning we can provide
retaining nursing talent Engineering degree apprenticeship. flexible apprenticeships that benefit
train a lot of
As a teaching hospital, we They are continuing to work with our employees at every stage in their
n return home or the Institution of Engineering and
student nurses who ofte career. With advances in technology
e country once Technology and other industry partners
move to other parts of th
and new business opportunities,
ds.
. By recruiting to develop the skills the industry nee the diverse and wide-ranging
their training is complete With a series of new apprent ices hips in apprenticeship portfolio now offers
prenticeship
local candidates via an ap development, Siemens are help ing to great prospects for individuals at the
nity to continue create apprenticeships that will help
the
and offering the opportu tinu es
start of their profession right through
ty [in partnership business thrive as the indu stry con to upskilling to enable existing
their learning at universi to evolve. Martin says, “Ap pren tices hips
lton], we hope employees to take the next step.
with the University of Bo are our life blood and have proven It’s a fantastic chance to continue
al talent for the
to develop and retain loc time and time again a positive long- learning and developing, both
term investment. We want to take full personally and professionally.”
long-term.” gies
advantage of exploring new technolo
and fields, as well as constan tly
s–
improving and innovating as a busines
apprenticeships help us do that .”
7
For more great case studies and stories about how
apprenticeships have benefitted businesses,
see Apprenticeships that Work from the Chartered
Institute of Personnel and Development.
cipd.co.uk/knowledge/fundamentals/people/routes- 8
Guidance for groups of employers (Trailblazers) on proposing and developing a new apprenticeship standard (2017), Institute for Apprenticeships.
work/apprenticeships-guide instituteforapprenticeships.org/developing-apprenticeships/how-to-develop-an-apprenticeship-standard-guide-for-trailblazers
08 09
Achieving the benefits of apprenticeships Achieving the benefits of apprenticeships

Case Studies How can you maximise the

Diversifying your workforce benefits of apprenticeships?
Put apprenticeships at the heart Commit to widening participation
of your workforce planning and diversity
The Crown Prosecution Service
Apprenticeships work best when they are Research shows that companies that are
(CPS) have been offering Level 2 and 3
embedded into the fabric of recruitment diverse do better than those that are not.
Administration apprenticeships for the
and workforce strategies. Apprenticeship Businesses in the top quartile for racial and
past five years. The decision to introduce
apprenticeships came following a Introducing apprenticeships has standards are available across a range of gender diversity significantly outperform
demographic review of the CPS workforce. also helped Buckinghamshire business areas and sectors. their national industry averages.11
The data gathered showed there was Fire and Rescue Service in By choosing a combination of standards in A great way to widen participation
a significant lack of age diversity across increasing the diversity of their areas across the organisation, you can tailor is to introduce innovative approaches
the organisation, with just 1.3% of its workforce. Charlie Turner, HR your apprenticeship offer to maximise the to apprentice recruitment, such as
workforce aged between 16 and 24. In Project Manager, says, “Traditionally benefits that are most important for your gender-balanced interview panels or
the light of this, apprenticeships were we have struggled with recruiting business. For example, 17% of employers anonymised CVs.
proposed as the best method to attract staff from a diverse range of in a survey said they offer higher and
young, enthusiastic and fresh talent and an backgrounds. However, we are keen degree apprenticeships as part of their staff
If you employ apprentices aged between
effective route to increasing diversity. to represent the communities we retention strategies, as these apprentices
16 and 18, or apprentices aged between
serve. Apprenticeships have given us are more likely to commit to working with
19 and 24 with an Education, Health and
Debra Cheers, Senior HR Manager, explains, a greater opportunity to go into the that employer in the long term.9
Care Plan (EHCP),12 you can get £1,000 per
“Diversity, in its many forms, is critical for community and reach out to more apprentice to put towards the cost of their
our organisation. With just over 1% of our women and more people from Become a Trailblazer training.
workforce being under the age of 25, we Black, Asian and Minority Ethnic Trailblazers are employers who work with The Apprenticeship Diversity
were missing out on the wealth of skills (BAME) backgrounds and both raise groups of other employers, providers and Champions Network (ADCN) is a
and attributes that young people can bring. their awareness of, and encourage professional organisations to create new network of employers committed to
They are motivated, have strong IT skills and them onto an apprenticeship.” apprenticeship standards in their areas of widening participation in apprenticeships,
bring innovative ideas. For example, one of expertise. Employers create the content and
Particularly amongst its championing diversity and supporting
our apprentices completed training for an assessment materials for each standard,
operational staff, the fire greater social mobility. Its remit is to ensure
online booking system. Following this, they ensuring that the skills that apprentices
trained staff and implemented the system, service are beginning to see the apprenticeships are open to candidates
learn are the ones that businesses will need
saving the organisation significant admin positive effects of bringing in from all backgrounds, and increase
in the future. Trailblazers are co-ordinated
costs. It is tangible value such as this that apprentices on the diversity of representation from ethnic minority
by the Institute for Apprenticeships – you
apprentices bring to CPS.” their workforce. In 2016/17, 6% candidates, women in science, technology,
can find all the details of how to get
of their operational employees engineering and mathematics (STEM),
In the past five years, CPS have significantly started on their website.10
were women, compared with candidates with learning difficulties or
closed the age disparity within their just 3% in 2014/15, when disabilities, and those from disadvantaged
workforce. In March 2017, the proportion the organisation did not offer backgrounds. For more information, search
of 16–24 year-olds had risen from 1.3% to operational apprenticeships. 9
Apprenticeships Evaluation 2017: Employers, 2017
for Apprenticeship Diversity Champions
5.1% of employees. Likewise, in 2016/17, 2% of their Department for Education. Network on GOV.UK.
operational staff were from BAME 10
instituteforapprenticeships.org

backgrounds, in comparison with Why Diversity Matters (2013), McKinsey.

11

less than 1% in 2014/15. An EHCP is for children and young people aged up to 25 who need
12

more support than is currently available through special educational

needs support.
10 11
Achieving the benefits of apprenticeships Achieving the benefits of apprenticeships

What can you do next?

Now that you’ve seen how

apprenticeships can benefit your
business, what can you do next?
Capture your returns
In order to demonstrate success and
continuously improve, commit to
monitoring the performance and long-term
success of your apprentices within the
business, as well as the direct and indirect
returns the company achieves. See the
section on How to measure the benefits of
apprenticeships on page 6 for some hints
and tips.

To find out more about

apprenticeships, search for
‘employing an apprentice’ on GOV.UK,
call (free phone) 08000 150 600
to speak to an adviser, or email:
nationalhelpdesk@apprenticeships.gov.uk

12 13
Achieving the benefits of apprenticeships

Notes

14 15