Hiring an apprentice as an employer - what's in it for you?

You may have seen our article explaining what budding apprentices need to know about Apprentice schemes, which you can read here.  

But what about the other side of the coin? Why should employers take apprentices on? What’s in it for them, at the end of it all? 

In this article, we will highlight several key things employers should take into consideration when looking to hire an apprentice, as, in our view, the pros vastly outweigh the cons. 

Hopefully, by the end of this article, you will be of the same opinion, as there is a lot you can gain as an employer from having apprentices around.  

You’re breathing fresh life into the industry 

One of the main issues with construction in the UK is that there is such a skills shortage. According to Employment Solutions, the industry is a staggering 200,000 skilled workers down from where it needs to be.  

They also claim that 20% of construction workers are in their 50’s, so there is palpable concern that we will soon reach a stage where demand vastly outweighs supply. 

By taking on apprentices, you are helping to plug that gap. By giving them an opportunity to grow, you’re also giving the industry a shot in the arm that it badly needs.  

With the tutelage of the experienced pros at construction firms and companies, thriving apprentices will be in good hands when it comes to progressing.  

By giving them a chance too, you will earn their loyalty as they will be grateful for giving them the experience, meaning your business will be looked after well by the future generation. 

You get a number of financial benefits 

Taking on an apprentice can be seen as something of a risk, at least in the short term while they are still getting to grips with things, so there are things in place to counteract that.  

As per gov.uk, if you have an apprentice under the age of 25 and earning less than £827 a week (£45,000 a year), you will not have to pay National Insurance Contributions when it comes to the apprentice’s salary.  

However, if you have an annual bill of £3M or over, you will have to contribute 0.5% of your monthly bill to the Apprentice Levy.  

This isn’t all bad though, as £15,000 of that, across the year, is deductible if you take an apprentice on. 

If you do not have an annual bill of £3M or more, then you don’t get the £15,000 deduction – but, assuming you haven’t exceeded the funding band maximum, you will only have to contribute 5% to the cost of training. The government will make up the other 95%. 

In addition, if you choose to train a 16-18 year-old as part of an apprentice scheme, both yourself as an employer and the provider will be eligible for a £1,000 payment. 

This is to entice employers to give apprentices a chance, so that everybody in the scenario benefits. 

Also, if you take on an apprentice aged between 19-25 and they have been in care or have a local authority education, health and care plan, you are also due a £1,000 payment as an employer. 

Finally, if you are a member of the Construction Industry Training Board (CITB), you are eligible to other financial boosts from taking on apprentices.  

This includes payments of £2,500 per year for attendance and a £3,500 payment upon successful completion of the full apprenticeship. More information on the CITB grants can be found here.  

How to enrol an apprentice 

Enrolling an apprentice is done in six steps. These are as follows: 

• Check the eligibility of the apprentice 
• Sign agreements (contract of employment, apprenticeship agreement, commitment statement) 
• Determine a training provider 
• Decide what type of apprenticeship it is 
• Identify end-point assessments 
• Certification 

To find out more about these six steps in detail, you can find all the gov.uk advice here.

You’re making a difference

Ultimately, by taking on apprentices, you are making a big difference – for many different parties, including your own.  

The industry gets young people on board at a time it badly needs it, you can oversee their development and ensure the future is in good hands and have you’ll have financial gain as a result. 

Again using the gov.uk link from earlier in the article, productivity has been proven to increase 76% thanks to having apprentices. That will make a huge difference for you, the apprentice and the industry.  

In addition, with the right supervision, 75% of apprentices end up actually improving the quality of the work that your company is doing.  

Therefore, we fully believe the pros outweigh the cons when it comes to taking onboard new apprentices. It’s also one of the reasons we’re so active with the scheme ourselves.  

If you would like to talk to a member of our team that has experience with apprenticeships for further information, please feel free to get in touch with us. You can do so by following this link.