Employers guide to apprenticeships

Although most people are familiar with the concept of apprenticeships, employers frequently overlook the advantages that they can offer their business. Modern Apprenticeships come with a host of benefits that can enable employers to upskill their workforce and adapt to future need. As such, they can be a brilliant solution for a range of organisations.

You may already consider taking on an apprentice but are not confident about your responsibilities as an employer as part of the process. For more employer-focused information, please visit our Business Solutions apprenticeships page.

In this article, we explore the most common questions employers have about apprenticeships, including costs for employers.

Benefits of apprenticeships for employers

There are many benefits for employers, including:

Develop skills within your organisation - An apprenticeship will help you gain high-quality training so that your company can adapt to meet the needs of the future.

Gain motivated new staff - They are an ideal way to gain new, motivated team members for your organisation.

Improve productivity - Many employers report that apprentices have been successful in boosting productivity within their companies.

Cost-efficient training - They represent a ‘win-win’ situation for companies looking to gain cost-effective training while providing apprentices with opportunities to access career development training.

Efficient recruiting - Recruiting can be an expensive process for employers, so apprenticeships can be a more efficient method of gaining new staff.

Provide a better service - They are an ideal way to gain new staff who can provide high-quality customer service to new and existing clients.

Who can provide apprenticeship training?

You may wonder what sort of companies can provide apprenticeship training. They are ideal for most companies, regardless of size or turnover, so there are no restrictions on how big your company needs to be to recruit an apprentice.

However, there are some key things to remember, including the apprenticeships levy (more on this later) which relates to funding. There are some responsibilities that the employer needs to carry out, which we will explain later.

How long does an apprenticeship last?

Depending on the needs of your organisation and the type of apprenticeship you want to offer, apprenticeships usually last between one and four years. Sometimes (especially if the apprenticeship is being offered on a part-time basis), the training can last up to six years.

What are the responsibilities of the employer?

As an employer looking to take on an apprentice, it’s important to fulfil your obligations as part of the process.

In terms of the employer’s responsibilities, you must:

•    Use an approved training organisation (such as e-Careers) for apprenticeship training.
•    Provide the apprentice with an apprenticeship contract.
•    Pay the wages agreed in the apprenticeship contract.
•    Provide an apprenticeship mentor for your apprentice so that you can address any concerns.
•    Ensure your apprentice is always appropriately supervised.
•    Pay at least the minimum wage to the apprentice (based on age and other criteria).
•    Increase the apprentice’s wages as responsibilities and skills increase.

The Apprenticeship Levy for employers

You might have heard of the Apprenticeship Levy for employers and wondered about the associated costs with the apprenticeship and how this would affect your organisation if you wanted to take on an apprentice.

In simple terms, the Apprenticeship Levy is a tax that HMRC collects every month via the PAYE system. If your company has a wage bill that equates to over £3 million per annum, you will be taxed 0.5% of this wage bill (minus an allowance of £15,000). The tax generated goes into a scheme known as the Digital Apprenticeship Service (DAS), and the employer can use these funds to upskill new or existing employees. It’s important to note that you will lose these funds if you don’t use them within 24 months!

If your business does not meet the qualifying £3 million wage bill, you will not be eligible for the Apprenticeship Levy, however, you can still train staff and pay just 5% towards the cost of apprenticeship training. The government will pay the remaining 95%.

Drawing up an apprenticeship agreement between training provider and employer      

Before you take on an apprentice, an agreement must be drawn up with an appropriate training provider. e-Careers are an approved training provider, and we can help you take your business to the next level via schemes like apprenticeships. Get in touch today to see how we can work together.

Call us on +44 (0) 20 3800 0144 to speak to one of our Apprenticeship Consultants today, to discuss your requirements in more detail.