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"Apprenticehips: Good for Business" Ian Smith, National Apprenticeships Service
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"Apprenticehips: Good for Business" Ian Smith, National Apprenticeships Service


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  • 1. Apprenticeships Good for Business Ian Smith (National Apprenticeship Service) ‘ Social Sustainability’ 9 September 2010
  • 2. What is an Apprenticeship?
    • Work-based training programme designed around the needs of employers, leading to nationally recognised qualifications.
    • New recruit or existing member of staff.
    • Three levels: Apprenticeships (level 2), Advanced Apprenticeships (level 3) and Higher Apprenticeships (level 4), usually lasting from 1 to 4 years.
    • Over 190 types of Apprenticeships within a variety of industry sectors ranging from accountancy and engineering to veterinary nursing and floristry.
    13 January 2011
  • 3. Why Apprenticeships?
      • There are bottom line business benefits
      • Clear return on investment
      • Greater productivity
      • Lower recruitment costs
      • Lower training and retention costs
      • Increased employee satisfaction
      • Greater loyalty and quality of work
    13 January 2011
  • 4. What does it cost?
    • Government fully funds the training costs for apprentices aged 16 to 18.
    • If apprentices are aged 19 and over employers may be required to make a contribution towards the training cost.
    • The employer pays the apprentice a salary reflective of industry rates and experience. The minimum wage is £95 week but the average is £170 a week.
    • Apprenticeship Grants of £1500 for employers who recruit an unemployed young person aged 16-24.
    13 January 2011 Apprenticeships: A great idea for your business
  • 5. Engineering
    • Apprenticeships well established in case studies,
    • Shortage in external labour market,
    • Opportunities for ex-apprentices to progress into supervisory and managerial jobs
    • Costs of training were relatively high at £29,000 over a three to four year period, but recouped over two to three years after completion.
  • 6. Construction
    • Employers train to meet their own skill needs and those of their sub-contractors,
    • Training tends to be highly structured and relatively costly compared to other sectors: £22,000 although there is variability between employers, and
    • Employers’ costs are recouped two years after completing the Apprenticeship.
  • 7. Business Administration
    • Training costs vary because of the varying durations of training
    • The cost of training to Level 2 is around £1,100 and around £3,500 to £3,900 at Level 3 depending upon the duration of the training, so
    • The payback period for a Level 3 Apprenticeship which takes three years to complete is around one year.
  • 8. Information Technology
    • The largely workplace-based nature of training means productivity is relatively high,
    • Therefore there are comparatively low costs to employers, so
    • Employers’ costs are recouped in a short space of time – on average around six months.
  • 9.  
  • 10. Find out more
    • National Apprenticeship Service in place to offer
    • expert advice and support.
    • Ian Smith
    • 01489 558601
    • [email_address]