8 benefits of apprenticeships for small businesses
In post-war Britain, apprenticeships became a common option and by the 1960s a third of male school leavers were studying as an apprentice. However, in subsequent decades, the numbers dwindled, with apprenticeships becoming associated with heavy manufacturing and trades. Today, the apprenticeships landscape looks very different with a broad spectrum of courses on offer, and a far more equal uptake in terms of males and females. And it’s not only the preserve of school leavers as an alternative to university. Adult apprenticeships are on the rise – in 2022/23, 48% of apprenticeships started were by people aged 25 or over. They can be a great path for someone looking to upskill or make a significant career change.
According to The Apprenticeships Guide, there are now over 600 different apprenticeships covering an array of careers across 18 different industry sectors including agriculture, business administration, advertising, health and wellbeing, public services, communications, retail, manufacturing, sports and more.
If you’re a small business owner thinking about creating an apprenticeship scheme at your organisation, the combination of on-the-job training with classroom instruction can offer numerous advantages to all parties. Here are eight reasons why apprenticeships can be a game-changer for your small business.
1 - Cost-effective team development
Hiring and training new employees can be expensive, especially for small businesses with limited budgets. Apprenticeships provide a cost-effective solution by allowing businesses to train individuals specifically for the roles they need.
With a change of legislation in April 2024, the UK Government is now fully funding apprenticeship training for SMEs employing apprentices up to the age of 21, lessening the financial burden for business owners. At the time of writing (July 2024), the Government currently classifies an SME as having up to 250 employees, but there are plans to potentially raise the threshold to 500 employees, meaning around 1,000 more companies would become SMEs.
Additionally, apprentices typically start at a lower wage than fully trained employees, providing an affordable way to build your team.
2 - Customised training
One of the biggest advantages of apprenticeships is the ability to tailor the training you provide to the specific needs of your business. Unlike traditional education programs, apprenticeships offer hands-on training that is directly relevant to your operations.
You can provide your apprentices with the exact skills and knowledge required to perform their roles effectively. By the end of their training, apprentices are fully integrated into your company’s culture and processes, making them valuable assets from day one.
3 - Increased employee loyalty and retention
Building a strong, loyal and committed team is essential to any business, and apprenticeships foster all of these qualities among participants. When you invest in someone’s training and development, they are more likely to feel valued and appreciated. This investment often translates into higher job satisfaction, loyalty, and potential progression through the company, resulting in a lower staff turnover rate.
Employees who have gone through apprenticeship programs are more likely to stay with a business long-term, saving you the cost and disruption associated with frequent hiring and training.
4 - An injection of fresh perspectives and ideas
Apprentices bring fresh perspectives and new ideas to your business. As they learn and grow within the company, their contributions can lead to innovative solutions for existing problems. Their unique viewpoints and enthusiasm can help identify opportunities for growth and efficiency that more experienced employees might overlook. This infusion of new thinking can be particularly beneficial for small businesses looking to stay competitive and agile in a rapidly changing market.
5 - Enhanced productivity
A well-trained apprentice can significantly boost your organisation’s productivity. As their skills and capability increase, they’re able to handle more complex responsibilities, freeing up your more experienced team members to focus on increasingly strategic and higher value activities.
The practical, hands-on nature of apprenticeship training ensures that they are well-equipped to contribute effectively to your day-to-day business operations.
6 - Building a talent pipeline
By training apprentices from the ground up, you can develop a steady stream of skilled team members who are already familiar with your company’s culture and processes as they move through the business. This proactive approach to nurturing talent ensures you have a pool of qualified candidates at your fingertips who can potentially fill key roles as your business grows. It also reduces the reliance on external hiring, which can be time-consuming and costly.
7 - Strengthening community ties
Investing in apprenticeships demonstrates a valuable commitment to the local community. By providing training and employment opportunities, small businesses can contribute to local economic growth. This community involvement is great for public relations, enhancing your company’s reputation and strengthening your local relationships. Moreover, businesses running apprenticeship programs often find it easier to attract local customers and clients who appreciate their community engagement.
8 - Staying ahead of industry trends
Staying ahead of industry trends is crucial for the success of any business. Apprenticeships enable your workforce to stay up to date with the latest industry developments and technologies because they are learning all the time, both in college and on the job with you. By embedding ongoing learning and development into your business model through apprenticeships, you ensure your workforce remains up-to-date with the latest industry developments and technology. Subsequently, this makes your business more adaptable and puts you a step ahead of competitors who may be hiring through more traditional methods.
Apprenticeships are a powerful tool for building a skilled, motivated, and innovative team. By introducing apprenticeships into your organisation, not only can you improve the productivity and loyalty of your team, but you can also contribute positively to your community and stay one step ahead in a competitive market.
If you would like some advice on how an apprenticeship could work for your business, or if you need any other kind of employment support, enquire about joining our Prosper programme today. Prosper offers free support to help you grow your team.
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