Guide to apprenticeships

Identify areas where staff training could support your business objectives. If you’re already training people in these areas some of this training could be included in an apprenticeship programme.

a) Link training to your business plan to identify current and future skills gaps

Think about how staff training could support a 3-5-year business plan. You might identify skills gaps inhibiting current productivity, roles you can’t fill or training that staff will need in the future, such as understanding new legislation or using technology.

b) Capture all training currently taken by staff

You might already be paying for existing staff to take qualifications that are mandatory in your sector. This training could form part of an apprenticeship at less cost. If staff are paying for their own training it might increase their motivation to stay in your business if it formed part of an apprenticeship instead – in which case they would not pay anything themselves.

c) Identify progression opportunities from entry-level to senior management

Does your company have a clear pathway for all staff to progress? It might be that some people leave your organisation because they can’t see a clear route to move up the career ladder.

Successfully transitioning staff from operational to management roles is a difficult process in many companies. Integrating team leading and management apprenticeships can support this activity.

d) Return on investment and Key Performance Indicators

Measure the success of your training with something tangible. You may already use key performance indicators for things like profit, productivity and customer satisfaction. You should be able to see how these indicators improve through apprenticeship training.

Training affects individual performance as well. Setting and reviewing individual targets at apprenticeship reviews can support the performance management process.

Some businesses tie apprenticeship training to specific projects, e.g. finding efficiency savings or increasing sales. These kinds of projects give businesses a direct, financial value related to their training investment.

Once you have identified your needs you can consider which Apprenticeship standards best meet your needs.

You can search and review the content of all Standards on the Institute for Apprenticeships website. Type in a key word and list of appropriate apprenticeship qualifications will be displayed.

You know the staff training requirements for your business to evolve and grow. You know which job roles are a priority for development, and you understand the knowledge, skills and behaviours people need to do their jobs effectively.

So, you’re in the best position to choose from over 400 new Apprenticeship Standards and pick the ones which give you and your customers confidence that your staff are competent in their role.

Types of roles include:

Accountant • Laboratory Assistant • Architect • Mechanical Engineer • Automation Engineer • Personal Trainer • Brewer • Pharmacy Services • Care Worker • Project Manager • Chartered Manager • Senior Leader (CEO) • Chef • Software developer • Customer Advisor • Solicitor • Digital Marketer • Teaching Assistant • Finance Officer • Textiles Production • Food Technologist • Veterinary Nurse • Graphic Designer • Warehouse Operative
.... And many, many more!

Firstly it is important to understand the Apprenticeship Levy and The Apprenticeship Service.

The government asks large businesses to pay an Apprenticeship Levy. The purpose of the levy is to encourage large businesses to employ and train staff using apprenticeships. The levy also generates funds to subsidise the cost of apprenticeship training for smaller businesses.

Does my company pay the levy?

Yes, if you have an annual payroll of over £3million
Approximately 2% of businesses in the UK pay the levy
Levy-payers pay 90% of the apprenticeship training costs
The government pays the remaining 10% of the costs
Levy-payers must use the Government’s online Apprenticeship Service to manage apprenticeships and payments.

More information at: www.gov.uk/guidance/manage-apprenticeship-funds.

Non-levy payers

Your company doesn’t pay the levy if its annual payroll is less than £3million
Approximately 98% of businesses in the UK don’t pay the levy
Non-levy payers pay just 5% of the apprenticeship training costs (plus VAT in some circumstances)
The government pays the remaining 95% of the costs
All employers will use the online Apprenticeship Service to manage and pay for apprenticeship training. You will be invoiced for your 5% contribution by your training provider.

More information at: www.gov.uk/guidance/manage-apprenticeship-funds.

Transfer levy funds

Levy-paying organisations are able to transfer 25% of their unspent levy funds to other businesses. This can be to any business (levy or non-levy) or a government approved Apprenticeship Training Agency. Most organisations that transfer funds do so to help their supply chain or SMEs access training they couldn’t otherwise afford. Essentially, a transfer means the receiving organisation does not have to contribute to the cost of apprenticeship training. It also gives the receiver the choice of all the training providers listed on the Register of Apprenticeship Training Providers.

The costs of running Apprenticeship programmes

Before embedding apprenticeships into your organisation, it is important to recognise all the costs associated with a comprehensive training programme.

a) Training costs – Non-levy payers pay just 5% of the cost of apprenticeship training. This is between £75 and £1,350 across the length of the apprenticeship. There may be VAT, exam and certification fees on top of this.

Ask the provider for the total amount before you proceed.

b) Wages – Employers must pay the person on the apprenticeship their wages for work and training time. The apprenticeship minimum wage is £3.90 per hour in the first 12 months (or if the apprentice is 16-18). However, most employers pay more than this. Think about a wage that will allow you to attract quality candidates to the role but acknowledges someone is learning on the job and not yet fully qualified.

c) Mentoring – You or a member of your team must make time to support the person on the apprenticeship and regularly liaise with the training provider. Think about how this could work within existing processes in your company.

d) 20%-off-the-job – The apprentice is training away from their general duties at least 20% of their paid time. This means they are not on their workstation doing their day job. Think about how you will see a return on investment for this time off the job.

e) Company costs – occasionally there are other costs companies face when offering apprenticeships. This could be an increase in insurance for taking on unqualified workers, expenses for overnight off-the-job training, etc. Think about your individual business.

Incentives and benefits

The main driver for apprenticeship training should be to improve your business performance, staff loyalty and customer satisfaction. However, there are several incentives and additional benefits of apprenticeship training that employers should be aware of.

£1,000 for employing a 16-18-year-old – Businesses are given £1,000 over two instalments for employing a 16-18-year-old as an apprentice. £500 at three months and £500 on completion of the apprenticeship.
£1,000 for employing some 18-24-year-olds – The 16-18 incentive is extended to businesses that employ 18-24-year-old apprentices that have previously been in care or have a learning difficulty or disability as recognised by an Education and Health Care Plan. This incentive can help you demonstrate you’re a disability confident employer.
No training costs for small businesses – If you employ less than 50 people and train a 16-18-year-old or qualifying 18-24-year-old on an apprenticeship, your business does not have to pay any training fees. This means you could access £27,000 worth of training for free.
No Employer National Insurance contributions – Any business that offers apprenticeship training to an employee under the age of 25, does not have to pay any Employer N.I. contributions. This saving is almost always more than the 5% contribution to training for non-levy payers. Plus, the more you pay the apprentice the higher the saving.
Mandatory qualification – If your organisation needs staff to gain certain qualifications, apprenticeships can help. This could be specialist health and safety cards, industry-standard training or chartered status. This type of training may cost thousands of pounds but can often be included in the apprenticeship if it supports the knowledge, skills and behaviours needed to pass the programme. Ask your chosen training provider if they can include specific certificates.
Attract top talent – Many people are interested in working for employers that offer qualifications and training as part of a work package. Your business could offer degree-apprenticeships to support graduate-calibre staff access debt free degrees. With the cost of university rising this is an attractive proposition for ambitious young people.

Further reading
Apprenticeship Levy Transfer Video https://www.youtube.com/watch?v=6sH0gDiU9NM

What is an Apprenticeship Training Agency? https://www.gov.uk/government/publications/apprenticeship-training-agencies 

Apprenticeship training needs three parties: the person doing the apprenticeship, the employer and a government-approved apprenticeship training provider. The key to successful apprenticeships is to find the right training provider(s).

There are hundreds of private training companies, colleges and universities approved by government to provide the off-the-job training on apprenticeships. It’s crucial to choose a provider that understands your ambitions for the business and knows how to get you to where you want to be.

One place to start

There is no prescribed place to start searching for a training provider, however if you want to search for providers online, visit Find Apprenticeship Training and search by job title. A list of relevant apprenticeships will appear with further details and costs. Remember, if you have a payroll of less than £3million per annum, your business only pays a maximum of 5% of that listed price. Once you think you’ve found apprenticeship training that is suitable, click the search training providers button. Put in your postcode and look at the provider profiles. You should be able to see how the provider delivers this training, as well as their achievement and satisfaction rates. The training provider has responsibility for the quality of your apprenticeship programme.

Some businesses are apprehensive about starting an apprenticeship because they are unsure how best to analyse skills gaps in their company, what their legal obligations are, what’s involved or if they’ll get tied up by red tape.

You needn’t worry. Approved apprenticeship training providers can support you before, during and after the apprenticeship. Providers receive government funding to train a more productive workforce, so they are ultimately responsible for the quality of your apprenticeship programme. They must demonstrate how the training meets Ofsted’s requirements and the 20% off-the-job training rules.

Ask the training provider questions - get them to help!
Training is their business – their reputation is on the line. The right provider will walk you through the process and explore who will deliver each aspect of training.

Then they will create and deliver a training programme that meets the needs of your organisation and your staff.

How do I find the right training provider?
You can:

Search for the types of training you need on the Find An Apprenticeship website
Phone training providers directly
Receive calls from providers or meet them at trade shows
Contact the Hertfordshire Growth Hub team. The Growth Hub works closely with all the major business support providers, including training providers, in Hertfordshire so you can be sure that whatever your requirements are, they will know the right people to offer you high quality support.
As with any new supplier, the most important part of finding a good training provider is to ask the right questions.

You want to check that:

The provider understands your sector
Their trainers have the relevant expertise to train your staff
They will tailor the training to suit your business and individual staff members
You are satisfied with the provider’s achievement and satisfaction rates
They are clear about what’s expected from you as the employer
They show you the total cost (including VAT and exam fees where applicable)
They will help you achieve a good return on your investment in apprenticeships

Finding the right person to employ as an apprentice is just as important as finding the right training provider to deliver the off-the-job training.

To increase your chances of employing the right apprentice, you should:

1. Look for assets you can develop beyond qualifications and previous experience. Apprenticeships are about giving someone an opportunity to prove themselves on-the-job. Over the course of the apprenticeship your staff and the training provider will develop the apprentice into an outstanding member of staff. This means you should assess what attributes you want an apprentice to have on day one and what you are looking to develop during the apprenticeship.

2. Make sure your advert is connecting with a wide pool of talent. Apprenticeships provide an opportunity to diversify your workforce and attract young talent that might not usually consider your industry. When creating job description and person specification really consider the audience you are looking to engage. Are you using too much jargon, do you have the right expectations? Many young people, particularly those looking for their first job will have limited experience of the world of work. Using technical jargon or looking for a range of prior experiences might create barriers for the future talent you want to attract.

3. Use the training provider to find and screen applicants. Training providers offer to recruit and screen applicants on your behalf. This can save you a great deal of time, but you should be clear what you are looking for if you use them to do this. Make sure they are looking for applicants from a range of ages and backgrounds. If you want to do recruitment yourself, don’t just rely on jobs boards or even recruitment agencies to attract young people. It is always advised to mix up the places you are advertising. You could consider talking directly to schools, youth organisations and jobcentres too.

4. Explain your ambitions for the apprentice in the interview. Interviews are a two-way process. This is your opportunity to sell your company and the progression routes available to the apprentice. Apprentice wages are often lower than fully-qualified wages, so applicants need to be reassured that you are offering an opportunity that helps them long-term. If they don’t get that message they may select a higher-wage, short-term opportunity elsewhere.

5. Consider a part-time apprentice. It is possible for an apprentice to work less than 30 hours a week, but in these circumstances the apprenticeship will take longer to complete. If you think this could open opportunities for you to recruit more suitable staff, then ask your training provider

Top tip:

If you want to attract a more diverse workforce make sure the language you use in your job advert appeals to men and women and people from a range of different backgrounds. For example, if your industry is male dominated, it’s a good idea to tell applicants that your workplace is inclusive and supportive. This will reassure applicants and help them visualise being part of your team. Ultimately, it will encourage a wider pool of talent to apply for your job and gives you more choice at interview.

Extra advice to recruit and retain young people

Here are three additional tips to help you recruit the best young people and keep them on track in the first few weeks:

1. Relaxed recruitment process

You are providing a great opportunity for young people to test their CV, application and interview skills. Some young people won’t have had expert help to prepare and may have some anxiety issues about taking an apprenticeship. Consider what you can do to help them feel relaxed and confident so they can show you their best selves during the recruitment process. Also consider the type of feedback you could give at each stage, even when a candidate is unsuccessful you may have some valuable insight to help them on their journey.

2. Got the job – now buddy up

Some young people may need extra support, particularly in the early days, to settle into the role. Assigning a buddy can be a really great way of supporting a young person. Plus, it gives an existing member of staff more responsibility and a development opportunity. Be careful not to assume anything, check in regularly with the young person and understand how they are feeling and progressing. This will help keep hold of talented staff and give them time to settle in and flourish.

3. Get feedback for your next hire

Talk to young people about your recruitment, onboarding and training processes. Involve them in the design and thinking for your next hire, the insight you will get will really help you to become youth-friendly and create even more quality opportunities.

Text supplied by Youth Employment UK.