IS THERE A ' ONE SIZE FITS ALL ' APPRENTICESHIP ? Apprenticeships are available from Level 2 ( GCSE equivalent ) right through to Levels 6 and 7 ( equivalent to a Bachelor ’ s or Master ’ s degree ). Some apprenticeships may also offer additional professional qualifications , such as Association of Chartered Certified Accountants ( ACCA ).
Name Level
Equivalent educational level
Intermediate 2 5 GCSE passes
Advanced 3 2 A Level passes
Higher 4,5,6 and 7
Degree 6 and 7
Foundation degree and above
Bachelor ' s or Master ' s degree
When you create an apprenticeship opportunity , you decide the level of engagement and commitment needed – both for your business ’ development and the apprentice ’ s career aspirations . A smaller SME might initially only require a basic level administration assistant , for example , which could be a Level 2 or 3 Apprenticeship . Another , larger organisation might wish to retain a senior Operations Manager by enabling them to upskill to a Level 5 HR consultant partner apprenticeship instead of perhaps recruiting for an existing HR professional .
WHAT ' S THE COST OF TAKING ON AN APPRENTICE ? Both examples could prove to be cost-effective options for each business . The smaller SME gives an opportunity to a young person who is likely to be a school-leaver on a lower salary , keen to learn and develop , and the SME also gains support from the apprenticeship training provider in their endeavours to train the apprentice .
The larger organisation retains a loyal member of staff who will undoubtedly have a huge amount of experience which can be utilised to create a great HR professional at the end of the apprenticeship , meanwhile , continuing to pay the manager ’ s previous salary as opposed to the salary level required by a new recruit with existing qualifications , not to mention the savings on recruitment costs . The Operations Manager ’ s replacement is also likely to be on a lesser salary initially as they won ’ t be as experienced as the current incumbent .
There are costs when taking on any new position in a business , but when taking on an apprenticeship role ( new or existing staff positions ) the Government currently offers employer incentives to assist with the creation costs . There are also incentive payments for hiring an apprentice where their previous role was made redundant .
As their employer , you are responsible for their salary payments , and whilst there are minimum apprenticeship salary levels in the first year starting at £ 4.15 per hour , few employers actually pay at this level as they find they secure better quality candidates if they pay above the minimum . For apprentices under 25 , it is unlikely that you will have to pay Class 1 National Insurance payments , but the apprentice will still pay their element . Always check current HMRC guidance .
WHAT ARE THE COSTS OF THE TRAINING ITSELF ? If your salary bill is less than £ 3 million per annum you pay just 5 per cent towards the cost of training and assessing an apprentice . The Government will pay the rest . If you employ fewer than fifty employees , the Government will pay up to 100 per cent for younger apprentices ’ training and assessing costs . There are certain rules which will need to be checked to confirm eligibility of the 100 per cent funding , particularly those aged 16-24 and with an education , health and care plan provided by their local authority or has been in the care of their local authority .
Employers with a salary bill of more than £ 3 million per annum must pay an apprenticeship levy , currently 0.5 per cent . Up to 25 per cent of the levy payments not used to cover the cost of their own apprenticeship requirements can be transferred or pledged to non-levy-paying businesses of their choice , such as those in their supply chain , businesses within their community or in similar sectors .
Non-levy-paying businesses can apply for pledged funds by searching the Government ’ s public website https :// transfers . manage-apprenticeships . service . gov . uk . This is a fantastic way to cover your portion of the costs of training and assessing apprentices .
WHAT DO EMPLOYERS HAVE TO DO TO SUPPORT THEIR APPRENTICE ? As with any new employee or someone transferring departments or starting a new position , an employer is expected to provide a level of support ; an induction programme , access to training materials and mentors etc .
It is no different with an apprentice , but you will have chosen a training provider . Details are available from the Growth Hub Skills advisers or www . apprenticeships . gov . uk . The training provider will support both the apprentice and you , with all three of you entering into a Training Agreement outlining everyone ’ s responsibilities .
Each apprentice is to be provided with 20 per cent off the job training , which is an opportunity for them to receive experience in other areas than their chosen role . This could be attendance at meetings or shadowing other team members and provides you with opportunities to align the person ’ s skills to your own business . Some courses require the person to attend college or a training setting for a day a week or in blocks . This is to be supported and agreed at the outset .
Some employers allow their apprentices space and time to study within the working environment and others have arranged group networking sessions for apprentices studying similar subjects with other employers in the local area . Providing opportunities to shadow other team members can also be valuable .
LET ' S DO THIS ! With 78 per cent of employers saying that apprenticeships helped them improve productivity and 74 per cent saying apprenticeships helped them improve the quality of their product or service overall , surely it ’ s worth discussing the options open to you further ?
If the answer is ‘ yes ’, we can provide impartial help , advice and guidance , supporting you through the process of growing your business through apprenticeships .
Contact the Swindon and Wiltshire Growth Hub Skills team on 01249 477 288 or email skills @ swgrowthhub . co . uk .
Check out the events section of our website for our upcoming National Apprenticeship Week webinars or watch content on demand at : www . SWGrowthhub . co . uk
THE BUSINESS EXCHANGE 2022 19