Are apprenticeships a good return on investment?

An investment in apprenticeships is an investment in your team, so provide an excellent return on investment when aligned with business aims and L&D targets.

Research found 97% of employers reported at least one major business benefit from apprenticeships. 86% of employers highlighted the benefit of developing relevant skills in their team, whilst 78% reported an improvement in productivity because of apprenticeships.

Here Lifetime Training explain the benefits of apprenticeships and how employers can improve return on investment from training costs.

Measuring the impact of apprenticeships

There has been research into the financial benefits of apprenticeships, considering the increase in productivity against wage and training costs. A recent report found that young hospitality apprentices provided an average net annual benefit of £2,380 to their employer whilst still in training. The same report says the rise in productivity of apprentices benefited the hospitality sector by more than £40 million in 2018.

However, an overall figure is difficult to establish because of the differences in employer business objectives, type of apprenticeship programme, and industry. Instead, Lifetime work on an employer-by-employer basis to measure and track the wider effects of apprenticeships on business.

The method includes measuring the impact of apprentices in comparison to other employees of a similar level.

A large employer working with Lifetime reported that teams with apprentices achieved:

  • 20% more sales
  • 25% less labour turnover
  • 41% less quality issues
  • 28% less waste
  • 37% less team absence
  • 10% better customer feedback

Improving apprenticeship return on investment

Aligning apprenticeship programmes with key business aims is a way of both focusing and measuring the impact of apprenticeships on your business. Alongside this there are financial incentives to minimise training costs and therefore improve return on investment.

Financial incentives for young apprentices

Employers will receive a £1,000 government incentive for young apprentices aged 16 to 18, which further offsets the cost of training. Companies with less than 50 employees can get training fully funded for young apprentices aged 16 to 18 and will still receive the £1,000 incentive.

Plus, employers can save up to £691 a year through no employer National Insurance contributions for 16 to 24-year-old apprentices.

Launching an apprenticeship programme

Arrange a call back from Lifetime training’s expert team to discuss how your apprenticeship programme can achieve clear business results.

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The Apprenticeship Job Board - click here to apply for apprenticeship jobs and view your applications. 

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