16 May Why are the published financial returns not increasing Apprenticeship vacancies?
If you spend a little time to look at the promotion of Apprenticeships from the sector to businesses, you’ll see some great statements, things like:
Reduce your recruitment costs
Improve your productivity
Increase employee engagement
‘Grow your own’
But you’ll see less hard financial statistics at a provider or employer level to back these statements up.
In 2015 the Centre for Economics and Business Research (CEBR) published a report that set out some financial benefits for employers and for the economy. One of the most interesting benefits published in this report is:
The benefit to an employer of hiring an apprentice is the value of the economic output produced by an apprentice, plus any subsidies received, less wage and training costs. This equates to an average of £1,670 per annum for the average apprentice in England but can rise as high as £13,824 and £9,721 for team leadership and management, and business administration apprentices respectively.
That’s pretty powerful stuff isn’t it? A quantifiable NET financial benefit to business after they have paid wages and training costs!
As we move to the new world of levy paying businesses purchasing training and assessment services to support their apprentices, the more Apprenticeship providers can capture and demonstrate the NET financial benefit to their customers, the greater their success will be.