Economic Benefit

Apprenticeships help businesses grow their own talent.

Nearly every employer that takes on an apprentice (96%) reports benefits to their business, while 72% of businesses report improved productivity as a result of employing an apprentice.
Other benefits reported by apprentice employers include improved product or service, the introduction of new ideas to the organisation, improved staff morale and better staff retention, each mentioned by around two-thirds of employers.

Apprenticeships develop a motivated, skilled and qualified workforce.

Businesses that offer apprenticeships view them as beneficial to their long-term development. According to the British Chambers of Commerce, most employ an apprentice to improve the skills base within their business.
Apprentices are supported by quality training from local training organisations.

Apprenticeships improve productivity while reducing costs.

Apprenticeships are boosting productivity by enabling businesses to grow their skills base. The average apprenticeship increases business productivity by £214 per week, with these gains including increased profits, lower prices and better products.
Apprentices are paid at least the relevant minimum wage and training costs are covered for many apprentices.

Businesses that employ up to 1,000 employees, may even get a £1,500 grant to help cover the cost of starting a new apprentice aged 16 to 24 years old, and 18,900 young people have been able to start an apprenticeship thanks to this grant.

The Learning and Skills Council surveyed businesses throughout the UK on benefits of hiring an apprentice (Populus, January 2009).

Of those surveyed:

  • 81% said that employing apprentices generated higher overall productivity for their company.
  • 66% said that their apprenticeship programme made them more competitive in their industry.
  • 92% said that their apprenticeship programme better motivated staff and increased job satisfaction.
  • 74% said that apprentices tended to be more loyal, remaining at their company longer than non-apprentices