As the recession eases, organisations that commit to Apprenticeships will reap the benefits

Date: 2010-02-01 17:20
By Simon Waugh, Chief Executive of the National Apprenticeship Service

As the recession eases, organisations that commit to Apprenticeships will reap the benefits

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Research released today shows that almost two-thirds of companies are looking to recruit staff in 2010 - great news as we begin to emerge from a recession. So why choose to hire apprentices as part of this mix?

It is true that Apprenticeships have, in the past, been considered the poor relation to other career routes, with graduates perceived as the ‘model’ for an intelligent, capable workforce. Yet with hundreds of companies reporting that apprentices have made a positive contribution to their business during the recession, it’s never been more essential for organisations to reap these benefits. In doing so, they will really set themselves apart from the competition.

Our research shows that 79% of firms feel apprentices have provided their business with staff that are value for money, with a large percentage reporting increased productivity and enhanced business reputation. It’s hardly surprising then that there has been a flood of announcements about more businesses recruiting apprentices.

BT last week announced work placements for 3,000 youngsters. It has calculated an annual net profit of more than £1,300 per apprentice when compared to non-apprentice recruitment for the same positions.  In addition, it has found that its apprentices generate a rate of productivity that is 7.5% higher than non-apprentices.  

Similarly, 85% of BAE Systems apprentices who have completed the programme fulfill tasks correctly first time in comparison with external recruits who average 60%.  This is hard evidence that shows apprentices are good for business.

However, it is clear that the public sector still needs to switch on to this message. Nationally, only 10 per cent of Apprenticeships are provided by the public sector. The time is now to boost this figure ensuring that the public sector can compete with and reap the benefits exemplified by our private sector partners.

Apprenticeships are no longer only suited to manual occupations. Although trade sectors remain extremely important, Apprenticeships now span almost 190 job roles; from accountancy to social care, education to medicine and dentistry to communications.

Also, you also do not need to be a large employer to afford to take one on. Every year at the National Apprenticeship Awards I see inspirational small and medium sized businesses that demonstrate the rewards that apprentices bring to their bottom-line.

Apprentices bring creativity and innovation, a lower staff turnover and increased productivity to name just a few of the benefits. With apprentices providing a talent pool to choose future managers from, they are an investment to the success of any organisation. And what’s significant is that consumers want to use organisations that invest in young people. 80% of people reported that they are more likely to use a business if it offers Apprenticeships [Good for Business research, YouGov 2009]. In fact, people are just as keen to use an organisation that supports young people as they are from one that has fair trade agreements with its suppliers or that has strong environmental credentials. Surely with such a demand, organisations would be naïve not to even consider apprentices as part of their workforce.

Last year saw a 7% increase in apprentices, that’s 240,000 people freshly into the jobs market beginning their new professions.  And there are plenty more committed individuals eager to launch a career in your sector, they just need the opportunity to prove themselves.

This week, the talents and skills of apprentices will be celebrated nation-wide. I urge your organisation to use Apprenticeship Week to consider how apprentices could bring benefits to your work place.


Apprenticeship Week takes place from 1 to 5 February.  To find out more about hiring an apprentice visit www.apprenticeships.org.uk or call 08000 150 600.