SMEs could boost bottom-line by £2k by taking on an apprentice
2 min read
03 March 2014
An Association of Accounting Technicians report, compiled by the Centre for Economics and Business Research, found that apprentices offer UK businesses a significant return on their investment, with economic output often exceeding average wage and training costs.
In fact, apprentices delivered around £1.8bn of net economic benefits to UK organisations last year. The research report ‘The Value of Apprentices‘ presents a compelling case for firms to take on even one apprentice: every time they do they receive, on average, a bottom-line boost of more than £2,000 once wage and training costs have been factored in.
However, despite these encouraging findings, a lack of awareness of the Government’s apprenticeship offer and its benefits means that many organisations, particularly smaller enterprises, are missing out.
Around 60 per cent of small businesses surveyed by The Department for Business, Innovation and Skills in August 2013 were found to be lacking a basic knowledge of the Government’s programme and the support available such as subsidies and expert advice.
Critically, the research highlights that businesses do not have to wait in order to realise the financial gain of hiring an apprentice, with many companies enjoying economic benefits while their apprentice is still in training. Once the apprentice is fully qualified employers can expect to see further productivity improvements while apprentices can expect to benefit from increased earnings potential.
The Department for Business, Innovation and Skills’ own findings report a high percentage of employers reported enjoying the numerous benefits from hiring apprentices, including improved product and service quality (72 per cent), enhanced productivity (68 per cent) and even increased morale and organisational reputation.
Commenting on the research, Prime Minister David Cameron said: “Delivering the best skills is a crucial part of our long-term economic plan for Britain. More apprenticeships mean more opportunities for young people, giving them financial security and Britain a better future”.