Recruiting apprentices
Why should employers recruit apprentices?
Task Force and Network employers have given us a range of general business reasons for recruiting and employing Apprentices.
BAE Systems, British Gas, BT and Tesco have also outlined the specific business benefits of their Apprenticeships programme.
The following business reasons have been identified for recruiting and employing apprentices:
Positive return on investment
Benefits include higher productivity, quality of work, staff retention and employee satisfaction. BT for example has calculated an annual net profit of more than £1,300 per apprentice when compared to non-apprentice recruitment for the same positions.
Increased competitiveness
In the LSC’s National Employer Statistical Survey (NESS) of January 2004 almost half of the employers reporting “skills shortage vacancies” said they are losing business to competitors as a result of a lack of skilled workers.
Increased productivity
Task Force employers with case studies in this paper accept there is a strong link between adding value through training and higher productivity. BT apprentices generate a 7.5% higher rate of productivity than non-apprentices.
Higher quality of work
From the start apprentices are given the correct tools to do the job and are monitored by the programme’s assessors and through the company’s own quality control systems. Their quality of work therefore tends to be better than that of non-apprentices. At BAE Systems apprentices, who have completed the programme, fulfil tasks correctly at a rate of 85% right first time. External recruits complete tasks at a rate of 60% right first time.
Reduced costs
Usually businesses find costs are reduced by improved productivity, government funding, less waste and fewer costs related to sick pay. Lower wages also reduce payroll costs; this is accepted by young people as an investment in the future considering the high quality training results in a nationally recognised qualification at the end of the programme. Lower attrition rates lead to lower costs for recruitment and training.
Improved recruitment
Businesses need new blood to ensure they are able to deliver their strategic business objectives. By offering apprenticeships they find it easier to recruit able young people, e.g. this helps the gas industry, which is currently facing chronic skills shortages. In addition, the individual gets transferable skill that will satisfy his/her initial employment goal.
Increased staff retention
The British Gas apprenticeship programme reduces external recruitment costs as a result of high retention rates (95%). This gives British Gas a competitive advantage in a tight labour market by reducing its training and recruitment costs (annual wastage rates of ca. 5% are very low).
Higher employee satisfaction
Apprentices are highly motivated people who are keen to learn and have the potential to become ‘managers of the future’. They usually work harder and more effectively for your business than non-apprentices. Within BT Engineering, the apprenticeship teams show the highest level of employee satisfaction, currently running at 85%, and this is significantly higher than other (non-apprentice) teams.
More potential for career progression
Apprenticeship training usually provides the foundation for management roles and career progression. The BAE Systems programme develops 80% of the attributes required for a manager. Four out of 12 members of the BT Engineering senior management team were originally apprentices.
More efficient use of new technology
Technology driven companies will benefit from people who are exposed to various forms of new technology on the apprenticeship programme. At British Gas, for example, the gas servicing engineer is linked remotely to the business with regards to the automation of his work allocation administration.
Supplementing ageing work force
Over the last 10-15 years some companies have not invested enough in recruitment and therefore their work force is ageing. This is particularly evident in the construction industry. The apprenticeship programme is a cost-effective way of introducing new talent to the business and ensuring effective transfer of knowledge.
Widening the talent pool and increasing your appeal in diverse markets
The Apprenticeship offers people from all walks of life an attractive additional entry route to training, which allows businesses to widen the talent pool. This could also reduce skill shortages in certain sectors, e.g. only 1% of plumbing apprentices is female. It could also lead to a diverse management profile and provide employees with role models for career progression. They in turn would help increase your appeal in, and understanding of, diverse market segments.
Last Updated: 16/12/2011