Report

Apprenticeships and UK’s Businesses – £1.8 billion of net economic benefits, around £2,000 per apprentice but many organisations appear unaware of the full apprenticeship offer

Apprentices delivered around £1.8 billion of net economic benefits to UK organisations last year according to the latest research from the Association of Accounting Technicians (AAT), the UK’s leading qualification and membership body for accounting staff.

The report, compiled by the Centre for Economics and Business Research (Cebr), found that apprentices offer UK businesses a significant return on their investment, with economic output often exceeding average wage and training costs.

Individual organisations saw a bottom line boost of around £2,000 per apprentice
The research report The Value of Apprentices (PDF) presents a compelling case for organisations to take on even one apprentice: every time they do they receive, on average, a bottom-line boost of around £2,000 once wage and training costs have been factored in. This benefit per apprentice was shown to be highest in London where organisations enjoyed an average net benefit of £2,621 per apprentice.

The key findings of the research are:

  • Apprentices delivered about £1.8 billion of net benefits to organisations in the UK in 2012/13. For most apprenticeship frameworks – particularly services frameworks – the value of the economic output produced by apprentices exceeded wage and training costs.
  • The average apprentice gave UK organisations a net benefit of £1,845 in 2012/13. For organisations in England the average net benefit was £2,088. This is the net financial gain that an organisation could expect to realise on average, after wage and training costs have been deducted.
  • Existing survey research supports these findings, showing that businesses report tangible economic benefits from hiring apprentices. Nearly three quarters (72%) of businesses surveyed for the Department for Business, Innovation and Skills (BIS) stated that apprentices had improved product and service quality, while 68% said that apprentices had improved productivity. Hiring apprentices has also often brought additional benefits, such as improved staff morale, staff retention and organisational reputation.
  • Organisations in the North West saw the greatest aggregate net benefit in 2012/13, at £279 million. The South East of England saw the second highest net benefit, at £253 million. The estimated regional net benefits are tabled below.
  • The net benefits of apprenticeships vary for different types of framework – Team Leadership and Management is estimated to yield the greatest organisational net benefit per apprentice, followed by Business Administration and Hospitality and Catering.
  • Despite the research in this report demonstrating the economic gains that can arise from hiring an apprentice, many organisations appear unaware of the Government’s apprenticeship offer – particularly smaller organisations. According to a Department for Business, Innovation and Skills (BIS) survey of employers whose employees had finished an Apprenticeship programme between August 2011 and March 2012, about two fifths (39%) of organisations with 100 or more employees knew little or nothing about the Government’s apprenticeship offer, a figure that rose to just under three fifths (58%) for businesses with 1-24 employees. This suggests that many employers are unlikely to be aware of the full benefits of apprenticeships, the subsidies that are available and training assistance on offer.

Despite the research in this report demonstrating the economic gains that can arise from hiring an apprentice, many organisations appear unaware of the Government’s full apprenticeship offer – particularly smaller organisations. According to a Department for Business, Innovation and Skills (BIS) survey of employers whose employees had finished an Apprenticeship programme between August 2011 and March 2012, about two fifths (39%) of organisations with 100 or more employees knew little or nothing about the Government’s apprenticeship offer, a figure that rose to just under three fifths (58%) for businesses with 1-24 employees. This is illustrated in Figure 1 below:

Capture d’écran 2016-06-13 à 08.22.25

Chosen excerpts by Job Market Monitor. Read the whole story at  AAT research shows the value of apprenticeships to UK businesses | AAT

Advertisements

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter

Categories

Archives

%d bloggers like this: