Are you making use of apprentices
to grow your business? 37 per cent of businesses say apprentices will be their
top source of talent this year according to a poll of more than 2,000 senior HR
professionals.
The poll, conducted by Alexander
Mann Solutions, followed the introduction of the Apprenticeship Levy in April
2017. The levy was designed to boost the number of young people going into
vocational training.
Previous research by the same
organisation revealed that 71 per cent of senior HR leaders are of the opinion
that the Apprenticeship Levy will create a new route into the workplace and
that it will effectively supplement or even rival the intake of graduates.
Sandrine Miller, head of emerging
talent consulting at Alexander Mann Solutions, says, “As these findings
suggest, leaders are certainly reassessing where they source fresh talent. And
while graduates remain the preferred choice for the highest percentage of
businesses, there are signs that the tide is shifting.”
University Applications Down, Apprenticeships Up?
Miller also comments that UCAS
has reported that university applications have declined by 4 per cent. “While
there will always be demand for graduate-level talent, HR Leaders are increasingly
considering the benefits of developing talent in house, where the role allows,
as part of a wider total workforce strategy,” she says.
Reports would suggest that new
apprenticeship starts have actually reduced by as much as 59 per cent since the
Apprenticeship Levy came into force. Miller however believes that this is most
likely due to the way businesses are reassessing long-term requirements, taking
the time they need to plan and implement new programmes. In other words she
says, “It’s the calm before the storm.”
The Apprenticeship Levy
The Apprenticeship Levy came into
force on 1 April 2017, replacing all taxpayer funding for apprenticeships for
companies of all sizes. 0.5 per cent of an employer’s wage bill goes towards
the levy, although there is an offset allowance of £15,000 equating to 0.5 per
cent of a £3 million wage bill. This means that all employers with a wage bill
greater than £3 million will be subject to the levy.
If you are unsure as to how
apprentices could benefit your business or need advice on how the
Apprenticeship Levy works, why not seek advice from your local bookkeepers?
