In May 2017, the government introduced the Apprenticeship Levy, requiring employers with an annual pay bill of more than £3 million to invest 0.5% of it into a ring-fenced pot. These employers can then use the funds to up-skill existing employees or take on new apprentices.
As an employer, it’s important to make the most of your levy payments to promote career development, engage and incentivise employees, improve staff retention and productivity and attract the next generation of talented, value-adding recruits.
Apprenticeships represent a tried and tested investment for organisations of all shapes and sizes, across multiple industries. When it comes to staff retention, 80% of companies who invest in apprentices have reported a significant increase, while 77% of employers believe apprenticeships make them more competitive, and 76% agree apprentices make their workforce more productive.
who invest in apprentices have reported a significant increase in staff retention
believe apprenticeships lead to a more motivated and satisfied workforce
83% of employers who employ apprentices claim they rely on their Apprenticeships programme to provide the skilled workers that they need for the future, which is perhaps why unsurprisingly 57% of these same employers report a high proportion of their apprentices go on to secure management positions within the company.
Still not convinced? 59% of employers who employ apprentices believe that training apprentices is more cost effective than hiring skilled staff and a further 33% believe apprentices add value within the first few weeks.
Changes have recently been made to the way the Apprenticeship Levy works. Please see the useful link below:
For more details on when your levy will expire, please click here