Apprenticeships

Everything employersneed to know about

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ContentsWhat are apprenticeships?• Apprenticeships: a quick guide• Apprenticeship levelsThe benefits of apprenticeshipsEmploying apprentices• Finding an apprentice• Pay and conditions• Apprenticeship agreements• Grants and funding• Training and qualifications• Dos and don’ts of having an apprenticeCompanies making the most of apprenticeships• Aldi and Cyber-Duck• EE and BarclaysApprenticeship checklistReady to get started finding an apprentice?About AAT

Find out more at aat.org.uk/hiring

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What are apprenticeships?

The who, what, when and why.

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*http://www.bbc.co.uk/news/business-29454002

It can often be tricky to find employees with the specific skills you need.

Apprenticeships are the perfect way to ensure that your workforce is not only qualified, but has the job-specific and soft skills which will help your business succeed.

There can be a misconception that apprenticeships are only available in certain industries, but in reality they’re available in virtually every sector, from construction to healthcare, accountancy, media and engineering and cover over 1,500 job roles.

Over the course of this ebook we’ll be taking a closer look at exactly what apprenticeships involve and the benefits they can bring for employers.

Apprenticeships key stats

Source: gov.uk

Almost 9 in 10 employers that take on an apprentice report benefits to their business.

71% of apprentices stay with the same employer.

90% of apprentices stay in employment after finishing

their apprenticeship.

Mon Tue Wed Thu Fri Sat Sun

Businesses report an average increase in productivity of £214 a week when they hire apprentices.

Over half of the firms surveyed by the British Chambers of Commerce don’t think that graduates

are ready for employment.*

Find out more at aat.org.uk/hiring

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Apprenticeships: a quick guideApprentices are employed by a company for a set period – typically between one and four years – and during this time they’ll:

• work alongside experienced staff

• gain skills specific to the industry they are working in

• study towards a nationally-recognised qualification

• earn a salary.

As their employer, you’ll provide on-the-job training and pay their wages. An approved training provider – which can be a college or training organisation – will look after the rest of the training. This off-the-job training might be completed on day release or in set blocks of time. Once they have completed their apprenticeship, you can continue to employ them as you would a standard member of staff.

Pretty much anyone can be an apprentice, they just need to be:

• over 16

• not in full-time education.

Find out more at aat.org.uk/hiring

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In England there are three levels:

• Intermediate (Level 2) – The equivalent of five good GCSE passes. Apprentices work towards a work-based qualification such as an NVQ Level 2, Functional Skills qualification in areas such as communications and numeracy and, in many cases, a knowledge-based qualification such as a BTEC.

• Advanced (Level 3) – The equivalent of two A-level passes. An Advanced Apprenticeship leads to a level 3 qualification such as an NVQ, a knowledge-based qualification and Functional Skills, as well as relevant technical certificates.

• Higher (Level 4+) – Higher Apprenticeships provide an alternative path into high-level roles. Level 4 and 5 apprenticeships are equivalent to higher education certificates or diplomas or foundation degrees, while a level 6 apprenticeship is equivalent to a bachelor degree and a level 7 is like a Masters degree.

Apprenticeship levelsThere are different levels of apprenticeships which you can offer, depending on how qualified and experienced you want your apprentices to be. Once an apprentice has completed one level they can move onto the next.

There are currently 47 Higher

Apprenticeships on offer.

A study by ICM Research reveals that employers in England rate qualified Higher

Apprentices as 25% more employable than those

who took an alternative route into work.

Find out more at aat.org.uk/hiring

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Scotland

In Scotland, there are four levels of Apprenticeship:

• Modern Apprenticeships at SCQF Level 5

• Modern Apprenticeships at SCQF Level 6/7

• Technical Apprenticeships at SCQF Level 8/9

• Professional Apprenticeships at SCQF Level 10+

A Modern Apprenticeship is equivalent to Scottish National and Higher qualifications while a Professional Apprenticeship is equivalent to an Honours or Masters degree.

Wales

In Wales there are three levels of Apprenticeship:

• Foundation Apprenticeship

• Apprenticeship

• Higher Apprenticeship

A Foundation Apprenticeship is equivalent to five GCSEs at grade A-C while an apprenticeship is equivalent to two A-level passes. Like in England, Higher Apprenticeships can go up to degree level.

The Apprenticeship system works slightly differently in Scotland and Wales.

There are 25,000 Modern Apprenticeships available in Scotland this year.**

In 2012/13 just

over 28,000 people

in Wales started

apprenticeships –

compared to 17,900

in 2011/12.*

* http://gov.wales/newsroom/educationandskills/2014/140326app/?lang=en ** http://www.skillsdevelopmentscotland.co.uk/our-services/modern-apprenticeships

Find out more at aat.org.uk/hiring

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The benefits of apprenticeships

Apprenticeships can bring numerous benefits to employers. We take a

closer look at the main ones.

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Why have an apprenticeship scheme?

Source: skillstraininguk.com

92% of employers who take on apprentices believe they

create a more motivated and satisfied workforce.

83% of employers who employ apprentices rely on their apprenticeship programme to provide the skilled workers

they need for the future.

2015 2016 2017 2018

80% of companies who invest in apprentices have reported a significant increase in employee retention.

77% of employers believe apprenticeships make them

more competitive.

76% of employers who employ apprentices agree they make their workplace

more productive.

They can make your business more productiveApprentices tend to be keen to advance and eager to impress their employers, which leads them to be more prductive. They can also encourage other workers to work more efficiently too.

They’re cost effectiveApprentices are a really cost-effective way to both hire and train staff. You receive contributions towards training costs from the government and the recruitment process is typically simpler than hiring a regular employee, meaning it tends to be less expensive.

59% of employers

believe that apprenticeships

lead to lower overall

training costs and 53%

feel that they reduce

recruitment costs.*

* http://www.skillstraininguk.com/docs/E-Benefits%20of%20Apprenticeships.pdf

Find out more at aat.org.uk/hiring

They lead to a motivated, committed workforceGiving someone a job at the start of their career and equipping them with the skills and qualifications they need to advance up the ladder encourages loyalty, leading to a committed, motivated workforce.

57% of employers report a high proportion

of their apprentices going on to management

positions within the company.***

64% of apprentices

stay with the same

employer once they

have completed their

apprenticeship.**

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* http://www.skillstraininguk.com/docs/E-Benefits%20of%20Apprenticeships.pdf** http://www.skillsforlogistics.org/products-services/apprenticeships/*** http://www.skillstraininguk.com/docs/E-Benefits%20of%20Apprenticeships.pdf

They add value to your business, right awayApprentices start working and contributing to your business from day one, alongside their training. A third of employers say that they can have a positive effect on the company within just a matter of weeks.*

They ensure employees have the skills you needApprenticeship frameworks are all designed with input from employers, so they equip people with the skills that businesses actually need. Apprenticeships are also flexible and can be tailored to specific job roles, helping to meet the needs of your business and fill its skills gaps.

Find out more at aat.org.uk/hiring

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They can make companies more competitiveApprenticeships are a great way to attract enthusiastic staff with fresh ideas and a new perspective, who can help your business staff stay a step ahead of their competitors. Through their training programme, you’ll also be able to stay up to date of the latest developments in your industry.

77% of employers

believe apprenticeships

make them more

competitive and 81% of

consumers favour using

a company which takes

on apprentices.*

* http://www.skillstraininguk.com/docs/E-Benefits%20of%20Apprenticeships.pdf** https://www.gov.uk/government/publications/key-facts-about-apprenticeships

They have a positive impact on existing employeesTaking on apprentices shows you are willing to commit to staff training and development and that as a business, you’re looking to the future. This reassures existing staff and can lead to a more motivated workforce.

They help future-proof your businessNo one knows exactly what the future holds for their business, but apprentices can help you plan for the years ahead. When they first join, they will be at the start of their career and you can help arm them with the skills you’ll need further down the line and prepare talented apprentices for senior roles in your organisation.

As an extra bonus, from April 2016, employers will no longer be required to pay employer National Insurance

contributions for apprentices under the age of 25 on earnings up to the upper earnings limit.**

Find out more at aat.org.uk/hiring

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Employing apprentices

Convinced you need an apprentice? Everything you need to know

about hiring one.

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Finding an apprenticeIf you’ve decided your business can benefit from an apprentice, it’s easy to get started.

1 First things first. You need to check the apprenticeship framework for suitable apprenticeships in your industry. Apprenticeships are available in over 170 industries* – from accountancy to fashion, health and engineering – so there’s sure to be something that suits your needs.

2 Next you need to let your relevant apprenticeship agency know that you plan to hire an apprentice – they’ll be able to offer you help and support along the way.

England - National Apprenticeship Service Wales - Welsh Government Scotland - Skills Development Scotland Northern Ireland - Department for Employment and Learning.

3 You’ll need to find a training organisation to help you with your apprentices’ training, qualifications and assessment.

4 Check if you are eligible for any grants. There’s more information about the financial incentives you might be entitled to on page 14.

5 Advertise your apprenticeship – your training organisation will do this for you through apprenticeship vacancies. You can track your vacancies by registering as an employer.

6 Select your apprentice and make an apprenticeship agreement with them. You’ll need to take in applications and hold interviews, the same as when hiring for any other role. There’s further help and information available on Gov.uk.

* https://www.gov.uk/government/publications/key-facts-about-apprenticeships

Looking for an accounting apprentice? You can advertise your vacancy with recruitment specialists like Get My First

Job which would then appear on the AAT Jobs site.

Existing employees can also start apprenticeships, as long as the individual in question needs significant

new training and skills. However, there are some areas to consider in regards to wages and contracts. Your training

provider should be able to provide more information.

Find out more at aat.org.uk/hiring

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Apprentices work for a minimum of 30 hours a week. You also need to pay them for any time they spend training or studying for relevant qualifications.

Apprentices are a member of staff and should be offered the same working conditions as other employees at a similar level to them including:

• paid holidays – at least 20 days a year plus bank holidays

• sick pay

• benefits such as childcare vouchers.

Pay and conditionsOne of the big perks of apprenticeships is that they give people the opportunity to earn while they learn and all apprentices must be paid for the work they do. There is a set National Minimum Wage for apprentices. However, many companies offer more generous pay in order to attract top talent.

From October 2015 the minimum

wage for apprentices will be £3.30

per hour.*

This handy calculator can help you work out exactly how much to pay an apprentice.

* https://www.gov.uk/government/news/pm-and-dpm-announce-increase-in-the-national-minimum-wage

Find out more at aat.org.uk/hiring

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If you take on an apprentice you must both sign an apprenticeship agreement. This is basically a document detailing:

• how long the apprenticeship will last

• what skill, trade or occupation the apprentice is being trained in

• any training you’ll provide

• working conditions

• what qualifications they’ll work towards.

Without an apprenticeship agreement in place, the apprenticeship cannot be completed.

Apprenticeship agreements

It’s fine to write your own apprenticeship agreement, or you can use this handy template.

Find out more at aat.org.uk/hiring

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In England...

You can apply for a £1,500 apprenticeship grant if you:

• employ fewer than 50 staff

• employ an apprentice aged between 16 and 24.

You can claim the grant for up to five apprentices.

In Scotland…

The ‘Adopt an Apprentice’ scheme sees companies getting a one-off payment to help cover wages and recruitment costs.

In Wales…

The ‘Young Recruit Programme’ sees employers receiving wage subsidies of up to £2,600 a year if they meet certain criteria.

In Northern Ireland…

An incentive of between £250 and £1,500 is available for employers whose apprentice successfully completes the programme.

Grants and fundingIn order to encourage small businesses to provide apprenticeships, there are financial incentives available. Grants and funding vary from region to region, so it’s best to contact your regional apprenticeship agency for full details.

Training fundingTraining for apprenticeships is also funded. The funding will normally be paid directly to your chosen training provider.

The amount of funding for training depends on the age of the apprentice and which region you’re based in.

Find out more at aat.org.uk/hiring

Most employers work with a training provider to develop their apprenticeship programme. A training provider will be able to help you:

• develop a training plan which reflects the needs of both your business and your apprentice

• review your apprentices’ progress.

Which training provider you work with will depend on a number of things, such as:

• which sector your work in

• the size of your apprenticeship programme

• whether you want to use your own in-house training materials.

Training and qualificationsTraining is one of the most important elements of an apprenticeship, ensuring that apprentices have the skills that your business needs.

QualificationsAs part of their training all apprentices work towards nationally-recognised qualifications. Most include*:

• a National Vocational Qualification (NVQ)

• a knowledge-based qualification such as a HNC or foundation degree

• functional skills qualifications in maths, IT or English

• a technical certificate such as a BTEC.

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You can find a training

provider using this handy tool.

When you’ve chosen

a training provider

you’ll need to set up a

Service Level Agreement

setting out both parties’

responsibilities.

* https://www.ucas.com/ucas/16-18-choices/search-and-apply/apprenticeships

Find out more at aat.org.uk/hiring

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Dos and don’ts of having an apprenticeYou’ll only get the most out of apprentices if you go about employing them and setting up your programme in the right way. Here are our top dos and don’ts to ensure apprenticeship success.

Don’T hire dozens of

apprentices at once

Start small, with one or two, and perfect your scheme

before expanding.

Do treat your apprentices the same as any

other members of staff

They are a valuable part of your business and should

be recognised for their contributions.

Don’T view apprentices as

short-term labour

If you invest in their training and development they could

be a real asset to your company for years to come.

Don’T throw them in at the

deep endTake the time to induct them into the

business properly and understand what role they can play in it.

Do think carefully about how much you want to pay your apprentices

Good wages can help you attract top talent. According to the National Apprenticeship

Service, the average salary is approximately £170 per week.

Do make sure you take advantage

of any grants available

Your regional apprenticeship agency should have full details of any funds

you are entitled to.

Find out more at aat.org.uk/hiring

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Companies making the most of

apprenticeshipsThese household names are already

benefitting from apprentices.

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Aldi*

As the fastest growing supermarket in the UK today, Aldi uses apprenticeships to hire and train the staff it needs to continue growing. It offers two routes for apprentices; the stores programme for people who want to work in retail and logistics. Both schemes are three years long and have the potential to lead to a full-time job. To help attract top talent, Aldi’s salary is significantly more generous than the Minimum Wage for apprentices, starting at £5.30 an hour in year one and rising to £7.63 in year three. All training takes place in-house and an assessor reviews apprentices’ progress every four weeks to ensure they are getting the help they need.

Cyber-Duck

Cyber-Duck is a leading digital agency, offering creative, technical and marketing expertise for clients including Cancer Research Technology and the EU. Their Finance Director, Mike Copping said: “The AAT Apprenticeship scheme has secured significant benefits for our award-winning Finance team. Apprentices like our Yalda Nabi – who recently completed AAT Level 2 – tend to be more ambitious, rapidly completing tasks and happily overcoming challenges. We believe they become more entrepreneurial, and eager to learn.”

In the top 20 employers on

Rate My Apprenticeship.

Cyber-Duck’s apprentices

study for AAT qualifications

* https://www.aldirecruitment.co.uk/apprentice/

Find out more at aat.org.uk/hiring

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EE*

Communications giant EE is planning to employ a massive 500 apprentices across its business over the next couple of years with positions in retail, contact centres and head office available. Chief of HR Patrick Bradley says that apprentices allow EE to ensure it has access to quality people, while also doing its bit to tackle youth unemployment.

Barclays**

Barclays recruits its apprentices based on attitude and potential rather than experience and qualifications. As well as receiving on-the-job training and a competitive salary, apprentices are also encouraged to work towards a vocational qualification. Earlier this year, Barclays announced plans to launch a new apprenticeship scheme specifically aimed at over-50s who want to start a new career in banking. Mike Thompson, Barclays’ head of apprenticeships says “Older people have more life experience, and can show more empathy. They will have had a mortgage, they will know how to budget and how to support customers.”

Top 100 Apprenticeship

Employer.

Barclays is launching a new apprenticeship scheme aimed

at over 50s.

Want to hear what having an apprentice is like from a company already benefitting from

one? Get in touch with the Apprenticeship Ambassador Network.

* http://jobs.ee.co.uk/graduates-and-apprentices/apprentices/** http://www.jobs.barclays.co.uk/apprenticeships-and-work-experience/

Find out more at aat.org.uk/hiring

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n Have you identified a need for an apprentice? What role would they

perform?

n Have you checked to see if there’s an apprenticeship framework which

matches your needs?Check the available frameworks online.

n Are you entitled to any funding?Your regional apprenticeship agency

should be able to let you know:• England - National Apprenticeship Service• Wales - Welsh Government• Scotland - Skills Development Scotland• Northern Ireland - Department for Employment and Learning.

n Have you found a training provider?Find a training organisation.

n Have you identified someone in-house who can help organise and lead the

apprenticeship programme, offering support to apprentices as needed? If you’d like to set up an accountancy apprenticeship, AAT can help. Find out how on the next page.

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Apprenticeships checklistReady to start offering apprenticeships? Check you’ve got everything you need in place…

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Find out more at aat.org.uk/hiring

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Ready to get started finding an apprentice?If you wish to advertise an apprenticeship vacancy (or you need help with setting up your AAT apprenticeship scheme), you’ll need to contact the National Apprenticeship Service: you can give them a call on 0800 0150 600 or head to the website.

You can also advertise your apprenticeship vacancies by contacting Get My First Job. These vacancies will then appear in AAT’s job site.

To find an AAT qualification and to access funding for your apprentice, you’ll need to find local training providers and express your interest in setting up an apprenticeship scheme with them.

Find out more at aat.org.uk/hiring

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AAT offers practical, skills-based accounting qualifications that work for employers, not just employees.

Find out more about training your staff.

Attract the best talent

AAT professional development and AAT apprenticeships enhance your reputation and attract effective candidates.

Find out more about recruiting AAT qualified staff.

AAT Employer accreditation

Supporting AAT professional development for your staff sends out the right signals as an employer.

Find out about becoming an accredited employer.

AAT apprenticeships

Find out more about offering AAT apprenticeships and get help finding funding information.

Find out more about AAT apprenticeships.

About AATAAT for your business

Find out more at aat.org.uk/hiring