May 10 2013

Take 5: How to hire an apprentice

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You don’t need to get a group of 16 candidates, narrowing them down one by one by giving them tasks like selling toilet roll.

It’s not just hairdressers and hospitality roles these days, either. In fact, according to Apprenticeships.org.uk, one of the most popular types of apprenticeships is business administration.

With an estimated 20 per cent of IFAs having left the industry since the RDR implementation, you might be looking at different options to hire. So here is Money Management’s quick guide to hiring an apprentice.

1. Find out which type of apprenticeship you want. There are more than 250 types available and they generally fall into three different levels: intermediate level (equivalent to five GCSEs), advanced level (equivalent to two A-Level passes) and higher apprenticeships (NVQ Level 4 and above or foundation degree level).

2. Are you entitled to any help? Employers may be eligible for a £1,500 apprenticeship grant. These are to help small to medium-sized employers recruit an apprentice aged between 16 and 24. You can even claim support for up to 10 apprentices.

These grants are in addition to any training costs for apprentices you may be able to claim back. For apprentices aged between 16 and 18, employers could get 100 per cent of the training costs paid and for those aged 19 to 24, you could get 50 per cent. For those over 25, you may only get a contribution.

3. Look at the costs. Taking on an apprentice can be cost-effective. Taking on somebody now can help you ready your business for when the economy fully comes out of the recession, offering a competitive advantage over those who have not.

4. Who else takes on apprentices? You won’t be the only one in the industry to take on an apprentice. The Chartered Insurance Institute (CII) offers four different types of apprenticeship in providing financial services in levels in intermediate, advanced and higher, plus a scheme at advanced level for providing mortgage advice.

5. Is it really worth it? If you’re still wondering whether taking on an apprentice is really worth it, take a look at these figures.

The Learning and Skills Council surveyed businesses around in UK in 2009 looking at the benefits of hiring an apprentice. The results showed 81 per cent said it generated higher productivity overall for the company while 66 per cent said their programme made them more competitive in their industry. Interestingly, 74 per cent said apprentices tended to be more loyal and remain at the company longer than non-apprentices. Finally, a huge 92 per cent said it better motivated staff and increased job satisfaction.

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