GROW YOUR BUSINESS WITH AN APPRENTICE
Why employ an apprentice?
Over 130,000 businesses across the UK offer Apprenticeship places because they recognise their effectiveness at increasing productivity, improving business performance and ensuring a committed and competent workforce.
Recruiting apprentices enables employers to fill the skills gaps that exist within their current workforce as apprentices begin to learn sector specific skills from day one; developing specialist knowledge that will positively affect your bottom line.
In addition to eager, motivated staff who are committed to on the job training and development, industry research has highlighted numerous direct and indirect benefits of apprenticeships for both recruiting new apprentices and for training your workforce.
- 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 those employers who employ apprentices agree they make their workplace more productive
- 81% of consumers favour using a company which takes on apprentices
* Data compiled by the National Apprenticeship Service
Apprenticeship Levy – What is it?
This was first announced by the Chancellor George Osborne in the November 2015 Budget, the Apprenticeship Levy aims to fund 3 million apprenticeships in the UK by 2020. It affects all organisations above a certain size, committing them to either taking on apprentices or paying a percentage fee of their PAYE wage bill.
Do I need to pay the Apprenticeship Levy?
If your payroll comes to over £3m a year, the answer is yes.
What will it cost?
The levy is 0.5% of your PAYE bill however there is an allowance of £15,000.
What does it mean in practice?
An employer of 250 employees, each with a gross salary of £20,000
Paybill: 250 x £20,000 = £5,000,000
Levy sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 – £15,000 = £10,000
What is the aim of it?
While some are calling it a tax on business, the main aim is to persuade you to take on more apprentices. They can be from outside your organisation, but you can also retrain current employees to take the next step on their career ladder, or to change direction.
What is the Apprentice National Minimum Wage? (NMW)
The minimum wage for apprentices in 2019 is: –
25 & over = £8.21 per hour
21 – 24 = £7.70 per hour
18 – 20 = £6.15 per hour
Under 18 = £4.35 per hour
The apprentice rate of the NMW, which applies to apprentices aged under 19 or those aged 19 or over and in the first year of their apprenticeship, has increased to £3.90 per hour.
Can an apprentice study for a degree?
Yes – There are a wide range of different apprenticeships at degree level. As a degree apprentice, your employee will spend 20% of the their working week studying towards a qualification at university, college or with a training provide
Where can I go for a step by step guide to apprenticeships and skills development?
HOP IS THE ONE-STOP SHOP FOR TALENT.
Powered by Hertfordshire Local Enterprise Partnership, businesses and employees wishing to upskill, are now able to HOP into all the resources they need to make informed career decisions and build a future talent pipeline.
HOP is the premier gateway in Hertfordshire to find out about:
- Career path options
- Apprenticeships and offering work experience
- Skills development and professional qualification programmes
THE HOP STORY
In 2018, Hertfordshire LEP recognised the need for students, employers and training providers to access advice and guidance on qualifications and apprenticeships via one portal. Students from Thomas Alleyne Academy in Stevenage came up with the name Hertfordshire Opportunities Portal, and that is how HOP sprung into life!
WHAT ARE YOU WAITING FOR?
Click here to HOP into success!