Smaller businesses in the West Midlands are embracing apprenticeships, with 76 per cent of SME owners and senior workers who have taken on apprentices saying that they have added value to their business within six months of taking them on, according to a new study by AAT (Association of Accounting Technicians).
The study, commissioned for National Apprenticeship Week (5-9 March), shows that businesses appreciate the value apprenticeships can bring to them, with 60 per cent saying that taking on apprentices has been good value for money for them, 64 per cent saying that they get staff who are more suited to their businesses and the skills they need by taking them on as apprentices, and 48 per cent saying they have boosted productivity within their business.
The average number of apprentices taken on by small businesses in the West Midlands in the past two years is four (compared with an average of three across England as a whole), with 12 per cent saying that they have taken on five or more. 80 per cent say that the number of apprentices they have taken on in the past five years has grown. In a signal of satisfaction with their apprentices, all of those questioned say that they are very likely or quite likely to take on more apprentices in the next two years.
68 per cent of those who have taken on apprentices also said that apprenticeships are the best pathway into the industry in which their business primarily operates, versus 24 per cent who said a university degree is the best.
On average, the businesses in the West Midlands who have taken on apprentices say they have offered to keep on two thirds (66%) per cent of them after they finished their apprenticeship, with one in five (20%) saying they have offered to keep on all the apprentices they have ever taken on.
When looking to take an apprentice on, 40 per cent found out how to hire one from a government website, 32 per cent found out from a registered training organization, 12 per cent found out from their local FE college or training provider, and 12 per cent got a word of mouth recommendation. 64 per cent of those who take on apprentices said they take the initiative and contact their local FE college or training provider to help them find apprentices, 56 per cent say they get contacted themselves, but 8 per cent say they don’t contact or get contacted by local colleges.
40 per cent of those who have taken on apprentices say they have already accessed available funds from the Apprenticeship Levy to help train a new employee. 40 per cent say they have already accessed funds to help train an existing employee. 20 per cent say they have not accessed funds but intend to do so this year, 8 per cent say they have not accessed funds but are likely to do so over the next few years, and 8 per cent say they were totally unaware that funds from the levy were available for their business.
Of the businesses spoken to who have never taken on an apprentice, 41 per cent say that they feel there are still barriers holding them back from taking one on (compared to 39% across England as a whole). Of those, 24 per cent say trying to find out how to get funding is too complicated, 19 per cent say the cost of starting an apprenticeship scheme is the biggest barrier, and 10 per cent say they don’t know how to start a scheme. Despite there still being perceived barriers for these businesses, over two thirds (67%) of those who have never taken on an apprentice say they are currently planning to take some on.
Rob Alder, Head of Business Development at AAT says: “The theme of this year’s National Apprenticeship Week is ‘Apprentices Work’, and our research shows that smaller businesses in the West Midlands hugely endorse apprentices within their own firms. It shows that many smaller businesses value the benefits apprentices can bring to them, and that apprentices can over time be trained to meet the skill requirements the business needs. Those who have taken on apprentices are happy with them, and even those who haven’t yet taken any on are making plans to do so.
“However, the fact that there are some who still feel that there are barriers to them taking on apprentices, and who are having problems with costs and understanding the system, shows that more still needs to be done to raise awareness and help smaller businesses especially.”
