Benefits for both Employers and Employees.
Apprenticeships have been demonstrated to improve the efficiency and productivity of a business. A CIPD study has shown that apprentices can add value of £214 P/W to their employer.
Employees that engage in apprenticeships feel more motivated and valued in the workplace. As such apprentices are far more likely to stay at the same company long term which reduces recruitment fees for the business. Sector leaders such as Ford, Boots and Virgin have already heavily invest in apprenticeships. In fact Sainsbury’s PLC saw Team Leading apprenticeships as so vital to their business that, through their ’Managers for the future’ programme, they have invested in and trained 400 new team leaders in recent years. A successful apprenticeship really does benefit both the employer and the employee in the long term.
The apprenticeship levy came into affect as of April 2017 and only affects companies with a payroll over £3million regardless of whether they employ apprentices or not.
The Levy will be charged at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance.
Once employers in England have registered and paid the levy, theywill then be able to access funding through a digital apprenticeship service account.
Apprenticeships are not just for 16-18 year olds, they are now available for all ages of staff and new recruits to your company with funding available.