Top 8 Benefits of Hiring Apprentices for Employers

Apprenticeships are a great investment for employers, regardless of the industry they are in. From increased employee satisfaction to better retention rates. Apprenticeship programmes are a proven way of helping individuals developing careers and generating better business outcomes.

Over the years, the benefits of apprenticeships have been researched thoroughly. And by far more that 90% of organizations have reported that they have experienced additional benefits to their business. How so? When you hire an employee, you can only benefit from the skills that they already own, but with an apprentice you have the luxury to train them in skills that are rare to find in employees, but ones you need to get the job done.

These apprentices go on to become skilled professionals with valuable skills that are in-demand. Organizations would be ready to pay top dollar to such skilled individuals.

What is the Impact of Apprenticeships on Businesses?

Apprenticeships can help you build a skilled talent pipeline for your organization. With apprenticeships you get the choice of training apprentices in essential soft skills as well as specific technical skills that your organization would benefit from. Naturally, an organization is only as good as its workforce. The success of a firm depends on its skilled workforce. But the war for talent in the competitive business landscape makes it hard for organizations to acquire top talent. With apprenticeships, you can develop the talent you need in-house, instead of struggling to find it out there. It is an effective way to recruit, train and retain talent for the future.

So, in crisp points, here’s how apprenticeships impact businesses.

• On-the-job training allows employees to not just learn skills theoretically but apply them during their tenure on a daily basis.
• There is no age barrier when it comes to apprenticeships. Based on certain minimum criteria, individuals of all ages, backgrounds and career levels can choose to be part of apprenticeship programs depending on their field of interest.
• Employees develop into skilled staff that bring value to the business, that can be applied throughout their careers.

What are the Benefits of Apprenticeships for Employers?

With a skills shortage in every industry, businesses have been actively forced to re-evaluate their strategies to acquire talent.

Some of the benefits of apprenticeships for employers are-

1. Save on recruitment costs

Recruitment can be a costly affair. From job postings to onboarding, you need to spend quite a bit of resources to find the right candidate and it isn’t all that easy, especially with the huge skilled talent gap that is existing currently. On the other hand, hiring apprentices is a cost-effective way of developing talent. On a social and economic basis, it is a great way of supporting the development of talent. With government giving away grants, running apprenticeship programmes is even cheaper due to the low stipend rates paid to the apprentices.

2. Groom them with custom skills required by the organization

Employers who invest in apprenticeship programs gain the advantage of training apprentices very early on in their apprenticeship tenure, as per the needs of the organisation. And cherry on top, unlike employees, who already have a set of talent and aren’t very fluid when it comes to learning and acquiring new knowledge, apprentices are fresh out of college or are completely new to the subject and field and most importantly are here to learn on-the-job and perform. So, their interest to learn and prove their mettle, works in the employer’s favour and is a value-add to the organization.

3. Government funding

The government funds employers for apprenticeship programs. As an employer you can make the most out of this opportunity by preparing your apprentices for a meaningful future in your business, by acquiring well recognised qualifications.

• If you’re a levy-paying employer, you can use the funds in your account to pay for apprenticeship training and assessment (up to a funding band maximum)
• If you’re a non-levy paying employer, you can share the cost of apprenticeship training with the government.

National Apprenticeship Promotion Scheme (NAPS) is a new scheme of the Government of India which was launched on 19th August 2016 to provide financial support to establishments undertaking apprenticeship training. NAPS can help establishments, (especially MSMEs) to engage apprentices by reimbursing 25% of their monthly stipend as per the Apprentices Act and Pay.

Note that the stipend to be paid to the apprentice and other associated costs like licences to practice, travel and subsidiary expenses etc) is your responsibility as their employer.

4. Diversification across teams

Hiring from the usual recruitment methods, can limit your access to talent. What we mean is while you may get certain good prospective candidates through, job postings, social media recruiting and job portals etc, apprenticeships can bring you talent from across diverse backgrounds and interests with a hunger to learn and develop new skills. And it’s a well-known fact that a diverse workforce can bring in new, fresh perspectives and innovation to daily operations and decision making, resulting in greater productivity.

5. Increased retention rates

Retaining talent is one of the biggest challenges for organizations. And it’s a well-known fact that apprentices are far more likely to stay with an organization as opposed to full-time employees for obvious reasons. Apprenticeship programmes encourage young individuals to consider their apprenticeship tenure as a stepping stone to a successful career, which is why apprentices stay on with the organisation, if given the opportunity to work as a full-time employee. This ultimately reduces the recruitment costs and leads to better staff retention.

The opportunity for further development is often the driving force behind loyalty to a business, with many candidates enrolling on apprenticeship programmes because of the structured progression offered.

6. Enhanced quality of talent acquisition

With apprenticeships you get an opportunity to attract fresh talent. You get a wide variety of choice to choose talent that you would like to train in skills that you require for your organization, or candidates with a set of skills, ready to learn more and become skilled specialists. Either way, hiring apprentices is a worthwhile investment.

As apprenticeship programs are open to individuals of all ages, businesses can use this to their advantage and hire talent that suits their organizational needs.

Employers can get a mix of talent, that’s diverse, skilled and are ready to learn and thrive in a competitive environment.

7. Minimize the skills shortage

Skills shortage is common in every industry. Apprenticeship training can help reduce the skills gap as individuals are trained and taught on the job. Tech businesses in particular can strengthen their workforce through software engineering and software development apprenticeships, enabling them to future proof the success of their company.

Investing in in-house talent always pays and is also becoming a sustainable way to navigate the effects of the pandemic.

8. Develop a better long-term relationship with employees

Most employees look for workplaces where they are well-compensated, valued for their contributions, and have opportunities for learning and growth. An apprenticeship program can meet these needs, fostering a mutually beneficial long-term relationship.

Apprenticeships are Great for Businesses

The long-term growth and success of a business depend on the continuous development and upskilling of its workforce. Apprenticeship programs are a valuable investment in both your team and your business. Nurturing young talent through apprenticeships fosters loyalty to the company and is more likely to create an engaged and committed workforce.

Investing in an exciting and innovative apprenticeship programme will ultimately produce a supportive environment for existing employees and apprentices alike.

As a registered third-party aggregator (TPA), Alp Consulting gives you access to our large pool of talent and future workforce along with consistent assistance through every step of the National Apprenticeship Promotion Scheme.