The benefits of employing apprentices
The current shortage of labour is causing staffing problems but taking on apprentices could reap rewards to your business.
Finding the right person with the right skill set can be difficult. Employing an apprentice, who is probably eager to learn, means training can be tailored to meet the needs of your business and fill a skill gap. Existing staff can also pass on their skills to the next generation of workers, future proofing your business.
Allowing staff to develop and build their career in your business can create a loyal workforce.
Apprentices are often young people who know a thing or two about technology. They may have skills your current workforce lacks and will probably be adaptable to change.
Productivity can also increase because their time frees up that of key workers.
Bringing a young person into your business creates a more diverse workforce and a new dimension to your team.
There are also financial incentives.
Employers with an annual wage bill of more than £3 million are required to pay the Apprenticeship Levy and they then receive funds to spend on training.
Those employers who do not pay the levy contribute just 5% towards training costs with the Government funding the remaining 95%.
Funding of £1,000 is also available to support your apprentice in the workplace if they are 16 to 18 years old or 19 to 25 years old with an education, health and care plan or they used to be in care.
For those apprentices aged 16 to 18, or over 19 but in their first year, the current National Minimum Wage rate is currently £4.81 per hour. Apprentices aged 19 or over who have completed their first year, need to be paid the National Minimum Wage or National Living Wage depending on their age.
Subject to qualifying criteria, employers do not need to pay Class 1 National Insurance for an apprentice.
If you are thinking of employing an apprentice and do not already have employees, you will need a PAYE scheme. If you want advice about your duties as an employer, please get in touch and speak to our payroll manager, Yvette, on 01756 799823.
Local collages will be able to provide you with further information about apprenticeships.