The value of an Apprentice
Apprentices provide significant returns on investment for many businesses according to a recent report, with economic output constantly outweighing the costs of training and wages.
The report from the Association of Accounting Technicians and compiled by the Centre for Economics and Business Research said apprentices delivered around £1.8bn of net economic benefits last year.
Entitled The Value of Apprentices, the research suggests that firms receive a bottom-line boost of more than £2,000 once the cost of wages and training have been factored in.
This is a significant sum, especially for a start-up or relatively young company where finances could be stretched.
Therefore, there is a very compelling case to hire in apprentices although the report also suggested that many companies are unaware of the benefits available to them.
Around 60% of the businesses surveyed by the Department for Business Innovation and Skills (DBIS) in 2013 were found to lack knowledge of available government schemes.
Subsidies and expert advice are available from the government, although the major benefit would appear to be the financial gain that having an apprenticeship brings.
Quick financial gains
A major factor in this revolves around the fact that financial gains can be seen while the apprentice is still in training.
In cases where finances are tight, or where business restructuring might be being considered, hiring a worker of this type could represent a great means of saving.
Once fully qualified, an apprentice should only continue to get better; meaning a greater return on investment is likely for every day that the individual spends with the company.
This should go hand in hand with an increased earnings potential, so it’s possible for both the business and apprentice to benefit.
It would seem that an apprentice is no longer reserved for a prime-time slot in a BBC television show, as they can increasingly play an important role in business development.
Those companies willing to take a risk on such individuals could stand to see significant returns in the long-term.
Elsewhere, the business concerned is also likely to experience enhanced productivity, increased office morale and a better product service, according to the DBIS.
By Phil Smith