Your Career. Our Priority.
With rising employment costs, recent changes to the National Minimum Wage and wider budget announcements made last Autumn, have resulted in ongoing economic uncertainty and made it more challenging to hire staff in any business. However, this shouldn’t be a reason to ignore opportunities available to businesses, especially around apprenticeships.
Apprenticeships offer a practical, cost-effective way to grow your team, develop new skills and increase productivity. With Government funding and incentives, alongside training provider support, using an apprenticeship to upskill your existing team or grow it is a great way to maximise Return on Investment (ROI) and build key skills within your business, driving growth and future-proofing your business.
Currently, businesses in England that hire an apprentice aged 16 – 18 years old can receive an incentive payment of £1,000. This is managed by the training provider, meaning there’s no additional admin for employers. This incentive was created to support businesses with training costs (where applicable), salary, travel and uniform. However, in most cases, this incentive is just that, as apprenticeship training is often fully funded*.
Whether a new hire or upskilling an existing member of your team, employers do not need to pay National Insurance Contributions (NIC) for any employee under 25 years old enrolled on an apprenticeship. In real terms, this can translate into significant savings:
For example, a first-year apprentice earning £8.00 per hour equates to an annual salary of £15,600, resulting in an NIC saving of approximately £1,590.
As salaries increase, these savings can grow even further:
£21,157.50 salary for an 18 – 21-year-old = NIC saving of £2,423.63
£24,784.50 salary for anyone aged 22+ years old = NIC saving of £2,967.67
£50,270 salary = NIC saving of £6,790.50
All figures are based on a 37.5-hour working week and minimum wage for that age group.
Over time, these savings could total thousands of pounds, making apprenticeships more than just a development opportunity, but a sustainable and financially sound business decision.
While the financial savings are important, the real value of apprenticeship ROI comes from long-term impact. Investing in apprentices means investing in people who grow with your business. This often leads to higher levels of engagement and loyalty, as employees value the opportunity to learn and progress. As a result, businesses typically see improved staff retention, reducing the ongoing costs of recruitment and onboarding.
At the same time, apprenticeships help build critical skills within your organisation. Rather than relying on external hires, you develop capability internally, aligned with your processes, systems and culture. Let’s take AI as an example.
Areas like AI, data analysis and automation are no longer reserved for large organisations. They are becoming essential for businesses of all sizes looking to improve efficiency and remain competitive. Tools like Power BI allow businesses to automate reporting, analyse performance data and make more informed decisions. When apprentices are trained in these tools, they bring immediate value by streamlining processes and freeing up time across teams.
This is where apprenticeship ROI becomes even more powerful. Businesses aren’t just saving money, they’re increasing skills and efficacy, allowing teams to do more with the same resources.
With the right support, apprenticeships become more than just a training programme. They become a long-term investment in your business success. If you’re looking to grow your team, develop new skills and improve efficiency, apprenticeships offer a clear and proven return on investment.
Get in touch today for an informal chat about how you can maximise apprenticeship ROI and build a stronger, future-ready workforce.
*Apprenticeship training is fully funded for SME’s hiring staff under 22-years-old. Larger employers use the Growth and Skills Levy (previously the Apprenticeship Levy) to fund training.
