Across the world, skills shortages are hampering business growth in multiple industries, including engineering, technology and communications - with an expected global cost of $8.5 TRILLION.
Apprenticeships are a great way to fill gaps in the workforce - either via new recruits, or by upskilling existing workers. And if you pay the apprenticeship levy, it's often a no-brainer, because if you don't use your contributions within 24 months, your access to the funds will disappear. It really is 'use it or lose it'.
Here are three key things to consider if you want to use apprenticeships to upskill your workforce:
In the UK, if you're an employer with an annual wage bill over £3 million, you'll be paying the apprenticeship levy - designed by government to improve the quantity and quality of apprenticeships.
HMRC collects levy contributions every month and transfers them into digital apprenticeship service (DAS) accounts for employers to spend on apprenticeship training.
As soon as funds are collected, a clock starts ticking, and employers have 24 months to use the money. If they don't, contributions expire and Government claws back the money to reassign to SMEs.
More than 500,000 UK employers pay over £1.8 billion into the levy every year - but they're not making the most of it. Levy-paying employers have only spent 8% of what they've paid in, leaving £1.29 billion left in the pot. Government reinvests this money - often helping SMEs - but it pays to know that you can use contributions to invest in your business - either recruiting new apprentices or upskilling existing employees.
Over 500,000 employers pay £1.8 billion into the levy every year - but they're not making the most of it. Levy-paying employers have only spent 8% of what they've paid in, leaving £1.29 billion left in the pot.
This is a huge amount of money employers could be investing in their business - either recruiting new apprentices or upskilling existing employees.
Step one is 'Be open minded' - and don't assume that apprenticeships are just for young people learning a trade. There are hundreds of different apprenticeships available, from intermediate, right through to degree level - all of which will help you develop the high-level skills you need.
Next, it's worth taking time to think about your skills strategy. Do you have any skills gaps? Can any of your existing employees be reskilled or upskilled to fill the gaps? Do you have any new managers who need extra leadership training? Do you struggle with staff retention? If you've answered 'yes' to any of these questions, apprenticeships could be the solution.
Decide which skills areas you need to develop, and which employees would be most amenable to training. Then, head to the Government's 'Find an apprenticeship' site to find the right course and level. You can apply for the course and pay for training using your levy funds online.
Some forward-thinking employers are already using the levy to upskill their staff. The most popular degree apprenticeships in 2019 were for chartered managers and senior leaders - proving that it's becoming a route to achieving high level business skills.
If you're thinking about using apprenticeships to upskill your staff, download your ultimate guide to hiring an apprentice. It covers everything you need to know - from training providers to software.