As an SME, we understand that you may be currently facing some additional challenges due to the devastating impact of COVID-19. Hiring is often assumed to be too expensive in the circumstances, but through access to apprenticeship funding and an Apprenticeship Levy Transfer, hiring an apprentice could be your organisation’s saviour.
Being an SME, we understand that you may feel at a disadvantage when looking to employ an apprentice in comparison to larger companies. We want to reassure you that apprenticeships can work just as well within a smaller business.
If your business has an annual wage bill of less than £3million, you will not pay the Apprenticeship Levy. As an alternative, SME’s co-fund their apprenticeships with the government. The SME pays 5% towards training costs with the government paying the other 95%. This means employing an apprentice is a viable option for smaller businesses due to the significant reduction in training costs subsidised by the government.
Furthermore, on top of the existing scheme providing £1,000 to every employer who recruits a new apprentice aged between 16-18, the government have recently introduced additional payments for those who hire a new apprentice between 1st August 2020 and 31st January 2021. This is an attempt to incentivise apprenticeship recruitment and help get young people into employment following the devastating impact of COVID-19. Payments currently stand at £2,000 for every new apprentice recruited aged under 25 and £1,500 for those aged 25 or over.
Being an SME, we appreciate you may be concerned about how you will be able to mentor an apprentice effectively when there are already a limited number of employees within the business. However, as the apprentice will be performing a specific role within the business, it will not differ too much from employing a regular, new employee.
Alongside this, the apprentice will be undergoing off-the-job training tailored to the specific skills and knowledge needed within your business. Delivered by an external training provider, the apprentice will be learning outside of the workplace, equipping them with new expertise to put into practice each week.
Finding a Training Provider
The thought of finding a training provider as an SME may be a daunting prospect. However, the government have set up a great tool to assist with finding training providers in your area.
When selecting a training provider, it is important to consider:
- Do they have a good reputation?
- Do they have a good level of experience within your businesses sector?
- How well do they communicate with you?
- Does their style of teaching align with your business culture and values?
It is crucial to select a training provider with a high success rate, a good level of employer and learning satisfaction, and the ability to provide knowledge and skills tailored to your business. Ultimately, it would help if you had someone you can build a good relationship with to track and monitor the apprentice’s progression together effectively.
Being an SME, it is likely you will already have several relationships with other organisations and institutions within your local community. Reaching out to schools and colleges to engage with students would be a great way to attract potential apprentices to your business.
Currently, it is reported that there is limited guidance for individuals who are considering an apprenticeship. This means that alongside being able to recruit, you will also be contributing to raising awareness of apprenticeships and the benefits they can provide for young people.
If you would like to find out more about employing an apprentice, visit our dedicated guide.
Not necessarily. Sometimes, it can be even easier than a large enterprise as you don’t have to navigate the apprenticeship levy.
However, a common barrier for small businesses is that employing an apprentice involves committing to a contract that is at least 12 months long. Therefore, in uncertain times like these committing to any employment for that long seems unfeasible to many smaller enterprises who often have less expendable revenue.
However, with access to funding opportunities and potentially accessing a larger company’s excess apprenticeship levy could mean you don’t need to worry about the financial aspect of taking on an apprentice.
99.9% of UK businesses are classed as SMEs, so the types of apprenticeship will vary massive depending on the industry. However, in general, SMEs are more likely to look for apprenticeships with a shorter length of completion. These usually fall within the Intermediate or Advanced brackets.
Some examples of these apprenticeships include:
- Early years practitioner (Level 2, 12 months)
- Florist (Level 2, 24 months)
- Fundraiser (Level 3, 18 months)
- Camera prep technician (Level 3, 24 months)
- Buying and merchandising specialist (Level 4, 18 months)
- Hygiene specialist (Level 4, 24 months)
Search for more appropriate apprenticeships using our search tool.