SME Apprenticeship: A Guide for Employers

We discuss the value an SME apprenticeship could have for your business and how to become an SME apprenticeship provider.

Small and medium-sized enterprises (SMEs) in the UK are entering a new era of apprenticeships, with recent government changes making it easier and more cost-effective to bring fresh talent into their businesses. 

This guide will walk you through the process of employing an apprentice, highlighting the latest developments and benefits for SMEs.

Introduction: The New Era of SME Apprenticeships

In April 2024, the UK government introduced significant changes to apprenticeship funding, particularly benefiting SMEs. The most notable change is that SMEs no longer need to contribute 5% towards apprenticeship training costs for apprentices under 22 years old. 

This shift makes apprenticeships more accessible and financially viable for small businesses, opening up new opportunities for growth and talent development.

Understanding the Benefits of Apprenticeships for SMEs

Employing an apprentice can bring numerous advantages to your small business. Here are some key stats:

• Skill development: 86% of employers reported that apprenticeships help develop skills relevant to their organisation.
• Increased productivity: 78% of employers noted improved productivity after hiring apprentices.
• Fresh perspectives: Apprentices inject new ideas and enthusiasm into the workplace.
• Cost-effective training: With full government funding for under-22s, SMEs can now train new talent at minimal cost.

➡️ Bonus reading: Benefits of employing an apprentice

Choosing the Right SME Apprenticeship Programme

Finding the perfect apprenticeship programme requires strategic thinking beyond immediate recruitment needs. Your selection must align closely with your business’s current operational requirements and future strategic objectives.

Consider first the specific skills your SME needs to develop. Each industry has unique apprenticeship standards, ranging from digital technology to traditional craft skills. The key is matching the programme’s curriculum precisely with your organisational gaps and growth ambitions.

Flexibility should be a primary consideration. The most effective apprenticeship programmes integrate seamlessly with your existing workflow, allowing apprentices to contribute meaningfully while simultaneously developing their professional capabilities. Training providers who understand your sector’s nuances can help design bespoke learning pathways that complement your business model.

Look beyond the immediate skills requirement and think strategically about talent development. An apprenticeship isn’t just about filling a current position, but investing in potential future leaders who can grow with your organisation. By selecting programmes with comprehensive skill frameworks, you’re essentially creating a talent pipeline tailored to your specific business needs.

Ultimately, the right apprenticeship programme should feel like a natural extension of your SME’s learning and development strategy. It’s a collaborative approach to building workforce capability that supports both individual and organisational growth.

Setting Up Your Apprenticeship Service Account

To access apprenticeship funding and manage your programmes, you’ll need to set up an Apprenticeship Service account on the GOV.UK website: 

1. Gather necessary information: company details, PAYE scheme, and Government Gateway credentials.
2. Visit the official apprenticeship service website to create your account.
3. Enter your details and verify your email address.
4. Add your PAYE scheme and link your organisation to the account.
5. Accept the Employer Agreement to fully activate your account.

Finding and Selecting a Training Provider

Choosing the right apprentice training provider is a crucial step in ensuring the success of your apprenticeship programme. In the UK, it’s mandatory to hire an external training provider for apprenticeships, and their role extends far beyond simply delivering a set curriculum.

A good training provider will:

• Ensure the apprenticeship aligns precisely with your business needs
• Tailor the training to equip the apprentice with skills specific to your company
• Adapt the learning pace to suit your apprentice
• Maintain regular communication to address your business’s evolving needs

When selecting a provider, consider these key factors:

1. Accreditation: Verify that the provider is listed on the apprenticeship provider and assessment register on the government website.
2. Quality of training: While all accredited providers meet rigorous standards, it’s worth researching their reputation. Read reviews on the government website and check their Ofsted rating.
3. Company size and regional coverage: Consider whether you need a large provider with multi-regional capabilities or a local specialist.
4. Accountability: Look for providers with robust reporting tools to track the apprentice’s progress and the programme’s effectiveness.
5. Reputation and culture: Investigate the provider’s industry engagement, awards, and accreditations. Ensure their values align with your company culture.
6. Cost: While apprenticeship training is government-funded, be aware of any additional costs for resources or support.

Once you’ve shortlisted potential providers, arrange meetings to discuss your specific needs and their offerings. This is your opportunity to ensure they can provide the tailored support your business requires.

Remember, the right training provider will be instrumental in shaping your apprentice’s skills and contributing to your business’s growth. Take the time to make an informed decision, as this partnership will play a significant role in the success of your apprenticeship programme.

➡️ Related content: Finding a training provider

Financial Considerations and SME Funding

Recent changes have made apprenticeships more financially attractive for SMEs:

• The government fully funds apprenticeships for individuals aged 21 or under at small firms.
• An additional £60 million in funding has been allocated to meet increased demand.
• SMEs can receive a £1,000 payment for hiring apprentices aged 16-18.
• The apprenticeship levy transfer cap has increased from 25% to 50%, allowing larger businesses to share more unspent funds with SMEs.

➡️ Bonus reading: Funding for employers

Integrating Apprentices into Your SME Apprenticeship

Once you’ve chosen your apprenticeship programme, found a training provider, and sorted out the finances, it’s time to start employing an apprentice. This is your first step in nurturing fresh talent and potentially shaping the future of your industry.

Create an environment where your apprentice feels supported and valued. Consider assigning a mentor – someone who can show them the ropes and be their go-to person for questions. Remember, 20% of their time will be spent on off-the-job training. Plan for this by integrating it smoothly into their work schedule. Regular check-ins and feedback sessions can help ensure they’re on track and feeling confident in their role.

The following guides are essential for employers who want to build a welcoming environment for their apprentices:

• Workforce Development: Forging a Strong Partnership Between Employers and Apprentices
• Apprentice Skill Development: The Role Of Employers

Conclusion: Taking the Next Steps

The landscape of SME apprenticeships in the UK is evolving, with new opportunities for businesses to grow and develop talent. By following this guide and taking advantage of the recent changes, you can harness the power of apprenticeships to boost your SME’s productivity and future-proof your workforce.

Are you looking to expand your workforce with an SME apprenticeship? Here at Employing an Apprentice, we can help get you started with support and guidance for employers in a whole range of areas. 

This includes topics such as the benefits of employing an apprentice, how to access funding, finding an apprentice training provider, End Point Assessments, and much, much more. 

You can advertise your vacancy on our specialised apprenticeship jobs board today.

For more information, email us at info@employinganapprentice.com or give us a call at 0345 872 4501.