Investing in Success: How Apprenticeships can Drive a Skills Revolution

National Apprenticeship Week comes at an exciting point this year as there is growing recognition that skills development lies at the heart of the UK’s long-term economic prosperity. Apprenticeships play an integral role in this and while benefits for employers are well-documented, it’s important to recognise just how transformative apprenticeships can be for individuals as well as the wider economy. 

One of the primary benefits of apprenticeships is their ability to upskill and reskill the workforce and 86% of employers said apprenticeships helped them develop skills relevant to their organisation. This is not surprising. Apprenticeships combine real-world experience with structured training, ensuring that apprentices gain not only theoretical knowledge but also practical skills that are directly applicable to their roles. This approach is particularly beneficial in industries where technology is rapidly evolving, such as in the automotive sector with the industry’s rapid pivot towards electric and hybrid technologies.

The Power of Apprenticeships

An impressive 92% of companies that hire apprentices believe this leads to a more satisfied workforce. This increased employee satisfaction translates directly into greater productivity and improved morale. When apprenticeships thrive, employees feel valued, engaged and empowered, which leads to reduced turnover and lower recruitment costs. In fact, government research shows that 80% of employers who have adopted apprenticeships report a noticeable boost in employee retention.

Employers who invest in apprenticeships can also enhance their reputation both within their industry and in the broader community. Demonstrating a commitment to employee development shows that a company is forward-thinking and dedicated to building a workforce that is fit for the future. This positive reputation can attract top talent, as potential employees are often drawn to companies that offer opportunities for growth and development.

Apprenticeships don’t just benefit new recruits – they also provide opportunities for existing employees to upskill and advance their careers. When current staff are involved in the training and mentoring of apprentices, they gain new responsibilities and career development opportunities. This not only contributes to professional development, but also helps foster a culture of continuous learning and improvement within the organisation.

Overcoming Challenges; A Collaborative Approach

Given the significant benefits, why don’t more employers jump at the chance to put apprenticeships at the heart of their training, recruitment and workforce development plans? After all, larger employers pay the apprenticeship levy and for smaller employers, government picks up most of the cost. 

The answer is complex. The challenges vary by sector and solutions that work will need to take account of this and to learn from pilots already being put in place at industry level. 

In some sectors, for instance the creative industry where freelance work is prevalent, the traditional apprenticeship model may need to be adapted. Solutions such as flexi-job apprenticeship agencies, which ScreenSkills have explored, show that with the right agency support, apprenticeships can work very well but this can be an expensive route for employers.

Additionally, the current apprenticeship completion rate, at 54%, is an area of concern. Research by Enginuity with SMEs in the manufacturing and engineering sector highlights that many apprentices leave due to a career change or better job offer (41%), or because training doesn’t meet their expectations (around a third). A further one in five (20%) cite the maths and English requirements as a barrier.

Adapting Apprenticeships for the Future

Another key consideration is ensuring apprenticeship standards accurately identify the knowledge, skills and behaviours required for role competence if they are to be attractive for employers. Skills Federation members have noted there is a particular issue in high-hazard environments where standards are too broad and for smaller employers where job roles are wider, and standards too narrow.

Employers have called for greater flexibility and the announcement about shorter and Foundation apprenticeships is welcome. In developing the detail, we urge government to consult with sector skills bodies who understand their sectors and can provide advice on how to introduce flexibilities whilst retaining quality provision and maintaining the valuable apprenticeship brand.

Apprenticeships are a powerful tool for employers looking to build a skilled, loyal, and adaptable workforce. By investing in apprenticeships, businesses can enhance their reputation, reduce turnover, and foster a culture of continuous learning. For individuals, apprenticeships offer fulfilling career pathways and the opportunity to develop practical skills that lead to long-term success. 

With the right support, apprenticeships could help drive a skills revolution, create more sustainable job opportunities, and help build a workforce that is fit for the future.

By Alison Morris, Head of Policy, Skills Federation