The latest figures reveal that apprenticeships contribute £34bn a year to the UK economy, according to a 2014 study by the Centre for Economics and Business Research. The National Federation of Self Employed & Small Businesses (FSB) report that 38 per cent of its members have employed an apprentice in the last 12 months. SMEs are clearly starting to realise the value that apprentices can bring to a business and are employing them to do more than sweep the floors and make the tea.
Low costs
“We were a startup three years ago, so money and funding was scarce. Our scheme has allowed us to grow our team by employing trainees at an affordable cost,” says Tash Khan, co-founder of Ecomnova, an e-commerce marketing company that have created brands such as Appleyard Flowers and Blossoming Gifts. The company currently has two ongoing apprenticeships and are looking to recruit fifty more apprentices and graduates over the next three years.
By working with apprentices, they have been able to attract “younger people who have grown up with the online and mobile, digital experience being part of their day-to-day life” and recruit them “into a world they are very much au fait with”, says Khan.
He has had great success finding the right people, but the recruitment process can leave a lot to be desired – particularly for smaller companies.
“Some agencies have been sewn up by major corporates and show the best candidates to them first. We would only get a look in after they’ve had their pick of the bunch. However, we’ve chopped and changed to recruit ours.”
Relevant training
For Darren Green, founder of Interior Goods Direct, in-house apprenticeship schemes offer the perfect environment to nurture talent and hone skills. His company, a Wakefield-based manufacturer and retailer of home furnishings, has taken on 18 apprentices since 2014.
Eleven are still with the company and four of them have become staff. The company uses apprentices in various departments, including production where they learn to make blinds and other fittings.
Green says apprenticeships have been a way to “grow our team economically and train people in our own company culture, so that they develop into exactly who we need”. For him, younger people have proven more willing to listen and be guided by long-term members of the team. They quickly become part of the fabric of the organisation.
“Even though apprentices require a day out of the office every week, and additional time to complete their academic work, we aim to treat them like full-time staff from the outset”, he says. “They’re managed closely, but given responsibilities and opportunities to grow into the roles, where they can carve out a niche for themselves and quickly become experts.
“They really seem to like this flexible approach – guiding them to develop into a valuable team member, while giving them the freedom to follow their own interests and ways of working.”
Find the right fit
Jo Smedley, owner of Grimsby-based Red Herring Games found that problems can arise when a candidate is not the best fit. She hired three apprentices to help with the administrative work for her murder mystery party and events company. One resigned after four days, another was extremely competent but went on paid maternity leave shortly before her contract was due to end, and the third underperformed.
Smedley says that she would have terminated the third’s contract early, but doing so can be a bit of a grey area. Apprentices are protected from certain forms of dismissal, though disciplinary procedures can be included within the original agreement, which give employers a legal right to terminate the contract under particular circumstances.
“In hindsight, I would say you’re better off putting apprentices on temporary contracts, and doing a review midway through this period to ensure that they’re making the grade”, she says. “Business isn’t a charity to help someone get their NVQ. We’re happy to support them so they achieve that [qualification], but primarily you’re hiring someone for a job. If they can’t do it, then [you need to] find another candidate.”
There is support for those small business considering taking on an apprentice. Professional bodies, such as the Association of Accounting Technicians, provide a good platform for posting apprenticeship vacancies in that field. The FSB has successfully lobbied the government for the continuation of a £1,500 grant for any firm that takes on an apprentice.
Be clear
Jo Blood, director of Brighton-based consultancy Posture People, found her apprentice-turned-marketing coordinator through Creative Process, which is an agency that specialises in the digital, advertising and PR sectors. For Blood, the agency were particularly helpful with crafting the job description, which is crucial to get right.
“I treated it just like any other job role,” she says. “It sounds like a basic thing, but I sat down and wrote a really specific description: everything I wanted the person to cover, what sort of jobs they would be doing. Then I constructed a series of questions around the job role, but took into account that some of the people coming for the interview may not have worked before.”
Blood adds that taking on an apprentice was “a bit of a gamble” and that she was initially worried about whether the person she took on would be able to cope, but it has turned out to be “one of the best business decisions that we’ve ever made”.
Her advice to others is to pay higher than the minimum wage – currently £3.30 for those aged under 19 or in their first year of apprenticeship. “You want your role to stand out, and one way of doing that is to pay a more attractive salary so you get the better candidates.”
The KIA Academy runs two- and three-year apprenticeship programmes, which include nationally recognised qualifications and Institute of the Motor Industry (IMI) accreditation. There are currently 180 participants on the programme, which is expected to rise to more than 200 in 2016. Ian Goswell, Academy Manager says: “Employee retention, staff satisfaction and a considerable return on the initial investment makes taking on an apprentice worthwhile.
“A common objection is that it’s an added cost but in our experience, companies tend to break even after one year. It all helps from a financial perspective. You’re cutting down on recruitment and training costs through increased loyalty and reduced employee turnover.”
Goswell also advises companies to look beyond the programme to get the most from apprentices: “Don’t just think about three years. Think about ‘growing your own’ and building capacity for the future.”
Content on this page is paid for and produced to a brief agreed with Kia Fleet, sponsor of the Guardian Small Business Network Accessing Expertise hub.
