Thursday, September 27, 2012

Financial Benefits Of Hiring An Apprentice

Many employers are put off employing and apprentice because they cannot afford to employ them. Other employers don't want to take the financial risk of paying out their own money to someone who is not an actual employee. These reasons are not justified as help is available from the government to help bear the financial burden of employing an apprentice.

Funding is available but it will vary depending on the age of the apprentice and the industry that the apprenticeship is in. For an apprentice aged 16-18 the government will provide 100% of the cost of training the apprentice, for an apprentice aged 19-24 the government will provide up to50% of the cost of training and this depends on the industry as well. For anyone aged over 24 the government is unlikely to provide funding although this may vary depending on the industry in which the apprenticeship is based. The funding from the government is paid directly the organisation which is providing and supporting the apprenticeship, normally the learning provider. This is unlikely to benefit the employer though there are benefits available.

The government have begun offering grants to employers if they take on and apprentice. These grants are available for apprentices aged between 16 and 24 meaning over aged apprentices will not receive and grant. The grant available to employers is £1,500 but this is not paid to the employer straight away. For apprentices aged between 18 and 24 they will receive 50% of the grant. They are paid in 2 equal instalments 8 weeks after the apprenticeship started and 12 months after the apprenticeship has started. If your business employs over 1000 people within the UK then you will not be eligible to this grant. Although this will not cover the full cost of paying the apprentice many employers do find it extremely helpful to take on an apprentice. Over 80% of employers that took on an apprentice said that their workplace was more productive as well as stating that staff moral had improved since the apprentice has begun. The learning provider can help you, the employer, find extra funding which is available to you and this is not likely to cost you anything meaning you can only benefit.

Some of the financial benefits of taking on an apprentice are not obvious as they do not directly influence your finances. One benefit is that when employing an apprentice he/she will receive training for the duration of the apprenticeship making them full trained and extremely helpful in the work place. At the end of the apprenticeship the apprentice will want to stay on as a full time employee meaning you will not have to hire somebody new to replace this person. This means that you will not have to spend your time and money training a new employee which can cost a lot. So generally having an apprentice will help increase your staff retention rates. In addition to this you will be getting an employee that can do the job properly and you know that you can trust them.

Hiring an apprentice is a win win situation. This is because you get an apprentice which can perform the general duties of a normal employee whilst paying them an apprenticeship wage which is generally less than what the other employees will be earning. As well as this at the end of the apprenticeship you will have a potential employee who has the qualifications to do the job that you need them to do. It is convenient for everyone which is why you should take on an apprentice.

As work based learning training providers are in prime position to advise writers about their industry. They have operated for many years and as a result have everything authors like Drew Barkstead need to know about that market.

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