
Apprenticeship programmes can offer a cost-effective mode of recruitment, according to a new study. The survey of employers in the financial sector by Davies found that apprenticeships often result in higher loyalty from employees, who work for long-term careers in an organisation.
An apprenticeship is an arrangement in which someone learns an art, trade, or job under another. As a direct route into a potential career, it is seen as an alternative to higher education as a means of securing gainful employment when people leave school – as well as offering up opportunities to a more diverse range of young adults. This has led to a growing prevalence of apprenticeships in the consulting sector, but that prominence seems to be spreading to other sectors which are heavily influenced by consultants.
New research from Davies suggests that the UK financial sector is regularly using this mode of recruitment to avail itself of talent pools it has traditionally neglected. A new survey from the firm among 504 full-time employees from UK financial services firms shows that at least 57% of organisations in the sector have an apprenticeship scheme in place. This may even be higher, as around 8% of respondents were somehow unsure as to whether their company took on apprentices or not.
Craig Potter, professional education senior partner at Davies, commented, “My biggest takeaway from this research is that it demonstrates just how valuable apprenticeship schemes can be for financial services organisations. With a majority of firms now offering permanent roles to their scheme graduates and a similar number of firms reporting that they are cutting recruitment costs as a result, it’s clear that they provide an excellent pathway for firms looking to secure long-term talent.”
To that end, 71% of respondents which have apprenticeship schemes told Davies that it has been more cost effective when bringing new staff into their organisation, compared to recruiting graduates or junior staff. While 73% of those respondents also said that permanent roles were offered at the outset for those who complete their apprenticeships, they allow time and space to both shape new staff for those roles, and for the recruits and employer to figure out if they really are the right fit for the position when the time comes.
Apprenticeships also provide a supportive environment in which recruits can feel they are properly prepared for the job, rather than being thrown in at the deep end. As a result, the survey also found that 85% of respondents believe apprenticeship schemes help build higher levels of loyalty between participants and their organisation, while 78% reported that participants in their apprenticeship programmes often progress to long-term careers within their company.
As positive as these results are, however, Davies’ research suggests they could be even better. Many firms in the financial services sector which do not yet have apprenticeships on offer could be missing out on support to implement a scheme. While 74% of respondents said the government’s Apprenticeship Levy – which provides government funding to pay for apprenticeship training costs – is an important incentive for their organisation offering up a scheme, of those without one in place, 15% said they do not know how to take advantage of the Apprenticeship Levy, while 11% do not know how to establish an apprenticeship scheme.
Potter added, “It’s concerning that over a third of firms are missing out on these benefits, either due to a lack of understanding of how to set up a scheme or misconceptions about their value. The lack of understanding around the Apprenticeship Levy is a particular concern, especially with its impending transition to a Growth & Skills levy under a Labour government. As a sector, its vital that more investment is made to raise awareness of the benefits that apprenticeships can provide – only then can we secure the talent needed for the sector to grow sustainably in the years ahead.”
Davies is one of the largest training providers in the UK for the financial services and insurance industries. The survey comes following the firm’s recent acquisition of the trade and assets of Bespoke Training Solutions, as it looks to expand its learning and development offering further.