Could taking on apprentices be a better business solution to the staffing crisis during the current economic uncertainty?
It is understandable that following the easing of all the Covid pandemic restrictions businesses should be keen to go all-out for growth and therefore recruiting qualified staff.
But recruitment itself is currently a problem and in the face of all the other pressures including supply chain issues, rising energy prices and of course the Ukraine war, perhaps a slower, steadier approach would be more sensible.
Consolidating the current business and planning ahead would ease some of the pressure and this is where taking on apprentices may be a better way forward.
For businesses that are below the threshold of a £3 million payroll there is no apprenticeship levy and there is financial help for both taking on and training apprentices. There is a £1000 incentive payment for taking on an apprentice.
Then, depending on the size of your business, you pay just 5% towards the cost of training and assessing an apprentice and the government will pay the rest up to the funding band maximum.
If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged 16 to 18 or 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority.
You must pay them the national minimum wage for their age group but if they are under 25 and on an approved Government apprenticeship scheme you don’t pay NI.
The FSB has a lot of useful information on its website to help smaller employer considering the apprenticeship route.
Thinking longer term could be a good way of protecting your business and preparing it for future growth.