Establishing apprenticeships increase productivity

UK survey reported that 77% of employers believe apprenticeships make them more competitive, 76% say they provide higher overall productivity and 80% say apprenticeships reduce staff turnover.

At the start of the UK's Apprenticeship Week 2008 last week, survey results proved employing apprentices has a hugely beneficial impact on overall business performance.

In an independent survey of organisations that employ apprentices, conducted on behalf of the Learning and Skills Council (LSC), over three-quarters of respondents felt their Apprenticeship programme made them more competitive, while the same number believed Apprenticeships led to higher productivity.

The survey shows that without apprenticeships the outlook for the country's business looks bleak; 83% of employers rely on their apprenticeship programme to provide the skilled workers they need for the future.

Two-thirds of respondents claim that they would struggle to find trained staff with the skills they need without their apprenticeship programmes, highlighting the impact apprenticeships are having on addressing skills shortages.

The findings demonstrated the impact of apprenticeships on recruitment and retention, with 80% believing that the programme improves staff retention and turnover.

Two-thirds of respondents believe their apprenticeship programme helps them fill vacancies more quickly, while 88% believe apprenticeships lead to a more motivated and satisfied workforce.

The UK's first annual Apprenticeship Week was designed to celebrate the ongoing success of apprenticeships and encourage more employers to get involved.

The Week was intended raise awareness of the benefits that apprenticeships bring to the UK economy.

Director of Apprenticeships at the Learning and Skills Council, Stephen Gardner, said: "These survey results confirm the significant benefits that employers achieve from Apprenticeships, from increased competitiveness and overall productivity to improved staff retention and motivation.

The impressive return on employers' investment shows that Apprenticeships are an excellent way to improve the bottom line, helping build the workforce employers need for future success.

There are currently 130,000 companies reaping the benefits of Apprenticeships, and we are calling for even more employers to open their doors to apprentices".

Gardner continued: "As a former apprentice myself, I'm delighted to launch the first annual Apprenticeship Week today and I hope that businesses across the country will join the growing ranks of employers offering Apprenticeships".

Skills Minister in the UK government, David Lammy MP, said: "The global economy is evolving rapidly and the jobs of yesterday will not be the jobs of tomorrow.

Apprenticeships have a vital part to play in ensuring our nation's competitiveness, which is why the government is committing more than GBP 1billion to increase the number of apprentice places by 2010/11".

Other findings included the following.

* 59% report that training apprentices is more cost effective than hiring skilled staff, with 59% believing apprenticeships lead to lower overall training costs and 53% feeling they reduce recruitment costs.

* In terms of the return on investment linked to Apprenticeships, 41% said that their apprentices make a valuable contribution to the business during their training period, while a further third (33%) report apprentices add value within their first few weeks or even from 'day one'.

* 57% report a high proportion of their apprentices going on to management positions within the company.

* Over three-quarters of respondents expect Apprenticeships to play a bigger part in their recruitment policy in the future.

A number of manufacturing firms have been involved with apprenticeships for some time and are reaping the benefits in terms of business performance.

London-based Kesslers International views apprenticeships as key to the company's survival in a competitive economy.

Kesslers' apprenticeship programme has increased staff retention, particularly among older members of staff, as these individuals enjoy working with apprentices and passing on their skills.

Group deputy chairman at Kesslers International, George Kessler CBE, said: "We have found apprentices bring a number of key benefits to our business.

They bring the most up to date skills through their external training, making it possible for us to produce a better product.

Apprentices also invigorate longer standing members of staff with their curiosity and enthusiasm".

He explained: "Our plant is high tech and the benefits of our considerable and constant investment cannot be realised without a highly skilled work force.

Their input ensures that our company retains its edge as a flexible and cost effective quality manufacturer, essential for our survival in a competitive marketplace".

* About the Learning and Skills Council (LSC) - The LSC exists to make England better skilled and more competitive.

We are responsible for ensuring the availability of high-quality education and training for everyone.

We have a single goal: to improve the skills of England's young people and adults to world class standards.

Our vision is that young people and adults in England have knowledge and skills matching the best in the world and are part of a truly competitive workforce.

We work nationally, regionally and locally to deliver this ambition on behalf of learners and employers.

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