How do apprenticeships work for employers? A Complete Guide

Hiring an apprentice can be beneficial to a company in a number of ways. For instance, by agreeing to have an apprentice in your business, you’re able to source new talent, assess the skills of current members of staff and determine areas that need improvement, delegate tasks, generate fresh ideas and offer a helping hand to someone that is at the start of their career.

In a recent Learners and Apprentices Survey, 78 per cent of employers said that they noticed improved productivity through taking on an apprentice. Additionally, 65 per cent said that an apprentice brought new ideas to their company. With government funding available to offset training costs, it’s little wonder that apprenticeships are becoming an increasingly popular choice for UK employers. But how do apprenticeships actually work for employers and what benefits do they bring? Carry on reading for the answers to these questions and more.  

What is an apprenticeship scheme?

For those leaving high school, an apprenticeship scheme is an interesting alternative to college, university or heading straight into full-time employment. They’re also appealing to more experienced people who want to change careers but need the necessary knowledge and training to do so.

Apprenticeship schemes are available in many different industries and they make it possible for people to learn on the job, gaining a qualification and getting paid as they do it. Hiring an apprentice for a fixed-term is cheaper than hiring a new permanent member of staff, so it’s also more cost-effective for the employer.

An employer will hire an apprentice as a normal member of staff on a specific type of contract called an apprenticeship agreement, which follows the rules outlined in the Apprenticeships, Skills, Children & Learning Act 2009. In an apprenticeship agreement, the apprentice is either employed by the employer or through an Apprenticeship Training Agency (ATA), who the employer would pay a fee to.

Government funding is available to train apprentices, and employers have the option of using an apprenticeship scheme to train new or existing members of staff.

Apprenticeship levels explained

Apprenticeships are available at several different levels, so employers can find the right fit regardless of the role or the candidate’s existing experience:

Level 2 (Intermediate) – Equivalent to five GCSEs. Ideal for entry-level roles.

Level 3 (Advanced) – Equivalent to two A-levels. Suitable for supervisory or specialist roles.

Level 4–5 (Higher) – Equivalent to the first years of a degree. Often used for technical and professional roles.

Level 6–7 (Degree) – Full bachelor’s or master’s-level qualification. Increasingly used in sectors like financial services, law, and management.

Choosing the right level ensures your apprentice’s training is aligned to the responsibilities of the role from day one.

How is apprenticeship training funded?

Understanding the funding model is key to making the most of apprenticeships. There are two main routes, depending on your annual pay bill:

Levy-paying employers

If your business has an annual pay bill of over £3 million, you are required to contribute to the Apprenticeship Levy – 0.5% of your pay bill, paid monthly via PAYE. This money sits in a digital account (accessed through the apprenticeship service) and can only be spent on apprenticeship training. If you’re already paying the levy, using it to fund apprenticeships is the most direct way to get value from your contributions.

Non-levy employers

If your pay bill is under £3 million, you don’t pay the levy – but you can still access government funding. Under the co-investment model, the government pays 95% of apprenticeship training costs and you contribute just 5%. Even better, if you employ fewer than 50 staff and take on an apprentice aged 16-18, the government covers 100% of the training costs.

In both cases, you will need to register on the apprenticeship service to access funding and manage your apprentices’ training.

How much do I pay an apprentice?

Wage expectations are one of the first things employers search for. Covering the National Minimum Wage for apprentices, how it changes after year one, and how it compares to a standard hire would address a very common barrier to entry. High commercial intent.

What are my responsibilities as an employer?

This covers the legal and practical obligations – specifically the 20% off-the-job training rule, which trips up a lot of employers and is frequently misunderstood. Answering it builds trust and positions Simply Academy as an authoritative guide rather than just a sales page.

How long does an apprenticeship last?

A short but important section. Many employers assume apprenticeships are brief placements; in reality they run from one to five-plus years depending on level. Clearing this up early reduces drop-off from employers who assume it won’t suit them.

What happens at the end of an apprenticeship?

The End-Point Assessment (EPA) process is unfamiliar to most first-time employers. Explaining what it involves, who organises it, and what it means for the employer’s role would round out the guide and answer a genuine search query.

How apprenticeships benefit employers

The advantages of taking on an apprentice go well beyond simply filling a vacancy. Here are the key benefits for employers:

Cheaper recruitment cost –

Along with the option to get help with funding from the government and pay a lower salary for your apprentice than you would with a fully-trained, permanent member of staff, you’ll also cut out any other costs that typically come with hiring a permanent employee such as recruitment company fees.

Trial new talent –

As part of the apprenticeship agreement, the apprentice is given a set timeframe for working at your company. However, although there’s no guarantee that a permanent position will be available to them after it’s completed, you have the option to offer permanent employment to the apprentice if they impressed during their time at the company.

Improved efficiency –

By introducing additional members of staff, current employees are able to delegate some of their tasks to them, freeing up their time and giving the apprentice the experience they need. Many studies suggest that apprenticeships lead to increased productivity, with more time for current employees to complete tasks and a fresh, positive approach from someone that’s willing to learn and eager to impress.

Update industry standard –

Apprentices are learning a qualification while they work, so any changes or developments in the industry will be covered in their course. Due to this, your apprentice could be a useful asset, as they will be aware of the most recent standards. As such, during their training, the apprentice may be able to offer guidance on updates to industry standards to current members of staff.

Promote intention to grow as a company –

One of the reasons that so many companies encourage apprenticeship schemes is to show their intention to grow, learn and invest in their staff. Not only that, but by allowing employees to join the company on temporary contracts, they’re showing transparency that they have nothing to hide and are following the correct rules and regulations.

Retain and upskill existing staff –

Apprenticeships aren’t only for new recruits. Many employers use apprenticeship programmes to develop existing team members – giving long-standing staff a recognised qualification and a clear progression pathway. This can significantly improve staff retention and morale, particularly in industries where structured CPD is expected.

How do I start taking on an apprentice?

Getting started is more straightforward than many employers expect. The key steps are:

1. Identify the role and apprenticeship standard – Apprenticeships are built around government-approved standards that set out the skills and knowledge required for a specific occupation.
2. Choose a training provider – You’ll need to select an approved training provider who will deliver the off-the-job learning element of the programme.
3. Register on the apprenticeship service – This is where you’ll manage funding, post vacancies, and agree training plans.
4. Advertise and recruit – Vacancies can be posted on the Find an Apprenticeship service or through your own channels.
5. Sign an apprenticeship agreement – Once your apprentice is in place, you and the training provider will agree a personalised training plan (called a commitment statement).

Your training provider should support you through each of these steps – so choosing the right one matters.

Ready to hire an apprentice? Simply Academy can help

At Simply Academy, we work with employers across the UK to design and deliver apprenticeship programmes that genuinely work for your business. Whether you’re exploring apprenticeships for the first time or looking to expand an existing programme, our team is here to guide you through every step – from choosing the right standard to managing the funding.

Get in touch today to find out how we can help you build your team through apprenticeships.