GROWING YOUR BUSINESS

How to hire an apprentice for your business

8 min read
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Hiring an apprentice can bring fresh talent to your small business, while also helping someone kickstart their career. If you want to hire one, here’s how to do it right.

Apprenticeships explained

Apprenticeships have been around for a very long time in the UK. In fact, the first national apprenticeship system of training in England was introduced in 1563!

An apprentice would learn a trade or skill, in exchange for providing their labour.

Today, apprenticeships offer a structured way for people to gain qualifications and training, while earning a fair wage. Done right, it’s a win-win situation for everyone.

How does the government support apprenticeships?

The UK supports apprenticeships through funding, regulations and frameworks.

  • The Apprenticeship Levy - large employers with a payroll of over £3 million have to pay an amount paid at a rate of 0.5% of an employer’s annual pay bill, which goes towards training apprentices. Small businesses don’t have to pay.

  • Apprenticeship Funding - the government covers 95-100% of training costs for most businesses and has committed to improving the quality of training.

  • Financial Support - you may get financial incentives for hiring apprentices, especially younger candidates or those from disadvantaged backgrounds.

Common role types well-suited to apprentices

Apprenticeships offer hands-on training in both traditional and modern professions. Almost any business can hire an apprentice. Some of the most common roles include:

  • Skilled Trades – Bricklayer, electrician, plumber, carpenter

  • Business – Office administrator, HR assistant, project coordinator

  • Finance – Accounts assistant, payroll administrator

  • Creative & Media – Digital marketing assistant, content creator

  • Customer Service – Retail assistant, customer service assistant

  • Health & Social Care – Care worker, dental nurse, pharmacy assistant

  • Hospitality & Catering – Chef, receptionist, event assistant

Hiring an apprentice can be a cost-effective way to develop skilled employees while supporting career progression, from hands-on trade skills to office-based roles.

How are apprenticeships funded?

The UK government provides financial support to help businesses hire apprentices.

What funding will my business receive to take on an apprentice?

Funding is designed to cover training costs, making apprenticeships an affordable way to develop skilled employees. Here are 4 options for small businesses:

  1. Government-funded training – 95% of training costs (payroll under £3 million) 

  2. Grants for hiring 16-18-year-olds or apprentices from disadvantaged backgrounds

  3. Large employers can transfer up to 25% of unused levy funds to smaller businesses

  4. Extra funding may be available through local government schemes or partnerships

Find out more about how apprenticeships are funded on the GOV.UK website.

Benefits of employing an apprentice

Hiring an apprentice can be a smart investment for your business. You get a new, motivated employee who can bring fresh ideas, boost morale and save you money.

Gaining a fresh employee free from bad habits

An apprentice comes free of baggage and bad habits from previous workplaces.

Since they’re new to the industry or role, they may be eager to learn and adapt to your working processes. You can train and shape their attitude and habits from the start.

Costs far less than a full-time employee

Apprentices earn less than full-time employees while they train, making them more cost-effective. Plus, government funding covers most or all of their training costs

This allows businesses to hire new talent without a high financial burden.

Benefits employee morale

A fresh team member can bring new energy and enthusiasm to your workplace.

An apprentice can boost morale by creating a culture of mentorship and support, giving existing employees a chance to pass on their valuable knowledge and skills.

Improved productivity

Hiring an apprentice can take the pressure off your workforce, by giving suitable tasks to them while they learn. By gaining skills, they become more independent over time.

Eventually, investing in an apprentice can help your business become more efficient.

Improves age diversity in your business

Want to create a healthy mix of demographics and new perspectives? Hire Gen Z!

Hiring someone young can bring fresh ideas and innovation to a traditional company. It can encourage knowledge sharing between employees, benefiting your business.

What do I need to do to hire an apprentice?

Hiring an apprentice requires careful planning. Here are the key steps to get started.

Identify the type of apprentice role needed

What type of apprentice role would be most beneficial for your business? 

Which of your teams and employees have time to help them settle in and learn skills? Think about the everyday tasks they could do, and how they could benefit your team.

Common apprenticeships could include skilled trades, office assistants, or chefs.

Contact a provider

Use the GOV.UK website tool to choose an apprenticeship training course, select the skills and level you want, and find an apprenticeship training provider in your area.

Some well-known providers include City & Guilds, The Open University, and Pearson.

Advertise your apprenticeship (or help the provider to)

Apprenticeships are advertised differently from regular jobs because they focus on training and development rather than just work experience. You can advertise with:

  • Job sites like Indeed, Reed and Totaljobs

  • Your chosen apprenticeship provider

  • Local schools, colleges, or universities

  • Your website or social media platforms

Unlike standard jobs, you should emphasise the opportunity to learn new skills.

Conduct interviews and choose a candidate

Apprentices may have little or no work experience, so focus on their potential.

Ask about their interests and career goals, and look for soft skills, adaptability and a positive attitude. Be clear about the training you can provide and what they’ll do.

Once you have a candidate who fits your business, tell your provider.

Onboard and train your apprentice

A proper onboarding can help set your apprentice up for a great future with you.

  • Give them a warm welcome to your team

  • Explain your company policies and processes

  • Provide a training plan to keep them focused

  • Assign them a mentor to show them the ropes

  • Schedule regular check-ins to track progress

With support and communication, your apprentice has the best chance to grow.

What are my responsibilities when employing an apprentice?

Hiring an apprentice requires you to follow the government rules and regulations. This can help both you and your apprentice get the most out of their time with you.

Same conditions of employment

Apprentices are entitled to the same employment rights as your other employees, including holiday entitlement, sick pay, and protection against unfair treatment. 

They need a safe environment and proper training, just like any other staff member.

Payment

Apprentices must receive the national minimum wage for apprentices, depending on their age and year of training. Employers can offer higher wages, if they wish to.

Payment should reflect the hours worked and include the time spent training too.

Full apprenticeship agreement

An apprenticeship agreement confirms the employment arrangements between the apprentice and your business. It must be signed at the start of the apprenticeship.

You can find a template of an apprenticeship agreement on the GOV.UK website.

The template must include details of their job duties, working hours, training plan, and payment. It helps to keep the apprenticeship fair and meet legal requirements.

The apprenticeship levy 

The Apprenticeship Levy is a government initiative requiring large employers (with an annual wage bill of more than £3 million) to contribute 0.5% of their payroll to fund apprenticeship training. It can be used to pay for their apprenticeship training costs. 

If your funds in the digital account aren’t used in a certain time, they are transferred to a central government pool for other smaller businesses to access instead.

Training and development plan

In this next section, we’ll detail how to create a training plan for your apprentice. In short, it should be a roadmap for your apprentice’s learning journey, outlining:

  • The skills, knowledge, and qualifications they will gain

  • The training they will receive from mentors and staff

  • The milestones, timelines, and goals they’re aiming for

Having a clear plan helps them understand the skills they’re aiming to develop, and ensures you meet the legal requirements for supporting them in the workplace.

How to train an apprentice

1. Identify key development goals

Set clear, measurable learning objectives relevant to their role. For example, gaining an official qualification that will help them develop in the career path they’ve chosen.

2. Commit resources to training

Mentorship is important for an apprenticeship’s development and confidence.

Ensure they have someone available to support their training in the workplace, alongside the time, budget and resources to meet government legal requirements.

3. Provide practical opportunities to learn

Offer hands-on tasks and real-world experiences to apply what they’re learning. For example, taking on a small project, or joining meetings to gain social experience. 

4. Work closely with the training provider

To ensure your apprentice is getting the training and support they need, work closely with your chosen apprenticeship provider. They should be able to offer you advice.

5. Support your apprentice

Offer feedback, guidance, and encouragement to your apprentice throughout.

As it may be their first workplace experience, you want it to be a positive one. As well as helping them, you can help build an ideal employee to contribute to your business.

Final thoughts

Hiring an apprentice for your small business is a great way to bring fresh talent to your workforce. With support and training, they can grow alongside your business.

If you’re thinking of hiring an apprentice, there’s funding available for you to try it.

By following the steps outlined here, you can create an apprenticeship program that benefits both your business and your apprentice. Good luck with your journey!

The information on this website is provided free of charge and is intended to be helpful to a wide range of businesses. Because of its general nature the information cannot be taken as comprehensive and they do not constitute and should never be used as a substitute for legal, accounting, tax or professional advice. We cannot guarantee that the information applies to the individual circumstances of your business. Despite our best efforts it is possible that some information may be out of date. Any reliance you place on information found on this site or linked to on other websites will be at your own risk.

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