Prepare your Business for an Apprentice
Hiring an apprentice can bring many benefits to your business. It is a fantastic way to introduce fresh new talent into your existing workforce. Here we will cover the main topics on how to prepare your business for an apprentice - from recruitment and funding to managing performance.
Apprenticeship requirements
In order to recruit an apprentice you must be able to provide them with:
A contract of employment
At least the National Minimum Wage for Apprentices
Time to carry out training and study related to their role (20% of their normal working hours)
The recruitment stage
Before starting the recruitment process it is important to determine the type of candidate you would like for the role. Be specific on what you are looking for, such as desired knowledge and experience, skills, personal qualities, and so on.
Be sure to create a thorough job description. This should include information about your organisation, the location, job title, main responsibilities and any requirements for the role.
If you are looking for support at this stage, we offer a free recruitment package to provide you with assistance throughout the full recruitment process. Our recruitment team takes the time to fully understand the needs of your business and match the candidates skills and personality to the role to ensure they are on the right career path.
Our service includes:
Support with producing a job description and advertising
Pro-active sourcing for candidates and pre-screening
Arranging interviews and running recruitment days
Feedback to candidates and support through the offer process
Apprenticeship Incentives
When hiring an apprentice you could be eligible for a cash incentive to cover the cost of their training. Following recent changes, employers are now eligible to receive £3,000 when recruiting an apprentice of any age until 31st January 2022. This incentive payment is in addition to the £1,000 for new apprentices aged 16-18. Meaning some employers could receive a total of £4,000.
Apprenticeship Levy
Two types of apprenticeship funding exist in England: levy funding and non-levy funding. Which one you are eligible for depends on the size of the annual pay bill of your firm.
Levy Funding
All UK employers with an annual pay bill greater than £3m are liable to pay the apprenticeship levy.
An organisation’s pay is calculated on total employee earnings – subject to Class I Secondary National Insurance Contributions. It will not include payments such as benefits. Earnings of all employees will be taken into account.
The levy is set at 0.5% of a firm’s total pay bill.
The levy is paid monthly to HMRC through PAYE.
Levy credit lasts 24 months and works on a first in, first out basis – so your first levy payment, made in May 2021 will need to be spent by May 2023.
Your firm gets a £15,000 fixed annual allowance to offset against the levy payment. Employers who operate multiple payrolls will only be able to claim one allowance for the levy. This is split across the year (£1,250 pcm).
Employers paying the levy will receive a 10% top-up to their monthly levy contribution. So for every £1 you put in, you have £1.10 to spend.
You can only use funds in your account to pay for apprenticeship training and assessment for apprentices that work at least 50% of the time in England. Therefore the amount you have to spend is based on the % of your staff based in England.
Funding can be secured up to the funding band maximum for that apprenticeship. If you agree a cost over the band maximum, you will need to pay the difference with other funds from your own budget.
Non-Levy Funding
Organisations with an annual pay bill less than £3m will not have to pay the levy. In England, organisations are able to access government support for apprenticeships on a co-funding basis.
Employers pay 5% towards the cost of apprenticeship training and government will pay the remaining 95% (up to the funding band maximum).
For employers with fewer than 50 people, the apprenticeship training will be 100% funded by the government, if on the first day of the apprenticeship the apprentice is:
aged 16-18 years old.
aged 19-24 years old and has either:
an education, health & care plan or has been in the care of the local authority.
Supporting your apprentice
An apprentice should be managed the same as any other member of staff and have access to clear work and development plans, to achieve this we recommend assigning a mentor. The apprentice will be required to have 20% off the job training and this should be planned in for them to ensure they are getting the right support and time on their development.
Feedback is also really important for an apprentice. 1-2-1’s with line managers and mentors is a great way to give and receive feedback on performance and progress. Having a mentor helps adopt an apprenticeship culture, as well as offering opportunities to develop the management and coaching skills of those involved.