The Apprenticeship Levy's been set up to incentivise employers to introduce essential training or enhance their existing provision. The goal is to secure a sustainable supply of skilled workers, increasing productivity, boosting the economy and handing individuals the tools and flexibility to pursue their career goals.
There are numerous advantages to employers and the biggest benefits come from embracing the Levy for the long haul. But there are several reasons it makes good business sense to start exploring your options now.
Employers can redeem their contributions and offset existing training costs while meeting an urgent need for management training. In turn, the investment in skills creates a more capable workforce, enhancing service and increasing the bottom line.
Here are some of the key benefits:
Access significant funding
The co-funding principle means employers can pay 10% towards training and the Government will pay the rest (90%). This means investing £10m could bring in £90m of additional funding.
Reduce recruitment costs
Apprenticeships can reduce dependence on expensive graduates who are harder to retain. Employers can also train their existing staff, combining on-the-job experience with sought-after skills.
Recoup your tax
You can either write off the Levy or put it to work. Financial Directors will appreciate the tax efficiency at year end.
Apprenticeships offer employees the career development opportunities they desire, helping to create a more highly skilled, loyal workforce.
Employees can earn while they learn
Apprenticeships enable learners to pursue professional development and gain valuable practical experience while earning money (and avoiding student debt).
Enhance your brand
Training and development set businesses apart in a competitive market place, enabling them to attract the best talent and give them the edge in close bids.
Secure long-term revenue
Enhanced skills mean higher productivity and better service. Combined with the wider benefits to brand, training places businesses ahead of their competition.
The Apprenticeship Levy is not without its challenges. Different businesses will face different hurdles and interpreting the minutiae of the legislation can be daunting.