5 ways businesses can maximise apprenticeships

5 ways businesses can maximise apprenticeships

The Apprenticeship Levy is coming, but are you prepared for it?

The UK Government’s plans are to get employers with an annual pay bill of more than £3million to contribute 0.5% to the apprenticeship levy.

The total pay bill equates to the total amount of your employees’ earnings that are subject to Class 1 National Insurance contributions. This includes wages, bonuses, commissions and pension contributions but not benefits in kind.

However, there is a ‘levy allowance’ of £15,000 per year that will be subtracted from the total amount.

Because of these changes, The Open University and KPMG have produced a guide to help employers maximise the operating performance and financial benefits delivered by apprenticeships.

Speaking to Executive Grapevine, David Willett, Head of Propositions at The Open University, says: “What we’re seeing from talking to employers is that they’re starting to develop a really broad range of requirements across their organisation, at a depth of levels – so a whole range of apprenticeship positions.

“This might be anything from facilities management or supply chain, all the way through to management and leadership roles. And the provision of that, and the delivery of that apprenticeship piece, is complex. It will be difficult for organisations to deliver.”

Luckily, Willett has produced five steps for businesses to maximise apprenticeships…

1. Align apprenticeships with business strategy

“The levy will require you to have hard conversations about where you will get your greatest ROI from, and how you can map apprenticeship programmes to ultimately achieve your organisational goals,” says Willett.

He continues: “You’ll need to ask yourself some searching questions, such as; should you use apprenticeships as a vehicle to up-skill your existing employees? Should you bring in (and train) new talent? What jobs do you want your people to be doing in four years’ time and what skills and capabilities will they need to perform well in those roles?”


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