The importance of apprenticeships for attracting and retaining tech talent

From 6^th February to 12^th February is National Apprenticeship Week (NAW) 2023, a week dedicated to bringing together businesses and apprentices to highlight the value, benefits, and opportunities that apprenticeships bring.

Apprenticeships can be for anyone, whether you're starting your IT career, want a change or you're upskilling in your current job. They are a great opportunity to gain the relevant IT and tech skills and experience to help you succeed on your chosen career path.

The theme for NAW 2023 is ‘Skills for Life’, the aim is to encourage everyone to understand how apprenticeships can help people in developing the necessary skills and knowledge for a fulfilling career and for companies to train workers in skills that will be useful in the future, such as IT and tech skills which are currently in shortage in the UK workforce.

According to government statistics, higher apprenticeships increased by 10% in 2022/2023 from 38,230 to 42,060 in the same period as last year. Many companies are taking advantage of apprenticeships in order to help attract and retain IT and tech talent. We’ve put together the many benefits apprenticeships bring for employers.

Benefits of IT apprenticeships for employers

Upskill existing talent

In 2019-20, 47% of apprenticeship starts were by people aged 25 and over, mostly training people within their existing job roles. Apprenticeships are an affordable way to help develop your workforce and train current employees in order to upskill them.

Apprenticeships teach the most recent industry best practises, are tailored to certain work roles, and result in a recognised qualification. By providing these training opportunities, employers may see improvements in workflow efficiency, employee satisfaction and employee retention. Making an investment in your team demonstrates your appreciation for them and your dedication to their professional development.

Develop industry-leading IT skills

IT apprenticeships are a great way to help companies fill their digital skills gaps. If you are looking to grow your team, then apprentices can gain valuable and useful skills from the existing team. The advantage of developing an apprentice internally is that they may learn about the particular competencies and demands of your company, which is a great way to fill any skills shortages.

Diversifying your workforce and attracting new tech talent

33% of employers say apprenticeships helped improve diversity within their business. Although there is still work to be done to enhance access to apprenticeships, they can help contribute to improving the presence of minorities in many industries, including the IT sector.

Limiting yourself to hiring through graduate programmes and recruitment agencies, will mean you only have access to a limited talent pool that doesn't necessarily reflect larger society or your ideal clients. A wide variety of people are drawn to apprenticeships, including young people just out of high school or college, recent graduates, and those looking to change careers.

Find out more about how apprenticeships can help to sustain diversity in tech

Government incentives

You can get help from the government to pay for apprenticeship training.  The amount you get depends on whether you pay the apprenticeship levy or not. You pay the levy if you’re an employer with a pay bill over £3 million each year. The government apprenticeship levy is a tax paid by employers. It is then stored in a fund which can be accessed to help pay for apprenticeship training costs.

If your pay bill is under £3 million each year, then you pay just 5% towards the cost of training and assessing an apprentice. The government will pay the rest up to the funding band maximum. If you employ less than 50 employees, then the government will pay 100% of the apprenticeship training.

Reduced recruitment costs

Recruitment can often be costly and risky, as you may hire someone who appears suitable for the role but later lets you down. Apprenticeships are a cost-effective way of developing new and in-demand skills relevant to your business.  

According to STEM Learning, 89% of STEM businesses find that the recruitment process is also taking on average 31 days longer than expected. And with the amount of STEM jobs increasing, it is important for employers to find new and sustainable ways to attract and retain tech talent. STEM apprenticeship jobs will help fill those digital skills gaps while reducing recruitment costs.

Investing in your long-term IT strategy

Investing in IT apprentices means you will be better able to adapt with cutting-edge technology to changing customer and business needs. By investing in specialised training, you can prepare your company for the future by ensuring that your apprentice gains the knowledge and skills necessary for your industry. IT apprenticeship programmes are built on the most up to date technology and skills needed by businesses in order to keep your IT workforce ahead of the competition.

Improved employee retention

According to a guide from the National Apprenticeship Service, 69% of employers say that employing apprentices improves staff retention, and 65% of apprentices stay working for the company that trained them when they complete their apprenticeship.

Your company can shape and adapt apprentices, so they have the exact skills you require. Additionally, offering apprenticeships to existing employees shows that you care about their training, advancement, and development, which in turn will increase their loyalty to you.

These are just a few of the reasons why apprenticeships are a great opportunity for a company’s long-term growth plan, for filling the digital skills gap and ensuring they can attract and retain the very best tech talent.

Find out more about recruiting your first apprentice here.

Find all our Apprenticeship jobs here