How do I take on an apprentice?

Hiring staff is often crucial to launching or scaling a new business. 

However, British Chambers of Commerce figures reveal that 79% of firms have reported difficulties hiring employees.

Many businesses find that hiring the right people can be a difficult and time-consuming process.

Competitive wages, skills gaps, and the desire for remote and hybrid working options are just some of the reasons why businesses may struggle to recruit staff.

Hiring an apprentice can be a cost-effective way to grow your business by training a person on the job while helping develop their skills and experience.

According to government data, smaller businesses accounted for 41% of apprenticeship starts in 2020/21, increasing from previous years.

An apprenticeship could offer a structured, financially beneficial experience for both the apprentice and their employer that could develop into a positive, productive, and long-term working relationship.

What is an apprentice?

An apprentice is an individual learning a trade or skill by working under the guidance of a skilled professional.

The apprentice does this by participating in an apprenticeship, a formal program of paid employment that combines on-the-job training with theoretical studies.

An apprentice should spend at least 20% of their working hours in off-the-job learning with a university, college, or recognised training provider.

It can take one to four years for an apprentice to complete and gain their nationally recognised qualification.

Who can take part in an apprenticeship?

An apprenticeship is suitable for anyone over 16 years old, whether fresh out of formal education or at any skill level, such as those:

• looking for a career change
• needing to upskill in their current role and job
• being early in their career and looking to build experience or diversify their skills.

In 2022/23, 47% of apprentices were 25 years old or older, while the second largest group was between 19 and 24 years old (29%).

Benefits of taking on an apprentice

Apprenticeships can offer many benefits to businesses.

As apprentices learn on the job, they could start contributing to your business almost immediately, which could help increase productivity and output.

According to the National Apprenticeship Service, 96% of employers with apprentices have experienced at least one benefit from taking on apprentices, while most can count at least eight benefits. 

86% of employers said they helped to develop relevant skills for the organisation and to fill the skills gap.

Employing an apprentice can help expand and upskill your workforce, and you can adapt their training according to business needs.

How much should you pay an apprentice?

Apprentices are classed as employees and, therefore, need to be treated as such.

You must provide your apprentice with a contract of employment, which should include their hours (minimum 30 hours per week for both working and studying) and minimum rate of pay.

They are eligible for at least the National Minimum Wage after their first year and if they are over 19, but would be paid the Apprentice National Minimum Wage during their first year.

You will also have to provide benefits and pay that other employees in a similar role receive, including paid holiday and sick pay.

Is your start-up eligible for an apprenticeship grant?

Government funding is available to cover the running costs of apprenticeships for companies in England.

Scotland, Wales, and Northern Ireland also have schemes that help with apprenticeships.

The funding you can get depends on whether you pay the apprenticeship levy – which applies if your annual pay bill is more than £3 million.

Businesses must contribute 0.5% of their total annual pay bill, which is then used to fund government-backed apprenticeship programmes.

Start-ups and smaller companies with annual pay bills of less than £3 million don’t need to pay the levy.

As of April 1, 2024, the government will cover 100% of the cost for apprentices aged 16-21, while employers need to pay 5% of the training and assessment costs for apprentices aged 22 and older.

The government will then pay the remaining 95% directly to the training provider up to the funding band maximum.

Further information can be found on the GOV.UK site.

Can you take on an apprentice as a sole trader?

All types of businesses, including sole traders, can take on apprentices, however there are procedures to follow.

Sole traders in the UK cannot hire apprentices directly.

They must work with an Apprentice Training Agency (ATA), which is an organisation that handles the recruiting, employing, and training of apprentices on a business’s behalf.

This arrangement can allow you to benefit from the energy and skills an apprentice can offer without the administrative duties of direct employment.

To ensure you’re working with a reputable ATA, choose from the government’s register of approved Apprentice Training Agencies.

If you are based in England, you can join the government’s apprenticeship service to find the right one for you.

Outside of England, separate apprenticeship services available in Wales, Scotland, and Northern Ireland can help.

How do I take on an apprentice?

These are the steps you could take to prepare and hire an apprentice.

1. Identify your business’s skills gap

Apprentices can fill gaps in a business’s needs.

Take a look at your business and consider where you could use extra help from someone trained for the job.

2. Register for an Apprenticeship Service Account

To formally start the process of finding an apprentice, you will need to register with the government’s apprenticeship service.

An Apprenticeship Service Account will help manage your apprenticeships all in one place.

The account can be used to set up an apprenticeship, review applicants, and help find a training provider and funding.

More information is available at apprenticeships.gov.uk.

3. Choose an apprenticeship standard

Decide the role of the apprentice and look at available training options.

There are more than 700 apprenticeship standards to choose from across a wide range of industries.

An apprenticeship standard outlines the specific job role, the duration of the apprenticeship, the level of qualification, and the assessment methods.

It provides a clear framework for training, ensuring the apprentice meets the requirements for a skilled occupation and is fully competent by the end of their apprenticeship.

The government’s online system can help you search for apprenticeship standards.

4. Find a training provider

Once you’ve chosen a course, you will need to find a training organisation to deliver it.

You can use the government system or your Apprenticeship Service Account to find a training provider for your apprenticeship.

It may be a good idea to compare several providers and find the one most suited to your course and business needs.

5. Advertise your apprenticeship

Once you’ve sorted out the details of the apprenticeship, it’s time to advertise and recruit a suitable candidate.

The job ad should specify the qualifications offered, what the role involves, and what type of candidate you’re looking for.

A descriptive advert packed with relevant details, such as the qualifications offered and a little bit about your business and its culture, could attract a number of potential applicants.

The government offers guidance on creating apprenticeship adverts.

You can create and host your ad through your Apprenticeship Service Account.

6. Interview and select your apprentice

Once you’ve shortlisted applicants, you will need to interview them to help you find the right person for the role.

Interviews should be similar to ones conducted for regular positions but remember the applicant may not have a full CV or qualifications.

Use the interview to find an enthusiastic individual and ask why they want a career in that particular area.

This can be an excellent opportunity to get to know your potential apprentice and discover what motivates them.

Let other candidates know why they did not secure the apprenticeship and give them constructive feedback.

7. Sign an apprenticeship agreement

Once your chosen apprentice agrees to join your start-up, you must sign an apprenticeship agreement and commitment statement, which gives details of the apprenticeship and outlines the training schedule and content.

This is to legally protect both your business and the apprentice.

The government has further advice and templates on what must be included in the two documents.

8. Select your End-Point Assessment Organisation

During the first three months of the apprenticeship, you will need to select an End-Point Assessment Organisation to conduct the assessment for the apprentice.

This assessment will identify whether your apprentice has gained the necessary skills and knowledge they set out to achieve and to work responsibly in their chosen industry.

Without this assessment, the apprentice will not achieve their qualification.

9. Begin the apprenticeship

Providing all goes well, your new apprentice should be able to begin their apprenticeship with your business.

It’s worth considering how to ensure they get the proper help to encourage them to complete the training.

10. Support your apprentice

Depending on the industry they’ve chosen and the work your business does, your apprentice may require various types of support throughout their training.

Providing this could help them to feel more fulfilled as they achieve their qualification and become more confident as they continue their career path.

For example, you could:

• make sure you have good induction and onboarding processes in place
• provide a mentor for professional support
• hold regular progress reviews
• introduce apprentices to different areas of the company for a broad overview of the business.

The support you provide could result in them becoming full-time employees of your business after they achieve their qualification.

Read our guide on how to hire staff for your business.

Types of apprenticeships you can offer

There are many types of apprenticeships that small businesses could offer:

• software development – software development apprentices could help you maintain or develop software, create and test code, and stay up to date with emerging technologies
• plumbing – apprentices can gain hands-on experience in system installation and maintenance, helping you to provide a vital service while they learn new skills
• marketing – marketing apprentices can help you put together presentations, develop effective campaigns, and keep up with new trends
• accounting – an accounting apprentice can assist with financial tasks, helping to manage books, process invoices, and ensure records are organised
• tattooing – if you own a tattoo studio, an apprentice could help out in the shop while practising their tattooing skills under your guidance
• hairdressing – an apprentice can help with the upkeep of the salon, shampooing and conditioning client hair, and assisting colleagues by mixing/applying dyes and colourants
• mechanics – a mechanic apprentice can assist with vehicle inspections, servicing and repairs under the guidance of experienced technicians
• human resources (HR) – an HR apprentice could get involved with recruitment, employee admin, and help you adhere to employment regulations.