How apprentices can help solve staffing challenges for smaller businesses

One solution to help solve these staffing challenges is apprenticeships. Benefits of apprentices include filling skills gaps, improving employee retention and providing a cost-effective way to recruit.

This guide outlines how apprenticeships can boost your small business.

The challenges of finding and retaining employees

The current labour market in the UK is a challenging one. According to research by Adzuna, job vacancies saw the fastest month-on-month rise in three years in February 2025, while government actions are increasing the cost of employment and adding to employers’ regulatory burden.

Measures include the decision to raise employer National Insurance from 6th April 2025 and the Employment Rights Bill which aims to enhance workers’ rights.

Retaining staff is problematic too. The current high cost of living means businesses risk staff seeking better paid roles to cover their bills, while employers that want employees to return to company offices may lose staff who have become accustomed to working from home and want to continue doing it.

For certain businesses that rely on foreign workers, such as healthcare, construction and healthcare, Brexit has made it harder to recruit and retain employees.

How apprenticeships can help

Apprenticeships, which combine training in a job with studying, can help businesses overcome their staffing challenges. Benefits of apprenticeships for small businesses include:

• You can train apprentice in the skills and knowledge required to do the specific job for your company, instead of relying on external candidates with generic abilities who might not be the right fit. 
• Apprenticeships help you build a long-term pipeline of skilled workers that you can nurture over time.
• Studies have shown that apprentices tend to stay with an employer longer than other staff. As they receive bespoke training for the job, apprentices are also likely to feel more valued and loyal to the employer. According to the National Apprenticeships Service, employers who have an established apprenticeship programme reported that productivity improved by 76%, and 75% said apprenticeships improved the quality of their product or service.
• Apprenticeships aren’t just for new employees as you can also use them to upskill or retrain existing employees. This can cut your recruitment costs by giving you the skills you need without having to employ new people.

Types of apprenticeships

There are various types of apprenticeships and they can be tailored to meet the specific needs of businesses. In England, there are four levels of apprenticeships – intermediate, advanced, higher and degree – which have equivalent education levels: 

Level	Equivalent educational level
Intermediate	2	GCSE
Advanced	3	A Level
Higher	4,5,6 and7	Foundation degree and above
Degree	6 and 7	Bachelor’s or master’s degree

An apprentice is required to spend at least 20% of their time completing off-the-job training, but the style, location and timing of the training can be delivered in a way that suits you and your training provider. This means your apprentice will learn the specific knowledge, skills and behaviours required for their role in your business. 

Examples of apprentice roles in specific sectors include:

• Building and construction: Plumber, carpenter, site manager, electrician
• Retail: shop assistant, shop manager, visual merchandiser, e-commerce assistant
• Hospitality: waiting staff, restaurant manager, chef’s assistant, chef

For guidance specific to other UK nations, visit these links: Wales, Scotland and Northern Ireland.

How to implement an apprenticeship programme

This guidance is for apprenticeships in England. For apprenticeships in Scotland, Wales and Northern Ireland, see the links above.

To implement the right apprenticeship training programme for your business, there are various steps to follow:

Choose an apprenticeship

You firstly need to select the level and type of apprenticeship that meets your business’ needs. You can do that here.

Find a training organisation

Once you’ve decided on the apprenticeship, you need to find an organisation that provides appropriate training. You can search here.

Access apprenticeship funding

The Government provides funding to help employers take on apprentices.

If you don’t pay the apprenticeship levy, the Government will fund all of the apprenticeship training costs, up to the funding band maximum, for apprentices who at the start of their apprenticeship training are:

• aged 16 to 21 years old (or 15 if their 16th birthday is between the last Friday of June and 31 August)
• aged 22 to 24 years old with an education, health and care (EHC) plan provided by their local authority and/or have been in the care of their local authority

Each apprenticeship standard is in a funding band, which range from £1,500 to £27,000

You can get £1,000 to spend on costs related to the employee of your apprentice (salary, travel costs, uniform etc) if, at the start of their apprenticeship training, one of the following applies:

• they are 16 to 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
• they are 19 to 24 years old with an education, health and care (EHC) plan
• they are 19 to 24 years old and have been in care

Large businesses that pay the apprenticeship levy can provide up to 50% of their unspent levy funds to other businesses. You can find a business to fund apprenticeship training here and read government guidance on how to apply here.

Advertise your apprenticeship

You can advertise your apprenticeship via the apprenticeship service. You can do this yourself or allow your training provider to do it.

Create an apprenticeship agreement

Once you’ve selected an apprentice, you need to sign an apprenticeship agreement with the apprentice which covers details including the skill, trade or occupation they are being trained for and the start and end dates. You also need to agree a training plan with your apprentice and the training provider.

You can download an apprenticeship agreement template here.

Get expert support and advice on employment law

TaxAssist Accountants can put you in touch with employment law support service Employmentor.

It is a practical and cost-effective service that equips your business with all the tools needed to manage day-to-day employment law issues, while complying with your legal requirements.

Contact us on 020 3988 0580 or complete our online enquiry form and we will call you back.

 

Last updated 8 Apr 2025 | First published 8 Apr 2025

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