According to a new study, more than one third of financial services firms’miss out’ on apprenticeship benefits.
According to a study conducted by the specialist business for professional services and technologies, Davies, nearly three-fifths (57%) of organisations have an apprenticeship program. However 35% don’t and 8% do not know if they offer one.
Employers who do not have an apprenticeship scheme are 11% unsure of how to create one and 15% unsure about how to benefit from the apprenticeship levy.
Almost one fifth (19%) of respondents to the survey do not believe that a compensation scheme is necessary, and more than two-thirds (42%) think they can attract talent without it.
Craig Potter, senior partner in professional education at Davies, commented: “It is concerning that more than a third firms miss out on these benefits either because they don’t know how to set one up or have misconceptions about its value.
The lack of understanding about the apprenticeship levy, particularly with its imminent transition to a Growth and Skills Levy by a Labour Government is a concern.
The fact that many companies are unaware of the steps to take to create a talent pipeline shows that organisations need more education and support to tap into it.
A survey of 504 employees in UK financial services found that nearly three quarters (73%) believe permanent jobs are offered to apprentices upon completion.
Over seven out of ten (71%) believe that such schemes are cheaper than hiring graduates or juniors through other channels. 85% also think they build loyalty between participants and the company.
Potter says that the research shows how valuable apprenticeship programs can be to financial services organizations.
He said: “With the majority of companies now offering permanent positions to their scheme graduate and a comparable number reporting that they have cut recruitment costs as a consequence, it is clear that these schemes provide an excellent path for firms looking to secure talent over the long term.”
Approximately eight out of ten (78%) respondents said that they often have long-term careers with their employers, and senior managers are particularly supportive.
The majority (87%) of employers believe that their programs provide a pathway for diverse talent and allow a wider range of people the opportunity to pursue careers in financial services. Nearly three-quarters (74%) of respondents also think the Apprenticeship Levy provides an important incentive to their employer.
Potter said: “As an industry, it is vital to invest more in raising awareness about the benefits of apprenticeships. Only then will we be able to secure the talent required for the sector to continue to grow sustainably.”
