Apprenticeship Levy

Upskill your entire organisation… with the Apprenticeship Levy

Apprenticeship Levy

Every organisation wants to keep their most talented people. The prospect of losing your most gifted employees to a competitor is every leader’s worst nightmare.

So, how do you ensure that your best talent remains with you, helping to grow and improve your organisation for years to come?

Training and career development.

The best talent needs to feel supported, respected, and special. Nobody wants to stay still in their careers for too long, stagnating in roles they have long outgrown. If you can’t provide the skills and training to unlock your people’s full potential – you can guarantee your competitors will!

But why do so many companies continue to run the risk of losing their best people?

Fears over high costs, loss of productivity, and employee attrition

The perceived high costs associated with establishing training programmes or initiatives can be one of the biggest barriers to entry.

Companies, especially SMEs, can feel wary when it comes to assigning budget and resource for staff training. The costs associated with training, coaches, learning platforms, and content, can feel overwhelming, or a stretch too far.

Companies, particularly smaller organisations, can also fear that productivity will be lost or suffer, if they release their employees for extended periods to attend training sessions.

Organisations are operating in challenging circumstances and difficult economic times and are finding themselves under increasing pressure to meet goals and deadlines. To lose key employees for periods of time, as they focus on CPD activities, may feel like a risk some companies are unwilling to take.

Many employers also worry they will invest budget and resource into their people, only to lose them to other organisations, as their skills and market value increase.

While the combination of cost, time, and employee attrition are all valid considerations and concerns, for those companies unwilling to invest in their people, the consequences can be huge.

Without adequate training or growth opportunities, employees can become disgruntled. This can lead to poorer motivation levels, decreased productivity, reduced customer satisfaction, plus, a high employee turnover.

Apprenticeship Levy

The good news is that when it comes to employee training, there are many sources of support available for businesses of all different shapes and sizes. This includes financial support, which comes in the form of the UK government’s Apprenticeship Levy.

The Apprenticeship Levy is paid by large employers in the UK, with an annual wage bill of over £3 million. Only 2% of UK employers pay the levy, which is set at a rate of 0.5% of their total annual wage bill.

Every employer who contributes to the levy has a digital account where they can access their levy funds to spend on apprenticeship training for their employees.

While only the biggest businesses in the country pay the levy, the funding generated by it also funds apprenticeship training for other employers, such as SMEs.

Smaller employers – those with a total annual pay bill of less than £3 millionpay just 5% of the cost of their apprenticeship training and the government funds the rest.

This means that for most employers in the UK, apprenticeship training costs can be significantly reduced. For example, if an apprenticeship course costs £5K, as a SME, with an annual wage bill below £3 million, you would pay just 5%, or £250 towards the course fees.

Since May 2019, over £3.3 billion of unused Apprenticeship Levy funds have been returned to the UK Treasury.

Over 700K people enrolled on to an apprenticeship in the UK last year. Within the UK, the levy can be used towards over 650 types of different apprenticeships – this includes leadership and management apprenticeships.

Investing in leadership skills

Promotion into a managerial position, especially without adequate training, can be a difficult experience.

According to data from the CMI (Chartered Management Institute), 82% of newly promoted managers don’t receive sufficient training from their employer. These people form part of the phenomenon known as ‘accidental managers’.

Accidental managers are high-performing employees who are given extra responsibility, by way of a managerial promotion, but they receive no further guidance or training from their employer to help them adapt to this new challenge.

In fact, only 48% of active managers hold a formal leadership qualification. This has led to major problems for organisations. That is because ‘ineffective’ managers can have a hugely negative impact on the people they are responsible for.

50% of people with an ‘ineffective’ line manager, are planning to quit their jobs within a year. Can your organisation afford to lose your best talent because your management team haven’t received the correct training and support?

Don’t worry, we can help

Accipio are a multi-award-winning leadership development agency based in London. Our specialist team have collectively trained and supported over 50K managers and leaders to help them achieve their professional goals.

No matter where your employees sit within your organisation’s hierarchy, there’s a compelling and challenging leadership programme, with CMI certification, to suit their needs. From Level 3 for aspiring managers, to Level 7 for senior leaders, we can support your people while accelerating your organisational growth.

Your employee will have access to their own individual coach, who will guide them through their training course end-to-end. Course materials will be delivered seamlessly online through our learning platform – The Accipio Hub – customised and branded to your organisation. No extensive travelling required, or large amounts of time outside of the workplace.

And best of all, your organisation can leverage the UK Apprenticeship Levy to train your people on our apprenticeship programmes.

That means SMEs pay 5% of our course fees, and the UK government covers the rest. Your people can benefit from 100% of our expertise, allowing your organisation to supercharge your talent.

Your people’s apprenticeship assignments and projects can be aligned to your wider organisational goals. This means when your employees are focusing on developing their new skills, for a few hours each week, they will continue to progress your company objectives.

Additionally, employees who are being supported with training investment can upskill and become better and more productive in their roles. This can lead to higher motivation and engagement levels and helps with the overall employee retention process.

Chartered Managers can make all the difference

Our leadership apprenticeships also provide your people with the opportunity to become Chartered Managers through the CMI. Chartered Managers, on average, boost their business revenue by £62K per annum, or £310K over 5 years.

81% of Chartered Managers said gaining Chartered status improved their managerial skills.

Every person deserves access to self-directed, on-demand training. Helping them to upskill and progress their careers, while also closing any skills gaps in the workplace.

Why not contact our expert team and discuss affordable apprenticeship opportunities for your organisation.

Discover Christian’s Apprenticeship Story

For our original explainer on the Apprenticeship Levy click here.