There are a few things to consider when working out how much hiring an Apprentice will cost your business.
The cost of recruitment is often included in the training agreement but check with your training provider.
For example, the Apprenticeship Team at City College Brighton and Hove co-ordinates recruitment for you as part of their package.
All apprenticeship vacancies are advertised online and through the City College Student Centre, so you will get access to a pool of high-quality, motivated, local candidates who are eager to get started!
The government is keen for small businesses (who don’t pay the levy) to continue to provide apprenticeships. For apprentices over 18, they will fund up to 90% of the cost of external training.
However, If your business has fewer than 50 employees, and the apprentice is aged 16-18 or 19-24 ,a care leaver or in receipt of an Education Healthcare Plan, the government will contribute 100% of the total cost of training.
So, depending on the level of the Apprenticeship, the cost to you could be as low as £150. That’s incredible value when you consider:
- You get a qualified, motivated member of staff at the end of the Apprenticeship who has made a significant contribution to the development of your business.
If your business has fewer than 50 employees, and the apprentice is aged 16-18, or 19-24 years old and is either a care leaver or has an Education Heath Care Plan, the government will contribute 100% of the total cost of training.
As the apprentice’s employer, you will be responsible for paying their wages. For those in their first year of apprenticeship, or if they are under 19, the hourly wage is £3.50 per hour (from April 2017), although most employers opt to pay more than this.
You’ll also need to factor in the time cost of the induction process, on the job training and other incidentals like tools and materials.
Are there any other incentives to take on an apprentice?
Yes! If your apprentice is aged 16-18 the government will give you a bonus £1,000 to go towards the internal costs of taking on a younger person.
This will be paid in two equal instalments at three months and 12 months. These payments will be made to you via your training provider, who will pass the money on.
As an employer you won’t pay National Insurance Class 1 contributions (NIC) for apprentices aged under 25 that earn below £43,000 per year, which will save your business up to 13.8% on its payroll costs.