Five reasons to take on an apprentice
For many small business owners, the idea of taking on an apprentice can be seen as an additional challenge for owners and managers. However, at a time where businesses are facing talent shortages, hiring an apprentice can be very rewarding.
In this article we look at the reasons why business owners should consider apprenticeships.
1. Tackle a skills shortage
The effects of the pandemic, and the impact of the ‘Great Resignation’ as employees reassessed their career plans has meant that the skills gap has continued to be a national issue for many employers. Though recent data shows it has narrowed slightly for the first time in 10 years, the gap is still significant1. Apprenticeships can be a great way to fill any skills shortages.
According to the Institute of Student Employers, a quarter (23%) of companies plan to rebalance their hiring strategy to hire more young people from school to help fill their current skills shortage.
2. Create a talent pipeline within your business
Not only can apprenticeships help to fill any current skills gaps in your organisation, but they can be a good way to future-proof your business too. The vast majority of apprentices stay working for the company that trained them after completing their apprenticeship, with many staying for long periods of time. A study in 2023 showed that 61% of apprentices remain employed by the company they started with after 5 years2.
3. Gain a new perspective
Apprentices, more often than not, will come from a different, younger generation, and therefore will bring with them different experiences and points of view to their work. This can help idea generation and innovation within your business. In addition, apprentices will often learn new techniques and systems at their formal training sessions that they can bring back and introduce into your business.
Apprenticeships can also be an effective route to improving diversity within your business. Recent data shows that businesses in the top quartile for racial and2 ethnic diversity are 35% more likely to have financial returns above their respective national industry medians, and businesses in top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians3.
4. Boost productivity
Apprentices can help to boost productivity in a workplace, both by bringing in new skills or ideas and by contributing to the culture of an organisation4. 74% of employers said that an apprentice improved products or service quality, while a further 78% said that they improved productivity. What’s more, 73% of employees say that having an apprenticeship improved staff morale.
5. Support the local community
Offering an apprenticeship helps to boost jobs in your local area, particularly for those people who might not necessarily want to or be able to go onto higher education. This in turn can benefit your own business’ success. Consumers are generally more willing to pay more for products from a business that employs an apprentice, and 67%5 of employers say that employing apprenticeships improved their business image.
Since 2015 we have been supporting apprenticeships through our SME Apprentice Programme. The programme contributes to the funding of new apprentices in the manufacturing and transport sectors in and around the Midlands, helping local SMEs to secure the skills they need for the future.
To find out more about the Close Brothers SME Apprentice Programme click here.
Date: July 2025
1 https://www.personneltoday.com/hr/uk-skills-gap-narrows-for-first-time-in-10-years/
2 https://insights.ise.org.uk/home_featured/blog-what-is-the-retention-rate-for-graduates-and-apprentices-over-five-years/
3 https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/why-diversity-matters 4https://assets.publishing.service.gov.uk/media/5cd174a8e5274a34eb6b994a/Achieving_the_benefits_of_apprenticeships.pdf
5 https://www.careersandenterprise.co.uk/media/jxdbcb4g/fsq-insight-briefing-2022-2023.pdf