News from the Institute of the Motor Industry: Now in its seventh year, National Apprenticeship Week is designed to celebrate the positive impact apprenticeships have on individuals, businesses and the UK economy.
With the British Chambers of Commerce calling for Chancellor George Osborne to address youth unemployment and training with a £100 million scheme in the next budget, the week is particularly timely.
Steve Nash, Chief Executive of the Institute of the Motor Industry (IMI) firmly believes that the key to addressing youth unemployment is utilising the often-overlooked apprenticeship model that is actually beneficial to both employers and young people looking for work.
The IMI recently published the results of a two year project to prove the value of apprentices in the automotive sector, which provided definitive evidence that vocational training does not have to be a cost-burden to business and can play a vital role in reducing youth unemployment. The research showed that, by the end of their third year, a well-recruited apprentice can generate between 150% and 300% return on investment, based on a £50 hourly charge. In other words, for every £1 a firm invests, it will see a return of between £1.50 and £3.
“Our research proves that businesses must overcome their doubts about employing young people and invest in the future,” explained Steve Nash. “With the right attitude and support of the employer, giving a young person suitable opportunities to apply their skills, a positive return on investment can be achieved much earlier than commonly perceived.”
