- New research1 identifies a gulf between small and large businesses’ apprentice recruitment plans
- 27% of businesses are planning to take on apprentices in 2013, compared to 22% in 2012 who took them on
- Small businesses are half as likely as larger organisations to take on an apprentice this year
New research findings from Barclays Corporate Banking’s Job Creation Survey suggests that small companies with a turnover of less than £5 million are lagging behind in the creation of apprenticeships. Only 19% are likely to take on an apprentice, compared to an average of 41% amongst businesses of every other size.
These small businesses are missing out on the many benefits that an apprentice can bring to productivity and talent development. A recent CEBR report2 has found that companies taking on an apprentice typically gain a £214 per week productivity boost.
The Barclays survey also revealed that only 12% of the smallest firms are planning to increase the number of apprentices they take on, compared to an average increase of 19%, for all other business sizes.
Previous research from Barclays3 has revealed that more than half (52 per cent) of the SMEs asked would not take on apprentices due to fears about the amount of time it takes to set up and the additional support they thought a young person would need. In particular, 39 per cent of micro companies (5-9 employees) cited red tape as the most significant barrier.
Encouragingly 76% of SMEs said they would want to be part of a scheme that helped set up apprenticeships for young people.
Barclays Bridges into Work, a new programme designed to help 10,000 young people into work aims to support smaller businesses overcome the perceived barriers to taking on apprentices in the first place. The programme will help small businesses access grants, find applicants, and train young people for the role.
Following five successful Bridges into Work launch events in London, Birmingham, Manchester, Liverpool and Newcastle, and pilot events in Romford and Stoke, 200 businesses have already pledged to get involved.
David Roust, Head of Recruitment Industry at Barclays, said: “It’s encouraging to see that many companies are planning to take on more apprentices in 2013, but with small businesses accounting for around half of the UK’s GDP it is really important that they do not miss out on the benefits that apprentices bring to organisations of all sizes.”
Barclays was the first bank to introduce a team of corporate banking specialists with a specific focus on supporting the recruitment sector.
Research Methodology
1 Barclays Corporate Job Creation Survey 2013 questioned 708 executives of UK businesses in January and February 2013.
2 Centre for Economics and Business Research (CEBR): Research was published by CEBR in March 2013 and reflects the state of apprenticeships across the nation.
3 SME Research: Research was undertaken in January 2013 amongst 254 UK business decision makers working in companies with 5-500 employees. Research conducted by Opinion Matters.
