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The Net Benefit to Employer Investment in Apprenticeship Training

The study contributed to the work of the Apprenticeship Ambassador Network by providing a detailed assessment of the contribution made by employers to the provision of Apprenticeship training to Level 2 and Level 3 and of the longer-term benefits that employers believe arise from such Apprenticeship training. The study was undertaken by the Warwick Institute for Employment Research (IER) and updates earlier IER studies of Apprenticeship in the context of the targets established for Apprenticeship training following the Leitch Review, the introduction of Leitch Implementation Plan, the draft Apprenticeship Bill and plans by Government to expand the number of Apprenticeships.

The study sought to identify:

  • the net costs of Apprenticeship training;
  • costs in each year of the Apprenticeship;
  • the structure of Apprenticeships being offered;
  • an assessment of Apprenticeship productivity;
  • the longer-term benefits of Apprenticeship; and
  • the returns to investment in Apprenticeships.

Evidence for the study was drawn from case studies conducted in six industrial sectors providing Apprenticeships under the following frameworks: engineering, hospitality, retail, business administration, social care and construction. These sectors provide a contrast traditional and non-traditional Apprenticeships

The report consisted of two parts. In the first part the net cost of providing Apprenticeships in each of the six sectors is examined whilst the second part examined the benefits accruing to business from their investment in Apprenticeships. Benefits are considered both in terms of a simple investment appraisal and in terms of qualitative assessments by employers of the benefits. The report concludes by highlighting a number of key findings.

A copy of the report is available here.

 

Duration:
January 2008 - June 2008

Principal Investigator:
Terence Hogarth

Project Team:
Chris Hasluck

Beate Baldauf

Geoff Briscoe

Duncan Adam

Faye Padfield

Sponsor:

Apprenticeship Ambassadors Network