However, many firms have found that apprenticeships are an important investment. According to our recent research, nine out of 10 employers see apprentices as the key to the success of their business over the next two years.

Apprentices add value to any business and offer the opportunity for an individual to gain valuable practical skills, relevant experience and industry knowledge – all recognised by national qualifications. Employers tell us that apprenticeships are a great way to fill skills gaps, increase productivity and develop a committed, loyal and competent workforce. For apprentices themselves, apprenticeships give them the chance to earn while they learn and place them on the right path to career progression. In fact, many apprentices also progress to management positions in their organisations.

According to the National Apprenticeship Service (NAS), apprenticeships are also more cost effective than hiring skilled staff, leading to lower overall training and recruitment costs.

How do apprenticeships work?
Apprenticeships are work-based training programmes designed around the needs of employers. They focus on learning while performing a job and are made up of three interwoven elements to provide employees with all the training they need. A technical certificate (VRQ) provides the skills and knowledge essential to successful employment in your business. A National Vocational Qualification (NVQ) recognises that these skills can be put into practical application consistently. Key Skills (soon to be called Functional Skills) qualifications then develop vital transferable employability skills such as communication, numeracy and IT. 

Apprenticeships can be used to train both new and existing employees and the government provides funding to support the formal training and qualifications required. The length of an apprenticeship varies depending on level, qualification and prior experience, but generally take between one and three years.

Apprenticeships are a worthwhile investment for employers, but we want to make taking on an apprentice an even easier decision by proving real return on investment.

There is currently huge demand for apprenticeships among young people. For example, Network Rail recently saw 8,000 applicants for 200 spaces. To address this, earlier this year we launched Million Extra – our scheme to support government and NAS by collaborating with all relevant parties to help ensure one million people have the opportunity to start an apprenticeship between now and the summer of 2013.

Apprenticeships will be increasingly important in rebalancing the UK economy and driving future prosperity and it’s time the private sector realised the financial, social and cultural benefits apprenticeships offer.
For more information, visit www.million-extra.co.uk

Chris Kirk is head of apprenticeships at City & Guilds