More than one in three financial services firms are ‘missing out’ on the benefits of apprenticeships, according to new research.
A study by specialist professional services and technology business Davies found that while nearly three in five (57%) organisations offer an apprenticeship scheme, 35% do not and 8% are unsure if they do.
Among employers that do not have a scheme in place, 11% said they didn’t know how to set one up and 15% are uncertain about how to take advantage of the apprenticeship levy.
Nearly one in five (19%) survey respondents do not see the value in having a scheme, while more than two in five (42%) believe they attract enough talent without them.
Financial services roles
Financial services ‘struggling’ to hook young talent
Craig Potter, professional education senior partner at Davies, said: “It’s concerning that over a third of firms are missing out on these benefits, either due to a lack of understanding of how to set up a scheme or misconceptions about their value.
“The lack of understanding around the apprenticeship levy is a particular concern, especially with its impending transition to a Growth and Skills Levy under a Labour government.
“The fact that so many firms are simply unaware of how to establish a scheme demonstrates that more support and education are needed to help organisations tap into this important talent pipeline.”
The survey of 504 full-time employees at UK financial services firms found that among businesses running apprenticeships, nearly three-quarters (73%) said permanent positions are usually offered upon completion from the outset.
More than seven in 10 (71%) think such schemes are more economical than recruiting graduates or junior staff through other channels, while 85% believe they help build loyalty between the company and participants.
According to Potter, the research demonstrates just how valuable apprenticeship schemes can be for financial services organisations.
He said: “With a majority of firms now offering permanent roles to their scheme graduates and a similar number of firms reporting that they are cutting recruitment costs as a result, it’s clear that they provide an excellent pathway for firms looking to secure long-term talent.”
Additionally, nearly eight in 10 (78%) indicated that apprentices often enjoy long-term careers at the organisation, with senior managers particularly supportive of the schemes.
Most (87%) believe their schemes open up pathways for diverse talent, allowing a greater range of people to establish careers in financial services. Nearly three in four (74%) also believe the Apprenticeship Levy is an important incentive for their employer.
Potter added: “As a sector, it’s vital that more investment is made to raise awareness of the benefits that apprenticeships can provide – only then can we secure the talent needed for the sector to grow sustainably in the years ahead.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Recruitment and resourcing opportunities on Personnel Today
Browse more recruitment and resourcing jobs
