Apprenticeships offer a win-win situation and, employers get employees with the right skills set, a source of innovative ideas and the means to address the long standing human resource challenges the industry faces, according to research published recently by the Apprenticeship Ambassadors Network.
Hospitality was one of six industry sectors examined in the research, The Net Benefit to Employer Investment in Apprenticeship Training, undertaken by the Institute for Employment Research at the University of Warwick.
The study found that the average payback period for Apprenticeships in the sector was just under a year and the estimated cost of the Apprenticeship £4,326.
| Apprenticeship | Cost (estimated) | Payback (estimated) |
|---|---|---|
| Engineering | £28762 | Less than 3 years |
| Construction | £22043 | Less than 2 years |
| Hospitality | £4326 | Just over 1 year |
| Retail | £2305 | Less than 2 years |
| Social care | £4359 – £7743 | In 4 years |
| Business Administration | £3464 – £3898 | Less than 2 years |
Sir Roy Gardner, Chairman of Compass Group , chairs the Network.
He said, “This research is very timely as many businesses feel the impact of the economic downturn and may be tempted to cut training budgets. Our research confirms that apprentices pay their way and employers see a visible return on their investment in a relatively short period of time.”
“I wanted to commission a robust piece of research where we could make a stronger business case for Apprenticeships by looking at not only the benefits but also the costs and, more importantly, the return on investment. Most employers appreciate that there is a cost implication in training but what we are more interested in is when we will see that investment pay off,” he continued.
The research found that the main skills shortages in the sector include:
- customer care
- communication and interaction
- a genuine interest in hotel or kitchen work
- acknowledgement that the customer comes first
- listening
- team working
- ability to deal with situations as they arise
The benefits of Apprenticeships highlighted by the research include:
- increased productivity and quality of work
- a more innovative workforce
- reduced staff turnover
- a better fit between employee skills and company requirements
- skilled young recruits to replace an ageing workforce
- developing a pool of potential future managers
Ian El-Mokadem, Group Managing Director UK and Ireland, Compass Group Plc said:
“This report shows the clear business benefits of running effective Apprenticeship programmes. It mirrors our own experience at Compass Group where Apprenticeships form a key part of our recruitment and training strategy.
“We gain a team of well-trained, engaged and highly motivated colleagues and we see this as an important investment in our future success as a business. We aim to maintain and, over time, grow this investment even during this period of economic downturn.”
Sir Roy said, “We have always said that Apprenticeships are good for business and this is confirmed in the research. More employers than ever are taking advantage of the Apprenticeship programme – the number of Apprenticeships has almost doubled since 1997 – but literally hundreds of thousands of businesses are still missing out.
“There has never been a more important time to invest in training, and particularly Apprenticeships,” Sir Roy said. “I encourage businesses to invest in their human capital now so that UK plc is well placed to compete as the economy recovers,” he concluded.
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