Apprenticeships are viewed as overwhelmingly positive by financial services (FS) professionals, but over a third of firms could be missing out on the benefits, according to research from Davies, a specialist professional services and technology business serving insurance and highly regulated markets.
A survey of professionals working in UK financial services found:
- 57% say their organization has an apprenticeship scheme in place
- Of those, 73% indicated that permanent roles are typically offered to people who take part in the scheme
- 71% say that having an apprenticeship scheme is more cost effective when bringing new staff into their organisation compared to recruiting graduates or junior staff.
504 full-time employees survey respondents from UK financial services firms were asked about their organization’s approach to apprenticeships. Of those surveyed, 57% confirmed their organization has an apprenticeship scheme in place, while 35% said theirs does not, and 8% were unsure.
Among organizations running a scheme, 73% indicated that permanent roles are typically offered at the outset for those who complete their apprenticeships. These schemes were also widely viewed as a cost-effective recruitment strategy, with 71% stating they are more economical than hiring graduates or junior employees through other channel.
The survey also found that 85% of respondents believe apprenticeship schemes help build loyalty between participants and their organization, while 78% reported that participants in their apprenticeship programs often progress to long-term careers within their company.
Senior managers in organisztions running apprenticeship schemes were overwhelmingly supportive of their value. 87% stated their schemes aim to create pathways for diverse talent, enabling a wider range of people to build careers in financial services. Additionally, 74% said the government’s Apprenticeship Levy – which provides government funding to pay for apprenticeship training costs – is an important incentive for their organization.
Of those without an apprenticeship scheme, however, 15% of respondents said they do not know how to take advantage of the Apprenticeship Levy, while 11% do not know how to establish an apprenticeship scheme. One fifth (19%) said they do not see the value in running a scheme, while 42% indicated that they attract enough talent through other means.
Craig Potter, Professional Education senior partner at Davies, said in a stateement: “My biggest takeaway from this research is that it demonstrates just how valuable apprenticeship schemes can be for financial services organizations. 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.
“However, 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 & 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 organizations tap into this important talent pipeline.
“As a sector, its 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.”