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You are at:Home»Education and Training»Growing talent from within: why apprenticeships work where traditional hiring falls short
Making degree apprenticeships work for SMEs – Tell Keele University what you think

Growing talent from within: why apprenticeships work where traditional hiring falls short

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Posted By Greg Robinson on September 29, 2025 Education and Training

Hiring the right talent is never easy. Does the candidate have the right experience? Will they fit in with your team? Can they actually do the job, or just talk about doing it?

It’s a tricky, time-consuming process, and it’s only getting harder in today’s labour market. Chris McNamara, Founder and CEO of PathwayCTM, provides some advice on how businesses can benefit from the value of an apprentice.

Vacancies are rising, but so is competition for the best candidates. According to the Office for National Statistics [ONS], there were 2.2 unemployed people per vacancy between February and April 2025 – up from 1.9 in the previous quarter. That’s a telling sign that the talent market is tightening.

The good news is that there’s plenty of potential out there, but to attract and retain it, employers need to think differently. That’s where apprenticeships come in.

More businesses are waking up to the value of apprentices, and the data backs it up. Government figures show apprenticeship starts rose by 1.3 per cent and completions by 1.1 per cent in the first quarter after the last general election. It might not sound revolutionary but, in a tough market, even a small shift matters.

Shaping skills from the ground up

Where traditional hiring methods often fall flat, apprenticeships thrive. Hiring someone with experience might feel like the safest bet, but that experience can come with habits that don’t match your business. Apprentices, on the other hand, are a clean slate. They’re eager, adaptable and ready to learn the right way from day one.

While their course provider covers the core curriculum, you, the employer, get the freedom to shape their training around your business. Whether you need to close a skills gap or want someone to master a specific process or tool, with an apprentice, you can teach them exactly what your team requires from the ground up.

If you compare that with someone who’s worked elsewhere, where different systems, processes and values are in place, that transition can take time. Apprentices skip that step entirely because they’re learning your way from day one.

There’s also a wider challenge in the early careers market. A recent survey by the Institute of Student Employers Chris McNamara is founder and CEO of Pathway CTM [ISE] revealed many graduates lack the real-world experience needed to perform in entry-level roles. It’s a costly, frustrating gap, and one that apprenticeships are perfectly designed to fill.

The numbers don’t lie

Although investing in an apprentice might feel like a big commitment up front, the return on that investment is real and growing.

According to government research from February 2025, the average apprentice contributes £25 billion to the UK economy over their lifetime. That’s almost double the £14 billion estimated back in 2018.

On a business level, the typical yearly gain for employers is between £2,500 and £18,000 per apprentice during the training period alone. Once the training is complete, those benefits increase even further, so it’s a clear financial win.

Thanks to the Apprenticeship Levy and co-funding system, training doesn’t need to be a financial burden either. Employers with wage bills over £3 million pay just 0.5 per cent of their total income into the levy. For smaller businesses, the cost is even lower – just 5 per cent of the training bill, with the government covering the rest.

Compare that to hiring someone who still needs upskilling but comes with zero funding support and it’s clear apprenticeships offer an undeniable edge.

Learning the unteachable

Some of the most important workplace skills can’t be taught in a classroom. They have to be learned through experience.

Office etiquette, commercial awareness, business communication and understanding how to work as part of a team are behaviours that make someone not just employable but invaluable.

That same ISE survey found a growing concern among employers about communication and interpersonal skills in new hires. In fact, 22 per cent flagged verbal communication as a problem this year, compared with just 7 per cent in 2023. That’s a huge jump and a real risk for businesses.

Apprenticeships offer a real-world solution. By the time an apprentice finishes their programme, they’ve already spent months – sometimes years – immersed in the day-to-day workings of a business. They know how to behave professionally, they understand business expectations and they’ve already had their soft skills tested and strengthened in a live environment.

When an apprentice steps into a permanent role they hit the ground running, saving time, energy and resource.

Retention that actually sticks

Hiring is one thing, but holding onto great people is another challenge entirely. When you’ve trained someone from scratch, invested in their growth, shaped their skills and supported their journey, they’re far more likely to stay loyal.

The ISE found that 61 per cent of apprentices stay with the same employer five years after completing their programme, compared to just 56 per cent of graduates. That five per cent might not seem huge at first glance, but when you consider the true cost of turnover [recruitment, retraining, lost productivity] it adds up quickly.

And let’s not forget, an apprentice doesn’t just know the job, they know the people, the processes, the culture and the expectations. They’ve grown with the business and are already integrated. That kind of embedded knowledge is priceless and almost impossible to replicate in a new hire.

Retention is one of the biggest challenges employers face today, and apprenticeships are one of the most effective solutions.

Final thoughts

Hiring the right person isn’t just about ticking boxes on a CV. It’s about identifying potential, investing in growth and building long-term value for your business and for the people within it. Apprenticeships do exactly that.

They offer a practical, cost-effective and future-focused route to building the skills your business needs – today and tomorrow. Apprentices learn while they earn, so they’re developing real experience and real capabilities every step of the way.

By the time they qualify, they’re not just ready to work – they’re already working. And because they’ve been supported, developed and given purpose, they’re far more likely to stick around and continue growing with you.

If you want the best people, not just on paper, but in practice, it’s time to start thinking about apprenticeships not as a backup plan, but as a strategic choice.

Chris McNamara is founder and CEO of Pathway CTM

 

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