Mid-Size Firms in the Dark About Hiring Apprentices

Over a third of mid-sized businesses in the UK would like to hire an apprentice but do not have sufficient resources or know-how to do so, according to new research from BDO.

The accountancy and business advisory firm’s bi-monthly survey of more than 500 mid-sized businesses reveals that almost a third (32%) of respondents want to hire more apprentices but the costs associated are too high, with the same number wanting more guidance on how to go about it.

The same number of respondents (32%) most want to see support from a future government to resolve staff or skills shortages, including reform to the apprenticeship levy. This came as a higher priority than tax breaks and regulatory changes, demonstrating its importance to the businesses that sit at the heart of the UK’s economy.

Fewer than one in five respondents claim to regularly hire apprentices through the Apprenticeship Levy, with high costs (32%) and a lack of guidance (32%) cited as the main barriers to doing so.

BDO found that apprenticeship hiring levels varied significantly across the UK’s mid-market. Nearly double the number of respondents in the North West (33%) said they needed support with the skills gap, compared with their counterparts in London. Other areas with a high number of businesses requiring additional funding and guidance to start hiring include the South West (42%) and East Midlands (40%), suggesting there remains some regional imbalance in opportunities to access training programmes.

Skills shortages remain a challenge for mid-sized businesses across the board, with almost a quarter (24%) citing that they cannot find people with the right skills because of the region they work in. This jumps to almost a third of businesses in the North West (33%) and the North East (31%).

Richard Austin, partner at BDO, said: “The importance of apprentices to the economic growth of this country is not lost on anyone, least of all the businesses at the heart of our economy.

“These businesses are responsible for more than eight million jobs, the equivalent of one in four across the UK and, with the right level of targeted support, together we can help these businesses kick-start their hiring, boosting the number of high-quality opportunities on offer to our younger generations and providing the skills the UK so desperately needs.”

“The importance of apprentices to the economic growth of this country is not lost on anyone, least of all the businesses at the heart of our economy."
Richard Austin, Partner, BDO