New research from Davies, the leading specialist professional services and technology business serving insurance and highly regulated markets, highlights the widespread benefits that apprenticeship schemes bring to financial services organisations, while also shedding light on the missed opportunities for firms not investing in such initiatives.
504 full-time employees survey respondents from UK financial services firms were asked about their organisation’s approach to apprenticeships. Of those surveyed, 57% confirmed their organisation has an apprenticeship scheme in place, while 35% said theirs does not, and 8% were unsure.
Among organisations 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 organisation, while 78% reported that participants in their apprenticeship programmes often progress to long-term careers within their company.
Senior managers in organisations 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 organisation.
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: “My biggest takeaway from this research is that it demonstrates just how valuable apprenticeship schemes can be for financial services organisations. 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 organisations 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.”
Davies is one of the largest training providers in the UK for the financial services and insurance industries. The survey comes following the firm’s recent acquisition of the trade and assets of Bespoke Training Solutions (BTS) as it looks to expand its learning and development offering further.
