Why hiring apprentices adds up for the motor industry
THE Institute of the Motor Industry (IMI) is calling on the automotive sector to overcome its doubts about employing young people and to future-proof businesses by hiring apprentices.
The call to action comes on the back of new research by the IMI that breaks the myth that apprenticeships cost firms money and overwhelmingly demonstrates that there is a clear and significant financial return.
The IMI’s research shows that, by the end of their third year, a well-recruited apprentice can generate between 150 per cent and 300 per cent return on investment. This means that for every £1 invested, the business nets between £1.50 and £3. Furthermore, apprentices who start with no experience typically generate profit within 18 to 24 months – much earlier than was previously assumed.
Co-funded by the UK Commission for Employment and Skills, the research is the result of a two-year IMI project to make the economic case for apprenticeships.
The study looked at a cross section of businesses from micro-independents to franchise dealers across the whole of the UK.
Steve Nash, the IMI’s CEO, said: “Businesses must overcome their doubts about employing young people and invest in the future if our industry is to succeed as a whole. Overwhelmingly, the results from our recent study have shown that there is a clear financial return to the business but the attitude and support of the employer is critically important. By giving a young person opportunities to apply their skills they will ultimately become better and more productive technicians much earlier than commonly perceived.”