Why hir­ing ap­pren­tices adds up for the mo­tor in­dus­try

Yorkshire Post - Motoring - - NEWS -

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.”

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