Smaller West Midlands firms may miss out on apprentices

Small businesses in the West Midlands are missing out on the benefits of apprenticeships, according to new research, although more firms in the region are taking on trainees.

While 30 per cent of businesses in the West Midlands are planning to take on apprentices this year, compared to a national average of 27 per cent, findings from Barclays Corporate Banking's Job Creation Survey suggests that small companies with a turnover of less than £5 million are lagging behind.

Only 14 per cent of companies with a turnover of less than £5 million plan to take on an apprentice this year, compared with 26 per cent that did so last year.

Whereas, 57 per cent of businesses of every other size plan to take on an apprentice this year, compared with 32 per cent that did so last year.

These small businesses are missing out on the many benefits that an apprentice can bring to productivity and talent development.

A recent CEBR report has found that companies taking on an apprentice typically gain a £214 per week productivity boost.

Survey

The Barclays survey also revealed that only two per cent of the smallest firms in the region are planning to increase the number of apprentices they take on, compared to 39 per cent for all other business sizes.

Previous research from Barclays has revealed that more than half (52 per cent) of the SMEs asked would not take on an apprentice due to fears about the amount of time it takes to set up and the additional support they thought a young person was likely to need.

In particular 39 per cent of micro companies (with five to nine employees) cited red tape as the most significant barrier.

Encouragingly 76 per cent of SMEs said they would want to be part of a scheme that helped set up apprenticeships for young people.

Supporting smaller businesses overcome the perceived barriers to taking on apprentices is the aim of Barclays Bridges into Work, a new programme designed to support 10,000 young people into work.

The programme will help small businesses access grants, find applicants, and train young people ahead of the role.

Jeremy Stockdale, head of relationship banking at Barclays in the West Midlands said: "It's encouraging to see that many companies, like Barclays, are planning to take on more apprentices in 2013, but with small business accounting for around half of the UK's GDP it is really important that they do not miss out on the benefits that apprentices bring to organisations of all sizes.

"The success of our own programme has encouraged us to double the number of apprentices we take on to 2,000, and to launch a new programme aimed at helping other businesses to reap the same rewards.

Barclays Bridges into Work aims to help 10,000 young people into work by providing businesses with the advice and support they need to establish apprenticeships and recruit work-ready candidates."

Following five successful Bridges into Work launch events in London, Birmingham, Manchester, Liverpool and Newcastle, and pilot events in Romford and Stoke, 200 businesses have already pledged to get involved with the campaign.