Ending the skills crisis is the top priority for businesses ahead of a general election, but BDO's research shows there are huge regional disparities in apprenticeship hiring
A new survey by accountancy and advisory firm BDO has revealed that over a third of mid-sized businesses in the UK have a strong desire to hire apprentices but face barriers like high costs and insufficient guidance that prevent them from doing so.
The bi-monthly survey of over 500 mid-market companies found that 32% want to take on more apprentices but find the associated costs too prohibitive. Another 32% said they want more direction on how to establish an apprenticeship program.
When asked what support they want from the government to address hiring and skills shortages, 32% said reforming the apprenticeship levy system was a top priority over measures like tax breaks or regulatory changes.
This signals that for many mid-sized firms operating in the backbone of the UK economy, apprenticeships are viewed as a vital talent pipeline in need of policy help.
“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,” says Richard Austin, Partner at BDO.
“These businesses are responsible for more than 8 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.”
Despite the demand, less than 20% of respondents currently utilise the Apprenticeship Levy fund to bring on apprentices regularly.
The top obstacles cited were high costs (32%) and lack of guidance (32%) on designing and deploying an effective scheme.
However, interest remains strong – a quarter of surveyed companies said they would ramp up hiring if they could collaborate with local schools and colleges to shape apprenticeship curriculum and training suited to their needs.
BDO’s research uncovered wide variances in apprenticeship hiring rates across different UK regions and industries. Nearly twice as many businesses in the North West (33%) required assistance dealing with skills shortages compared to counterparts in London, indicating major regional divides persist.
Other areas like the South West (42%) and East Midlands (40%) similarly show a lopsided concentration of mid-market firms still struggling to access and leverage quality apprenticeship schemes.
The skills gap itself remains a frontline issue for 24% of respondents nationwide, with the shortage connected to localized labour pool constraints. In the North West and North East, around a third of businesses (33% and 31% respectively) said they struggle to find talent because their region lacks people with relevant abilities.
Beyond location, misunderstandings around the apprenticeship hiring process plague certain sectors. Nearly 40% of real estate and 43% of technology/media companies admitted they would take on apprentices if they received more guidance on implementation.
