DEGREE Apprenticeships are helping organisations to bridge skills gaps, increase staff retention and improve productivity. Discover how these professional pathways boost the UK economy and provide candidates with an alternative route to employment.

Offering a unique blend of academic learning and workplace experience, Degree Apprenticeships present a remarkable opportunity for personal and professional growth. This route can propel individuals to excel in their chosen industry, kickstart their careers, and earn their qualifications alongside this.

Introduced in 2015, Degree Apprenticeships still tend to be viewed as inferior to the more traditional university route. However, they are now experiencing a significant societal shift in perception. With their year-on-year growth, the Government has recognised the potential economic growth Degree Apprenticeships can provide and announced a substantial £40m Degree Apprenticeship development fund, which launched in Autumn 2023.

Figures for the 2023/24 Academic Year Show:

30,710 people

embarked on (Level 6 & 7) Degree Apprenticeships in 2023

5.8%

Degree Apprenticeship starts increased by 5.8% to 32,500 in 2023/24
– this stands for 16.2% of all starts for 2023/24

Despite programmes only being available in vocational subjects requiring a high level of academia, countless disciplines are on offer. Opportunities are available in everything from business management to investment and commercial banking, construction, social care, nursing, sciences, and sustainability.

Did you know you can even qualify as a doctor through an apprenticeship? In January 2023, the NHS confirmed preliminary funding for a new Medical Doctor Degree Apprenticeship, with the first candidates expected to start in September 2024.

However, as with any advanced learning programme, Degree Apprenticeships do come with some challenges. Learners must navigate the delicate balance between work and studies, often requiring them to manage their time effectively and make sacrifices in their personal lives. Organisations also need to dedicate commitment and support for the participants, allowing them some time away from the business for learning.

With so many points to consider, we help you understand what Degree Apprenticeships can offer employers and apprentices.

Why should organisations utilise Degree Apprenticeships?

Degree Apprenticeships provide employers with a cost-effective way to nurture their own talent, meet local economic needs, and address skills shortages in the workplace. Learners gain invaluable real-world skills, professional work experience, and training in their chosen industry.

Professor Nawaz, Vice-Chancellor at Staffordshire University, gathered employers’ views about Degree Apprenticeships – these formed part of a QAA research study called Degree Apprenticeships: Voices From the Frontline [1].

Key Findings Include:

• A staggering 99% of employers said degree apprenticeships had positively influenced their business’s performance. And 95 per cent said they had helped them meet their strategic goals.
• Almost all (93%) said the programmes had played a critical role in their business’s future growth, with (89%) of employers viewing them as an effective means of attracting new talent – specifically motivated trainees eager to learn and contribute.
• Most employers (92%) said that degree apprenticeships led to more engaged employees, with 89% claiming they had improved staff retention.
• And a promising 84% of employers acknowledged that degree apprenticeships helped diversify their workforce.

Employers can tap into a wide range of benefits when implementing Degree Apprenticeships for their staff, which we delve into below.

“As the new Government takes office, it’s vital that they implement a cohesive plan that involves educational institutions, businesses and policymakers to equip our workforce with the skills needed for today’s economy.”

Rosalind Gill Head of Policy and Engagement
@ National Centre for Universities and Business (NCUB)

 

Staff Retention

Staff retention is significantly important in today’s labour market, with a fifth of UK workers expressing the potential of leaving their jobs over the course of 2024 and a further 12 per cent seeing themselves leave within two years. Employers face substantial costs of between £10.5k and £70k per employee to replace talent, and so it’s crucial for companies to invest in their staff. However, an uncertain economy and tight budgets make it difficult for organisations to invest heavily in their development.

Degree Apprenticeships provide organisations with a cost-effective way of keeping staff and fostering talent internally by using the Apprenticeship Levy and government funding. A recent Department for Education report showed that on completion, 62 per cent of apprentices continued to work for the company that trained them. In addition, 76 per cent of employers said training existing employees as apprentices improved staff retention.

By employing Degree Apprenticeships, your organisation can retain its staff and avoid the time, effort and costs it takes to replace employees, especially your top performers, as well as adding some long-term certainty to their time at the company.

“As technology quickly advances, the labour market is transforming at pace and the skills gaps will only become more acute. Failure to address these issues now risks further economic stagnation and missed opportunities for growth.”

Rosalind Gill Head of Policy and Engagement
@ National Centre for Universities and Business (NCUB)

 

Streamlining the Recruitment Process

Many employers are turning to Degree Apprenticeships as a solution to simplify recruitment. They present an appealing opportunity for entry-level candidates to kickstart their careers while earning a qualification. Given the steep costs of recruitment fees, organisations are under pressure to attract the right candidates.

A report by Universities UK revealed that 89 per cent of employers found degree apprenticeships credible tools for attracting a high calibre of learners. This is a top priority for employers as they strive to build a talented and productive workforce. Therefore, these candidates will be academically qualified and equipped with practical, hands-on experience and transferable skills immediately applicable to your working environments.

“Lots of employers – particularly those in traditional white-collar professions – want a more diverse talent pipeline into their organisations.”

Jennifer Coupland Chief Executive
@ Institute for Apprenticeships

Upskilling Staff & Improving Workplace Productivity

According to a recent survey, 82 per cent of students who completed Degree Apprenticeships said they were instrumental in their career progression. Hence, Degree Apprenticeships offer organisations an opportunity to upskill their existing staff, resulting in improved productivity. These programmes, at Levels 6 and 7, lead to qualifications equivalent to Bachelor’s and Master’s degrees. While commonly taken on by 18–21-year-olds, they are open to mature students and current degree holders.

Employers can tailor apprentice training to perfectly align with their business needs, goals, and growth strategies. This is achieved through a collaborative process with the university, where the employer’s requirements are incorporated into the apprenticeship curriculum. With unemployment climbing to 4.4 per cent and the job market showing signs of weakness, bridging the skills gap has never been more crucial, according to new data from June 2024.

“Degree apprenticeships open doors for bright students who could not afford fees or loans by allowing them to earn while they learn, achieve a degree, and get years of work experience. On qualifying, these apprentices are in really high demand.”

Jennifer Coupland Chief Executive
@ Institute for Apprenticeships

Utilising Government Funding

The Apprenticeship Levy is a tax paid by employers with an annual pay bill of more than £3m. Larger organisations (employing 250+ staff and having an annual wage bill of more than £3m) can use their levy contributions towards the cost of a degree apprenticeship and access them fully funded.

Small businesses (employing up to 49 people and having an annual wage bill of less than £3m) can still access fully funded apprenticeships from April 2024 for anyone up to the age of 21, and if not, the government will pay at least 95 per cent of the fees.

Other government incentives are available for levy and non-levy paying companies, depending on business and apprentice circumstances. Under new measures, the levy transfer has increased, and large employers can transfer up to 50 per cent of their funds to support other businesses (including smaller firms), to access fully funded apprenticeships.

Businesses should, therefore, take advantage of this funding to use Degree Apprenticeships as a staff development and retention tool while improving workplace productivity.

 

“Understanding the true impact of degree apprenticeships, identifying underlying challenges, and deciphering the motivations of key stakeholders is crucial for enabling and optimizing the skills revolution.”

Professor Nawaz Pro Vice-Chancellor
@ Staffordshire University

 

What Does the Future Look Like for Degree Apprenticeships, and How Can Organisations Take Advantage of Them?

Even though opinions on apprenticeships are shifting with the times, we still have a long way to go to make them as respected and accessible as other educational paths. Speaking to FE News, Professor Nawaz welcomed Government plans to level up opportunities for SMEs by paying training costs for anyone up to 21. He also praised UCAS for launching a new service allowing students to explore apprenticeship opportunities for degrees.

With the endless benefits Degree Apprenticeships can provide employers, as well as the funding available through the levy, they are a valuable investment for your staff development and retention. With more than 170 degree apprenticeships available in various subjects in conjunction with over 90 institutions, we encourage organisations to explore their potential.

78%
of employers said apprenticeships had improved staff morale

Source: The Department for Education – Apprenticeships Evaluation 2021 – Employers Research report March 2022 IFF Research

1 The study was led by Professor Raheel Nawaz, Pro Vice-Chancellor at Staffordshire University, and involved academics from 12 other institutions, including universities from diverse mission groups, further and higher education colleges, and policy organisations. It also gathered the views of more than 1,000-degree apprentices from diverse backgrounds and almost 250 teachers and trainers delivering degree apprenticeships.

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