Research by the Institute of the Motor Industry and UK Commission for Employment and Skills has found that businesses in the automotive sector can generate between 150% and 300% return on investment by hiring apprentices.
It found that for every pound invested the business nets between £1.50 and £3 and apprentices who start with no experience typically generate profit within 18 to 24 months.
The productivity of an apprentice was found to follow an ‘S-curve’, showing low skilled, low level growth in the first year accelerating through the second year and delivering the same return as an experienced technician by the third or fourth year.
Steve Nash, the IMI’s chief executive, 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 within the apprenticeship, but the attitude and support of the employer to the apprentice 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.”
