Published on March 19th, 2013 | by Daisy Lloyd0
Costs for Business
The cost of the Higher Apprenticeship does not seem so high when put into context:
*The cost of recruiting a new store manager is, on average, around £7,000
*Students at university pay up to £9,000 per year in tuition fees
You can enrol an employee on to an apprenticeship programme for as little as £1750 with supported funding
The true cost of the Higher Apprenticeship in Retail Management will cost between £5,000 -£6,000. This is for the full two year course.
Although this may sound like a lot, the course is comprehensive and the staff who undertake the Higher Apprenticeship will become valuable assets to their company.
Extensive research into the benefits of Apprentices for employers have shown that retention rates improve, that Apprentices are happier and more motivated staff members and this leads to increased productivity.
As we develop the Higher Apprenticeship in Retail Management we will be seeking funding contributions from the Skills Funding Agency and National Apprenticeship Service. Some Higher Apprenticeships in other sectors have secured contributions this way – and this could reduce the cost of the qualification by as much as £1,500.
Another form of financial help comes with the introduction of 24+ Advanced Learning Loans. These will be in place from August 2013 and are available to people aged over 24 studying a variety of courses – including Higher Apprenticeships.
These will negate the need for any upfront costs for the learner, although the employer will still be expected to make a contribution of 50% of overall costs. This, however, would significantly reduce the cost to the employer.
For example, if the qualification costs £5,000, and funding is available from the Skills Funding Agency, the cost will be only £3,500. If the learner then takes a 24+ Advanced Learning Loan for half of this remaining sum, the cost to the employer is reduced to £1,750.
The learner will only have to repay the loan once they have achieved the qualification and are earning more than £21,000 per year.
We feel that the cost of the Higher Apprenticeship in Retail Management, in the light of the above, represents good value for money in terms of the expected return on investment by an employer.