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Apprenticeships vs External Hiring: Which is Better for Your Business?

Recruitment and workforce development are crucial for business success. As a training provider, we know that the choice between hiring externally or investing in apprenticeships is about more than filling vacancies. It is about building a long-term, resilient workforce aligned with your business objectives. 

Why Apprenticeships Make Strategic Sense for Employers

Apprenticeships allow you to develop people from day one so that their skills, values and work habits reflect your organisation. According to the UK government, most employers see staff retention improve when they use apprenticeships. In fact, 65% of apprentices stay working for the company that trained them upon completion. (GOV.UK) 

Another benefit is the financial return. UK guidance estimates a typical employer gain of £2,500 to £18,000 per apprentice during the training period. These gains come from increased productivity even before apprenticeship costs are fully recouped. (Apprenticeships) 

Also, employers report that employing apprentices “improved staff retention” (69%) and that many apprentices remain with their organisations after their training. (Association of Apprentices) 

What External Hiring Offers

External recruitment can bring specialist expertise quickly and fill urgent gaps in skills. However, it often involves higher upfront costs for advertising, recruitment, onboarding and training. Discussions of internal versus external hiring show that promoting from within tends to reduce cost and time to hire. Internal candidates already understand culture and systems, which accelerates their productivity.

Moreover, internal hiring or promotions can foster employee engagement and loyalty. When staff see opportunities to grow within your organisation, they are more likely to stay. This is increasingly important given UK retention challenges, especially around pay competition and career development. (Achievers) 

For many businesses, the optimal strategy is not all-one or the other but a well-balanced mix: 

  • Use apprenticeships to build internal capability, ensure alignment with your values, and improve retention. 
  • Use external hiring when you need specialist skills, fast turnaround, or capacity beyond what your current staff can immediately provide. 

The right choice depends on your business size, sector, urgency, budget, and the long-term vision for your workforce. 

Next Steps: How We Can Help You Make the Best Decision

We help employers make strategic decisions about workforce growth. Our Training Needs Analysis (TNA) & Employer Support Form can help you: 

  • Highlight the training and development areas that matter most to your team 
  • Identify recruitment and upskilling needs 
  • Access personalised advice and support from our Business Development and Skills Coaches 
  • Ensure you are making the most of funding and apprenticeship opportunities

If you would the benefits of complete our TNA and Employer Support Form today. Let’s work together to design a workforce strategy that delivers value now and into the future. 

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