Consumers prefer to do business with companies employing apprentices, a new report from the Centre for Economics and Business Research (CEBR) has revealed.
The Benefits of Apprenticeships to Businesses research demonstrates that even before an apprentice is fully qualified, many businesses will see economic benefits of offering apprenticeships. The figures show that while training, each apprentice in the hospitality and catering sector is estimated to deliver an average positive net gain of £5,896 per annum to their employers, against an average positive net gain of £1,670 per annum for apprentices across England.
One in four consumers say they would go as far as even paying more for goods and services offered by companies that employ apprentices. A two-course meal for one person is among the most popular services to pay a premium for, with 27% of consumers stating they are likelier to pay more for this service to a business that employs apprentices; consumers are prepared to pay on average 1.8% extra for a two-course meal for one person as a price premium to a restaurant offering apprenticeships. The aggregate gain, if these premiums are realised, is £1.4bn in consumer spending per annum in the restaurant business.
The study finds that offering apprenticeships is perceived by two-thirds of the public as contributing to society and providing opportunities for young people, with five million consumers more likely to make a purchase from an apprentice employer.
The research highlights a number of financial benefits firms employing apprentices can enjoy, such as increased long-term productivity. A typical apprentice delivers productivity gains of over £10,000 per annum.
The Benefits of Apprenticeships to Businesses report, launched on 9th March to mark the start of National Apprenticeship Week 2015, is part of a national drive to promote the benefits of apprenticeships.
Scott Corfe, co-author of the report, said: “Previous CEBR research has demonstrated the impact of apprenticeships to the economy and the country as a whole, but this report proves that hiring apprentices has a hugely positive impact on employers themselves. Not only do apprentices contribute to the productivity of a company from day one, but consumers are more likely to switch to brands and firms that employ apprentices.