Apprenticeships ROI: What is the value of apprenticeships for businesses?
Research consistently shows that employers benefit both financially and strategically from apprenticeship programmes. Whether you're recruiting new talent or upskilling existing employees, apprenticeships can provide a strong return on investment while helping futureproof your workforce.
How to measure the ROI of Apprenticeships
Measuring the ROI of apprenticeships requires looking beyond training costs alone. Businesses should consider both financial returns and organisational improvements.
Key metrics include:
- apprentice completion rates
- employee retention and enagement
- productivity gains
- internal promotion rates
- reductions in recruitment costs
- diversity outcomes
- number of critical roles filled through apprenticeship pathways
Other valuable indicators include the percentage of apprentices who remain with the organisation after completing their programme and how many progress into leadership or specialist roles over time.
Direct financial value for business
Apprenticeships can create financial value in several ways:
1. Lower recruitment cost
Recruiting experienced talent in competitive sectors can be both expensive and time consuming. Apprenticeships allow employers to build skills internally while creating a sustainable pipeline of future talent.
The Department for Education reports that 65% of apprentices remain with the employer that trained them after completing their programme, reducing the need for repeated recruitment campaigns and lowering long term hiring costs.
2. Higher productivity
One of the most significant sources of apprenticeship ROI is increased productivity.
Government research found that 78% of employers say apprentices improved productivity, while 74% report improvements in product or service quality. As apprentices develop new technical and professional skills, they are able to contribute value to projects and day to day operations long before completing their programmes.
The economic impact can be substantial. Research from the Centre for Economics and Business Research found that the average apprentice generated approximately £1,670 in annual net benefits for their employer.
3. Improved employee retention
Replacing employees can be costly when recruitment fees, onboarding, lost productivity and training time are taken into account.
Government data shows that 69% of employers believe apprenticeships improve staff retention. Employees who are given clear development opportunities often demonstrate stronger engagement and loyalty, helping organisations retain valuable skills and institutional knowledge.
4. Better use of apprenticeship funding
For levy paying organisations, apprenticeships help ensure existing levy contributions are invested back into workforce development.
Many employers use apprenticeship programmes to upskill existing employees, gaining recognised skills and qualifications while drawing down levy funds that would otherwise expire. This can significantly reduce external training expenditure and increase the return on mandatory levy contributions.
All companies benefit from apprenticeship funding that cover all or majority of the training cost, and apprenticeships for apprentices aged between 16 and 24 are fully funded.
5. Faster skills gap resolution
Skills shortages can have a direct impact on growth, productivity and customer service. Apprenticeships provide a structured route to developing the specific capabilities your organisation needs.
Research found that 86% of employers say apprentices help develop skills relevant to their organisation and address skills gaps, reducing reliance on expensive external hiring markets.
Beyond financial ROI: business impact
While direct cost savings are important, many employers find that the biggest returns come from wider organisational improvements.
Government research found that 96% of employers with apprentices have experienced at least one business benefit, and most report multiple advantages across productivity, retention, workforce capability and company culture.
In addition, 73% of employers say apprentices improve staff morale, while 67% believe apprenticeships enhance their reputation within their sector. Stronger employer branding can help attract future talent and strengthen relationships with customers and stakeholders.
Research has also shown that 25% of consumers are willing to pay more for products or services from businesses that employ apprentices, demonstrating that investment in skills development can positively influence brand perception and purchasing decisions.
QA training's proven ROI for business
QA Social Return on Investment
QA's Social Return on Investment report, published in 2024, found that its apprenticeship programmes generated more than £580 million in social value over a single year.
The report, produced in partnership with GIST Impact, analysed 22 digital apprenticeship programmes and found that every £1 invested generated £6.89 in social value. This demonstrates that the value of apprenticeships extends beyond financial gain, creating wider economic, social and environmental benefits for communities and businesses alike.
Case Study 1: Capgemini - £12 million business value
Capgemini partnered with QA to create a technology academy built around apprenticeships across multiple disciplines, including data, cyber security, AI and project management.
The results were significant. Capgemini reported £12 million in tangible business benefits and savings through staff retention, project efficiencies and integrated training value. Productivity increased by 35%, despite learners dedicating 20% of their time to apprenticeship learning.
The programme also enabled the redeployment of more than 75 employees into future ready technology roles that may otherwise have been lost.
Case Study 2: Scottish Water - skills driving business outcomes
Scottish Water used QA apprenticeship programmes to strengthen project management capabilities across innovation and engineering teams.
Apprentices have since played key roles in projects that delivered measurable organisational benefits. One apprentice contributed to the installation of 1,100 solar panels that now generate 0.64 GWh annually while reducing carbon emissions by 84 tonnes each year. Others have led initiatives focused on improving water quality and delivering complex infrastructure projects.
These examples demonstrate how apprenticeships can create immediate value while developing the next generation of skilled professionals. View our Apprenticeship Case Studies to understand the value QA brings.
Is an apprenticeship programme right for your business?
If your organisation is facing skills shortages, struggling with recruitment or looking to improve employee retention, apprenticeships can offer a practical and cost effective solution.
They provide a structured way to develop talent aligned to your business objectives while generating measurable returns through productivity improvements, workforce development and retention.
Whether you are looking to bring new talent into the organisation or invest in existing employees, a well designed apprenticeship programme can deliver value both now and in the future. When measured over time, the ROI of apprenticeships often extends far beyond training costs, helping businesses build stronger, more capable and more resilient workforces.
Start your apprenticeship journey with QA
QA have kickstarted the career of over 60,000 apprentices and supported businesses with over £500m of levy funding investment.
Our expert team can support your every step of the way in building and implementing an apprenticeship programme that delivers tangible results.
If you're looking to start an apprenticeship programme, book a free consultation with our team to find out more.
“We highly recommend apprenticeship programmes to any businesses that have yet to explore this opportunity.”
“We chose QA through external recommendation, and I keep working with them to grow our business because I trust them.”
“The ROI on the programme has been huge – delivering £12 million of tangible business benefits and savings from staff retention, project efficiencies and training value through integrated commercial training.”
“We chose QA because of their ability to tailor apprenticeship programmes to suit our specific needs.”
FAQs
How long does it take to see ROI from apprenticeships?
Many employers see productivity gains during the apprenticeship itself. Most programmes deliver a positive return within a few years through improved performance, retention and reduced recruitment costs.
How does the apprenticeship levy impact ROI?
For levy-paying employers, apprenticeships help maximise the value of levy funds that have already been paid. This can reduce training costs while developing skills that support business growth.
What can apprenticeship funding be used for?
Apprenticeship funding can be used for approved training and assessment costs associated with the apprenticeship programme. This includes delivery of training, learning support and end point assessment. It cannot be used to cover apprentice wages, travel costs, accommodation or capital expenditure.
How do apprenticeships compare to hiring experienced staff?
Hiring experienced professionals can provide immediate expertise, but it is often more expensive and increasingly competitive in skills-shortage sectors. Apprenticeships allow organisations to develop talent tailored to their specific needs while reducing recruitment costs and creating a sustainable talent pipeline.
Can existing employees become apprentices?
Yes. Apprenticeships are not just for new recruits. Existing employees can undertake an apprenticeship to develop new skills, gain professional qualifications or progress into more senior roles. Many organisations use apprenticeships as part of their workforce development strategy, helping employees reskill or upskill while continuing to work in their current position.
How can QA help?
QA helps employers plan, optimise and deliver levy-funded training, from apprenticeships to targeted upskilling, ensuring your investment supports both immediate priorities and long-term growth.
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