The Importance of Apprenticeships for Small and Medium-Sized Businesses
In a rapidly evolving industry, the construction and built environment sectors face a significant challenge: an aging workforce and insufficient young talent entering the industry. According to a survey of Millennials, 91% view career progression as a top priority, yet over half admit to having been disappointed by a lack of personal development training when starting a new role [9]. To address this skills gap, apprenticeships are emerging as a powerful solution for Small and Medium Enterprises (SMEs) in the built environment.
Apprenticeships offer SMEs a cost-effective way to grow their own skilled workforce. By investing in apprenticeships, SMEs can ensure continuity by training workers in trades such as carpentry, bricklaying, and site supervision [1][3]. Government funding substantially reduces training costs, making it easier for SMEs to afford high-quality skills development, which is essential given the rapidly evolving regulations and technologies [1][2].
One of the key benefits of apprenticeships is their ability to support succession planning. By developing apprentices internally, SMEs can prepare younger workers to take over key roles, ensuring leadership and technical skills are passed on to the next generation. Apprenticeships create clear development pathways that help businesses plan for future workforce needs and avoid skills shortages [3].
Apprenticeship schemes also provide structured and accessible entry routes for diverse groups, including those underrepresented in the construction workforce. Flexible training arrangements allow better accommodation of different life circumstances, helping to widen participation and create a more inclusive workforce [3]. This alignment with Equality, Diversity, and Inclusion (EDI) initiatives is increasingly important, as 75% of consumers say that a brand's reputation for diversity and inclusion influences their purchasing decisions, and a similar percentage of job applicants consider it important [8].
Investing in apprenticeships fosters employee loyalty by offering career development and recognized qualifications. Smaller firms, which may struggle to compete with larger contractors’ training opportunities, can use apprenticeships supported by grants to build employee engagement and reduce turnover [1]. Boosting retention is crucial, as the workforce in the built environment is aging, with 41% of the construction workforce predicted to retire by 2031 [6].
Resources are available to SMEs to simplify the process of setting up apprenticeships, including on GOV.UK and support from education providers like the University of the Built Environment [5]. The introduction of Skills England, the Growth and Skills Levy, and the Building Safety Act present opportunities for the built environment sector, particularly for SMEs to make use of training funds [6].
Apprenticeships are becoming more popular due to their ability to provide a clear development pathway and the chance to learn while earning. Degree apprenticeships can attract younger talent who are interested in working and learning simultaneously, gaining experience, and avoiding student debt [10]. Uptake of apprenticeship schemes among SMEs has been decreasing in recent years, possibly due to misconceptions about their complexity and suitability for only young people [7].
In summary, apprenticeship schemes enable SMEs in the built environment sector to cost-effectively build a skilled, diverse workforce aligned with future industry needs, support sustainable business growth via succession planning, and maintain competitive advantage through higher retention and compliance with training and safety standards. The benefits are clear, and as the industry faces a talent shortage, apprenticeships offer a promising solution.
[1] Government funding for apprenticeships [2] Apprenticeship training costs [3] Apprenticeships in the built environment [4] CITB grants for apprenticeships [5] Support for SMEs setting up apprenticeships [6] The Building Safety Act [7] University of the Built Environment survey on talent shortage [8] Consumer and job applicant attitudes towards diversity and inclusion [9] Millennial priorities and disappointments in career development [10] Degree apprenticeships
Apprenticeships in the built environment sector provide a cost-effective means for Small and Medium Enterprises (SMEs) to build a skilled and diverse workforce, addressing both career development needs and the industry's talent shortage. By offering learning opportunities in a range of trades like carpentry or bricklaying, and providing clear development pathways, apprenticeships help SMEs nurture young talent, ensuring continuity in leadership and technical skills.
