Apprenticeships emerge as key recruitment strategy in UK financial sector

The survey, involving 504 full-time employees from various financial services firms, indicates that at least 57% of these organisations have established apprenticeship schemes. This trend not only promotes a diverse talent pool but also aligns with the industry’s evolving needs for a capable workforce.

Apprenticeships offer an alternative pathways into employment, particularly for young adults, allowing them to gain qualifications while learning directly on the job. Craig Potter, senior partner in professional education at Davies, noted, "My biggest takeaway from this research is that it demonstrates just how valuable apprenticeship schemes can be for financial services organisations. 

"With a majority of firms now offering permanent roles to their scheme graduates and a similar number of firms reporting that they are cutting recruitment costs as a result, it’s clear that they provide an excellent pathway for firms looking to secure long-term talent."

The findings from Davies suggest that apprenticeships not only reduce recruitment costs but also foster greater loyalty among employees. According to the survey, 71% of respondents with apprenticeship programmes reported that these initiatives are more cost-effective compared to conventional graduate recruitment.

Furthermore, 73% of these firms also stated that permanent positions were offered to participants who successfully complete their apprenticeships, providing a structured path towards job security and career growth.

The supportive framework of apprenticeship schemes is crucial, as indicated by the survey which found that 85% of the respondents believe these programmes enhance employee loyalty. Additionally, 78% reported that apprentices often transition into long-term roles within their companies, underscoring the effectiveness of this recruitment strategy in cultivating a stable workforce.

However, the research also highlights that there remains room for improvement. Many financial services firms that do not offer apprenticeships could potentially be overlooking the benefits of these schemes.

Notably, while 74% of respondents acknowledged the government’s Apprenticeship Levy as an important incentive for implementing such programmes, 15% of those without a scheme expressed uncertainty about how to utilise the Levy, and 11% were unsure about establishing an apprenticeship programme altogether.

Potter expressed concern over these gaps in understanding, stating, “It’s concerning that over a third of firms are missing out on these benefits, either due to a lack of understanding of how to set up a scheme or misconceptions about their value.” He further emphasised the importance of awareness around the Apprenticeship Levy, especially with upcoming changes expected under a potential Labour government.