CONSUMERS are willing to pay more for goods and services from business that employ apprentices, new research shows today.
The research from the Centre for Economics and Business Research (CEBR) reveals 25 per cent of consumers would be more likely to pay more for goods and services offered by businesses employing apprentices. The most popular services people said they would pay a premium on were a plumbers’ visit or a haircut.
Customers said they would be prepared to pay between 1.2 per cent and two per cent extra as a price premium for firms hiring apprentices.
The benefit to an employer of hiring an apprentice is the value of the economic output produced by an apprentice, plus any subsidies received, less wage and training costs. According the CEBR’s research, this equates to an average of £1,670 per annum for the average apprentice in England but can rise as high as £13,824 and £9,721 for team leadership and management, and business administration apprentices respectively.
“In launching National Apprenticeship Week we are celebrating the 2.1 million apprenticeship starts since 2010 and the positive impact they are having on businesses around the country,” said business secretary Vince Cable.
“The benefits of apprenticeships are clear – they make a vital contribution to the economy, boost business productivity and give people the skills they need to get on in the world of work. As this research shows, there has been an important shift in the attitudes towards apprenticeships with businesses, consumers, and young people recognising the significant opportunities they can offer.”
Scott Corfe, co-author of the report The Benefits of Apprenticeships to Businesses, said: “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.”