For many small and medium-sized enterprises (SMEs), the idea of taking on apprentices can feel daunting. Mentoring new recruits takes time, and navigating funding and training systems can be complex. Yet the evidence from Northern Ireland employers is clear: apprenticeships deliver a strong return on investment, provide a loyal workforce, and are essential to addressing skills shortages.
Our new Employer ROI Report, commissioned by Department for the Economy, will be published on our website in October. This research shows most businesses see value quickly: over half reported a measurable return from apprentices within the first year, with one in four seeing ROI within six months. The biggest benefit cited was a strengthened talent pipeline – 93% said apprenticeships had improved workforce planning. Employers also pointed to reduced recruitment costs and better alignment to business needs. Crucially, apprentices stay: nearly half of firms retain three-quarters or more of their apprentices after qualification, with a fifth reporting retention rates of 95% or higher.
This is not a marginal impact. Apprenticeships are one of the most reliable and cost-effective ways for SMEs to build long-term capability. Employers consistently described apprentices as enthusiastic, motivated, and loyal — qualities that pay back the early investment of time in training.
According to the Employer Skills Survey 2022, however, only 8% of employers were actually hiring apprentices at the time – while a further 32% said they intended to in future. That gap represents a huge opportunity: if even half of those intentions were realised, the system would more than double. If all 32% were realised, apprenticeships would move from a niche feature in a small minority of workplaces to a mainstream part of a third of all employers. That would transform the system — expanding opportunities for young people, boosting SME productivity, and strengthening retention across the economy. The challenge is how to convert those intentions into action.
Policy context
Northern Ireland’s policy framework already recognises the centrality of skills. The Programme for Government makes “more people working in better jobs” a key outcome. The Department for the Economy’s Economic Vision sets four objectives – good jobs, higher productivity, regional balance, and decarbonisation – all of which depend on a stronger skills base. Apprenticeships are a direct route to deliver on these goals.
The Department is also developing sub-regional economic plans, recognising that skills and job opportunities are unevenly distributed. Employment rates in Derry & Strabane, for example, remain significantly lower than in Mid Ulster, and productivity lags behind Belfast. Apprenticeships, particularly when supported in local clusters of SMEs, could help rebalance these disparities by creating high-quality jobs rooted in local economies.
Foreign Direct Investment and job creation incentives should also be part of the equation. When Invest NI supports companies to expand or relocate, conditions could mirror those in social value clauses — requiring employers not only to create jobs, but to embed apprenticeships as part of their workforce pipeline. We should not view apprentices as a burden on companies: when the right conditions are in place, they are the lifeblood of a talent pipeline.
The Skills Action Plan and Careers Action Plan (with its proposed careers portal) will shape how individuals find and navigate opportunities. The Apprenticeship Action Plan has set out useful steps – including shared apprenticeship pilots for SMEs – but delivery will depend on the right incentives and support. Meanwhile, the Minister of Education has emphasised the need to strengthen provision for 16–18 year olds to reduce the number of young people not in education, employment or training (NEET). Apprenticeships are central to this, offering structured, supported routes into work.
From Chaos to Coordination
On the employer side, our ROI Report shows the biggest barrier is the early mentoring load: senior staff must give close support in the first months, which is particularly challenging for SMEs. Employers also point to the complexity of processes and gaps in available frameworks.
On the aspiring apprentice side, Edge Foundation’s Chaos to Coordination report found that for every young person who secures an apprenticeship, three try but fail, often giving up due to a system described as “unsupported, complex and duplicative”. Vacancies are “hard to find,” with many SMEs relying on informal networks rather than public advertising. Unlike the UCAS process for university, apprenticeship applications are fragmented across multiple platforms, timelines and formats, with little feedback. Each year, more than 1,500 people apply for apprenticeships through our campaigns, but only around 5% are successful — simply because there are not enough employers creating opportunities.
In short: employers want apprentices but face systemic hurdles, and young people want apprenticeships but encounter fragmented and confusing routes. To unlock the potential — to shift from 8% to 32% — Northern Ireland needs to move from chaos to coordination.
Policy gaps and opportunities
Employers are clear on what would make a difference. Over half said better government incentives would increase their likelihood of hiring apprentices. Others want clearer processes, support with mentoring, and new pathways aligned to their growth areas.
Policy can also accelerate culture change. Social Value NI and wider procurement frameworks are already encouraging employers to change behaviours through requirements on sustainability, community impact, and fair work. Apprenticeship hiring should be explicitly recognised within social value clauses. If government contracts and funding streams asked businesses to demonstrate their commitment to apprenticeships, it would signal that investing in young talent is not optional “good practice” but a core expectation of responsible employers.
Calls for a Skills Tax Credit are not unique to Northern Ireland. Across the UK, organisations such as techUK, the Federation of Small Businesses, and a House of Lords inquiry has gone further, recommending a national scheme to reverse declining employer spend on training. Northern Ireland’s political leaders should add their voice to this momentum and press for Skills Tax Relief to be extended here – ensuring SMEs in every region can benefit.
Northern Ireland has an opportunity to act decisively:
Introduce a Skills Tax Credit or equivalent incentive – offsetting part of apprentice wage or training costs, particularly for SMEs.
Support mentoring – fund training for mentors and consider stipends or backfill support for SMEs releasing senior staff to train apprentices.
Expand apprenticeship pathways – develop new frameworks in emerging sectors and scale shared apprenticeship models where SMEs collaborate.
Deliver a strong careers portal – a one-stop shop for apprenticeship opportunities, addressing the barriers highlighted in the Chaos to Coordination report.
Conclusion
Apprenticeships are an investment – one that pays back more quickly than employers think and creates loyal, skilled employees who drive growth. For SMEs, they can be transformative, but only if policy makes the process simpler and the support stronger.
The task now is to match employer ambition with the right incentives and infrastructure – and to turn chaos into coordination – so that our people and economy can reap the benefits.
Richard Kirk is CEO & Founder of Workplus.
Richard started Workplus in 2019 to help employers raise their profile with schools and parents, build better talent pathways and grow early talent. Workplus has developed bespoke software that simplifies apprentice recruitment, offering a coordinated, straightforward ‘one-stop-shop’ approach for both employer and applicant. Since 2019, Workplus has enabled over 100 employers to recruit apprentices across the sectors including engineering, tech, construction, and business services.