The skills and apprenticeship system is currently navigating one of its most significant periods of change in recent years. The rebalancing towards young people, the transition to the Growth and Skills Levy, and the streamlining of standards, alongside the introduction of Foundation Apprenticeships and new Apprenticeship Units, marks an important shift in how skills development is funded and delivered. At a time of rapid change, the views of employers matter more than ever.
The St Martin’s Group recently welcomed more than 100 employers, training providers, awarding organisations and government officials to Westminster for the launch of its latest report, Apprenticeships That Work: Feedback from Leading Employers on How to Maximise the Benefits of Apprenticeships for Learners, Employers and the Country. Building on SMG and Ipsos polling conducted with more than 800 employers, the qualitative research draws on evidence from 40 large levy-paying employers representing over two million employees and approximately 20% of apprenticeships in England.
This approach highlights practical challenges and operational issues that are not always visible in large-scale surveys, and which are relevant to the delivery and ongoing development of skills policy.
Understanding what works for employers
The report shows the important role apprenticeships play in addressing skills shortages, improving productivity and creating progression opportunities for learners at different stages of their careers. Many employers described apprenticeships as one of the most effective ways to “grow their own” talent, particularly where there is no viable external recruitment market for critical operational and technical roles. Several also reported strong retention and progression outcomes, helping to build long-term talent pipelines while creating opportunities for people from a wide range of backgrounds.
However, employers were equally clear that apprenticeships come with significant costs beyond levy-funded training. Management time, workplace support, off-the-job training requirements and long-term workforce planning all represent substantial investment. While employers overwhelmingly value apprenticeships, a clear message emerged from the research: for apprenticeship policy to be embraced, it must make business sense. Employers are most likely to invest when reforms support workforce needs, deliver clear value and provide confidence for long-term planning.
The discussion at the launch event also reemphasised several priorities for employers, including requirements for stronger pre-employability skills, leadership and management development, digital and AI capability, and greater commercial and financial awareness across the workforce.
The importance of a stable, high-quality skills system
A consistent theme throughout the research was the importance of policy stability. Employers highlighted the need for a skills system that provides confidence to invest over the long term, enabling effective workforce planning and sustained investment in training.
This includes maintaining provision for higher skills programmes often used to create clear progression pathways beyond traditional entry-level recruitment. Participants emphasised that opportunities for existing employees to develop and progress are often what create capacity for new entrants, reinforcing the importance of apprenticeships as a workforce development tool at all stages of a career.
While employers welcomed efforts to introduce greater flexibility into the skills system, including shorter forms of training, many stressed that any new provision must be designed around clear workforce needs.
Recommendations for future reform
The report recommends:
The recommendations reflect three key themes emerging from the research: the need for apprenticeships to continue delivering clear economic value, the importance of progression opportunities throughout a career, and growing employer interest in more flexible forms of training that maintain quality and employer confidence.
As government continues to reshape the skills landscape, the report provides a valuable evidence base to inform future policy, highlighting both the opportunities and challenges facing organisations investing in skills and training.
The St Martin’s Group would like to thank all those who contributed to the research and attended the launch event.
You can read the full report here.