Apprenticeships vs traditional graduate schemes

More employers are shifting their approach

Many employers are increasingly adopting apprenticeships to train staff, often replacing or complementing traditional graduate schemes. This shift reflects a growing recognition of the value apprenticeships bring in developing practical, job-ready skills and enhancing workforce capabilities.

Recent data shows that approximately 59% of FTSE 100 companies now offer apprenticeship programmes, up from 48% a decade ago (FE News, 2024). This growth highlights a broader move towards hands-on, skills-based training as companies aim to close skills gaps and build more resilient workforces.

Why are blue-chip companies turning to apprenticeship programmes over graduate schemes?

Cost-effective talent development

Apprenticeships provide a more financially sustainable alternative training programme to graduate schemes. While apprentices earn a salary, their starting pay is typically lower than that of graduates - who often still require significant on-the-job training. With government funding covering up to 100% of training costs for SMEs and levy funding for larger employers, the return on investment is significant.
Inclusive and improves social mobility

Apprenticeships create opportunities for individuals who may not have accessed university. They are proven vehicles for social mobility. In fact, 59% of management apprentices are women, and 71% come from families where neither parent attended university (Chartered Management Institute, 2025). From day one, apprentices contribute meaningfully by applying their learning in real time.
Customised, business aligned training

Apprenticeships can be tailored to meet your organisation’s specific needs - by role, department or strategic objective, making them a highly effective way to build future-ready talent. Businesses are increasingly recognising the growing importance of soft skills in navigating today’s complex workplace.

As Stephen Isherwood, joint CEO of the Institute of Student Employers (ISE), explains:

“Employers are increasingly placing value on soft skills like communication, adaptability and resilience. These are the attributes that enable young talent to thrive in the workplace and drive business performance.”

Watch the full webinar with Stephen Isherwood here >> for expert tips on how to build a compelling business case to upskill your talent.
Higher retention and stronger loyalty

Apprenticeships often build a strong sense of loyalty and belonging, leading to longer tenure and reduced turnover. In fact, 77% of apprentices remain with their employer five years after completing their programme - higher than the 59% retention rate for graduates (ISE, 2024).

Conclusion

A study by Oxford Economics found that management apprentices contributed an additional £106.1 million in revenue to UK businesses in a single year, with each apprentice generating an average of £20,900.

While graduate schemes still have their place, more employers are realising that apprenticeships offer great flexibility, strong ROI, and true alignment with today’s workforce needs.

By embedding apprenticeships into their talent strategies, organisations not only close immediate skills gaps, they invest in long-term growth, diversity, and performance. For employers aiming to future-proof their business, the case for apprenticeships has never been clearer.

And the best part? It’s already paid for. The apprenticeship levy gives you the funding — now’s the time to use it to build the capabilities that matter most.

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