Larger companies are signing more training contracts compared to smaller ones, report reveals / IfM Bonn findings highlight that Rhineland-Palatinate and Saarland have the highest training rates
In 2024, the commercial sector and liberal professions witnessed an increase of approximately 19,000 apprentices, reaching a total of 1.52 million by the end of December. However, this growth has primarily benefited larger companies and medium-sized enterprises, with micro-enterprises facing a 2.6% decrease in apprenticeship numbers.
This trend can be attributed to several factors that advantage larger employers over smaller firms.
- Government Investments and Grants Governments are investing significantly in apprenticeship programs, often favouring larger companies with the infrastructure to access and utilize such funding efficiently. For instance, the UK government's £600 million investment focuses on sectors like construction and manufacturing.
- Complexity and Regulatory Burden Registered apprenticeships require structured programs with substantial formal training hours. Larger companies, with their administrative and financial resources, are more likely to manage these comprehensive training programs effectively.
- Access to Expertise and Intermediaries Larger firms can partner with apprenticeship intermediaries that help develop, manage, and expand apprenticeship programs, making them more feasible and attractive for large companies.
- Long-Term Talent Development Strategies Larger companies often view apprenticeships as part of strategic workforce planning, investing in long-term talent pipelines to align with industrial growth sectors.
- Scale of Recruitment and Hiring Capacity The reputational and recruiting advantages of larger companies, combined with their ability to offer full-time prospects post-apprenticeship, make apprenticeship schemes more attractive to candidates.
- Diversity and Inclusion Initiatives Larger firms and funded programs often have strong incentives and resources to promote diversity, increasing overall apprenticeship numbers.
Smaller and micro-enterprises, however, often face barriers related to scale, resources, and recruiting reach that limit their apprenticeship program growth comparatively. Despite the overall increase in apprentices, smaller companies have seen a decrease in apprenticeship numbers.
For more detailed statistical data on apprentices, visit the Institute for SME Research (IfM) Bonn's homepage at www.ifm-bonn.org. For press inquiries, contact Dr. Jutta Gröschl at [email protected] or call +49 228 72997-29.
[1] News aktuell, transmitted through IfM Bonn. [2] [3] [4] IfM Bonn's research and analysis.
- In light of the growth in apprenticeship programs, smaller firms might benefit from exploring funding opportunities within the realm of finance, such as grants that prioritize education-and-self-development initiatives, to level the playing field with larger companies and ease the burdens of administrative and financial resources.
- To address the challenges faced by micro-enterprises, there is a need for education and self-development programs that focus on simplifying regulatory requirements, offering guidance on managing comprehensive training programs, and providing networking opportunities with apprenticeship intermediaries, which can help reduce the complexity and enhance the feasibility of apprenticeship schemes within these smaller organizations.
