Traditional recruitment can be an effective way to bring experienced data professionals into your business. But with demand for data skills continuing to grow, developing those skills within your existing workforce can offer another route.

A data apprenticeship combines structured training with practical workplace experience, allowing you to develop the skills your business needs while the apprentice continues contributing to your organisation.

So, when you compare a data apprenticeship with external recruitment, which approach offers better return on investment?

The answer depends on your starting point, funding position, skills gap, and how quickly you need the capability. But by looking at the costs, funding and potential business benefits side by side, you can make a more informed decision.

At a glance: data apprenticeships vs external hiring

Can a data apprenticeship offer better ROI than hiring externally?

It can, particularly when you already have an employee with the potential to develop the data skills you need, or when you can recruit an apprentice and build their capability over time.

• Apprenticeships combine work and training, so learners develop skills they can apply directly to your business.
• Government funding can contribute towards training and assessment costs, with the amount depending on factors including your levy status and the apprentice's age.
• Kaplan's Data User Level 3 apprenticeship takes up to 18 months, including the assessment period, and develops practical data skills including Excel, data visualisation and database querying.
• Kaplan's Data Analyst Level 4 apprenticeship also takes up to 18 months, including the assessment period, and develops skills including Power BI, SQL, Python, R, data modelling and statistical analysis.
• The financial comparison isn't simply salary versus training cost. You should also consider recruitment costs, manager time, time to productivity, retention and the value of developing skills you can keep within your organisation.

Why is demand for data skills creating a recruitment challenge?

Data skills are increasingly important across almost every part of a business.

Finance teams use data to understand performance. Marketing teams analyse customer behaviour. Operations teams use data to improve processes. And organisations are increasingly looking for people who can work confidently with AI, analytics and business intelligence.

That creates a challenge when you need specialist skills quickly.

External recruitment can give you access to experienced candidates, but you may be competing with other employers for the same relatively small pool of talent.

An alternative is to develop those skills within your existing workforce.

Instead of asking, “Where can we find an experienced data analyst?”, you can also ask, “Who already understands our business and could develop into a data analyst?”

What is a UK data apprenticeship?

A data apprenticeship combines structured training with practical, work-based learning.

The apprentice develops new knowledge and skills during their normal working hours and applies those skills within their role. Apprentices must receive the required off-the-job training during working hours, with the minimum volume determined by the apprenticeship standard.

This makes an apprenticeship different from simply sending an employee on a short data course.

The training is designed around an occupational standard, while the employer provides the workplace environment where the apprentice can put their learning into practice.

For example:

• A marketing employee could develop their data literacy through a Data User Level 3 apprenticeship, learning how to analyse campaign performance and communicate insights.
• An employee with stronger technical foundations could progress through a Data Analyst Level 4 apprenticeship, developing skills in SQL, Power BI, Python, R and data modelling.

How much does a data apprenticeship cost in 2026?

There isn't one single cost for a data apprenticeship.

The amount your organisation pays depends on the apprenticeship standard, its funding band, your levy status, the apprentice's age and whether you have sufficient levy funds available.

For new apprenticeship starts from 1 August 2026:

You should also remember that funding covers eligible training and assessment, not every cost associated with employing an apprentice. Employers remain responsible for the apprentice's wages and for providing appropriate workplace support.

What does that mean in practice?

For a non-levy employer, an eligible apprentice aged 25 or over would generally require a 5% contribution towards training and assessment, up to the relevant funding band maximum.

For example, if eligible training and assessment cost £10,000 and the full amount falls within the funding band, the employer contribution would generally be £500.

For an eligible 16–24-year-old under the same circumstances, the government contribution could cover the full £10,000.

These are illustrative examples. The actual funding position depends on the apprenticeship standard, the apprentice's circumstances and the rules applying to their start date.

How does levy funding work for employers over a £3 million payroll?

Employers with an annual pay bill above £3 million generally pay the Apprenticeship Levy.

If you are a levy-paying employer, you receive funds through your apprenticeship service account that can be used towards eligible apprenticeship training and assessment.

That means an apprenticeship can be a way of turning your existing levy investment into practical skills within your organisation.

However, it's important not to describe levy-funded training as completely “free”. The employer is already paying the levy, and there can still be costs associated with salaries, management time and supporting the apprentice.

If you have insufficient funds in your account, additional government funding may be available depending on the apprentice's age.

What is the ROI formula for a data apprenticeship?

There isn't a single standard ROI calculation for apprenticeships. Your calculation should reflect the costs and benefits that matter to your organisation.

A simple formula is:

ROI = (financial benefit − total investment) ÷ total investment × 100

For an apprenticeship, your total investment could include:

• employer contribution towards training and assessment
• apprentice salary
• manager and mentor time
• equipment or software
• any additional support or resources.

Your financial benefit could include:

• productivity gains
• reduced recruitment costs
• reduced reliance on external contractors
• increased efficiency from improved data processes
• revenue or cost savings generated by better analysis and decision-making
• reduced employee turnover.

The important point is to compare like with like.

For example, if you're comparing a Data Analyst apprenticeship with hiring an experienced analyst, you could calculate the cost of each option over the first 12 or 24 months.

When does an apprentice overtake an external hire on ROI?

There isn't a universal point at which an apprentice becomes more cost-effective than an external hire.

It depends on what you're hiring for and how you measure value.

Imagine you need someone who can analyse business data, build dashboards and produce insight for stakeholders.

External hire

You recruit an experienced data analyst.

Your costs could include:

• recruitment advertising or agency fees
• salary and employer costs
• onboarding
• management time
• the time required for the new employee to learn your systems, processes and business context.

In return, you get someone who should already have the technical skills you're looking for.

Apprenticeship

You develop an existing employee, or recruit an apprentice, through a Data Analyst apprenticeship.

Your costs could include:

• any employer contribution towards training and assessment
• salary
• manager and mentor time
• equipment or software
• protected training time.

In return, you're developing technical capability while building knowledge of your organisation.

The apprenticeship route may take longer to develop someone to the level of an experienced external hire. But you may gain value along the way as the apprentice applies new skills to real business problems.

That's why a useful ROI comparison shouldn't focus solely on the cost of training. It should consider what the person contributes during the development period and what capability you have at the end of it.

What skills can a data apprentice develop?

The skills depend on the apprenticeship you choose.

Data User Level 3

Kaplan's Data User apprenticeship is designed to develop everyday data literacy across different business functions.

Learners develop skills including:

• Excel and data handling
• data analysis and visualisation
• identifying trends and using data to inform decisions
• database querying
• data literacy and the use of generative AI in data-driven roles.

It can suit existing employees in areas such as finance, HR, operations, IT and marketing who need stronger data skills in their current role.

Data Analyst Level 4

The Data Analyst apprenticeship goes further into technical data analysis.

Learners develop skills including:

• Power BI and data visualisation
• SQL
• data cleaning, profiling and shaping
• statistical analysis
• Python and R
• data modelling
• communicating insights to support decision-making.

This can suit employees moving towards more specialist data roles.

How much time does an employer need to commit?

An apprenticeship isn't simply a training course you send an employee on.

Employers have responsibilities for supporting the apprentice in the workplace, including providing appropriate supervision and allowing the required off-the-job training during working hours.

The exact minimum amount of off-the-job training depends on the apprenticeship standard and the apprentice's circumstances. It should therefore be agreed with your training provider rather than assuming a fixed number of hours each week.

For employers, the practical commitment can include:

• helping the apprentice apply their learning at work
• providing appropriate workplace tasks and experience
• giving them protected time for training
• supporting progress reviews
• working with the training provider.

What are the longer-term benefits of developing data skills?

The value of a data apprenticeship isn't limited to the qualification at the end.

You build capability within your organisation

Instead of relying entirely on external recruitment, you can develop people who understand your business and its data.

You can support employee development

Giving employees access to structured development can create a clearer route for progression, particularly when data skills are becoming part of roles that traditionally haven't been data-focused.

You can strengthen your future skills pipeline

Data and AI capabilities are changing quickly. Developing your own people gives you a way to respond to emerging skills needs rather than relying solely on the external labour market.

You can apply learning to real business problems

Because apprenticeships combine learning with work, employees can put new skills into practice as they develop them.

For example, a Data User apprentice might improve the way a team reports performance, while a Data Analyst apprentice could build a dashboard or develop analysis to support a business decision.

Can data apprenticeships improve retention?

Developing employees can support retention, particularly when people can see opportunities to learn and progress within the organisation.

However, retention shouldn't be treated as a guaranteed outcome of an apprenticeship.

The strongest business case comes from looking at development alongside your wider employee experience, career pathways and workforce strategy.

What would an illustrative ROI comparison look like?

Here's a deliberately simplified example to show how the calculation could work.

Scenario: A business needs stronger data analysis capability and is considering either external recruitment or developing an existing employee through a Data Analyst apprenticeship.

To calculate your own ROI, put realistic figures against each row and compare the total cost and expected benefit over the period you're interested in.

This is an illustrative comparison, not a forecast or guaranteed financial outcome.

What are the most important questions to ask before choosing?

Before deciding between recruitment and an apprenticeship, ask:

1. What skills do we actually need?
2. Do we already have someone who could develop those skills?
3. How quickly do we need the capability?
4. Could an apprenticeship standard provide the right training?
5. What funding could we access?
6. How much manager and employee time can we commit?
7. How will we measure the value created by the new skills?
8. What will this person be able to do differently after 6, 12 and 24 months?

These questions can help you move the conversation away from simply comparing a recruitment fee with a training cost.

How can Kaplan help?

Kaplan offers data and technology apprenticeships designed for people at different stages of their development, from employees building everyday data literacy to those developing specialist data analysis skills.

Our team can help you explore the available programmes, understand your funding options and identify an apprenticeship that fits your workforce needs.

Talk to our team to explore data apprenticeships for your business