Traditional hiring has been the go-to approach when recruiting data professionals, but apprenticeships are proving to be a smarter and cost-effective alternative.
In today’s market, the digital skills gap presents a significant challenge: the demand for data expertise often exceeds the available supply. This leaves employers with a tough decision – pay a premium to compete for experienced talent or invest in developing skills within their teams.
In this article we compare the two approaches to hiring data-skilled employees.
The rising demand for data skills
The demand for data expertise is not slowing down. According to the Royal Society's Dynamics of data science skills report, demand for data scientists and advanced analysts in the UK more than tripled (+231%) in recent years.
For employers, this creates a specific challenge. As companies race to integrate AI and analytics into their workflows, the pool of available talent shrinks. When you do find a qualified candidate, the competition to secure them can be tough. This can lead to inflated salaries and lengthy recruitment processes.
Relying on buying in talent is becoming expensive and risky. This is why forward-thinking companies are turning their attention to a more sustainable model: developing talent through apprenticeships.
Understanding data apprenticeships
A data apprenticeship is a structured training programme that combines practical, on-the-job experience with technical study. It allows employees to apply what they learn immediately to their daily roles.
For example, a marketing manager could take a Data User Level 3 apprenticeship to learn how to better analyse campaign performance. Alternatively, a junior IT support staff member could reskill via a Data Analyst Level 4 programme to become a full-time data specialist.
As an apprenticeship provider, Kaplan supports this journey by managing the training and compliance side, ensuring that the learner gets the support they need.
Cost comparison: apprenticeships vs traditional hiring
When you break down the numbers, the financial argument for apprenticeships is compelling. Traditional hiring comes with high upfront costs that do not guarantee long-term success.
The hidden costs of recruitment
Hiring a mid-level data analyst typically involves:
- Recruitment fees: Agencies often charge 15–20% of the candidate's first-year salary.
- Salary premiums: You are paying market rates for a skill set that is in short supply.
- Onboarding time: Even experienced hires need months to understand your specific business context before they become productive.
The financial efficiency of apprenticeships
Apprenticeships operate on a completely different financial model, supported by government funding.
- Levy payers: If your payroll bill is over £3 million, you are already paying into the Apprenticeship Levy. Using these funds to train your team effectively costs you nothing extra, it is simply using the money you have already set aside.
- Non-levy payers: For smaller organisations, the government contributes 95% of the training costs. You only pay the remaining 5%. This makes it possible to train a data analyst for a fraction of the cost of a recruitment fee.
Skills and knowledge gained
One of the main risks of traditional hiring is the "skills mismatch", hiring someone who is technically proficient but doesn't understand your industry. Apprenticeships solve this by moulding the learner’s skills around your specific business needs.
Through Kaplan’s data and technology programmes, apprentices gain proficiency in high-demand tools and languages, including:
- Python and R: For advanced data modelling and automation.
- Power BI and Tableau: For creating visual dashboards that stakeholders can easily understand.
- SQL: For querying and managing large databases.
- Excel: Taking spreadsheet skills from basic to advanced for complex analysis.
Because the learning is applied directly to their job, apprentices often solve real business problems as part of their coursework.
Long-term ROI and benefits
The return on investment from an apprenticeship extends well beyond the initial cost savings. It impacts the culture and resilience of your entire organisation.
Increased retention and loyalty
Staff who feel their employer is investing in their development are far more likely to stay. In an industry where job-hopping is common, this loyalty is invaluable. It retains institutional knowledge within your business and reduces the churn of constant rehiring.
Improved morale and productivity
According to the National Apprenticeship Service, 73% of employers say that staff morale is improved by having apprentices. The energy and new ideas apprentices bring can reinvigorate a team.
Future-proofing your business
As Artificial Intelligence (AI) becomes standard in business operations, data literacy will be a requirement, not a bonus. By training your team now, you are building a workforce that is ready to adapt to these changes, rather than scrambling to catch up.
Kaplan course offerings
At Kaplan, we have designed our data and technology apprenticeships to suit learners at different stages of their development, from data beginners to aspiring data scientists.
This programme is ideal for non-technical staff who need to improve handling data in their current roles. It covers the fundamentals of data analysis, ensuring your team can make evidence-based decisions using Excel and Power BI.
Designed for those looking to specialise, this apprenticeship goes deeper into technical skills. Learners master Python, R, and SQL, equipping them to handle complex datasets and provide strategic insights.
To ensure your team is at the cutting edge, Kaplan includes a free one-day Generative AI for Business Professionals course with our data apprenticeships. In partnership with CertNexus, this credential ensures your apprentices understand how to leverage AI tools ethically and effectively.
The choice is clear
The choice between hiring expensive external talent and developing your own people is becoming clearer. Traditional hiring offers a quick fix but comes with high costs and retention risks.
Data apprenticeships offer a sustainable, cost-effective solution that builds loyalty, boosts morale, and ensures your business has the specific skills it needs to grow.
If you are ready to explore how data apprenticeships can transform your team, book a consultation with the Kaplan team today.