When employers think about apprenticeships, many still picture bringing in new talent at entry level.

And they’re not alone. A recent UK Government employer survey found that almost one third of employers who were unlikely to engage with apprenticeships said it was because they weren’t looking to recruit new staff - highlighting how strongly apprenticeships are still associated with new hires rather than existing employees.

At a time when businesses are facing growing skills gaps, rising recruitment costs, and increasing pressure to retain employees, more employers are recognising that the capability they need may already exist within their teams.

The challenge is often not finding ambitious employees. It’s creating structured opportunities to help them grow.

That’s why apprenticeships are becoming an increasingly valuable workforce development tool for existing employees, not just new hires.

For L&D leaders, HR teams, and line managers, this shift opens up an important question:

What if your next apprentice is already on your payroll?

Why this option gets overlooked

One of the biggest misconceptions around apprenticeships is that they are only designed for school leavers or brand-new recruits.

In reality, apprenticeships can also be used to upskill existing employees at every stage of their career.

Many employers are surprised to learn that apprenticeship levy funding can often be used to support workforce development internally, helping employees build new skills while continuing in their current role.

The misconception can also become expensive. Since 2019, more than £3.3 billion in unused apprenticeship levy funding has been returned to the Treasury - money that could have been invested into workforce development and internal capability building.

Because of this misunderstanding, organisations sometimes overlook apprenticeships when considering how to close skills gaps or prepare employees for future business needs.

Instead, businesses may default to:

• external recruitment
• short-term training courses
• expensive consultant support
• reactive hiring strategies

While these approaches can sometimes solve immediate challenges, they don’t always support long-term capability building or retention.

Upskilling existing employees through apprenticeships offers a different approach — one that combines structured learning with practical workplace application and long-term workforce development.

And for many managers, the challenge will sound familiar. How often does a capable employee ask for “more training” or development opportunities, but there’s no clear pathway beyond short courses or one-off workshops?

Apprenticeships can help bridge that gap by giving employees structured progression while allowing them to continue contributing within their role.

As skills needs continue to evolve across areas such as leadership, data, technology, operations, and AI, many employers are beginning to rethink how apprenticeships fit into their broader talent strategy.

What upskilling through an apprenticeship looks like in practice

For existing employees, an apprenticeship doesn’t usually mean stepping away from their job to study full time.

Instead, the learning is designed to work alongside their role, allowing employees to develop new skills while applying them directly within the workplace.

In practice, this might look like:

• a finance professional developing data and digital skills
• an employee strengthening technical accounting knowledge or regulatory understanding
• an operations professional learning automation or AI capability
• a compliance team member enhancing governance and risk management expertise
• an employee developing analytical skills to support data-driven decision making

Because employees continue working throughout the apprenticeship, businesses benefit from immediate workplace application rather than delayed post-training impact.

This approach can be particularly valuable for employers looking to build capability in areas where recruitment is difficult or expensive.

Rather than hiring externally and onboarding someone unfamiliar with the organisation, businesses can develop employees who already understand:

• company culture
• internal systems and processes
• customer expectations
• operational challenges
• team dynamics and ways of working

That combination of existing organisational knowledge and newly developed capability can create significant long-term value. Research from Bournemouth University found that around 80% of existing employee apprentices are retained within their organisation, highlighting the long-term workforce benefits of investing in internal talent development.

The value for upskilling existing employees

For many organisations, investing in existing employees through apprenticeships can deliver both commercial and cultural benefits.

Improved retention

Employees who feel invested in are often more engaged and more likely to stay with the organisation long term.

Providing structured development opportunities can demonstrate a clear commitment to progression, helping businesses retain valuable talent and reduce turnover.

Real-world employers are seeing the impact too. Paul Fellows, Apprenticeship Manager at Marston’s, said:

“In hospitality, retention rates are always an issue, as there is often a high transient population. However, our reports state that the apprenticeship programmes are at 75% retention. This massively bucks the trend in the hospitality industry.”

Government research also found that 76% of employers said training existing employees as apprentices improved staff retention.

Reduced recruitment costs

External recruitment can be expensive and time-consuming. According to the CIPD, the average cost of hiring a new employee in the UK is more than £6,000, while recruitment agency fees alone can reach 20–30% of a new hire’s salary.

Upskilling existing employees can help businesses develop capability internally while reducing reliance on external recruitment.

Faster operational readiness

Internal employees already understand the organisation’s systems, culture, and objectives.

That means they can often apply newly developed skills more quickly and effectively than someone joining from outside the business.

Jonathan, an apprentice line manager at Marston’s, highlighted the operational value of developing employees internally:

“The business will benefit due to the accountancy and financial knowledge that they will acquire, and it keeps the Internal Audit function in a position of strength.”

Research also suggests the value of apprenticeships begins before programmes are even completed. A study by the St Martin’s Group found employers can see annual productivity gains of between £2,500 and £18,000 per apprentice during training.

Stronger workforce planning

Apprenticeships can also support succession planning and long-term workforce development.

By identifying employees with potential early, organisations can proactively build future capability rather than reacting to skills gaps after they appear.

For many employers, this creates a more sustainable and resilient approach to talent development.

How to spot employees who are ready for an apprenticeship

Not every employee will want or need an apprenticeship, but many organisations already have people with the potential to grow into more advanced roles.

Often, the strongest candidates aren’t necessarily the loudest or most senior employees.

Some common signs that an employee may be ready include:

• curiosity and willingness to learn
• ambition for progression
• strong performance within their current role
• interest in new responsibilities or projects
• frustration with a lack of development opportunities
• emerging skills gaps within their team or department

Sometimes employees reach a performance plateau not because they lack potential, but because they need structured development and a clearer progression pathway.

Opening conversations early can help identify where apprenticeships may support both employee ambitions and wider business goals.

In many organisations, this works best as a collaboration between:

• line managers
• HR teams
• L&D leaders
• department heads
• workforce planning teams

Together, they can identify future skills needs and align apprenticeship opportunities with long-term organisational priorities.

Building future capability from within

As skills demands continue to evolve, organisations are under growing pressure to develop talent in a more sustainable and strategic way.

While external recruitment will always play an important role, many businesses are recognising that some of their strongest future talent may already be inside the organisation.

Apprenticeships offer a practical way to develop that potential.

By combining structured learning with real workplace application, they allow employers to build capability internally, support retention, and strengthen workforce readiness for the future.

Organisations across sectors are already using apprenticeships to support business transformation, workforce development, and long-term capability building. From hospitality and insurance to finance and professional services, employers are increasingly investing in the talent they already have.

Read how Marston’s partnered with Kaplan to support workforce development, or explore how Covéa Insurance used apprenticeships to support business transformation.

To explore how apprenticeships can support internal workforce development, visit Kaplan’s apprenticeship programmes or contact our team to discover how structured learning can help your organisation build future-ready skills from within.