When you think about apprenticeships, you might picture someone joining your business at the start of their career. But apprenticeships can also be used to develop people who are already part of your workforce.
Government guidance confirms that apprenticeships can be used to upskill existing employees, helping businesses develop the skills they need while employees continue working.
So, before you start looking externally, could your next apprentice already be on your payroll?
Can you upskill existing employees through an apprenticeship?
Yes. Apprenticeships can be a practical way to develop existing employees and build the skills your business needs.
- Existing employees can undertake an apprenticeship while continuing to work.
- Apprenticeships combine structured learning with practical experience in the workplace.
- Government funding may be available, depending on factors including your levy status, the apprentice's age, and the apprenticeship standard.
- 76% of employers said that training existing employees as apprentices had improved employee retention, according to government research.
- Developing an existing employee means you can build on their knowledge of your organisation, customers, systems and culture.
Why should you consider upskilling existing employees through an apprenticeship?
When a skills gap appears, the obvious response can be to recruit. But external hiring isn't the only option.
You could already have someone in your business who has the potential to move into the role you need. They might just need the right training, qualifications and support to get there.
Apprenticeships can provide a structured route for doing this. An employee can continue in their role while developing new knowledge and practical skills, giving your business a way to address current skills gaps while preparing for future needs.
This could be particularly useful in areas such as:
- Finance and accounting: developing an existing employee into a more senior finance, accounting or internal audit role.
- Data and digital: building data analysis, digital or technology skills within an existing team.
- Automation and AI: developing employees who can identify opportunities to use new technology and improve processes.
- Compliance and governance: strengthening internal capability as regulations and responsibilities change.
- Analytics and business intelligence: helping employees turn business data into useful insight.
What are the benefits of upskilling existing employees?
Can upskilling improve employee retention?
Giving employees a clear opportunity to develop can help them see a future within your organisation.
Government research found that 76% of employers said training existing employees as apprentices improved retention.
Marston's, for example, has used apprenticeships to develop its existing workforce. Paul Fellows, Head of Learning and Development at Marston's, reported a 75% retention rate among its apprentices.
For employees, the message is clear: you are investing in their development rather than expecting them to leave the business to progress.
Can upskilling reduce the need for external recruitment?
Recruiting externally can involve advertising, shortlisting, interviews, onboarding and bringing someone up to speed with your organisation.
Developing an existing employee doesn't remove all of those costs associated with training and development, and an apprenticeship still requires time and support from managers. However, it can provide an alternative to recruiting when you already have someone with the right potential.
You also retain the knowledge that employee already has about your customers, systems, processes and culture.
Can upskilling help employees apply new skills quickly?
An existing employee already understands how your organisation operates. They know your systems, processes and customers, and they have established relationships with colleagues.
When they develop new skills through an apprenticeship, they can apply what they learn in the context of a business they already understand.
This can make it easier to connect learning with real workplace challenges, while giving managers visibility of how new skills are being applied.
At Marston's, apprenticeships have been used to support progression into areas including finance and internal audit, helping the business develop capability from within.
Can apprenticeships support workforce planning?
An apprenticeship doesn't have to solve an immediate skills gap. It can also form part of a longer-term workforce plan.
You might use an apprenticeship to:
- prepare an employee for a more senior role
- develop specialist skills that are becoming increasingly important
- build a pipeline for future vacancies
- support succession planning
- respond to changes in technology, regulation or customer expectations.
This makes apprenticeships a potential tool for developing the workforce you expect to need, rather than simply filling the roles you have today.
Upskilling an existing employee vs hiring externally
| Upskilling through an apprenticeship | External hiring |
|---|
| Time to productivity | The employee already understands your business and can apply new skills within their existing role. | A new employee needs time to learn your organisation, systems and processes. |
| Direct costs | Training may be eligible for apprenticeship funding, depending on your circumstances. | Recruitment can involve advertising, recruitment fees, onboarding and other costs. |
| Recruitment risk | You already know the employee and their performance. | You have less information about how a candidate will perform in your organisation. |
| Cultural fit | The employee already understands your culture and ways of working. | Cultural fit needs to be assessed during recruitment and established after joining. |
| Retention | Development opportunities can support employee progression and retention. | A new hire may bring new skills, but there is no guarantee they will stay. |
| Manager time | Managers need to support the employee alongside their apprenticeship. | Managers need to recruit, onboard and support a new employee. |
| Funding | Government apprenticeship funding may be available, depending on eligibility and your funding route. | Recruitment costs aren't covered by apprenticeship funding. |
Neither approach is automatically right for every situation. The choice depends on the skills you need, the people already in your organisation, your workforce plans and the funding available to you.
How do you identify an employee who could benefit from an apprenticeship?
Look beyond someone's current job title. The person who could fill your future skills gap may already be showing signs that they're ready for their next challenge.
Look for employees who:
- are curious and keen to learn
- have consistently strong performance
- have started taking on new responsibilities
- are interested in progressing their career
- have identified a problem or opportunity they want to tackle
- have expressed frustration about a lack of development opportunities
- have the potential to move into a role where your business has an emerging skills gap.
It's also worth bringing managers, HR, L&D and workforce planning teams together. They may each have a different view of where skills are needed and which employees could develop into those roles.
How do you upskill an existing employee through an apprenticeship?
Once you've identified a potential candidate, you can work through a simple process.
1. Identify the skills gap
Start with the business need. What skills are missing now, or will you need in the future?
Be specific about the role, responsibilities and capabilities you want to develop.
2. Identify the right apprenticeship standard and level
Look at the apprenticeship programmes available and consider which one aligns most closely with the employee's development needs and the role they're moving towards.
The right programme should support both the employee's career development and your business objectives.
3. Confirm eligibility and requirements
Check that the employee and proposed apprenticeship meet the relevant eligibility requirements.
You'll also need to consider the time commitment involved and how the employee's workload will be managed alongside their apprenticeship.
4. Check your funding
Your funding route will depend on whether you pay the Apprenticeship Levy, the apprentice's age and the apprenticeship you're considering.
For new apprenticeship starts from 1 August 2026, funding rules differ depending on these factors. For example, eligible levy-paying employers with insufficient funds can receive full government funding for apprentices aged 16 to 24, while for apprentices aged 25 and over the government contribution is generally 75% of the training and assessment cost, up to the relevant funding band maximum.
Non-levy employers can also access government funding, with different contribution rules applying depending on the apprentice's age.
5. Choose an apprenticeship training provider
Your training provider can help you understand the available standards, funding requirements and training involved.
They'll also work with you and the employee to plan how the apprenticeship will fit alongside their role.
6. Agree the training plan
Make sure everyone understands what the employee will learn, how they'll apply it at work, and how you'll support them throughout the apprenticeship.
This is particularly important when developing an existing employee, as their day-to-day responsibilities will need to work alongside their apprenticeship.
7. Support the employee throughout
An apprenticeship is a commitment from the employer as well as the employee.
Regular conversations with the employee, their manager and training provider can help keep learning on track and make sure the apprenticeship continues to meet the needs of the business.
What if you're a levy-paying employer?
If your organisation pays the Apprenticeship Levy, you can use funds in your apprenticeship service account to pay for eligible apprenticeship training and assessment.
This means apprenticeships can be used as part of your wider workforce development strategy, including developing existing employees.
If you don't have enough funds in your account, government co-funding may be available, with the amount depending on the apprentice's age and the current funding rules.
It's worth looking at your available funding alongside your workforce plans. If you have unused funds, developing existing employees could be one way to use that investment to address future skills needs.
What if you're an SME or don't pay the Apprenticeship Levy?
You don't need to pay the Apprenticeship Levy to use apprenticeships.
Government funding is available to non-levy-paying employers, with the level of employer contribution depending on factors including the apprentice's age. For eligible apprentices aged 16 to 24, the government can fund the full training and assessment cost up to the relevant funding band maximum. For apprentices aged 25 and over, employers generally contribute 5%, with the government funding the remaining 95%, up to the funding band maximum.
That means apprenticeships can be worth considering even if you're a smaller employer looking to develop an existing member of your team.
How are businesses using apprenticeships to develop existing employees?
Marston's
Marston's has used apprenticeships to develop employees across the business, supporting progression and building internal capability.
Paul Fellows, Head of Learning and Development at Marston's, reported a 75% retention rate among its apprentices.
The business has also used apprenticeships to support employees moving into areas such as finance and internal audit.
Covéa Insurance
Covéa Insurance has used apprenticeships as part of its wider approach to developing talent and supporting business transformation.
Its experience demonstrates how apprenticeships can form part of a broader workforce strategy, rather than being limited to entry-level recruitment.
What can employers take from these examples?
Both examples show how apprenticeships can be used to develop people who are already contributing to the organisation.
The starting point doesn't have to be an empty vacancy. It can be a skills gap, a future business need, or an employee with the potential to take on more responsibility.
Could upskilling existing employees support your future workforce?
Hiring externally will always have a role to play. Sometimes you need skills or experience that simply aren't available within your current workforce.
But before automatically advertising a vacancy, look at the people you already have.
Who has the potential to progress? Where are your future skills gaps? Which employees could develop into the roles you'll need in two or three years?
An apprenticeship could provide a structured way to make that development happen, while allowing the employee to continue contributing to your organisation.
How can Kaplan help?
Kaplan offers apprenticeship programmes designed to help employers develop new and existing employees.
Our team can help you explore the apprenticeship standards available, understand your funding options, and identify programmes that could support your business and workforce plans.
Talk to our team to explore apprenticeships for your business
FAQs
Can an existing employee become an apprentice?
Yes. Apprenticeships can be used to develop existing employees as well as recruit new people. The employee must meet the relevant apprenticeship eligibility requirements.
Can I use Apprenticeship Levy funding to upskill an existing employee?
Potentially, yes. Levy funds can be used to pay for eligible apprenticeship training and assessment, subject to the relevant funding rules and the employee meeting the requirements for the apprenticeship.
Is upskilling an existing employee better than hiring?
There isn't one approach that's right for every business. Upskilling can be useful when you already have an employee with the potential to develop into the role you need. External recruitment may be more appropriate when you need skills or experience that aren't available within your existing workforce.
Does an employee have to leave their current role to become an apprentice?
No. Existing employees can undertake an apprenticeship while continuing to work. Their apprenticeship will combine learning with practical experience in the workplace.
How much time does an employee need for an apprenticeship?
The employee will need time to complete their apprenticeship training and other required learning alongside their job. The exact requirements depend on the apprenticeship standard, so employers should agree how the training will fit around the employee's role with their training provider.
Which apprenticeship should I choose for an existing employee?
Start with the skills you need to develop and the role or responsibilities you're preparing the employee for. You can then look at the apprenticeship standards and levels that best match those needs.
Can SMEs use apprenticeships to upskill existing employees?
Yes. Apprenticeships aren't limited to levy-paying organisations. Non-levy-paying employers can access government funding, subject to the relevant eligibility and funding rules.
Funding rules and employer contribution rates can change. The information above reflects the apprenticeship funding rules applying to new starts from 1 August 2026. Employers should check the latest government guidance before making funding decisions.