Levy in Recruitment Industry

job interview

Will the Levy impact the Recruitment industry?

The Apprenticeship Levy will significantly impact the recruitment industry. The Levy will be paid on all payroll costs, including any contract staff that are paid through payroll. This means that for Recruitment businesses with a high number of contract staff will potentially face a very significant Levy bill.

Can I use the Levy with Contract / Agency staff?

There is nothing to stop apprenticeships being delivered to Contract / Agency staff. However, the minimum length of ANY apprenticeship programme is 12 months, and many are longer. Most Contract / Agency staff have much shorter placements, so are not suitable for apprenticeship programmes.

What can I use the Levy on then?

The Levy is best used on permanent staff within the business, in a variety of roles. There are a range of apprenticeship programmes that are suitable; for newly employed staff or existing employees. These include: –

  • Recruitment
  • Customer Services
  • Business Administration
  • Team Leading
  • Management
  • ICT

Future developments

There are two new apprenticeship standards being developed for the recruitment industry, namely a Recruitment Resourcer qualification at Level 2 and a Recruitment Consultant qualification at Level 3. In 2018 businesses will be able to use 10% of their Levy with their supply chain, so it may be possible for recruitment businesses to work with their supply chain.

The Apprenticeship Levy. Click here for the impact so far.

Press Release – Apprenticeships trend for Recruitment Companies in 2018