Hospitality businesses are finding the apprenticeships are most useful as a recruitment tool, according to a new survey from People 1st.

Published to coincide with National Apprenticeship Week, this week, the research: The Apprenticeship Levy - One Year On, found that 72% of businesses across the hospitality, retail, travel and tourism sectors were viewing apprenticeships as a good selling point for recruiting new staff, with hospitality businesses most like to view it in this way.

According to People 1st, this has important implications when businesses are reflecting on what success looks like as they calculate their return on investment for the levy. Nearly two thirds of those polled said there were either confident or very confident they would see a return on investment from their levy contribution, however only 38% said they had any means of measuring the ROI as it currently stands.

The survey also found that 72% of businesses said better staff retention rates, and improved skills and personal development, were among the key benefits of apprenticeships. In terms of the levy more generally, only four in 10 (36%) felt happier about the levy than they did 12 months ago, with 23% less happy and 41% about the same.

Joanne Carlin, director of people & development, at brewer and pub operator, Daniel Thwaites Plc, said: “We have found that paying the levy has sharpened our focus on providing apprenticeships.” The business had created a strategy where apprenticeships “are the fuel for our learning activities”.

“We also have a great provider who has worked with us in adding extra value into what we offer. Due to this focussed approach we’re able to plan over a longer term what we’re going to do and how it’s being funded.”

Despite almost half (44%) of business stating that greater clarity is needed in relation to the conducting and recording of the 20% off-the-job training requirement, almost seven out of 10 say they now have a coherent plan in place for their levy spend.

Martin-Christian Kent, executive director of People 1st, and author of the report, said: “The results present a largely positive picture of how businesses are implementing the levy and the changes, and it’s encouraging to see the value that employers are placing on the new apprenticeship standards in terms of the benefits they present.

“It’s clear from the findings that employers are at very different stages and whilst the vast majority are making significant headway, it is concerning that a considerable percentage of levy-paying employers are still only just embarking on their journey, which could undermine a positive return on their levy contribution.”