The Chartered Institute of Payroll Professionals (CIPP) voiced concern as new research shows that almost 60 percent of payroll teams are not hiring apprentices – with more than a quarter of respondents stating that hiring an apprentice was not on their radar.

Nearly one in three admitted they would not know where to start.

The apprenticeship levy was introduced in the UK to support businesses in developing training programmes, yet billions of pounds in levy funds have been returned to the Treasury since 2017. The CIPP, which represents payroll, pensions, and reward professionals, is calling on payroll departments to explore apprenticeship opportunities as a way to build vital skills.

The Importance of Payroll

CIPP Chief Executive Officer Jason Davenport encouraged payroll teams to consider apprenticeships and the funding options available.

“When it comes to payroll, there’s a lot more to it than just processing people’s pay. Many other departments rely on information from their payroll team daily,” he said. “They are the beating heart of any organisation, offering support to employees, providing business insights with data analysis, and finding new ways to be more efficient.

“Apprenticeships are a powerful way to nurture new talent at any age or skill level, whether you’re hiring externally or upskilling your current team.”

Davenport added that apprenticeships provide on-the-job training, improve staff retention, boost morale and promote diversity and inclusion. He urged businesses to explore available funding options, particularly the apprenticeship levy, as a means of strengthening expertise.

Payroll plays a crucial role in business operations, and errors can have dire consequences. A survey by Remote released in September 2024 found that nearly half of UK employees reported experiencing payroll errors in the previous year. The survey also found that 42 percent of UK employees reported a negative impact on their relationship with their employer following a payroll error.

With such a crucial role to play in business operations, the CIPP calls for greater use of apprenticeships to build a skilled and motivated workforce.