Why apprentices prove a worthwhile investment for Azets

Top accountancy firm Azets has plans to increase the number of apprentices it employs tenfold – here’s why.

In 2017, accountancy firm Azets had just 30 apprentices. Today, they’ve got 650 at various stages from level 2 to level 7 spread across their UK offices. That’s a 21-fold increase in just six short years. Azets doesn’t want to stop there: over the next year they plan to increase their annual intake to 500 students, 300 of whom will be new apprentices – all of them kickstarting their careers by earning AAT qualifications.

Apprenticeships clearly work well for Azets: the firm is currently ranked 38^th in the National Apprenticeships’ Top 100 Apprenticeships Employers. Here, David Whitson-Black, Azets’ group head of talent development, tells AAT about why he believes the scheme has been so successful. But first…

Why does Azet have so many apprentices?

Azets was established in its current form in 2017, the same year the apprenticeship levy was launched in England and Wales. Bigger businesses (those with annual wage bills over £3m) contribute 0.5% of their payroll towards the Government’s apprenticeship fund, which the companies can then use for their apprenticeship training needs. This levy proved beneficial for Azets during a time when they were rapidly expanding by acquiring dozens of regional accounting firms, which included inheriting the apprentices from these companies. As such, their apprentice headcount quickly soared from just 30 trainees in 2017.

Staff soon started recognising the value these apprentices could bring to the business. As Whitson-Black says, “The minute we started using apprentices at Azets, it opened up so much more talent and opportunity into our business.”

Why Azets’ relationship with apprentices works so well

1. Azets’ apprentices are already emerging as future leaders

“We see our apprentices as future leaders,” says Whitson-Black. Indeed, many of the firms’ current directors and partners joined Azets (or some of the firms it acquired) directly from school to study an AAT apprenticeship. Regional CEO Paul Clifford and partner Danielle Walmsley are just two examples.

Seeing former apprentices such as Clifford and Walmsley occupy senior positions can prove inspirational to many apprentices. “It’s really important they can see what the journey looks like and know the steps and milestones they need for that kind of career,” says Whitson-Black.

Some of the apprentices who have joined since 2017 are already entering management roles, while one former AAT student has been placed on Azets’ international leadership programme.

2. The practical finance training AAT apprentices receive gives Azets a pipeline of ready-made talent

Azets is swerving the skills shortage thanks to a steady flow of AAT-educated apprentices at a time when the accountancy industry is concerned about a lack of candidates entering the profession. Indeed, there was a 36% drop in the number of applicants between June 2021 and June 2022 according to data from Broadbean Technology.

“AAT qualifications have allowed us to continue to grow as a business,” says Whitson-Black. “The pipeline of new talent enables us to take on new clients and expand our offering, in a climate where it’s challenging to recruit.”

Whitson-Black estimates around 90% of Azets’ apprentices progress onto an advanced qualification such as ICEAW after finishing Level 4.

“Because so many of our senior staff started their careers studying AAT, it dispels the myth you need a degree to do well in finance,” he adds. “With AAT trainees, we have a continuous cycle of new joiners that allows for promotions.”

This is particularly good for succession planning within the firm, he says, because “after an AAT trainee joins our company, within four-five years they will be a fully-qualified chartered accountant who’ll be able to undertake [senior] responsibilities. It gives us a picture of the office’s capacity to take on new clients or work.”

3. Azets benefits as apprentices learn how to apply skills and behaviours

Apprenticeships aren’t just about the accounting qualification, the apprenticeship programme also includes the Knowledge, Skills and Behaviours (KSBs) too, which are mostly acquired on the job. This covers everything from whether the apprentice has a good awareness of the business they’re working on, how effectively they work within a team and how they adaptable they are within the workplace.   

“KSBs allow our apprentices to start learning key skills and behaviours from the onset, which they can apply to their daily role,” says Whitson-Black. “Working with [training provider] Kaplan, we have access to a selection of different skills and behaviours courses we use during the apprenticeship, centred around leadership and technology. KSBs ensure companies don’t limit their apprentices.”

4. The resolve and resilience of Gen Z have impressed employers

Since 2017, Whitson-Black has noticed a palpable change in the young apprentices who come through Azets’ office doors. “Today, young people aren’t afraid to ask you questions,” he says. “I’m a senior staff member, but students will often ask me questions or for help. It’s different to five years ago, when students would often sit at their desks afraid to speak. Today, they want to succeed and are determined to find the best way to do that.” He notes this bodes well for the future, as accountancy shifts towards more advisory roles.

Whitson-Black believes the challenges of the pandemic have played a role. “Many of our students studied during the pandemic, so they’re naturally more resilient to ambiguous information and able to deal with curveballs,” he says. 

5. Apprentices can boost diversity within the business

Azets’ apprentices aren’t all young school-leavers. The business has recently taken on apprentices in their 40s, while others have joined the firm after studying environmental or geography degrees. “Some of our apprentices have always wanted to be an accountant, and modern apprenticeships give them a route that was previously unavailable,” says Whitson-Black.

Apprenticeships also ensure Azets doesn’t recruit from a narrow pool of university graduates either. Azets has 88 offices across the UK, which Whitson-Black says “gives us access to many different schools where students might be looking for an opportunity to work in accountancy. It means Azets is a ‘name’ familiar to school pupils, who know there’ll be opportunities there.” The result? It can improve both social mobility and diversity within Azets’ workforce. “It’s extremely important to have representation from a range of age groups and backgrounds, as it allows our people to learn from one another,” says Whitson-Black.

6. Apprentices have tech skills – which other staff members can learn from

Before speaking on AAT on a Teams call, one of Azets’ apprentices was teaching Whitson-Black how to use the XLOOKUP function on Excel. The many younger apprentices deploying their digital native skills within the workplace are proving useful for offices currently switching to new software and tech.

7. Apprentices help the bottom line too

The apprenticeship levy has proven valuable for funding apprentices at Azets. But Whitson-Black says the biggest financial benefit of apprentices is “those students who’ve successfully completed their qualifications and have good careers with us. It means we have excellent staff retention, which helps us grow our business.”

How apprenticeships work at Azets

All Azets’ apprentices study AAT up until Level 4. After that, students can study for a chartered qualification (such as ICAEW or ACCA). After AAT, some apprentices also study qualifications in tax, audit or forensics.

Azets works with training provider Kaplan. Between them, the two companies develop bespoke apprenticeships tailored towards Azets’ needs.

“We agreed [with Kaplan] on what we think are the parts most aligned to what we need as a business or what our students need for their career journey,” says Whitson-Black. “It works for those apprentices who aren’t school-leavers and may have studied accountancy before, and don’t need to do every part of the programme.”

How to make the most of apprentices

According to Whitson-Black, it’s possible to tell whether an apprentice has the potential for success within the first year of them entering the office.

“They’re the ones who work hard, take any opportunity that comes along and pass their exams,” he says. “But it’s also curiosity: wanting to get involved and asking questions.”

Getting apprentices involved in projects is a great way to boost their confidence and for them to practice any skills they’ve learned while studying AAT. Says Whitson-Black: “You can’t expect apprentices to become future leaders unless you give them access to [senior people and opportunities]. We recently worked on a culture programme. Some apprentices gave us some valuable insight into the business and showed real innovation on what Azets could look like.”

Azets plans to introduce a new ‘Student Development’ programme, which Whitson-Black says will “ensure there’s a continued development pathway for students when they finish their apprenticeship”.  

For any other business considering apprentices, he says, “AAT trainees can bring a wealth of benefits to your organisation, including a pipeline of future leaders, expertise with technology, new mindsets and alternative insights, as well as relieving the pressures of recruiting qualified staff. It’s also great to support those for whom university may not be an option.”

Christian Koch is an award-winning journalist/editor who has written for the Evening Standard, Sunday Times, Guardian, Telegraph, The Independent, Q, The Face and Metro. He's also written about business for Accounting Technician, 20 and Director, where he is contributing editor.