For anyone outside of education, we know the many qualifications on offer can be confusing.

Even then, once you’ve worked out what option best suits your business needs, does the course content align with the skills gaps you’re experiencing?

From our research, we’ve found that employers do not necessarily know what a HNC or HND is, or what a Level 4 equivalent is, unless they have in-house experts dedicated to training.

For that reason, as an IoT we’ve been striving to make language more meaningful for the industries we’re working with. That means presenting our courses in a way that translates to their day-to-day operations and explains exactly how learning can make an impact.

Here’s a breakdown of different qualifications available

HNCs and HNDs

A HNC (Higher National Certificate) and HND (Higher National Diploma) are practical qualifications that focus on developing hands-on skills and knowledge for specific industries.

They are great for people who want to enter the workforce with job-ready expertise or boost their skills for career progression.

• An HNC is typically completed in one year full-time (or two years part-time) and is like the first year of a degree.

• An HND usually takes two years full-time (or longer part-time) to complete and is more in-depth, and is equivalent to the first two years of a degree.

Both qualifications are highly regarded by employers because they focus on real-world applications, provide practical knowledge and skills in a specific industry or sector, helping individuals perform effectively in their chosen field.

Level 3, 4, 5 and 6 qualifications

Level 3 (Equivalent to A-Levels or BTEC National)

An advanced qualification that builds on basic knowledge and skills, suitable for school leavers or those progressing from lower-level qualifications.

It means the individual has a solid foundation and is ready for entry-level roles or training in a specific field.

Apprentices at this level build on foundational skills and knowledge, preparing for more complex tasks and higher responsibilities. They often lead to roles like team member or junior technician.

Level 4 (Equivalent to a First Year of a Degree or Higher National Certificate -HNC)

A higher-level qualification, often focusing on practical skills and deeper knowledge, typically completed after Level 3.

This level of study enables individuals to take on more responsibility and gain specialised knowledge that prepares them for supervisory or technician-level roles.

Level 5 (Equivalent to a Foundation Degree or Higher National Diploma – HND)

An advanced qualification that combines practical and academic learning, often involving a deeper dive into a subject area.

It typically means the individual is well-prepared for mid-level roles or managerial tasks in their chosen field, with a strong skill set and relevant experience.

If people secure level four or five qualifications, they are more likely to be able to secure well paid employment and that’s the difference for their life chances and the community.

Higher apprentices are apprenticeships offered at Level 4 and 5 and are equivalent to a foundation degree, HNC or HND.

This level offers a deeper dive into specialised skills and are designed for people looking to advance into management, technical, or professional roles.

Level 6 (Equivalent to a Full Bachelor’s Degree)

A degree-level qualification that signifies a deep understanding of a subject and the ability to think critically and solve complex problems.

It typically means the person is equipped for senior-level roles or specialised positions, showing commitment and expertise in their field.

Apprentices at this level are considered as Degree Apprenticeships, where individuals gain a professional qualification alongside real-world experience. These apprenticeships are usually for people looking for advanced roles, often involving leadership or highly technical skills.

Soft skills / Employability Skills

Businesses report a need for better education around how individuals behave in the workplace, how to dress, telephony skills and general communication – from speaking to colleagues and customers to writing emails.

This is why all of the IoT’s courses include employability skills training to ensure candidates are work ready.

Benefits of hiring an apprentice

An apprenticeship is a technical course which is predominately taught in the workplace and accompanying study. Apprenticeships combine on-the-job training with classroom-based learning, allowing people to gain skills and qualifications while working. Typically, 80% of time will be spent in the workplace with 20% in a classroom setting, but will depend on the nature of the apprenticeship.

Depending on the level of study and the industry, an apprenticeship could take between 12-48 months to complete. Apprenticeships are available to all businesses – from the self-employed, to SMEs to large multi-national companies across all sectors.

• Apprentices are trained for real-world tasks from day one.
• Employers can shape the apprentice’s skills to meet the specific needs of their business.
• Apprenticeships create work-ready employees who gain qualifications while contributing to the organisation.

Apprenticeship funding:

In 2024, UK apprenticeship funding operates through two main mechanisms: levy-paying employers and non-levy employers.

Here’s an overview:

Levy-Paying Employers

• Levy Contributions: Employers with a wage bill over £3 million annually pay 0.5% of their payroll as the apprenticeship levy. These funds go into a digital apprenticeship service account.
• Government Top-Up: The government adds a 10% top-up to funds in the account, which can be spent on apprenticeship training and assessments.
• Unused Funds: Funds expire after 24 months if not used. Employers can transfer up to 50% of their unused funds to other businesses to support apprenticeship training.

Non-Levy Employers

Co-Investment: These employers previously contributed 5% of the apprenticeship costs while the government covered 95%. From April 2024, the 5% contribution is being scrapped for apprentices aged 16–21, simplifying access to apprenticeships for smaller businesses.

Requirements:

Your apprentice must:

• Be paid at least the national minimum wage
• Be an employee
• Work with experienced staff
• Learn job-specific skills
• Study during their working week

Hiring your apprentice

There are several steps to taking on an apprentice:

• You can identify your own apprentices
• Advertise your apprenticeship – we will do this for you through the ‘recruit an apprentice’ service
• Select your apprentice and make an apprenticeship agreement and commitment statement with them

Contact the IoT if you need advice on apprenticeships. We’ll put you through to our employer engagement teams who can discuss your needs and help you find the right option for your business. Email employer@iot.ac.uk