The UK faces a growing talent paradox. While employers across almost every sector report persistent skills shortages, thousands of young people continue to struggle to secure the experience and opportunities needed to start their careers.
Reed’s recent research with 2,000 16 - 24 year olds highlighted that almost half (46%) believe opportunities to get into work are worse than those available to previous generations. And many young people feel trapped when trying to enter the workforce; with respondents citing barriers such as a lack of work experience (29%), a shortage of suitable roles (28%), and entry-level jobs requiring previous experience (24%).
The challenge for businesses is no longer simply attracting talent. It's creating sustainable pathways that develop it.
Few organisations demonstrate this better than BAE Systems. The company has made early careers recruitment a core part of its long-term workforce strategy, dramatically increasing the number of apprentices, graduates, and trainees it brings into the business while achieving retention rates of more than 90%.
But what makes its approach particularly noteworthy is that it extends beyond filling vacancies. Through partnerships with schools, community organisations, supply chain businesses, and initiatives supporting young people who are not in education, employment or training (NEET), BAE Systems is helping to build a stronger talent pipeline for entire regions and industries.
We caught up with Phil Athersmith, Head of Early Careers & Skills Development (Submarines) at BAE Systems, to find out more about the initiatives offered by the defence company.
Q: Why has investing in early careers become such a strategic priority for BAE Systems and what programmes do you offer?
Phil Athersmith: Our resourcing strategy for a number of years has been hugely focused around matching attrition and growth with early careers opportunities. We're really fortunate that we've got large order books for the products that we provide, and therefore we have quite a unique sell in that we can offer, to turn the phrase, a ‘career for life’ for individuals.
We recognised that we wanted to grow through our early careers programmes by identifying young talent who would come into the organisation, learn their trade, and then spread that throughout the business. They become the role models. We've always had relatively healthy early careers programmes, but I would say that in the past three years we've grown exponentially.
The area I look after is BAE Systems Submarines, where we've gone from recruiting around 350 individuals each year to reaching figures in the 800s and 900s. This year we'll recruit over 700 people.
We offer intermediate apprenticeships, advanced apprenticeships, higher apprenticeships, degree apprenticeships, graduate programmes, and undergraduate programmes. The roles range from logistics through to nuclear engineering and everything in between.
Ultimately, the strategic business decision was to grow our early careers programmes to match attrition, and respond to growth, in the workforce and really grow our own talent so that we can continue doing what we're doing.
Q: Is it working? Do people stay with you once they've completed their programmes?
Phil Athersmith: Yeah, we've got really good retention. Our retention on both apprenticeship and graduate programmes is over 90%.
In essence, of those who start at any given point in the year, we retain more than 90% of them. They stay with us and either continue in the role they're doing, which we want people to do, or they progress within the organisation.
We're really fortunate that we have a huge number of applicants. This year, for example, submarines are recruiting just under 540 apprentices and we had more than 6,000 applicants. Clearly, there are more applicants than available roles.
That's why we're involved in initiatives such as the ‘5% Club’ apprenticeship bridging programme. Candidates who don't secure a role with us can go into a regional talent pool that local supply chain SMEs can access. They then have access to candidates who have already been through a recruitment process.
We're also launching the ‘Class’ programme, which is an overtraining model where we'll work with local employers and supply chain organisations to train candidates through their apprenticeships, reducing the burden on smaller businesses.
Q: Can you tell us more about the other external programmes you support?
Phil Athersmith: We also run ‘Movement to work’ in partnership with The King's Trust, supporting young people who are NEET - it’s designed to break the no job, no experience cycle. In my area (submarines) alone, we run three cohorts a year of up to 20 individuals. If all 60 are successful, they get offered either an apprenticeship role or another role in the business. We've been running that programme business wide for 10 years, so we're quite a strategic partner to the programme.
BAE also runs a substantial education outreach programme. Last year, in submarines alone, we had over 70,000 beneficiaries. We engaged with more than 70,000 individuals around careers in STEM, youth employment, and opportunities within industry.
And, of course, we run work experience programmes with secondary schools, colleges, home-schooled students, SEND schools, and pupil referral units. We also offer open cohorts during school holidays.
On top of all of the above, we’re committed to running a range of programmes aimed at improving diversity in the organisation, particularly around introducing more women into engineering at apprentice, undergraduate, and graduate level.
At the moment, we have around 2,400 people on early careers programmes across apprenticeships, graduate schemes, and undergraduate schemes. By the end of September, we'll add another 600 people.
Because of our size and scale, we're often the test bed for new programmes and initiatives. If government has an initiative, or we have a new idea, it generally happens here first.
Q: With so much demand, do you think the UK needs more apprenticeships?
Phil Athersmith: Definitely. I'm an advocate for all entry points. If somebody wants to leave school and do an apprenticeship, great. If they want to do A-Levels first and then join us, great. If they want to go to university and join us afterwards, great.
The complexity of apprenticeships is one of the biggest challenges. I work in a huge organisation and we've got teams dedicated to these programmes. Smaller organisations don't have those resources and navigating funding rules and requirements can be difficult.
I don’t think anyone goes into it with their eyes closed and I think that’s why some organisations can be reluctant to take on apprentices.
What we are trying to do through some of our programmes is to offer support to those businesses who may be reluctant. We help businesses take those first few steps on the ladder by providing training, support, guidance, and access to talent, in order to encourage them to invest in early careers.
We are committed to being a responsible partner in our communities. Many of our programmes aren't self-serving. They benefit local supply chains, communities, and employers.
A lot of our work is the unseen stuff. Work experience, for example, isn't necessarily a route into BAE Systems. It's about helping people gain experience and improve their opportunities elsewhere too.
A lot of our education outreach work isn't about recruiting for BAE Systems. It's about raising aspirations, improving attainment, and supporting communities where we live and work.
Q: When young people apply to your programmes, what potential are you looking for that might not always be visible on a CV?
Phil Athersmith: Interestingly, we don't ask for CVs. It's not part of our process.
Candidates indicate their qualification level, either what they've already achieved or what they're expected to achieve, and then they complete a gamified aptitude assessment.
We base that assessment on our company behaviours, things like adaptability, inspiration, and integrity. Everything is competency based.
One example involves a balloon that you inflate by pressing a button. You decide how many times to press the button before the balloon pops, and both the number of inflations and the speed at which you do it are used to measure your willingness to take risks.
The expected level of risk taking varies depending on the role you're applying for. For example, someone applying to be a nuclear engineer would typically be expected to demonstrate a lower tolerance for risk than someone applying to be a project manager. That's because working with a nuclear reactor involves potentially hazardous components and environments, whereas a project manager's role generally carries different types of risks.
We're not excluding people because they haven't had work experience. Someone can demonstrate problem solving whether they've worked for ten years or never worked a day in their life.
Everything is anonymised as candidates move through our process. The team making the recruitment decisions doesn't know who the individual is. They'll see interview responses and eventually meet candidates face to face, but they're assessed objectively throughout the process.
A lot of that process uses AI to assess responses, engagement levels, task completion, and behavioural indicators.
We've moved away from the traditional approach of looking at a CV and making assumptions based on someone's previous experience. We've been really conscious about anonymising recruitment and making sure the process is fair and robust for everyone.
Q: Do you have examples of people who've progressed from early careers programmes into leadership roles?
Phil Athersmith: Absolutely. I would say the majority of our senior leaders started their careers as either graduates or apprentices, whether within BAE Systems or elsewhere.
The current managing director of BAE Systems (Submarines) was an apprentice. He started as an apprentice in BAE Systems (Air). Our current shipyard director was also an apprentice.
I've been with the organisation for 12 years now, and I've seen apprentices become team leaders, project managers, operations leaders, and discipline managers.
Because of the size and scale of what we do, we've got lots of examples.
At the same time, progression doesn't always mean moving into management. We also want people to become experts in their field and stay there if that's what they want.
At our training academy we recognise master tradespeople. Some of those individuals joined as apprentices during my time with the company and are now recognised experts in their trade. Their names are permanently displayed outside the academy.
It's something our apprentices see every day, and there's a real sense of pride attached to it.
Q: What measurable impact has early careers programmes had on the business?
Phil Athersmith: We've seen significant growth through the development of early careers talent. We've gone from supporting single-build programmes to multiple programmes.
Our work now has a global reach. We're working with partners in Japan and Italy on future aircraft programmes and with America and Australia on future submarine programmes.
A lot of that success is intrinsically linked to the growth of the business, and a lot of that growth has come through our early careers programmes.
From an apprenticeship perspective, we're significantly above the national benchmark. Our apprenticeship completion rates are in the high 80s, while the national benchmark is around 60%.
We've also recently undergone an Ofsted inspection and achieved two ‘outstanding’ judgements, which at the time gave us the highest training provider ratings in the country.
That external endorsement is recognition of the impact our early careers programmes are having on the broader business.
Q: What advice would you give to smaller organisations that want to create more opportunities for young people but are unsure where to start?
Phil Athersmith: Ultimately, come and talk to us. We would genuinely provide advice, guidance, and support where appropriate. That's exactly what some of our supply chain programmes are designed to do.
We're launching a skills summit in Barrow through our 5% Club activity and part of that is about encouraging organisations to ask questions and seek support.
The biggest benefit of early careers recruitment is that you're able to shape somebody within your organisation. You're bringing in individuals who can develop within your culture, your values, and your ways of working.
I would never advocate solely for early careers over experienced hires because experienced recruits bring a huge amount too. But an early careers programme gives both the individual and the organisation an opportunity to shape the future.
It's a strategic investment that bears fruit over a longer period of time.
If you're willing to invest that time, you'll generally see higher productivity, higher retention, and long-term benefits for the organisation.
Q: Finally, if every business leader reading this interview could take one action tomorrow to help more young people onto the career ladder, what would it be?
Phil Athersmith: Give your time, your advice, and your guidance. It really does make a difference.
I love spending time talking to people. You get so much from it, and you can share your experiences with others. I'd also say: try the early careers route. If you've never considered it before, give it a go.
There are incredibly capable and willing young people out there. We know there are huge numbers of young people currently NEET, and among them are many talented individuals.
I'd encourage organisations to broaden the opportunities and entry routes they provide. The wider you cast the net, the more talent you'll attract and the more diverse experiences you'll bring into your organisation.
Don't dismiss what an apprentice, undergraduate, or graduate can bring. Don't underestimate the difference you can make by spending time in a school, college, or community programme, or by opening your organisation up to young people.
Whatever form it takes, give up some of your time.
I guarantee you'll enjoy doing it, as well as seeing the benefits it creates for the people you're helping.
Reed's report, 'The missing generation 2026', explores how employers can rethink entry-level hiring and build the pipelines their businesses will rely on next. Read the report to see how future-ready organisations are widening access to early talent, download your free copy.
