10 Reasons to Hire an Apprentice

The U.S. Chamber of Commerce reports 3.3 million workers have left the workforce and there are currently 4.3 million more job openings than unemployed workers.

One way companies are addressing this issue is by developing Registered Apprenticeship programs. These programs help companies address talent shortages and develop a reliable workforce for the future.

Companies that understand the inner workings of Registered Apprenticeship Programs, including the reasons to start a program and what is required to have one, will develop programs that meet their skilled labor needs.

What is an Apprentice?

Many people still think of Apprenticeships as programs for trades, where a master tradesperson mentors people who want to learn specific trade skills. Today, Registered Apprenticeships have moved well beyond trades and into countless other fields, from healthcare to technology.

Many of these programs arose out of an acute talent shortage faced by companies across industries. An increasing number of organizations have realized a need to develop talent in-house, instead of solely hiring college graduates. The result is Apprenticeship—programs designed to create industry-informed pathways into the workforce.

Apprentices are workers that participate in these time-tested employee training systems, which combine on-the-job training (OJT) with related technical instruction (RTI) to develop workers that meet specific business needs and fill skills gaps. Apprentices master the skills they need for the occupation and are paid more as they learn new skills through a Progressive Wage Schedule.

In many cases, it is possible for apprentices to enter a Registered Apprenticeship Program with no experience. They are paid a wage that is in line with their technical competencies while they are training—a learn-to-earn approach that is a win-win for both the apprentice and the employer.

After completing the program, apprentices receive nationally recognized credentials and, often, an offer for full-time employment. They may also receive college credit for their work.

10 Reasons to Hire an Apprentice

Businesses gain access to skilled and motivated individuals when they set up an Apprenticeship Program. These programs support local communities and invest in the future workforce. Companies also benefit in the following ways:

Filling Skills Gaps. Apprenticeship Programs help employers recruit individuals to train in the skills they need.
Increasing Productivity. Developing a skilled workforce and filling skills gaps frees up existing employees to do other things and increases company productivity.
Improving Employee Retention. According to a report by the Skills Funding Agency, 80% of companies that invest in Apprenticeships see an increase in staff retention. Other research from Apprenticeship.gov finds 94% of apprentices stay on after they complete the program and 91% are still with the company nine months later.
Becoming More Cost Effective. Hiring an apprentice can be cheaper than hiring a more skilled employee. Federal and State funding is often available to cover training costs.
Developing Long-term Solutions for the Workforce. Companies can use Apprenticeships to recruit and develop a diverse and highly skilled workforce to address labor shortages immediately and develop a workforce pipeline for the future.
Infusing the Company with Fresh Perspectives. Apprentices come to the occupation eager to learn, full of innovative ideas, and with unique backgrounds that can bring fresh perspectives to the field.
Customizing Training to Company Needs. Companies that identify the unique skills they lack and develop an Apprenticeship Program around those gaps can create a workforce ready to meet the company’s exact needs.
Creating a Strong Company Culture. Companies vet apprentices to make sure they are compatible with the company culture. A strong company culture increases employee retention, engagement, and performance.
Improving Workplace Safety. A culture of competence and safety is instilled by Apprenticeship Programs, which has been shown to increase workplace safety and reduce company risk.
Developing a Leading Company Brand. Offering a successful Apprenticeship Program shows internal and external stakeholders a commitment to business success. The program points to a company’s profitability and stability because it increases employee headcount. Having a well trained workforce also establishes companies as leaders in their field.

What is Required to Start an Apprenticeship Program?

As you can see, there are many benefits to Apprenticeship Programs. Understanding the guidelines and requirements is the first step to getting started.

Apprenticeships are rigorous—and regulated—programs that must adhere to strict quality standards established by the U.S. Department of Labor (U.S. DOL). Employers are required to meet a lengthy list of Federal government standards as they:

Design their program
Develop partnerships
Find funding
Register their program
Launch and oversee the program long term

Program costs can also feel daunting, but funding opportunities are available when you know where to look. The upfront investment to launch an Apprenticeship Program can range from $25,000 to $250,000, reports the white paper “4 Apprenticeship Benefits and Costs. A Roadmap to Measurement.”

Employers must be ready to fund RTI, OJT, supportive services, and recruitment services. These costs may be shared by Program Sponsors; Federal, State, and Local workforce offices; and grant funding.

The recordkeeping required by the U.S. DOL and State Apprenticeship Agencies is also a common pain point for organizations. Employers must keep records about recruiting and hiring, apprentice progress, competencies mastered, evaluations, RTI/OJT hours, wage progressions, Standards of Apprenticeship, Apprenticeship Agreements, and more.

The U.S. DOL tracks Apprenticeships through periodic audits that gauge how well a company adheres to the standards established in its Standards of Apprenticeship and Apprenticeship Agreements. These reviews will examine program records for gaps in compliance around things like hours worked, Wage Progressions, apprentice progress, and program completion. The entire program may be in violation if an auditor discovers discrepancies in these documents.

Recordkeeping can seem like a monumental task, especially if you keep these records in written form, spreadsheets, or disparate databases. Investing in an Apprenticeship Management System, like ApprentiScope, will allow you to track all required data accurately and keep program records in a central database for easy retrieval and review later on.

Takeaway

The benefits of establishing an Apprenticeship Program are so clear that it’s easy to underestimate what’s needed to launch a successful program. To maximize the benefits of an Apprenticeship Program, you need to:

Know the State and Federal guidelines for these programs
Understand the startup and long-term costs of Apprenticeship Programs
Keep accurate and detailed records throughout the Apprenticeship

Clear the way to a well managed Apprenticeship Program with ApprentiScope, which can help you keep accurate records and comply with State and Federal guidelines. Checking those requirements off your list will allow your company to reap the benefits of Apprenticeship.