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.
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.
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:
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:
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.
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:
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.