Benefits of Apprenticeship
You need to know that your investment in building an apprenticeship program will deliver positive, measurable results and help ensure your competitive advantage. check out some of the most common reasons that companies like yours have chosen apprenticeship.
3 Reasons to Choose Apprenticeship
Numerous American companies have generated significant, positive returns on their investment in apprenticeship. The Illinois Economic Policy Institute found that employers generated $3 for every $1 invested in apprenticeship-based worker training within one year. Siemens USA reported a 50% higher return on apprenticeship investments over standard hiring and training practices.
More Skilled Workers
The Urban Institute found that more than 80% of all American companies with a registered apprenticeship program said the structured model of workforce development helped meet their demand for skilled workers in key occupations. According to the US DOL, 94% of all apprentices remain with their employer after completing their program, creating a more stable, loyal talent pipeline with workers who have key institutional knowledge and corporate-aligned skills and abilities.
Federal and State Support
Companies can access a wide variety of resources including:
– ongoing technical assistance
– tax credits
– free, reduced or reimbursed tuition for apprentices’ related instruction
– apprentice wage subsidies and supportive services
– direct incentive funding
The combined benefits of apprenticeship has led 97% of all registered apprenticeship program sponsors to recommend apprenticeship as a proven model of workforce development (Urban Institute, 2009).
FAQs About Apprenticeship
As the employer, you create the minimum qualifications for your apprenticeship program. You can bring new hires, incumbent workers, or both into your program. Most employers require program applicants to have a high school diploma or equivalent and may include a minimum amount of relevant, related experience. Other requirements may include an applicant’s ability to pass certain tests (occupational proficiency, drug tests, etc), required credentials or experience, or ability to perform certain types of work on the job.
As the apprentices’ employer, you are responsible for ensuring that apprentices have an experienced mentor/supervisor for their on-the-job training. Mentors are responsible for coaching and guiding apprentices but not responsible for daily face-to-face management. ACCELerate Apprenticeship grant team members can help by providing mentor selection and training assistance
As the employer you set the wage schedule for your apprenticeship program. Salaries vary based on industry and occupation. The average starting wage of an apprentice is typically 50% of an experienced professional’s (“journeyworker” level) rate of pay. Employers must comply with state and federal guidelines regarding apprentice pay rates.
Yes. Apprentices are employees. As the employer you can choose to terminate an apprentice’s employment according to organizational policies and procedures which will be communicated to an apprentice as part of the program onboarding process.
Apprenticeship program lengths vary by occupation. Programs are designed by the employer to ensure that upon completion an apprentice will have mastered the essential knowledge, skills and abilities required for that occupation. Traditional time-based programs typically range from 2-4 years however are 1 year at a minimum. Increasingly organizations are choosing competency-based or hybrid programs that enable apprentices to move through more quickly by demonstrating mastery of competencies rather than meeting time requirements or a combination of both (hybrid).
Formally registering your apprenticeship program with either the US Department of Labor or your state apprenticeship agency provides benefits for your firm and apprentices. Registering your program provides:
- Technical Assistance and Support : By joining the nationally-recognized apprenticeship system you will have access to a nationwide network of expertise, customer service, and support at no charge.
- National Credential : Your apprenticeship program completers will receive a national, industry-recognized credential from USDOL.
- Quality Standards : Registration means the program has met national and independent standards for quality and rigor. Registration tells prospective employees, customers and suppliers that your organization invests in its workforce and believes employees are its most important asset.
- State Funding and Financial Benefits : In many states, registered apprenticeship programs can qualify for state-based tax credits, apprentice subsidies, and tuition waivers or reimbursements for related instruction costs. In addition, your organization may be able to claim a federal tax credit for qualifying program hires and training expenses.
ACCELerate Apprenticeship grant team members can help you identify federal, state and local benefits for your apprenticeship program including tax credits, funding through your local workforce development board, other sources of grant or incentive funding, and the ability for your apprentices to access Pell Grants, Federal Work-Study Funds, GI Bill benefits (for Veterans), and more.