Apprenticeship Programs: a Win-Win for Employers, Jobseekers…

To build a large and fully competitive U.S. workforce, it is crucial to develop a collaborative strategy for preparing, upskilling, and reskilling a future-ready workforce. Earn-as-you-learn opportunities, such as apprenticeship programs, play a vital role in attracting and developing skilled workers. Initiatives like the Good Jobs Challenge Initiative aim to inform, empower, and support the diverse needs of today’s American workforce, ensuring access to quality training and career pathways.

While many employment sectors continue to face workforce shortages and skill gaps, apprenticeships offer a proven and effective way to recruit, train, and retain a highly skilled workforce. By providing hands-on learning and career pathways, apprenticeship programs create long-term benefits for both employers and job seekers, strengthening industries and local economies.

In this blog, you will learn more about apprenticeships, the benefits they offer and the steps needed to start an apprenticeship program at your company.

What is an apprenticeship?

Apprenticeships offer a viable solution for recruiting, training and retaining world-class talent. Apprenticeships are an earn-as-you-learn, flexible workforce development tool and training strategy that can be customized to meet the needs of any business. Connecting apprenticeship programs with your state and local workforce system is a win-win partnership.

Apprenticeship programs generally consist of a combination of on-the-job training and classroom instruction with an affiliated educational partner. This combination, along with the fact that workers in an apprenticeship program earn a full-time wage while they are participating in the program, is a proven recipe for success.

According to the U.S. Department of Labor, 90% of apprentices who complete a Registered Apprenticeship retain employment upon completion. Additionally, employers experience an average return of $1.44 for every $1 invested in their apprenticeship programs.

Here are 6 ways apprenticeships can benefit your company:

Helps recruit and develop a highly skilled workforce
Improves productivity and the bottom line
Provides opportunities for tax credits and employee tuition benefits
For every dollar spent on apprenticeship, employers get approximately $1.50 ROI*
Reduces turnover costs and increases employee retention
Creates industry-driven and flexible training solutions to meet national and local needs

It goes without saying that apprenticeships are good for business … despite the misconceptions that exist. Apprenticeships have come a long way since the apprenticeship system started 75 years ago in the construction and skilled trades industries. Some people still believe that apprenticeships are only useful for entry-level positions in those industries, but that is a big misconception.

Here are some common myths about apprenticeships:

Apprenticeships are only used in skilled trades and manufacturing industries - While this was once true, today there are more than 680,000 apprentices nationwide in over 1,200 occupations across 175 industries, including Healthcare, Information Technology, Transportation, Logistics, Energy, Fashion, Law, Banking and Defense. Here is a comprehensive list of “apprentice-able” occupations on its website, found here: Apprenticeship Occupations | Apprenticeship.gov
Only men participate in Apprenticeships - This used to be the case, but numbers are changing. According to the DOL, 12% of registered apprenticeships are held by women, minorities and veterans. For more on women in apprenticeships, check out this guide published by the DOL.
There’s limited state funding for Apprenticeships - This year, the Biden-Harris Administration awarded over $244M to modernize, diversify, expand registered apprenticeship in growing industries.
Go here to see if your state was awarded funding under this grant.
Apprenticeships aren’t used much anymore - There is actually very high demand for these programs. Despite a brief plateau during the Covid-19 pandemic, the ranks of registered apprentices have increased every year since 2011, a 64% increase according to the DOL, and the upward trend continues today, reflecting the growing recognition of apprenticeships as a valuable workforce development strategy.
Apprenticeships are for people who don’t do well at school - Apprenticeships are simply an alternative route into skilled employment for those who prefer to undertake career technical training as opposed to academic studies.

Now that you understand how impactful and effective apprenticeships can be, you might be wondering how you can implement a program at your organization.

What are the steps I would take to start an apprenticeship program? Once you’ve determined that an apprenticeship program is a great way for your company to build a skilled workforce, partner up!

The first step for an employer is to collaborate with partners such as businesses, workforce intermediaries (such as labor organizations or industry associations), educational institutions, providers in the public workforce system (like EDSI), and other community organizations. The partnership will work together to identify the resources needed, design the apprenticeship program, and recruit apprentices – who could be either jobseekers or current employees.

Next, partners will work together to build the apprenticeship program. There should be five core components: direct business involvement, on-the-job training, related instruction, rewards for skill gains, and completion resulting in a national occupation credential. For each, the partners will develop the details of that component, leverage the resources needed, and decide which partners will carry out that part of the program.

Who operates and pays for the apprenticeship program?

When it comes to funding, The U.S. Department of Labor is a great resource for learning about Registered Apprenticeship funding opportunities and non-registered grants and contracts. You can also visit www.grants.gov and/or www.sam.gov to view all federally funded opportunities. This Federal Resources Playbook is also a helpful resource - it has everything you need to know about funding for apprenticeships.

When it comes to the operations side, programs are most often operated by private sector organizations or labor/management “sponsors.” If there are non-federally funded costs involved, program sponsors often pay for items such as tuition and administrative fees as well as wages to their apprentices. As an example, my employer – a workforce development and consulting company – has served as sponsor of several apprenticeship programs, taking responsibility for the administration of the program, thereby reducing the burden on employers. We help oversee the program, establish necessary partnerships, and secure funding to effectively lead your company down a path of self-sustainability.

Employers we’ve worked with say they appreciate apprenticeships because employees who go through the program stay longer.

For more information on how EDSI works with employers to support apprenticeship programs, go here.

Recent Statistics

The Department of Labor tracks apprenticeship outcomes and employment statistics. Here is an example of the growing numbers::

349,000+ participants completed an apprenticeship
13,500+ new apprenticeship programs were created
96,915 apprentices completed their programs
Employers experienced a 90% retention rate of apprentices upon program completion

Employers believe the time and money spent educating and training employees and forging a positive working relationship is mutually beneficial in building a skilled workforce, reducing turnover, and increasing productivity, which ultimately creates long-term organizational success. These statistics underscore the effectiveness of apprenticeship programs in workforce development.

How do I register my apprenticeship program?

Now that you’ve built your apprenticeship program and have funding secured, the last step in getting your program running is to register. Registered apprenticeship programs are those programs that have met national standards for registration with the U.S. Department of Labor. Businesses that register their program can access many benefits, including a nationwide network of expertise and support at no cost, tax credits in many states, and funding and other resources from federal programs. Go here for information on the registration process.

Exciting New & Current Funding Opportunities!

The bipartisan National Apprenticeship Act of 2023 invests more than $3.85 billion over 5 years to increase access to RAs, youth apprenticeships, and pre-apprenticeships. The Act also seeks to expand opportunities and remove barriers to apprenticeship, particularly in high-demand industries, rural areas, and populations not traditionally enrolled in apprenticeship programs.

The Act aims to create nearly 1 million new apprenticeship opportunities, expand access to high-demand industries, and remove barriers to apprenticeship, particularly in rural areas and among populations traditionally underrepresented in these programs.

Funding has also been allocated for initiatives focused on developing and supporting CDL and Broadband apprenticeships. Current federal funding initiatives include apprenticeship development in advanced manufacturing and cybersecurity.

Apprenticeships are a win-win for employers, jobseekers and communities!

Visit the Department of Labor website to learn more about NAW and all things apprenticeship.

Contact us today if you’d like to learn more about apprenticeships or how to get started in creating a program at your company.

Apprenticeship Programs: a Win-Win for Employers, Jobseekers and Communities