Apprenticeship Return on Investment
What Will This Cost?
While there isn't always an easy black and white answer to this question, we can give you some factors to consider. The U.S. Department of Labor has collected data over the years on some of these factors. The data shows that apprenticeship:
- helps recruit and develop a highly skilled workforce
- improves productivity and the bottom line
- provides opportunities for tax credits and employee tuition benefits in some states
- reduces turnover costs and increases employee retention
- creates industry-driven and flexible training solutions to meet national and local needs.
Source: U.S. Department of Labor Office of Apprenticeship
If you have difficulty finding the skills you need for your organization in the open job market, apprenticeship could be a solution. One question you need to ask yourself is this: what is it costing you now to have jobs unfilled?
Below you will find a helpful diagram depicting one way to analyze the benefits of apprenticeship for your organization. Below that you will find a downloadable copy of the diagram plus a return on investment study that was completed in 2016.
We're here to help you ask and answer some of the important questions to determine whether apprenticeship might be beneficial for you or your organization.
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Estimating Return on Investment
Examples of monetary benefits include:
- Reduction in overtime paid as a result of understaffing
- Reduction in turnover because of understaffing and therefore burnout
- Decrease in hiring costs as turnover is reduced
- Reduction in errors resulting from burnout
- Increase in revenue opportunities
Examples of costs involved include:
- Cost of formal instruction
- Cost of non-productive employee during initial weeks of apprenticeship
- Costs of coaching, mentoring and employee reviews
It is important to bear in mind that these costs may be offset in whole or in part by grant funding, job training funding and/or tax credit incentives.