Lessons from Swiss Apprenticeships – Three Key Insights for American Employers

The Swiss are the undisputed world champions of apprenticeships. Their modern vocational education system has been carefully developed over decades and has its roots in centuries old traditions. Successive generations continue to pass on a strong pride in craftsmanship. While the system is complex and probably can’t be replicated elsewhere due to cultural and social differences, the mindset and attitude of Swiss employers toward apprenticeships can produce breakthroughs for American employers.

After seven years of supporting U.S. employers with building apprenticeship programs, we finally made the trip to experience first-hand the excellence of Swiss apprenticeships. We were especially eager to glean insights into the benefits of working with apprentices. At the end of February 2023, we packed a week in Switzerland with meetings in Geneva, Bern, and Zurich. These included the International Labor Organization (ILO), Swiss Federal University for Vocational Education and Training (SFUVET), Swisscom and LIIP (IT employers), Noser Young (Intermediary), ICT VPET Switzerland (National Technology Council), and CEMETZ Institute.

First, we should provide a bit more context on how the Swiss have developed the gold standard of apprenticeships. Upon completion of compulsory education (which goes up to 9th grade), a young student needs to choose either an academic or vocational path to continue their education. About 70% of Swiss students choose the latter path, spending four years combining work as an apprentice at a host company with learning at a vocational school. Upon completion, these students will be granted a federal diploma of vocational education and training. Training high-school-age students for four years is certainly a huge investment for Swiss employers, but they deeply understand both the social and financial benefits of doing so. In the US, positive ROI has also been demonstrated through analysis like this recent ROI study of apprenticeships.?

We don’t intend to advocate for adopting the Swiss system itself, but rather to glean key insights that are readily applicable to U.S. employers. We identified three mindsets that would yield amazing outcomes if adopted by American employers.

#1 Invest in Growing Strong Branches

“No company can be stronger than its branch.” The Swisscom NextGen Director articulated a driving belief that unites industry together in advancing its interests, especially when it comes to training. One of the SFUVET trainers explained to us that a small country like Switzerland (approximately the combined size of Vermont and New Hampshire) lacks natural resources for export and therefore recognizes that its global competitiveness is tied directly to the quality of its training. Apprenticeship is the powerful tool and tradition that Switzerland proudly implements to create “strong branches”, directly improving the quality of the nation’s workforce.

U.S. employers are often reluctant to invest in apprentices because they fear losing this talent once the apprenticeship is complete. Interestingly, according to CEMETZ Institute, Swiss apprentices often leave the company upon completion of training. Given that they are still in their late teens or early twenties, they will explore different options, such as pursuing postsecondary education or simply different work. Despite this, the employers we met were unequivocal in their commitment to working with apprentices. We heard multiple managers tell us that their best employees started as an apprentice, left to work elsewhere for a time, and then came back to work for the company. These returnees have a deep understanding of both the company and the industry beyond the company. The more apprentices, the more potential future leaders for the company to hire. Alumni relations is an imperative for Swiss employers intending to re-engage this prized pool of talent. Swiss employers achieve positive ROI during the apprenticeship, but the ROI multiplies as apprentices build their careers upon this amazing foundation. Imagine the positive difference it would make to your bottom line if 70% of your future employees began learning your industry from the time they were 15 years old!

How would your industry change for the better if you joined other leading employers in adopting a mindset of investing in talent development in order to grow a strong “branch”?

# 2 Embrace a Culture of Learning and Leadership Development – “I was also an apprentice.”

The majority experience of having once been an apprentice profoundly shapes the commitment of Swiss managers to develop talent through early participation in the workforce. They see themselves as stewards, ensuring that one generation passes its knowledge and wisdom onto the next. Rather than divesting themselves of this responsibility and hoping professional educators pick up the slack,?Swiss employers know that participation in the workforce is absolutely the best way to learn how to pursue one’s work with excellence. This is corporate social responsibility at its finest. And this responsibility is not externally imposed. Managers personally benefited from this system when they started their career as a young apprentice, and they are ready to pass this benefit on to the next generation. A truly authentic way of giving back!

According to the NextGen director at SwissCom, there is informal consensus among large companies that 5% of their workforce will be active apprentices, and 3% for small, medium-sized companies. We heard from multiple leaders that this number should stretch to 8-9%, the amount needed to fill the IT talent shortage gap in Switzerland.

Certainly, most US managers have not entered the workforce through apprenticeships. However, when we work with managers and talent leaders to build IT apprenticeships for their workforce, they often mention how they wish these types of opportunities were available when they navigated the complicated world of work, often by themselves.

It’s never too late! How can your company cultivate a new culture of directly training the next generation, holistically developing people that will make significant contributions to society and the workforce?

#3 Pursue Excellence in Training

Whether it's the service in a hotel or the precision of a watch, the Swiss have a reputation for excellence. They are quick to acknowledge that it all starts with excellence in training. This becomes readily apparent when we look at the apprentice’s carefully planned rotations, thoroughly executed projects, and multi-day, comprehensive competency reviews. Vocational curriculum is driven primarily by employers vested with real power to determine how their workplace learning translates into meaningful credentials. Each apprentice has a guide responsible for providing continual support throughout the duration of their apprenticeship. This guidance from a mentor who knows the path to expertise ensures that apprentices maximize their learning. Key to this guidance is the building of real projects that allow hands-on, mission critical work that apprentices find highly interesting.

Swiss employers recognize that engaging with young apprentices can be challenging when teams are under pressure to meet KPIs and deadlines. That’s why supporting apprentices requires thoughtful planning and coordination across teams, and even sometimes coordination across business units. Employers take seriously the trust they have been given to develop the next generation of talent, treating young people as valuable future employees, not as “cheap labor”.

Most US workplaces provide on-the-job training, especially for entry-level hires, but this training is often not planned, occuring on an as-needed basis. This limits visibility and accountability for workplace learning, which makes it hard to evaluate what is learned and what needs to be learned further. A drive for excellence in training young people through thoughtful planning and coordination will create an optimal learning experience. This in turn builds a strong workforce, not just for your company, but also for the nation. This is the ethos behind Swiss apprenticeships.2

Conclusion?

Collectively, these mindsets of growing strong branches, embracing a learning culture, and pursuing excellence in training are foundational for a sustainable and high-impact apprenticeship system. The Swiss are quick to point out that success begins with a change in philosophy and mindset. And yes, this does require time and patience.

With the growing skills gap in the workplace accelerated by technology innovation, we must reconsider how to invest in our future workforce. We all know that workforce skills are best taught in the workplace, not in school. Fortunately, the U.S. has realized once again the power of apprenticeships and is building a much-needed support ecosystem. However, this potential can only be unlocked when U.S. employers are willing to embrace their critical role in skills formation for young people, which begins by embracing these mindsets.