September – 21st Century Talent Development

Part 3 -?Modern Apprenticeships

Companies across the US struggle to fill roles as experienced team members exit for new opportunities or retirement. Boards and leadership teams also recognize the value of building community through diversity, equity, and inclusion (DEI). Therefore, recruiting and developing workplace talent is a top-of-mind issue for many leaders. This month, we’ll look at some disruptive options to attract new employees and increase their potential.

When we think of apprenticeships, we often think of skilled trades, like construction or automotive technology. However, the modern apprenticeship model is now successfully used in many industries, including healthcare, bioscience, and IT. They’ve come a long way from their roots in the medieval craft guilds. They are internationally recognized as a path to help young people enter the workforce and address historical equity and access gaps. In this article, we’ll look at the components of a modern apprenticeship, how they help both the apprentices, their sponsor companies, and communities, and look at how state and federal governments and industries are expanding apprenticeships to help underserved populations improve their economic footing.

The basic definition of an apprenticeship is simply a legal arrangement where one person learns an art, trade, or a job by working for another. The?modern apprenticeship?combines paid work-based learning opportunities alongside structured classroom training to deliver both education and hands-on experience in an occupation. Registered apprenticeships are formally approved by their governing body (US Department of Labor or state apprenticeship agency) after meeting appropriate criteria to maintain quality and protect the apprentices. They differ from internships in that they are structured and emphasize skill and knowledge improvement over time through close interaction with a mentor. Many apprentices earn an industry-recognized credential and convert to regular employees at the end of the program. Some programs even offer a degree option. The program length can vary (most are 1-6 years), may require a minimum number of on-the-job hours, and some include competency frameworks with milestones based on demonstration of skills mastery.

A modern apprenticeship offers benefits to the worker, their sponsor companies, and the wider community. The apprentice has the opportunity to learn skills and knowledge directly from experienced industry practitioners. They can earn while they learn, with an?average annual wage of $70,000?upon program completion and increased lifetime earnings. An industry-recognized credential or degree enhances both self-image and career options. Employers face a direct cost that varies based on the program elements, with the apprentice compensation the primary charge.?The return on investment often requires several years?and depends mainly on the length of the program. Direct benefits include savings on overtime expenses, increased revenue and productivity, and lower recruitment costs. A?recent study?found the benefits include increased production with a decreased error rate, reduced turnover and improved recruitment, development opportunities for the mentors, improved employee engagement, greater problem-solving ability, and reduced need for supervision. Critically, few companies in this study noted they lost apprentices from poaching by other companies. Communities benefit by having members with living-wage jobs, potential lifetime career roles, and thriving industries.

Many states and the federal government support the expansion of modern apprenticeships to serve a more diverse set of people and industries. The US House of Representatives passed the National Apprenticeship Act of 2021 in February, which would promote the expansion of the Registered Apprenticeship program by?more than doubling the grant funding available. States like Massachusetts, Utah, Iowa, Maryland, New Jersey, and Washington invest in their registered apprenticeship programs. These programs also include specific goals to address the well-known gender and racial group gaps in apprenticeship participation. Companies are also using apprenticeship programs to meet their corporate DEI goals. Multiple states have also invested in?inclusive apprenticeships, which provide skills training to people with disabilities. The Society for Human Resource Management notes?apprenticeships with virtual components?help employers flexibly meet new training and engagement challenges arising from the pandemic. However, like all hiring programs, apprenticeship programs must be?intentionally designed to ensure diversity and inclusion.

A thoughtfully designed and updated modern apprenticeship program can help companies meet their long-term talent needs with committed, engaged employees. However, misconceptions about apprenticeships remain, which are easily overcome by available data. Employers can learn more about the business case for modern apprenticeships in this?Brookings report. In addition, prospective apprentices should search for local, state, and federal apprentice support programs and on major company websites for opportunities.

If you enjoyed this article and would like to read more by Katrina, check out her blog.