In a bid to build infrastructure and boost employment, the Biden administration is expected to launch a program that will create more than one million new apprenticeship opportunities. But is an apprenticeship program right for your company and if so, how do you get one off the ground at your business?
Ushered in as part of the American Recovery Plan, the bipartisan Apprenticeship Act of 2021 seeks to create a “reliable pathway to the middle class…by training workers for good jobs and allowing them to earn while they learn.” In particular, the administration notes that apprenticeships are “especially important as we recover from the pandemic, allowing workers who have lost their jobs or young people who are entering a weak job market to train for the jobs of the future.” Biden, who has called on Congress to invest $48 billion on the plan, wants the apprenticeship program to particularly open doors for women and people of color. In addition, his plan calls for reducing reliance on industry-recognized apprenticeship programs (IRAPs), which he says have fewer quality standards and are less rigorous, meaning that graduates are less likely to receive high-quality training and be an asset to their employers right out of the gate.
The benefits to participants in the apprenticeship programs are numerous: In one Mathematica Study cited by the Administration, workers who participated in such opportunities can earn $240,000 more and $300,000 more when you factor in benefits over their course lifetime. Further, the program will create career pathways as early as middle and high school to connect students to in-demand sectors, meaning that these apprenticeship program graduates can also enjoy job stability. For business owners, this means less trouble filling those tough positions so frequently plagued by workforce shortages, as well as a more talented and trained workforce when you can find the ideal candidate. As a result, you can enjoy a shorter on-boarding time, increased productivity, and lower turnover, which in turn can create a deep pipeline for new leaders. In addition, because of Biden’s focus on diversity, participation in an apprenticeship program may help businesses diversify their workforce, which the World Economic Forum suggests can lead to better innovation company-wide, resulting in higher revenue.
Think your company could benefit from adding an apprenticeship program? Well, turns out, it might just be easier than you think. You see, when it comes to initiating a program of your own, there’s already a ton of resources available so you won’t exactly have to reinvent the wheel. In fact, you can learn a ton about the process simply by visiting the government’s official apprenticeship website, which even includes a “create a program” tab where you can personalize the type of apprenticeship you want to offer and try out options for making the program work for your company (such as exploring paid versus unpaid options.) In addition, the government website provides access to established training plans, classroom content to help bolster your program, and guidance on how to set up a mentorship program to enhance your apprenticeship offerings. Next up, you’ll need to register your program with the state in which you operate; each state has a slightly different procedure, but in general, you can find links on your state governments web page. Then, you’ll want to keep your ear to the ground about what the federal government is doing from a funding perspective. Currently, the government tries to lure you in to participate by providing funding up front to help employers offset the cost of tuition, additional training, and other costs associated with upstarts. However, experts suggest that the focus may shift so that companies must lay out their own money initially and then apply more for reimbursement upon completion of the program.
Still think you may need a little extra support along the way? A PEO like Abel HR can help – we can guide you in setting up your program and even help you develop a process for picking candidates. In addition, a PEO can guide the training aspects of the program, including providing support to existing staff as they step into mentorship roles or otherwise ascend the career ladder as a result of your apprenticeship program. To learn more about what we can do for you, give us a call at 609.860.0400.
