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Apprenticeships yield 170% return on employers’ investment, survey finds
RALEIGH, N.C. – The average registered apprenticeship program in North Carolina yields a 170% return on investment for the employer, according to a new survey.
For every $1 invested in apprentices, employers receive an average of $1.70 in additional value, the survey conducted by the N.C. Department of Commerce’s Labor & Economic Analysis Division found.
“This survey confirms that apprenticeships are a worthwhile investment for businesses and other organizations,” said Kathryn Castelloes, director of ApprenticeshipNC, which commissioned the survey.
ApprenticeshipNC, part of the NC Community College System, helps employers develop registered apprenticeship and pre-apprenticeship programs in a variety of industries and occupations. The office served more than 15,000 North Carolinians during the 2020 fiscal year.
Apprenticeship is an employer-driven training model that combines paid work-based learning with related classroom instruction. Apprentices’ wages increase as they progress through the program. Upon completion of training, participants earn state and federal certificates signifying their knowledge and skill set in a field. Depending on the program, apprentices also may complete an associate degree or other credential.
Other findings from the survey:
- Most registered apprenticeships in the state are small, with 70% of survey respondents currently having five or fewer apprentices.
- Eighty-five percent of survey respondents believe apprenticeships provide a net financial benefit to their business.
- Eighty-two percent of survey respondents are satisfied with the financial impacts of their apprenticeships. Respondents cited benefits such as increasing employees’ skills flexibility, improving productivity and improving the employer’s ability to find qualified candidates. Nearly half said employee turnover among certified journeyworkers (employees who have completed apprenticeships) is lower than among other workers.
- More than 88% of respondents that sponsor pre-apprenticeship programs said they are satisfied with them.