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Businesses and governments are seeking new ways to cultivate and source talent at a time when the demand for digital talent is high. Apprenticeships aren’t a new concept, but they have seen a revival in recent years because specific skills have become more valuable and harder to find in a growing digital economy.
The Tech Partnership is a U.K. initiative to deliver digital skills to a million tech positions by 2025. The partnership hopes that joining forces with O2 will help the U.K. become a digital nation worth PS63 billion in G.D.P.
The U.S., on the other hand, needs to catch up in addressing the skills gap through on-the-job training, despite graduating more than three million students each year. Only 125,000 apprenticeships are available annually. This is a mere 4 percent compared to the 40-80% of other high-income nations, such as Britain.
It is estimated that by 2020, nearly 2/3 of all jobs will require post-secondary training or education. This means more Americans in the U.S. are attending college or pursuing other types of educational credentials, such as certifications or industry-recognized credentials. Could apprenticeships meet the demand for specific expertise and knowledge across industries?
A Proven Recruitment Technique
For many years, apprenticeships have enjoyed great success. One of the reasons that these recruitment schemes have lasted so long is their effectiveness. A program for apprentices can be used to hire new employees, train existing employees, or enhance the skills of current staff.
Many job seekers who participate in these programs enjoy rewarding and successful careers. Apprentices can earn 270% more in their lifetime than university graduates. These workers are better employees and happier people who can contribute positively to the economy and G.D.P. of their country.
59% of employers in the U.K. say that training apprentices lead to lower training costs and reduced recruitment costs. According to 41% of employers, apprentices are a valuable asset to their business. A third say they add value in the first few weeks, and a significant percentage progress to management roles within the company.
Apprenticeships are a cost-effective and effective strategy for many organizations to develop their current and future workforce. It can help employers build talent pipelines and lower recruitment and relocation costs.
Employee Retention: Improved
Hiring digitally-skilled workers can cost a lot. These employees are vital to companies that depend heavily on them. High turnover is bad for all businesses, but especially for startups.
Apprenticeships can help businesses, including those in the digital world, improve employee retention rates. Recent research found that 91% of apprentices continued to work or continue their education six months after the apprenticeship ended. 75% of apprentices who completed their externships remained with the same employer.
PwC is a good example. The U.K. branch of PwC offers its employees a combination of educational and practical learning through an apprenticeship program. PwC enables people to become skilled professionals. 86% of those who complete the PwC Apprenticeship program remain with the company. This retention rate is remarkable compared to the 68% of college graduates who move on to other careers.
Bridging the Gap
Companies in the U.S.A. and U.K. have been forced to look abroad for skilled workers. This has caused a lot of controversy, but it is a necessity to grow. TechUK recently concluded that 93% of tech firms agree that the employee skills gap negatively impacts their business. More than 1.2 million U.K. businesses are underperforming due to a lack of digital awareness and skills.
Apprenticeships are not only beneficial to U.K. businesses, but they can also improve the economy. Recent research suggests that investing in digital skills could boost the U.K. economy by as much as PS14 billion.
Take I.T. graduates as an example. While in high demand, the required skills tend to be niches, such as cloud computing or UX. These skills add value to businesses, so they are given priority. Firebrand apprenticeship has been developed with these professionals in mind to advance careers at leading I.T. companies. It matches individuals with companies to learn skills that the company can use and benefit the apprentice.
Digital Apprenticeship Board was created to bring together non-tech and tech employers to ensure that organizations can access high-quality digital and tech apprenticeships.
Job Specific Training
Many economists believe that practical experience is more valuable than college. Through apprenticeships, businesses can provide employees with training designed specifically for their job functions.
JP Morgan Chase & Co., as one of the world’s leading international banking and financial institutions, strives to offer its customers reputable, honest, and reliable financial services. To achieve this, it launched an apprentice program three years ago to give young people a chance to become financiers.
The JP Morgan Bournemouth apprenticeship allows individuals to gain hands-on experience. The program will give participants a close-up look at the company’s operations and teach them specific skills to help them succeed in the financial sector.
Companies can offer their apprentices job-specific digital skills training to give them a bright future. This will also help the employee to see themselves as an asset.
The Future
Even though only 505,000 Americans participated in apprenticeship programs last summer, some states are ramping up their efforts to meet future demand. Iowa aims to be the home of large data centers from Facebook and Microsoft. It has a $3 million apprenticeship training fund. Conversely, California has an Employment Training Panel that supports employer-provided education and has invested over $30 million into a new Apprenticeship Training Program Pilot to support non-traditional programs.
The U.K. has been aggressive in its efforts to combat the skills shortage. The Digital Apprenticeship Service, due to be launched later this month, will allow employers to select the type of apprenticeships they wish to offer and the number of trainees they hire.
This is an excellent way for professionals to obtain the training and education they need to become valuable employees. The U.K. government plans to create an independent employer-led body by 2017 to help address the skills shortage.
Closing Thoughts
Enrolling in an apprenticeship program is the perfect way for job seekers to advance their careers or kickstart their careers. Apprenticeships address an industry need and provide individuals with a chance to earn a decent wage while training.
The programs combine classroom learning with on-the-job training, so participants can acquire new skills faster than they could by reading books. Most apprenticeship programs provide graduates with a full-time job after graduation, something universities and vocational colleges do not offer.
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