Most people get college degrees to prepare themselves to join the industry they’re interested in, but does traditional higher education actually help them reach that goal? According to a survey by McGraw Hill Education, only about 40% of college seniors feel that college has prepared them to get a job. This isn’t a good sign, since 58% of people choose higher education for better career and job outcomes.
With college tuition averaging $35,720 per student annually, it’s clear that the amount of money spent on higher education does not correlate with graduating students’ ability to get the best available jobs. Given that many industries are extremely understaffed, and that many college graduates do not get employed, it’s apparent that action must be taken to improve training for the workforce.
Introducing… Apprenticeships
Apprenticeships are a type of hands-on work training that allows individuals to learn industry skills on-the-job, while also receiving wages. Companies can hire apprentices in a variety of positions, providing them with a structured educational plan to undergo while also assigning company projects to work on with assistance from experienced employees. Unlike a college degree or most forms of alternative education, apprenticeships aren’t formal training to get a job - apprenticeships are a job.
As traditional higher education continues to get more and more expensive, apprenticeships turn the relationship around; apprenticeships are one of the only ways in which students can get paid to learn.
Wait, but what about internships?
Internships are also great opportunities for newcomers to get industry experience, earning wages while also completing official company work (in most cases). But there are major differences between internships and apprenticeships:
Duration: Interns usually have a contract lifetime of 1-3 months, whereas apprentices stay at their companies between 1-3 years.
Education: Apprentices usually receive a structured educational plan with mentorship, while internships may not always provide mentorship from higher-ups.
Credits and credentials: Depending on the program, apprenticeships can provide official college credit and industry-recognized credentials, while internships often don’t provide either. (source: Apprenticeship.gov)
"These differences- a longer time period, a structured education plan, clear mentorship, and the offer of credit, pay and credentials- are all purposeful, designed to make the work transition much smoother for students."
Apprenticeships Support Recruiting
Nowadays, companies are pouring millions of dollars into recruiting talent. A report by the Society of Human Resource Management (SHRM) shows that the average cost per hire for companies is $4,129. Meaning, to hire 100 people for a company, the recruiting department would need to budget over $400,000, excluding salary and employee benefits. As crazy as this statistic may sound, this benchmark has been normalized; Workable CFO Lacey Brandt rates a good cost-per-hire benchmark to be between $3,000-$5,000.
As recruiting talent becomes continually harder and more expensive, some companies are turning towards creating apprenticeship programs as a different approach to staffing: creating talent instead of searching for it. And it’s not just a wild bet - the US Department of Labor states that companies earn about $1.40 for every dollar invested into apprenticeship programs. On top of that, apprentices that convert into employees have a 94% retention rate on average.
What kind of apprenticeship programs already exist?
Popular retail and customer-service oriented businesses, like Walmart and Sears, have already implemented apprenticeship programs into their hiring models.
Beyond that, big technology companies have invested massive amounts of time and money to create apprenticeship programs to recruit and develop talent for different internal teams. Here’s a reference list for aspiring software engineers to keep in mind:
Google’s tech apprenticeship program, offered in locations all across the world, including New York, San Francisco, and Chicago to name a few. Apprentices can opt-in to joining a 12-month or 20-month training program, and the possibility of full-time employment and certification.
IBM’s Apprenticeship Program, allowing apprentices to join project teams of their choice and receive over 300 hours of training remotely, as well as an introduction to computer science. 12-month program with possible full-time employment.
Airbnb’s Connect Software Engineering Apprenticeship, a software engineering specific apprenticeship, allows apprentices to break into the technology industry and qualify for full-time, entry-level software engineering positions at Airbnb. Exceeding classic eligibility requirements, apprentices cannot hold a bachelor’s degree in computer science. Apprentices’ prior computer science knowledge can only be gained through coding bootcamps or online courses.
LinkedIn’s REACH Engineering Apprenticeship Program, an opportunity for those without advanced tech training to qualify for a permanent software engineering position at LinkedIn. Looking for long-term talent, this program usually lasts between 1-5 years.
Microsoft’s Leap Apprenticeship Program, a pathway into receiving formal and informal work training towards being a data analyst, software engineer, or program manager. Delivered in a 16-week program with the possibility of joining the Xbox, Bing, or Office365 projects full-time.
Accenture’s Apprenticeship Program, providing a 12-month training program in corporate technology and IT. This program also provides access to opportunities in cybersecurity and insurance.
Amazon’s Apprenticeship Programs, a wide variety of teams for apprentices to join: IT, Fashion, Marketing, Software, Operations, etc. With a recruitment process that spans less than two days, this is a universal program for everyone.
Apprenticeship programs have become an entry point into industries for those with no prior experience, and empower newcomers to excel. It’s not just about corporate programs though; recently, apprenticeship programs have been taken to the next level.
Apprenticeships as a Service (AaaS)
Apprenticeship programs have gone beyond corporate talent acquisition strategies - they’ve become their own business model. Why have companies assign teams and departments to maintain their own in-house apprenticeship program when startups can dedicate their missions towards creating a more efficient pipeline for creating talent and funneling them into these companies? That’s exactly what some companies are doing.
Woz U, by Steve Wozniak, focuses on independent technical education for students, offering education and curriculum for those looking to break into tech. They offer coding bootcamp courses in software development, cybersecurity, data science, and more, but they also offer a federally-certified apprenticeship program. After candidates are sourced and put through pre-apprenticeship training, they can get hired at one of Woz U’s enterprise partners. They also receive educational guidance on Woz U’s learning experience platform and transfer their completion to certifications and even college credit through their higher educational partners such as Harrisburg University and the University of Phoenix.
Multiverse (Formerly WhiteHat) is creating professional apprenticeship opportunities in professions like software engineering, HR, and digital marketing to provide an alternative to college and corporate training. Multiverse provides extremely detailed 12-15 month educational programs all for no cost, and will help you get hired at one of their employment partners like KPMG, Capita, and Citi.
Alongside Woz U and Multiverse, there are many other programs and companies tackling the same issue in various industries, such as Praxis and Vendition.
Who could benefit the most from apprenticeship programs?
Apprenticeship programs are already prominent and helpful in the tech industry, but what about other industries? According to Monster.com, skilled trade jobs are one of the most understaffed professions. Electricians, carpenters, mechanics, welders, and plumbers are severely needed. Though trade schools are a great option to get into these industries, can apprenticeships be a better alternative? After all, skilled trade jobs are almost always hands-on, with necessary work knowledge stemming from experience and practice. It’s a perfect opportunity to disrupt trade schools and allow newcomers to get right to work.
Easier said than done though. Firms that offer skilled trade services are often too small to effectively create and manage an internal apprenticeship program like big tech companies. A small handful of apprenticeship opportunities have been provided by governmental organizations in certain states like CalApprenticeship.org, but it’s still an open market for anyone to help make a difference.
Beyond skilled trade jobs, apprenticeships can make a big impact in underrepresented groups and those struggling financially who may be struggling with receiving college education or getting internships. Apprenticeships can provide education, experience, and wages all at the same time, while also avoiding student loan debt.
------------------------------------------------------------------------------------------
The future of work training is unknown. Apprenticeships emulate what work training should be: hands-on experience and structured education in real-world environments. With more value being brought to both employers and employees, apprenticeship programs should be created in companies of every industry, and work towards a more efficient, immersive form of work training for current and future generations.
Great article, Calix! Interested to see how Multiverse expands into the US. They have a strong moat in the UK with the apprenticeship levy. It's a closed register so they have a large headstart on competitors. As there's nothing equivalent in the US so it will be interesting to see if their partnerships with Google, Verizon etc allow them to achieve the same scale as quickly.