About the Report

Download Report

The report presents results from the American Apprenticeship Initiative (AAI) grant employer return-on-investment (ROI) sub-study. The primary data source is an Employer Survey administered to 68 employers that hired apprentices supported by an AAI grant. Each employer was asked to describe one of their apprenticeship programs in detail; all together, these programs represented 2,854 apprentices. The survey was deployed between March 2020 and October 2020, towards the end of the 5-year AAI grant period. The report documents the costs, benefits, net benefits, and ROI estimates that AAI employers experienced by investing in apprenticeship programs. The report includes information on costs and benefits during the apprenticeship program period, as well as projections of benefits for up to 5 years after apprentices completed their apprenticeship.

Research Questions

• What are the benefits to employers during and soon after the registered apprenticeship periods in their organizations? What are the costs? What are the implied returns on investment?
• What is the value of the production generated by apprentices during the registered apprenticeship period?
• Do employers experience indirect or other benefits from registered apprenticeship beyond the direct productivity increases, such as recouping the costs of employee recruitment, hiring and training costs; employee retention?
• Do employers experience indirect or other benefits beyond the direct productivity increases experienced by apprenticeship, such as improved talent pipelines or improved corporate culture?

Key Takeaways

• Registered apprenticeship occupations ranged widely from advanced Computer Numerical Control (CNC) operator to IT project manager to medical assistant. The 68 employers surveyed reported on 58 distinct occupations. Grouped by occupational category, one-third were manufacturing occupations, about 18 percent were healthcare occupations, and 18 percent were IT occupations.
• Registered apprenticeship programs vary in program type. The most common for AAI Employer Survey respondents was independent programs, either non-joint (43 percent) or joint (21 percent).
• AAI employers used relatively short duration registered apprenticeship programs. Nearly two in five of the surveyed AAI programs were only about one year. Only one in four programs was expected to last 3 years or more.

Citation

Kuehn, D., De La Rosa, S.M., Lerman, R., Hollenbeck, K. (2022). Abt Associates. Do Employers Earn Positive Returns to Investments in Apprenticeship? Evidence from Registered Programs under the American Apprenticeship Initiative. Chief Evaluation Office, U.S. Department of Labor.

Download Report   View Study Profile

This study was sponsored by the Employment and Training Administration, Office of Policy Development and Research, Division of Research and Evaluation, and was produced outside of CEO’s standard research development process.