As 2018 comes to a close, companies are taking stock of both their accomplishments and their opportunities for improvement from the past year. Companies are looking to the future to discover opportunities to improve, refine, and grow. From energy to healthcare, cybersecurity to hospitality, many industries in Mississippi and across the country are experiencing a growing demand for services.
For Mississippi businesses and economies to grow, companies must attract employees with industry knowledge. However, increasing talent shortages and skill gaps often leave companies in need of skilled workers. Registered Apprenticeship can be the key to fulfilling that need.
Recruiting and developing a high-performing workforce can prove challenging for businesses of all sizes. Research commissioned by Glassdoor reported that 95 percent of companies admit to hiring unsuitable employees each year.
A Mellon Financial Corp. study 1 found that on boarding and training new employees can cost businesses between one and 2.5 percent of total revenues, and according to the Society for HumanResource Management the average cost-per-hire in 2016 was $4,425.
Another 2009 study found that even after employees are hired, nearly one third quit within the first six months, and roughly 20 percent cite poor training, lack of clear guidelines, or not enough attention from managers and co-workers as their reason for leaving.
Registered Apprenticeship changes the dynamic and tips the scale in favor of employers when it comes to workforce recruitment, training, and retention.
Registered Apprenticeship allows companies to craft programs with rigorous training that create a stable pipeline of new employees and a system of internal advancement, which allows businesses to avoid the scramble of seeking out new hires to fill positions, as well as ongoing assessments of the hard and soft skills necessary to perform job functions and sustain company culture.
Companies with apprenticeship programs experience higher rates of employee retention, at nearly 90 percent over three years. Training employees allows them to grow and feel confident in their performance while fostering a sense of loyalty. Training also provides employees with clear career pathways and long-term skills and qualifications that will help enable businesses growth.
One of the major advantages that distinguish Registered Apprenticeship from regular recruitment and training practices is the return-on-investment (ROI). According to the U.S. Department of Labor, for every dollar spent on registered apprenticeship, employers get approximately$1.50 ROI. Another evaluation across ten states found that for every dollar invested, the overall benefits of apprenticeship totaled more than $35.
By providing a tool for businesses to create a pipeline of skilled workers and build more capable employees, stronger companies, and better products, Registered Apprenticeship offers the greatest short- and long-term training benefits. As companies in Mississippi continue to rise to the challenges ahead, Registered Apprenticeship offers a clear and efficient pathway to developing a highly skilled workforce in our state.
1 Williams, R. “Mellon Learning Curve Research Study.” New York: Mellon Corp., 2003.
