Apprenticeships are drastically underutilized as a standard part of the development and training of the American workforce. To date, very little research regarding cost-benefit analysis or return on investment (ROI) for sponsors of apprenticeship has been conducted in the United States. As a result, there are gaps and inconsistencies regarding employers’ perceived costs, possibly preventing the sponsorship of Registered Apprenticeship (RA) programs.
This study performs an ROI and cost-benefit analysis for sponsors of the Industrial Manufacturing Technician (IMT) RA program. Using a mixed methodology consisting of an interview in conjunction with an accounting framework, the study found that several of the sponsors saw a positive ROI in terms of both monetized and overall non-monetized benefits. Sponsors represented in this study also indicated that apprenticeship is part of their long and short-term strategies for addressing immediate labor shortages.
The ROI for several sponsors showed that on average, every $1.00 invested in apprenticeship returned $1.48. These sponsors also indicated that there was a direct link from IMT RA to upskilling, retention, comprehensive training, recruitment, and increased productivity, providing a significant advantage over competitors.
This workforce product was funded by the U.S. Department of Labor’s Employment and Training Administration. The product was created by the recipient and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it.