The results from this study indicate that employers across the 15 trade areas receive a net benefit from apprenticeship training.

The following conclusions are based on the overall findings of the study.

According to the cost-benefit results, employers across the 15 trade areas receive a positive return on apprenticeship training investment.

Overall, the quantitative benefits of apprenticeship training, which include the revenue generated by an apprentice, exceed the total costs for all 15 trades. Hence, there is an overall net benefit of apprenticeship training. In addition, the average estimated benefit-cost ratio of 1.38 indicates that for every $1 spent on apprenticeship training, employers receive a return of $1.38 or a $0.38 net return on each dollar invested. Although wages and benefits increase through the stages of apprenticeship commensurately with experience and training, costs associated with journeyperson time decline. In addition, as the apprentice becomes more proficient, the revenue potential of the apprentice increases. Other cost components, including wastage and cash disbursements, are relatively small as are the costs associated with administration. The results suggest that apprenticeship training builds a skilled workforce we need for a strong bottom line.

In addition, the cost-benefit results indicate that apprentices begin to generate net benefits for employers within a short period of time. This is further supported by the survey results. Specifically, the majority of employers (66.1%) indicated that the apprentice’s productive value to their organization exceeds the training costs by the end of the second year or earlier.

The methodological approach and the cost-benefit results were validated by economists and employers during the roundtable discussions.

Economists who participated in the roundtable indicated that the methodological approach used to generate the cost-benefit results was appropriate. Although concerns were raised as to the small
sample sizes and the ability of employers in non-service trades to correctly estimate hourly charge-out revenue, it was agreed that the scope of the study far exceeds any previous research in Canada regarding the costs and benefits of apprenticeship training. Overall, employers indicated that the cost-benefit results were consistent with their experience and knowledge of apprenticeship training. Although employers indicated that costs related to major assets (e.g., service bays, service vehicles) represent significant training costs, there was general agreement that the results were valid. However, it should be emphasized that organizational and regional differences will influence an employer’s point of view regarding the validity of the cost-benefit results.

There are qualitative or non-monetary benefits that accrue to employers who engage in apprenticeship training.

Surveyed employers indicated that one of the most important reasons for investing in apprenticeship training is to ensure that their organization has an adequate supply of skilled labour. In addition, employers indicated that hiring apprentices is important to replace the aging workforce and to reduce the turnover rate.

In addition, there are benefits that accrue to journeypersons who train apprentices. The majority of employers (67.6%) indicated that their journeypersons receive a benefit from training apprentices. Benefits to journeypersons as cited by employers include enhancement of skills and knowledge and an increase in productivity when the apprentice assists with complex job tasks.

Employers indicated that a homegrown journeyperson is more productive than an externally trained journeyperson. On average, employers indicated that homegrown journeypersons are 26.5% more productive, an additional benefit of apprenticeship training.

More than one-half of surveyed employers provide annual cash disbursements to apprentices, although larger organizations are more likely to provide financial support.

Overall, the majority of employers (53.6%) provide cash disbursements to their apprentices. The most significant costs are related to wages during in-school training; equipment that is lent or donated to training bodies; and top-up of EI benefits during in-school training. Not surprisingly, larger organizations are able to provide a higher level of financial support.

Poaching is often cited as a disincentive to apprenticeship training. However, surveyed employers did not view this as a very serious concern.

Surveyed employers did not view poaching risk from competitors or other industries as a very serious concern. Employers who represented large organizations viewed poaching by other industries as a more serious issue relative to smaller organizations. In addition, employers in Atlantic Canada were more concerned with poaching risk by competitors and other industries relative to other regions. Although the overall ratings of poaching risk from competitors (5.1) and other industries (4.8) indicate that this issue is somewhat of a concern, it is also possible that employers are unaware of the extent to which poaching occurs.

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