Canadian Apprenticeship Forum - Cost of Apprenticeship / Return on Training Investment project

Cost of Apprenticeship / Return on Training Investment project

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September 2005

May 2005

February 2005

September 2005 - Current Status

Apprenticeship - what's the bottom line?

CAF-FCA invites employers to participate in an important cost/benefit of apprenticeship project

If you employ apprentices, then we need you. The CAF-FCA invites all interested employers to participate in a very important study on the Cost of Apprenticeship/Return on Training Investment project.

What will this project accomplish?

The anticipated results will allow businesses, governments, the education system, and apprentices to understand the cost/benefit of hiring an apprentice. Previous studies regarding the cost of apprenticeship training have been conducted in limited regions, on only a few trades, with a limited number of participants and did not focus on benefits. This study is much bigger, focuses on cost and benefits, and will have a more representative sample of participants.

What's in it for you?
There are several good reasons to participate in this study. You could:

Gain a better understanding of your bottom line. That is, discover the actual return on investment for a specific trade in your business, allowing you to gain an edge over your competitors;
(In collaboration with your trade association) use this methodology to further investigate the return on training investment figures for a specific trade that was not a part of the first phase of this study;
Use the information you gain to develop or influence policy. Have you always thought your business or organization should operate in a specific way but didn't have any figures to back you up? This cost/benefit analysis may help you to make your case.

Specifically, we are looking for employers who employ apprentices in the following trades:

1. Tool and Die	8. Sprinkler Fitter
2. Cook	9. Sheet Metal Worker
3. Auto body Repairer	10. Heavy Duty Equipment Mechanic
4. Carpenter	11. Mobile Crane Operator
5. Automotive Service Technician	12. Insulator
6. Industrial Millwright Mechanic	13. Brick and Stone Mason
7. Construction Electrician	14. Refrigeration and Air Conditioning Mechanic, and
	15. Machinist.

How to participate

You can help us to collect data on this important issue by completing a survey. There are a variety of ways this survey can be completed and an easy to read survey guide accompanies the survey tool.

For more information, or to participate in the data collection phase of the project, please contact Project Manager Arlene Wortsman at: (613) 235-4004, ext. 204 or by e-mail at:
arlene_wortsman@caf-fca.org.

For more information about this or other projects, please visit our web site at: www.caf-fca.org.

Backgrounder

In 2005, the joint CAF-FCA and Skills/Compétences Canada (S/CC) "Skilled Trades: A Career You Can Build On" campaign entered into a new phase of the project which encourages employers to hire apprentices. Previous research suggests that this is a significant issue: Canadian employers may have a greater capacity to hire more apprentices than current levels indicate. We have heard that one of the main reason that companies hire apprentices is to ensure a sustainable supply of skilled workers. However, few of the journeypersons currently employed completed most or all of their apprenticeship training with the same employer. Thus, there may be some challenges related to the retention of apprentices. Some employers - correctly or erroneously - believe that the cost/benefit of hiring apprentices may be too high.

CAF-FCA's "Accessing and Completing Apprenticeship Training in Canada - Perceptions of Barriers" report also discusses some of the perceived barriers that apprentices may face when accessing and completing apprenticeship training in Canada. One of the findings in the report suggests that the cost of apprenticeship to individuals, employers and unions may be a barrier to accessing and completing apprenticeship training. The cost/benefit formula developed via CAF-FCA's Cost of Apprenticeship/Return on Training Investment project could shed more light on this issue.

May 2005

The deliverable in Phase I of this project is a final report that includes:

A comprehensive literature review which identifies work that has already be done in this area, along with the challenges and opportunities within the context of this previous work.
A series of methodologies to be used to collect the appropriate data.

Focus groups have been held with representatives of key stakeholder groups to obtain feedback on the proposed approaches of “how to collect the data and what to collect.” The project did not involve collecting any information relating to actual cost/benefit, but rather sought feedback from apprenticeship stakeholders on proposed methodologies and approach.

Current Status of Phase 1:

Phase 2 of the ROTI project involves the actual collection and analysis of the data.
Phase 2, the data collection phase, will begin with a pilot study of 14 trades. The focus is on the cost and benefit of apprenticeship to employers. The pilot would use the employer cost/benefit methodology developed and validated in Phase 1, apply it across 14 trades across the country. The research from this phase will provide greater insight into the true overall cost/benefit of apprenticeship training for employers.

Next Step: Phase 2

Upon completion of the pilot, further work would be undertaken to assess the cost/ benefit associated with all other stakeholder groups, again using the methodologies developed and validated in phase 1. The lessons learned in the pilot of the employer cost/benefit would be incorporated in the latter phase culminating with an overall cost/benefit analysis for apprenticeship training.

February 2005 - Current Status

A contract has been negotiated with Prism Economics and Analysis to complete Phase I. The ROTI Steering Committee is guiding the consultant in the development of the methodologies – “how to collect the data and what data to collect”.

Next Step of Phase 1

The next step of Phase 1 involves obtaining feedback on the proposed approaches of “how to collect the data and what data to collect.” This phase will not involve collecting any information relating to actual cost/benefit, but rather seeks to validate from apprenticeship stakeholders whether or not our proposed approach makes sense. For example, we will want to determine whether or not:

Our proposed questions are understood and clear;
We have included all key cost or benefit categories;
There are trade or jurisdictional differences that would impact results; and
All key categories have been included.

This information will be obtained through focus groups sessions beginning in March. At that time we will validate the proposed approach to obtaining cost/benefit information for employers.