At GoSprout, one of the benefits of running a registered, compliant apprenticeship is apprenticeship grants. At both the state and federal level, the government wants to incentivize smart companies to start developing talent before young people hit the workforce and views the proliferation of registered apprenticeships as a goal to help ensure our nation’s prosperity.
Want to Learn More About Your Registered Apprenticeship Opportunities?
BOOK A FREE CONSULTATION
If you missed our coverage, be sure to check out:
- DoL’s Youth Employment Works Initiative
- The White House Executive Order on Apprenticeships
- DoL to Modernize Apprenticeship Regulation
In all of the public statements, the government that economic benefits including contract eligibility and grants are earmarked for companies that stand up registered apprenticeships. In this article, we look at grants for registered apprenticeships in more detail.
What Do Apprenticeship Grants Cover?
As with other grants, the qualifying use of funds is specified. Here are some of the costs covered:
Administrative Costs
Registered apprenticeships require coordination between Employers, Apprenticeship Sponsors, and RTI providing schools. Tools like GoSprout’s apprenticeship management software make the process orders of magnitude easier than the old “spreadsheets & email” approach and the government wants to offset these costs.
Equipment Purchase
The point of apprenticeships is that graduates enter the workforce having already mastered in-demand skills under the guidance of journeyworker. But just like schools need classrooms and other facilities for the academic side of apprenticeships, firms need the proper equipment for their apprentices to use: safety equipment, tools of the trade, etc. An electrician apprenticeship can’t be efficient with apprentice using their mentor’s equipment, for example.
Wage Reimbursements
Apprenticeships are a great alternative to student debt-financed higher education but because they pay a living wage even to apprentices before they are fully productive, the wage expense can be daunting for employers looking to launch an apprenticeship network. Government grants recognize this and can cover wages in part.
Support from Intermediaries
At GoSprout, we provide apprentice management guidance via our content but also via access to our cloud platform that unites all the stakeholders to coordinate compliance and delivery of 5-star apprenticeship experiences. Expenses for services like our can be offset by grants.
Non-Grant Financial Benefits
Beyond the grants for apprenticeships, companies that offer RAPs have access to non-grant benefits that directly impact the bottom line as well.
Tax Incentives
States often offer significant savings for companies that have active apprentices. Some states offer up to $2,000/apprentice per year. It’s worth having your finance team look into these benefits.
Reduced Hiring Costs
Apprenticeships function as a bi-directional sneak peek. Apprentices get to see whether or not they actually like the industry and work available. Employers get to see an apprentice in action and how well they perform tasks, fit with the culture, etc. So hiring out of an existing apprentice pool is much simpler because the vetting process has already run for a period of time.
Improved Retention
For similar reasons, post-hiring, an apprentice is much likelier to stay within the company because they know what they are getting. For senior employees, the opportunity to mentor is also a great loyalty incentive.
Conclusion
At GoSprout, our software becomes more powerful every week based on the feedback of our community. We’re working on making it even easier to identify grants by profiling their backers in our community and will be integrating links to applications within our product as well.
In the mean time, if you want more information about grants that may be available to you already or if you choose to launch your apprenticeship, please reach out! GoSprout was founded to support the growth of Registered Apprenticeships as a vehicle to support our nation’s youth.
