NOW’S THE TIME FOR EMPLOYERS TO SKILL UP

There’s no better time for employers to focus on skilling up than now, when the economy has cooled down. B.C. and Canada are still facing critical skilled labour shortages in the years ahead as the Baby Boom generation cycles out of the workforce. Taking advantage of today’s slower economic pace to focus on training will ensure your business is prepared to compete and thrive when B.C.’s economy begins to recover.

Hanging on to your existing apprentices, hiring new ones, and encouraging them all to catch up on their technical training can be a cost-effective way of protecting your investment in training over the last few years, and developing the skills you need to grow your business, especially when times are tough.

Bottom Line:

Increased ROI

NEW! Just-released survey results by the Canadian Apprenticeship Forum (CAF) prove that there is a positive bottom line return on employer investments in apprenticeship training.

  • Employers receive a benefit, on average, of $1.47 for every $1 invested in apprenticeship training, or a net return of 47 cents. This is up 9 cents since the 2006 pilot study.
    • The net benefit of apprenticeship training increases in each year over the course of the apprenticeship period.
    • The revenue generated by an apprentice increases throughout the apprenticeship.
    • The cost in terms of journeyperson time declines through each year of the apprenticeship.
  • The majority of employers believe a “homegrown” journeyperson who they trained as an apprentice is more productive. Employers estimated that a “homegrown” journeyperson is 29% more productive.
  • The overall results of the CAF cost-benefit analysis indicate that the benefits of apprenticeship training exceed the costs for each of the 16 trade areas studied, with the net benefit ranging from $39,524(Cook) to $245,264(Heavy Duty Mechanic).
  • Visit the CAF website for more info: http://www.caf-fca.org/en/activities/roti.asp
  • Wages for apprentices are established as a percentage of journeyperson wages – for example, they might be set at 40% in the first year and rise to 100% over the duration of the program.
  • In most situations, apprentices qualify for Employment Insurance benefits while at school, saving you the cost of their salaries during technical training. Additional information can be found on the ITA website: www.itabc.ca
Lower provincial and federal taxes

  • On April 7, 2009, the Province doubled the B.C. Training Tax Credit from a maximum of $2,000 per apprentice per year to up to $4,000 per apprentice per year. This additional credit, effective July 1, 2009, gives employers yet another good reason to hire and train apprentices. Click for more information: http://www.sbr.gov.bc.ca/business/Income_Taxes/ttc/
  • Additional tax credits are available to employers whose apprentices qualify for B.C.’s Enhanced Tax Credit (registered First Nations individuals
    ( Click Here for First Nation Individual )
    and persons who qualify for the federal disability tax credit
    ( Click Here for Federal Disability Tax Credit )).
  • Canada Revenue Agency offers a further federal incentive of 10% of wages up to $2,000 per apprentice through the Apprenticeship Job Creation Tax Credit (AJCTC). More information can be found here: Apprenticeship Job Creation Tax Credit

Workforce retention in tough times

  • Through Service Canada, work-sharing programs can be established to help employers and workers avert temporary layoffs.
  • Work-sharing benefits employers by allowing them to stabilize their workforce, retain trained employees, and avoid the cost of recruiting and training new employees when business returns to normal levels. Visite the Service Canada website for additional info: http://www.servicecanada.gc.ca/eng/work_sharing/index.shtml

Higher productivity

Surveys of employers with apprentices have identified the following advantages:

  • Increased competitiveness
  • Training customized to the needs of your business
  • Improved productivity
  • Improved quality of employer services and finished products
  • Improved labour workforce skills
  • Reduced employee turnover and increased employee loyalty
  • Better ability to plan for the future
For more on the business case for hiring and retaining apprentices, visit www.careersintrades.ca/employers/


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