Training apprentices: a worthwhile investment for SMEs
Vocational training pays off for most Swiss companies. But beyond the economic benefits, initial vocational training also helps ensure a future supply of skilled workers.
“Does it pay to train apprentices?” The title of the study published by the Swiss Federal University for Vocational Education and Training (SFUVET) raises a pertinent question. Published last fall on behalf of the State Secretariat for Education, Research and Innovation (SERI), the study shows that dual vocational education and training, one of the pillars of the Swiss economy, benefits companies in the vast majority of cases.
On average, an apprenticeship contract generates a net benefit of around 4,500 francs per year. In 71% of training relationships, apprentices' productive contributions exceed the costs of their training. “Our survey shows that apprentices make a significant productive contribution,” says Alexander Gehret, co-author of the study and project manager at SFUVET. “At the beginning of their training, they perform simple tasks and then gradually take on activities corresponding to those of a qualified professional, although still at a lower level of performance.”
Time and money
The main costs are the time spent by trainers and, above all, wages. It is worth noting that an apprenticeship with a negative cost-benefit ratio does not necessarily represent a bad investment. A company may regard the difference as an investment, particularly if it retains the apprentice. It then avoids the costs associated with recruiting and integrating an external hire.
“In most cases, the investment pays off after the training is completed,” says Alexander Gehret. “Some companies deliberately accept a cost during the apprenticeship because they want to have professionals whom they have trained themselves. For other companies, by contrast, it may be more important to break even during the training period, as they have greater difficulty absorbing the costs if the apprentice does not stay.”
Why do supply and demand for apprenticeship positions not always match? “It remains a very regional market,” says Alexander Gehret. “Young people may be unable to find a position in their chosen occupation in their region, while companies a little farther away receive too few suitable applications.” Greater geographic mobility among young people could therefore improve the situation. “But it also entails risks. One possible consequence could be an increase in apprenticeship terminations when young people find themselves far from their family environment.”
The SFUVET study collected responses from 6,686 training companies and 3,655 companies that do not provide training. The main obstacle to training apprentices cited in the study remains a lack of time. Some companies also meet their need for skilled workers in other ways, particularly through continuing education for existing staff.
Start small and seek advice
For SMEs that are hesitant to take the plunge, the key is to "start small," for example by taking on interns, says Joëlle Mathey, director of ForPro, an organisation dedicated to promoting vocational education and training in the canton of Geneva. "To organize a two-week internship, for example, all you need to do in Geneva is fill out a form available from the Office for Guidance, Vocational Training and Continuing Education (OFPC)."
Companies should also make use of and seek advice from the available networks: umbrella organizations, OFPCs and other complementary organizations. “For example, we organize sessions specifically for in-company trainers that are open to everyone, without having to go through their company. These are generally short meetings held during the lunch break or at the end of the day.”
Beyond the economic arguments, the head of ForPro emphasizes the human dimension. “Having an apprentice is something special. Even though many employees have children of their own, it is a different kind of passing on of knowledge and skills. Seeing someone grow and go from ‘I don't know how to do this’ to ‘I've mastered my profession’ is an extremely rewarding experience.”
The shortage of skilled workers appears to be increasing interest in training. “The desire to secure a company's own future supply of skilled professionals has become a significantly more important motivation for companies than it used to be,” says Alexander Gehret. The companies surveyed are increasingly citing the goal of training people whom they can subsequently employ over the long term.