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Developing Expertise in
Work-Based Learning and
Teaching Assessment (DELTA)
www.deltaproject.eu

The benefits accruing to employers can be measured in different ways. They arise from: returns from
productive performance of trainees, (saved) costs of recruiting external skilled workers, (saved) outage
costs when skilled workers are in short supply, performance differences between company trained and
external skilled workers, supply benefit (e.g. image improvement). Employers reap benefits by saving costs
they would incur if they had to hire new employees, including the recruitment process, integration of new
employees and the risk of hiring a person that is not known to the company from previous experience.
(source: ​Costs and Benefits in Vocational Education and Training Kathrin Hoeckel OECD​)

The following factors influence the provision of apprenticeships :

●Apprenticeship duration: ​Initially, apprentices tend to contribute little to productive work, and often cost more
than they produce. However, at the final stages, apprentices can contribute to production with their skills but are still
cheaper than skilled workers, which can allow employers to reap net benefits​.
●How an apprenticeship is organised: ​While apprentices are off the job they develop job-relevant skills, but do
not contribute to production. What exactly apprentices do while on the job is also important: productive work always
benefits employers, whereas learning activities bring benefits later when apprentices use their newly learnt skills to
work. With care, learning can often be integrated into productive work, yielding higher benefits for firms.
●Incentives: ​Firms may receive subsidies or benefit from tax breaks when they take on an apprentice. Some
incentives may be non-financial, like linking the award of public procurement contracts to the provision of
apprenticeships.
●Apprentice wages: ​Representing the largest share of costs to employers, how apprentice wages are set, and
their amount, have a strong impact on the cost benefit balance. While policy makers typically do not set apprentice
wages, policy tools can influence them.
●Apprentice characteristics: ​Apprentices with stronger skills will be more productive throughout the
apprenticeship than those with weaker skills, and will generate higher benefits for the employer

The design of schemes can be adjusted to contextual factors. Some factors are part of the broader context and are
not directly influenced by apprenticeship policy. They also affect the cost-benefit balance to employers and need to be
taken into account when setting the parameters of apprenticeship schemes.

These factors include:
● Wage context: ​Apprenticeships will be financially more appealing for employers if there is a large difference
between the wages of apprentices and those of skilled workers. Minimum wage laws and collective bargaining
agreements are often important as they affect the wage costs of workers and apprentices.
● Labour market features: ​There will be more room to reap “recruitment benefits” if hiring in the external
labour market is hard and expensive. This is the case when the labour market is tight, so jobs are abundant
and relatively few people are in search of a job​ ​(Mühlemann and Leiser, 2015[27]).
● Occupation: ​How long it takes for an apprentice to become proficient at a job varies across occupations, as
does the cost of equipment involved, so the cost benefit balance during apprenticeships varies. Potential

IO2:​ ​Toolbox for Tutors and Mentors DELTA - 2017-1-UK01-KA202-036810 Seite 7

This project
has been funded with support from the European Commission. This
publication [communication] and all its contents reflect the views only of the author,
and the Commission cannot be held responsible for any use which may be made of the information