More industries are offering apprenticeships, wooing new talent with free education and long-term career options
The learn-and-earn model has gained popularity, as career seekers look to minimize education costs and companies look to recruit entry-level talent who will stay.
When risk-mitigation firm Aon started a Philadelphia apprenticeship program in 2021, it was “the worst time, in the middle of a pandemic,” managing partner Mark Armstrong said. Across industries, quit rates were high and hiring was a challenge.
But Aon’s first Philadelphia cohort stuck with their program and graduated last August, earning full-time jobs at the company. “They not only finished their coursework at school, but showed up for mentoring and training,” Armstrong said, pointing to high retention levels associated with this method of recruiting.
Others have followed in their footsteps — Aon has brought on 30 Philadelphia apprentices since 2021 when it cofounded the Philadelphia Apprentice Network, which has onboarded more than 80 trainees. It’s part of a budding trend in the region and nationally, with more industries embracing the learn-and-earn model.
A longtime norm in the construction trades, apprenticeships allow new hires to get tailored education with pay, with the guarantee of employment once they’ve finished training.
And, for some colleges, apprenticeship programs offer the chance to recruit students who are hesitant to take on coursework without knowing if they’ll get a return on their investment.
“So many students go to a four-year college and end up [working] at Starbucks‚” said Larry Byron, director of workforce development for IT at Montgomery County Community College. MCCC is looking for employers to join its new apprenticeship program, which is geared toward new high school graduates as well as older candidates who are looking to make a career change.
“We’re helping to eliminate student debt by the student being paid up front,” Byron said.
More apprenticeships in more industries
The number of active apprenticeships in Philadelphia and its surrounding counties has nearly doubled since 2014, according to data from the U.S. Department of Labor. Nationally, too, the number of apprenticeships has doubled in the decade.
While the city of Philadelphia still has the greatest number of apprenticeships in the region, the collar counties are accounting for a greater portion of learn-and-earn opportunities.
The majority of Pennsylvania apprenticeships are in construction — that was true 10 years ago, and remains true now — but more industries are getting in on the apprentice training model.
In Pennsylvania, the finance and insurance sector and the professional, scientific, and technical sector each had zero apprentices in 2014, according to Labor Department data. This year they have 56 and 51, respectively.
Public Administration apprenticeships in Pennsylvania have nearly doubled since 2014, with nearly 2,500 apprentices this year. Health care and social assistance, educational services, and manufacturing also have hundreds more apprentices in 2024 than they did in 2014.
Construction has continued to recruit growing numbers of apprentices in Pennsylvania. The state has over 10,000 construction apprentices this year, data shows, making an average wage of $19.29 per hour.
New Jersey has more than 5,800 construction apprentices this year, making an average of $20.81 per hour.
MCCC wants employers to outsource their new-hire training
MCCC’s new apprenticeship program for information technology launched in January. The 18-month program begins with 94 hours of training over 90 days, including workplace safety and an industry-standard IT certification.
Trainees get paid while they attend class, and their instruction is paid for by the employer as well. The starting wage is around $18 per hour, Byron said.
By front-loading the necessary training before moving on to more college coursework and on-the-job mentorship, the program gives both employer and trainee an opportunity to make sure the IT career path is a good fit. MCCC used Cisco’s networking academy program as a model, with the company’s permission.
“It goes beyond even what a lot of associate’s degree programs would offer,” Byron said.
The college initially got 14 applicants and is currently seeking more apprentices and business partners to participate in the program. Byron said the program is meant to have between 10 and 20 apprentices per cohort, and new cohorts could start as frequently as every 90 days if the employer and apprentice demand exists. He hopes to see the area’s pharmaceutical and biotech companies get involved as they look to grow their workforce.
“We can make that connection with business and have the openings there, knowing we have the apprentices to fill them,” Byron said.
Apprenticeships and diversity
Armstrong, of Aon, is also looking to get more area companies interested in apprenticeships.
Aon cofounded the Philadelphia Apprentice Network in 2021 with IT consultancy Accenture and Zurich Insurance Group. They based it on the Chicago Apprentice Network, which had started four years earlier with 25 apprentices and now includes 85 employers and over 1,000 apprentices.
At Aon, apprenticeships started with roles in IT and human resources. Leaders have been considering how the model might work for client-facing jobs as well.
The apprentice salaries start at $44,000 annually with twice-a-year merit increases. Aon also pays for apprentices’ tuition, books, and health care.
Armstrong said employers should see apprenticeships as a way to build a more diverse and inclusive workforce. “Talent is evenly distributed throughout the community, but opportunities are not,” he said.