The country is in flux. Hiring is on hold for many industries and yet, the need for technology across all industries is growing. The best way for the U.S. to get back on track and strengthen the economy is by putting people in jobs, but how can companies get the technology help they need without the traditional expense of employment?
One area of employment that often increases during a downturn in the economy is entrepreneurship.
“Rather than making history for its deep recession and record unemployment, 2009 might instead be remembered as the year business startups reached their highest level in 14 years—even exceeding the number of startups during the peak 1999–2000 technology boom.” (Ewing Marion Kauffman Foundation)
Small and new businesses generate approximately 44% of the nation’s income, but as they hire fewer people, are they good for the economy? The answer is a resounding “yes!”
“Small, locally owned businesses and startups tend to generate higher incomes for people in a community than big, non-local firms, which can actually depress local economies,” said Stephan Goetz, Ph.D., professor of agricultural and regional economics at Penn State and director of the Northeast Regional Center for Rural Development. (BusinessNewsDaily.com)
How Can Entrepreneurs and Start-Ups Benefit from an apprenticeship program?
Cybersecurity is the largest concern for technology companies currently. With most employees working from home, companies are sharing data outside of their office and through home networks that are notoriously insecure.
That stated, the work-from-home trend is not going anywhere. After working from home for so many months, many organizations have recognized the benefit and have plans to keep some, if not all, employees at home.
New and small businesses will see immediate value in a work-from-home setup as it allows for easy growth without needing additional space to house new employees.
Apprentices are able to work from home, and often thrive in that environment. During quarantine, the Tech One IT Technology Apprentice Program (TAP) has deployed several TAP pods (apprentices work in teams of two or more) without any hindrance.
Apprentices are qualified in different areas of technology and Tech One IT is able to manage the entire project (for those organizations without a tech team) or integrate into the current tech team and assist on projects in progress.
Hiring is expensive and extremely time-consuming. The TAP team works with clients to understand the overall culture and goals of the company so that we choose the apprentices best suited by qualification, but also by culture. This approach improves retention.
Many start-ups may still be finding their footing and not have a good handle on their own culture. By bringing on a pod of apprentices, leadership can find the right fit before hiring. TAP clients usually hire at least one of the apprentices full-time, although this is not a requirement of the program.
Hiring an employee is expensive.
• According to Glassdoor, the average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position.
• According to a Ladders Report, 67% of traditional hires will quit a job within 6 months and the cost of each individual turnover is approximately one-third of the salary paid.
Apprentices are not only more affordable than a traditional hire but more reliable.
• 91% of apprentices complete apprenticeships (US Dept of Labor)
• The TAP extensive vetting process and included mentorship cuts turnover by 94%
• TAP does not charge for replacing any apprentice that is not the right fit, meaning zero turnover costs during the program.
• An apprentice pod can be set up in as little as 10 business days, in comparison to 52 days on average to hire one employee.
After 1 year in TAP, apprentices are considered equal to mid-level technologists, at 30% of the cost of the mid-level employee.
Starting a new business is a valid solution for those that are out of work, and hiring apprentices is an affordable way to get the talent needed to boost that start-up into an aggressive growth spurt. If you are ready to learn more about the Tech One IT apprenticeship program, please contact us to understand how it could help your business.