The Employer Case for Apprenticeships in California

Evidence, Opportunities, and a Framework for Employer Value

The Bay Area Council Economic Institute and the Northern California Apprenticeship Network are proud to release the first phase of The Employer Case for Apprenticeships in California, a new study examining the complex question of apprenticeship ROI and the value apprenticeships deliver to employers. The report highlights the critical role registered apprenticeships can play in helping employers meet California’s workforce demands.

The Bay Area Council Economic Institute and the Northern California Apprenticeship Network are proud to release the first phase of The Employer Case for Apprenticeships in California, a new study examining the complex question of apprenticeship ROI and the value apprenticeships deliver to employers. The report highlights the critical role registered apprenticeships can play in helping employers meet California’s workforce demands.

The report explores the return on investment (ROI) of registered apprenticeship programs in non-traditional sectors from the employer perspective, with a focus on four priority industries in California: healthcare, technology and IT, manufacturing, and early care and education. As the first of a two-part effort to strengthen the business case for apprenticeship, it examines how employers can use registered apprenticeship as a talent strategy to address workforce needs, reduce costs, and improve retention.

Written for employers, the report is grounded in 35 in-depth interviews with employers and leading ecosystem stakeholders, including intermediaries, community college leaders, and policy experts. Combined with a literature review, state data, original research, and field visits to Zurich and Colorado, it identifies the value California employers are realizing from apprenticeship investments, the program design choices that produce the strongest results, and the barriers limiting broader employer adoption.

A central finding from the study is that both employers and apprenticeship experts agree the value of apprenticeship cannot be captured by a single ROI figure. Instead, understanding apprenticeship ROI requires a broader view that considers multiple business outcomes and long-term organizational benefits.

This report builds on research published earlier this year by the Brookings Institution, which concluded with the call to action that inspired this work:

Instead of driving toward a single number ask, “Under what conditions can an organization get a positive ROI?” and “What design choices and organizational structures optimize returns?” – these are answerable on a case-by-case basis.

This report marks the first step in the Bay Area Council and the Northern California Apprenticeship Network’s broader strategy to help employers better understand the value registered apprenticeships bring to talent pipelines.

 

Read the Report (PDF)