Three Steps to Cultivating Skilled Workforces Through Apprenticeships

by Ava Sand

In the highly competitive construction industry, the strength of our labor force is critical. If your company can’t get the skilled construction tradespeople needed to staff a project, you won’t be able to submit a successful proposal and your position in the market may become obsolete. With workforce development issues affecting almost every industry, construction companies need to play an active part in the solution. As an A/E/C marketer, you provide value to your firm by keeping up with industry trends, challenges, and solutions to offer your clients – so it’s essential to be well-versed on apprenticeship programs in today’s market.

Apprenticeships create and maintain a viable labor source to sustain current and future business demands. These programs aim to teach workers additional skills to move into positions they weren’t previously qualified for, a concept referred to as “upskilling.” Apprenticeship programs are usually designed to teach specific knowledge and skills required to fill open positions in a local market.

Employers are struggling to fill open positions with qualified candidates while employment demand is projected to grow by 8.3 million jobs by 2031. Passed by the U.S. federal government in 2022, the Inflation Reduction Act (IRA) amended the Internal Revenue Code to include registered apprenticeship and prevailing wage requirements for various types of construction projects to qualify for tax credits. Due to these market factors, apprenticeship programs are more important than ever – is your firm ready? The following summarizes three critical steps construction companies must take to establish and operate successful apprenticeship programs. Encourage your company leadership to follow these steps and identify ways to emphasize your commitment to workforce development, making your proposals stand out from the competition:

Step 1. Ensure Compliance with Requirements

A/E/C marketers know the importance of documenting compliance all too well, especially when responding to RFPs issued by government entities. To benefit from increased tax benefits, the IRA requires that a designated number of construction labor hours must be performed by qualified apprentices on federally funded projects. Companies may hire from an existing registered apprenticeship program or register their own program, but all registered programs are intended to be industry-driven, high-quality career pathways to develop and prepare the workforce. Be sure to consider the different regional requirements for all areas your company is currently or plans to perform work in. It’s beneficial to design your apprenticeship program standards to be easily scalable so they are quicker to deploy in multiple states. Planning and preparation are key to establishing successful apprenticeships; account for a lengthy review process to officially register your program.

Step 2. Determine an Appropriate Pay Scale

While A/E/C marketers probably aren’t involved in labor pay scale discussions, it’s still important to be knowledgeable about these regulations when clients inquire about them during the project pursuit process. Employees can’t afford or are unwilling to take unpaid time off work to attend training sessions; they should be compensated appropriately for participating in workforce development initiatives. The Davis-Bacon Act authorizes the U.S. Department of Labor to determine local prevailing wage rates for federally funded projects. Most agreements provide a specific percentage of the journeyworker rate due for each level of apprenticeship, which should then be applied to the prevailing wage rate. There will be case-by-case decisions to be made; for example, if an experienced employee is coming from a state without apprenticeship requirements, they will still need to register as a licensed apprentice, but they could be paid licensed journeyworker wages if they have the qualifications to back it up. These pay scales for registered apprenticeship programs must be submitted to the Labor Department for approval, which protects workers from being taken advantage of.

Step 3. Focus on Recruitment and Retention

Recruitment and retention are essential to the future of the construction industry, which are key areas where A/E/C marketers can make a direct impact. There are various strategies that construction companies can implement to address workforce development challenges:

• Align training with industry needs through apprenticeship programs that mix pre-employment instruction with on-the-job training

• Educate students on the career path and earning potential of skilled trades professions

• Partner with local high schools and community colleges through career placement and advancement programs

• Make benefits and training program information publicly available in a variety of formats and languages

• Offer training for industry-recognized certifications (such as OSHA 30)

• Provide additional employment benefits including per diem for transportation to the jobsite and Flexible Spending Accounts (FSA) for childcare

Leverage marketing and outreach opportunities in your community. Successful outreach and recruitment efforts will attract individuals who maybe wouldn’t have considered careers in the construction industry if they hadn’t been informed of the benefits. These programs are truly life-changing for individuals and holistically benefit our workforce.

With Apprenticeship Programs, Everyone Wins

To comply with the IRA and be successful in today’s business climate, it’s critical to access a trained workforce (and therefore a safer workforce) through apprenticeships. Employers with apprenticeship programs benefit from improved competitive edge, company culture, employee loyalty and productivity, reduced turnover, and on-time project delivery. Apprenticeships and other workforce development initiatives cultivate a rare “everyone wins” situation:

• Give community members fulfilling long-term careers, not just jobs

• Offer lucrative alternatives to traditional higher education

• Identify best fit for individual skills and interests with opportunities to get licensed in multiple trades

• Provide potential paths to company senior leadership, as many leaders historically worked their way up through the trades

• Attract big companies to put down roots in locations where skilled labor is available, generating higher tax revenue

The registered apprenticeship system is the nation’s most successful federal workforce development program; 93% of registered apprentices are employed upon completion, earning an average starting annual wage of $77,000. Businesses also are estimated to earn $1.44 for every dollar invested in apprenticeships.  As an A/E/C marketer, use this knowledge to persuade your company leadership to increase profits and make your firm stand out from the competition by leveraging apprenticeship programs.

_____________________________________________________________________________________

Ava Sand serves as Director-at-Large for the SMPS SFBAC Communications Committee. She is a Solutions Marketing Manager at Black & Veatch, a global leader in engineering, procurement, and construction. Ava is responsible for strategizing content marketing for various Black & Veatch solutions including data centers, construction management, and design-build project delivery. Connect with Ava on LinkedIn!