Thinking of hiring an apprentice or trainee? Here's what you need to know

Hiring an apprentice or trainee is an investment in the future of your business. It allows you to build a motivated and loyal workforce, while tapping into the latest skills, and can also make good economic sense with a range of government subsidies available.

What is an apprenticeship or traineeship?

An apprenticeship or traineeship is a formal on-the-job workplace training arrangement that has benefits for both the employer and employee.

The employee gains valuable experience in the workplace while also undertaking formal education, leading to a nationally recognised qualification.

Meanwhile, the employer gains a staff member who is actively acquiring the latest skills and knowledge.

In the process, the business may be eligible for both state and federal government subsidies and incentives.

Apprenticeship versus traineeship

There are subtle differences between apprenticeships and traineeships, with apprenticeships involving the acquisition of a trade, while traineeships focus on attaining skills in areas such as administration, hospitality and information technology.

Apprenticeships

• Takes 1 to 4 years to complete
• Involve a trade, such as hairdressing, plumbing or cabinetmaking.
• Result in the apprentice becoming a qualified tradesperson.

Traineeships

• Takes 1 to 2 years to complete
• Develop skills in jobs such as office administration, hospitality, and information technology
• Result in the trainee receiving a minimum of a Certificate II in their chosen work.

Apprentices and trainees can come from an array of backgrounds, and no previous qualification or school certificate is required.

The only proviso is that the apprentice or trainee must be old enough to work, according to the minimum age requirements in your state or territory.

Apprentices or trainees can be:

• School leavers
• People re-entering the workforce
• People changing career paths
• Existing employees in your business who are looking to upskill

A raft of benefits

Hiring an apprentice or trainee offers benefits for both the business and the employee.

For employers, it provides the chance to secure a committed staff member with a willingness to learn and share the latest skills and industry insight.

For the employee, it’s an opportunity to earn an income while working towards a certification through real-world, practical training.

Latest skills

One of the key benefits of hiring an apprentice or trainee is the new skills and insight that it introduces to your business.

It’s no secret that many industries are evolving faster than ever before, courtesy of a range of factors, including new technology, increased workplace health and safety, changing legislation, and more.

Creating a team that includes staff members with the latest skills and techniques helps future-proof your business in the face of change.

Culture

Hiring an apprentice or trainee allows an organisation to put culture first, hiring for attitude rather than acquired skills.

The skills required are then taught on the job and learned in a classroom, while your business builds a team of people who share the same mission, values and drive.

Cost

A range of incentives and subsidies is available to businesses that hire apprentices and trainees.

Meanwhile, apprentice and trainee pay rates reflect the training status of that employee, making it a cost-effective way to recruit and retain talent that will ultimately deliver the latest skills and insight to your business.

We cover those costs and incentives and how you can access them below.

Upskilling your workforce

Apprenticeships and traineeships aren’t just available to new employees. Your existing staff can also undertake further training and accreditation, allowing you to upskill existing staff to meet your business’ evolving needs.

Competition and compliance

The combination of the cutting edge skills they acquire and the reduced costs of employing an apprentice or trainee can potentially provide your business with a competitive edge, while also ensuring compliance when it comes to required licences, latest techniques and up-to-date certifications.

Career progression

Making apprenticeships, traineeships, and ongoing personal development opportunities available to your staff creates opportunities for your team members to broaden their skill sets and acquire new qualifications.

Ultimately, this creates a more skilled and qualified workforce for the business as well as greater job satisfaction for employees.

In fact, a recent Workplace Happiness Survey by Seek noted career progression opportunities directly impact workplace happiness.

Staff retention

Creating an environment where you invest in your team’s skills and qualifications results in greater staff loyalty and retention.

The reality is, happy staff are more likely to stay with a business, and that creates a culture that both new team members and clients are drawn to.

How to hire an apprentice or trainee

If you’re looking to hire an apprentice, there are several steps involved.

Step 1 - Understand your obligations

As with hiring any staff member, taking on an apprentice or trainee comes with obligations, but in this instance there is also the commitment to training.

The Australian Government notes that in addition to fair wages and standard employment entitlements such as a safe working environment, paid annual leave and superannuation, apprentices and trainees should also be provided with:

• opportunities to learn skills and gain knowledge of their trade or vocation
• access to structured training
• paid time off work to attend training as needed

You can learn more about apprentice and trainee entitlements and your obligations as an employer via the following links:

• Fair Work Ombudsman’s Pay Rates & Conditions Tool
• Trainee pay rates and Trainee entitlements
• Apprentice pay rate and apprentice entitlements

Step 2 - Define the role

Consider your business and the skills it requires, factoring in your existing staff, any gaps within your team, and who will oversee the apprentice or trainee.

Then create a position description by asking yourself:

• What skills does my business need?
• What will the job involve?
• How will the person be employed (full-time or part-time)?
• What existing skills and traits will the ideal candidate offer? For example, a willingness to learn, good communicator, team player etc.

Step 3 - Find the right apprentice or trainee

There are a number of ways to find the right apprentice and trainee, and there are also a range of organisations available to assist.

These include providers who help connect apprentices with businesses along with group training organisations (GTOs) which place apprentices with host employers while they do their training.

When it comes to where to find an apprentice or trainee, you can:

• Reach out to someone you know or who has been recommended to you
• Offer an existing employee an apprenticeship or traineeship
• Advertise online, in your local paper, or on your local community jobs board
• Contact registered training organisations or education providers
• Reach out to your local Apprentice Connect Australia Provider
• Contact a local Group Training Organisation

Step 4 - The training agreement and plan

Once you’ve found your apprentice or trainee, it’s important to make things official, and this is where your Apprentice Connect Australia Provider comes in.

Part of a free national service, Apprentice Connect Australia Providers are located all over Australia, and you are required to connect with one to formalise your paperwork and agreements when you hire an apprentice or trainee in your business.

Not only can Apprentice Connect Australia Providers match businesses with an apprentice or trainee, they also provide advice to apprentices and employers and formalise the training contract.

This training contract covers things like:

• The qualification involved
• The training provided
• The Registered Training Organisation that the apprentice will be enrolled in
• A training plan that’s agreed upon by both the apprentice/trainee and the registered training organisation.

You can search for a local Apprentice Connect Australia Provider here.

Step 5 - Register the apprenticeship or traineeship

When the contract has been agreed upon and signed, your Apprentice Connect Australia Provider will lodge it with the relevant state and territory training authorities for registration.

You’ll then receive a letter of confirmation from the relevant state or territory department that will oversee the apprenticeship or traineeship for the duration of the contract.

Step 6 - Commence the apprenticeship or traineeship

This is the stage where apprentices and their employers get down to business, embarking on the workplace training and education that results in a formal qualification.

But first, there’s a probation period to ensure the arrangement suits all parties involved. Lasting 30-90 days, this probation phase will be outlined as part of the training contract.

Incentives available

There are a range of subsidies and incentives available to employers who hire apprentices and trainees, particularly if it relates to industries with a skills shortage. However, it’s not just employers who benefit; there are also incentives for some apprentices and trainees.

For employers

There are a number of financial incentives available for businesses that take on apprentices and trainees, ranging from industry-specific subsidies to one-off and ongoing federal and state initiatives.

These incentives do not cover the full cost of employing and training an apprentice or trainee, but they do reduce the price tag, and some businesses may be eligible for more than one type of payment.

These incentives also include a focus on specific trades and skills that are currently in demand, such as construction industry qualifications.

Incentives for business include:

• one-off incentive payments
• subsidies (wages, training)
• discounts (workers' compensation)
• exemptions (payroll tax)

Your Apprentice Connect Australia Provider can run you through the incentives and subsidies your business might be eligible for. In the meantime, the Australian Government has a handy ‘Incentives Explorer’ to assist.

For employees

It’s not just employers who receive financial incentives for taking on apprentices and trainees. There are also initiatives available for employees, especially if you’re considering a career in an industry where there are skills shortages.

These incentives may include payments, living away from home allowances, tool allowances, and more.

Further information is available at the Australian Government ‘Incentives Explorer’.