Employers

Why Hire an Apprentice

Ensure competent employees in the future

Highlighted here are the key findings of the Automotive Labour Supply and Demand Project - Employer Survey Component, initiated by the BC Automotive Sector Council with funding provided by Human Resources and Skills Development Canada (HRSDC). The employer survey and subsequent analysis of the information obtained from this research was completed by R.A. Malatest & Associates Ltd.

The purpose of this study was to gain an accurate understanding of existing or potential human resource issues for automotive businesses in BC in terms of meeting future skills and human resource requirements. Survey results suggest that human resource issues are a major concern for most of BC automotive employers.

For example:

• Approximately three-quarters of employers noted that the insufficient supply of qualified staff to hire was an issue for their organization. This lack of staff was a greater concern than issues associated with training, retirement and/or lack of skill with respect to new technologies;
• At the time of the survey, many employers noted that labour shortages were already affecting their organization. For example, among employers who employed Automotive Service Technicians, almost one-half (44.8%) noted that labour shortages in 2005 were an issue or a major issue for that organization. Survey data suggests that labour shortages will become ever more problematic for employers in 2006;
• Labour shortages are a reality for many employers, as a high proportion of employers reported unfilled positions as of the summer of 2005. For example, among employers who employed or who would like to employ an AST, 34.7% reported they had one or more unfilled AST positions. Similarly, a high proportion (34.8%) of employers who employed Automotive Collision Repair Technicians (ACRTs) reported vacant positions;

Based on survey data, there are a significant number of vacancies in all trades across the industry. For example:

• for every nine employed ASTs, there is one unfilled vacancy
• for every seven employed ARTs, there is one unfilled vacancy
• for every seven employed ACRTs, there is one unfilled vacancy
  

Employers have identified that they expect a significant expansion in the size of the automotive workforce, as annual average employment growth for the three occupations of interest is projected to range between 5.8%/year (ARTs) to 6.7%/year (ACRTs).

Based on estimated employment in 2005, these growth rates translate into sizeable employment requirements across the industry. Over the next five years, it is estimated that the sector will require the following:

• an additional 2,596 ASTs
• an additional 816 ACRTs
• an additional 452 ARTs

It actually pays

In June 2006, the Canadian Apprenticeship Forum - Forum canadien sur l'apprentissage (CAF-FCA) released the results of a study they had conducted on the cost/benefit of apprenticeship training. The study was made on 15 trades, one of which was that of Automotive Service Technician.

The full report can be found at http://www.caf-fca.org/english/roti.asp , however, here are the highlights:

It was found that:

• On average, for every dollar invested in an apprentice, a benefit of $1.38 accrues to the employer. This means a net return of $0.38 for the employer. In the case of the Automotive Service Technician, the net return was greater - $0.49;
• Apprentices begin to generate net benefits for employers by the end of the second year, if not earlier;
• Hiring apprentices ensures that an organization has skilled labour and a lower turnover rate;
• Employers believe journeypersons receive a benefit from training an apprentice.

Some other interesting benefits were documented:

• The net benefit of apprenticeship training increases each year throughout the apprenticeship, as does the revenue generated;
• Any costs related to journeyperson time spent overseeing/training apprentices declines with each year of the apprentice's training.

Employers have expressed a need for financial assistance when hiring and training apprentices. Both the BC and Federal governments have stepped forward in recent budgets to provide incentives in the form of tax credits. For more information click on the links below:

Federal Program: http://www.cra-arc.gc.ca/whatsnew/apprenticeship-e.html

Outline of B.C. Program: http://www.fin.gov.bc.ca/scp/tp/tcp.htm

More B.C. information and forms: http://www.sbr.gov.bc.ca/itb/TTC/ttc.htm