Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines
7 min read

With significant skills shortages across many technician and trade occupations in Australia, there is a great need for more apprentices. If you run a trades business, hiring an apprentice would not only help to solve the skills shortage, it can also be a great way to grow your business. But there are some issues that are often overlooked. To help you decide whether hiring an apprentice is right for you, here are some of the pros and cons.

Ready to get started?

Post a Job

Ready to get started?

Post a Job

Offering an apprenticeship: the advantages

1. It’s an investment in your future

When you hire a new employee, it’s rare to find someone who has the exact skills that you need in your business. But offering an apprenticeship allows you to train your new employee with the skills and processes that suit your business. You can ensure that they work to your preferred style and way of doing things. Plus, taking on an apprentice comes with several financial benefits. So, you’ll be able to grow your business while improving your bottom line.

2. It’s cost effective

One of the biggest advantages is that you can reduce your operating expenses by spending less money on wages. Apprentices are paid at a lower rate than fully trained professionals. But it’s important to remember the reason they get paid less: they lack experience. They don’t have as much hands-on experience, so you’ll need to spend time training them. However, they will be learning about the theoretical aspects of the trade at trade school, so they will likely be quick learners.

3. They can boost team morale

Young apprentices tend to be eager and keen to learn. Their enthusiasm for their work can wear off on others in your team, who might have lost the drive they once had. Enthusiasm is usually contagious. So, if your employees have been working in the industry for a long time and have lost some of the passion they once had, an apprentice might be able to provide just the boost your team needs.

4. They can bring fresh ideas and innovation

Trades are constantly evolving with the introduction of new technology, ideas and techniques. While your experienced professionals might try to keep up with these changes, they don’t have the same exposure to them as apprentices. In their trade school classes, they learn the very latest ways of working. They can then bring these new ideas to your organisation, helping you do things easier, faster and less expensively. Of course, the learning isn’t all one way – the more experienced professionals can pass on the “tricks of the trade” to the new generation.

5. They are willing to do the grunt work

Apprentices are usually prepared to put in the hard yards. This means you can assign the less challenging, but very necessary, tasks to them, such as basic paperwork. Your more experienced professionals can then focus on the more challenging and high-value jobs. Your apprentices will gain a thorough understanding of how the business operates, while productivity and morale across the whole team will go up: a win-win.

6. It can be personally rewarding

Aside from the financial rewards, watching someone develop their skills and gain confidence and a sense of self-satisfaction can be personally rewarding too. There is currently a significant shortage of skilled workers in Australia. Knowing you’ve played a part in helping to address this problem can be immensely gratifying. And with 94 percent of apprentices finding a job after their apprenticeship, you will certainly be making a valuable contribution to solving the skills shortage.

Offering an apprenticeship: the disadvantages

1. It might cost more than you think

In Australia, apprentices need 10 weeks off work for trade school, and you are required to keep paying them during this time. Not only that, you’ll also need to arrange for other employees to cover them while they’re completing their trade school training. But the good news is you can get financial assistance from the Government.

The Australian Government offers various financial incentives to encourage businesses to hire apprentices. It’s worth looking into what incentives are available to you. They vary depending on your industry, state, current trends in the workforce and several other factors, but you may be eligible for:

  • financial payments up to $4,000
  • a workers’ compensation exemption
  • payroll tax rebates
  • additional incentives to promote employing people with disabilities, mature-aged people, Indigenous Australians or school-based apprentices.

2. Training can be time consuming

Especially when they first start, apprentices need considerable training, guidance and supervision. Learning new skills, such as how to use tools properly, takes time. But the more time and effort you invest in them, the more they’ll enjoy their learning experience and want to stay with you after their apprenticeship. So the investment could be well worth it.

3. It’s a significant commitment

Taking on an apprentice is a big decision. Most schools require that you commit to training for a minimum period. However, bear in mind that there is a 90-day probation period. In addition to the standard industrial relations requirements, there are additional obligations that you agree to when you sign a training contract. So, it’s important that you are familiar with these, as well as the consequences of not meeting your obligations.

4. There’s no guarantee they will stay on

You invest considerable time, effort and money in training an apprentice, then their apprenticeship ends and you find out they’ve got a job at another business or they’ve decided to set up their own business with the skills you’ve given them. You’re left feeling betrayed. Unfortunately, there is no guarantee this won’t happen. But many will be grateful for your training, as you are providing them with the opportunity to advance their career. If you focus on treating them well and building a relationship throughout their time with you, your apprentices will be more likely to remain loyal.

5. They might not be engaged or motivated

They will be working hard, putting in probably the same hours as you and their teammates, but for considerably less pay. The result: a potential lack of motivation, engagement and job satisfaction. That’s why it’s important that you foster a positive working environment by encouraging your apprentices to build relationships with the rest of the team, as well as recognising and rewarding their efforts.

Steps for hiring an apprentice

Hiring an apprentice is a big decision, and it’s important to weigh up the pros and cons carefully and decide whether it’s the right choice for your business. But if you’ve decided that it is, what are the next steps?

Step 1: Find an apprentice

The first step is finding an apprentice who is suitable for your business. Placing an ad on Indeed can open up your search to a large pool of high-quality candidates.

Related: How to Post a Job on Indeed

When thinking about the kind of candidate your business needs, you should consider:

  • what skills your business needs
  • what the job will involve
  • whether you need someone full time or part time.

Step 2: Take care of the formalities

Once you’ve found your apprentice, the next step is to sign a formal training contract. You’ll need to contact an Australian Apprenticeship Support Network (AASN) provider to organise the training contract. They will arrange a visit to your business, lodge the contract with the state or territory government, as well as assess whether you’re eligible for incentives. Importantly, the contract must be signed by both parties within 14 days of the start of the apprenticeship.

Next, discuss with your apprentice where they will complete their off-the-job training. This needs to be at a registered training organisation (RTO), which is an organisation approved by the Australian Skills Quality Authority to deliver nationally recognised courses in the vocational training sector.

You’ll also need to work out a training plan with your apprentice, and the plan must be endorsed by the relevant RTO.

Step 3: Induction and setting expectations

Getting off to a good start will help to ensure both you and your apprentice get the most out of the experience. It’s worth spending some time on a thorough induction and setting expectations at the very beginning. This is a good opportunity to discuss:

  • the employee’s role and responsibilities
  • when they will attend trade school and how they plan to balance their off-site training with their work in your business
  • your leave notification policies or preferences.

This is also a good time to finalise all the required paperwork.

Step 4: Complete the probation period

Apprenticeships have an initial probation period of 90 days. This is to give you and your employee time to test whether the arrangement is right for you both and whether it should continue.

After the probation contract, you are both committed to the arrangement for the length of the contract.

Recent Finding Employees Articles

See all articles in this category
Three individuals are sitting at a table with a laptop, a disposable coffee cup, notebooks, and a phone visible. Two are facing each other, while the third’s back is to the camera. The setting appears to be a bright room with large windows.

Ready to get started?

Post a Job

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.