Direct Employment or Leasing an Apprentice – Which is the Right Option for You?

Damien ElsingBusiness & Management, Careers, NewsLeave a Comment

If the workload of your electrical business is getting out of hand, it may be time to consider bringing someone new into the business. And while hiring an A-grade electrician who can hit the ground running is one option, these days, many electricians are leaning towards the long-term solution of working from the ground up with an apprentice.

So, how do you make this happen?

There are basically two ways to hire an electrical apprentice – through direct employment or via a leasing agreement. Each has its pros and cons and it is important to weigh these up against your own business situation before you make the call one way or the other.

To help you do this, we’ve put together this article that explains how both direct employment and a leasing arrangement works for you and your electrical apprentice in a range of key areas. So, read on to discover which is the best fit for your business.

Finding the right electrical apprentice

If you opt for direct employment, when it comes to recruitment you are responsible for organising all aspects of finding, interviewing and hiring your new apprentice. This includes advertising the position, reviewing applications and interviewing potential candidates, before eventually choosing who you hire.

With a leasing arrangement, all of the above is taken care of by the Group Training Organisation (GTO) that you partner with. They will search for the ideal person based on your instructions of what you want and will present you with suitable candidates to choose from. Other than the obvious upside of avoiding the time and effort you would have otherwise spent on recruitment, being able to tap into the GTO’s pool of talent and expertise in hiring will often result in a higher-quality candidate for your role.

Keeping on top of the paperwork

Once again, if you hire directly, the onus is on you to correctly set up, lodge and manage all of the paperwork relating to the apprenticeship. This includes the initial setup of the registered training contract, payroll and entitlements, as well as the ongoing task of weekly wages and managing leave.

For those apprentices who come on board under a leasing arrangement, they are employed by the GTO, who are in turn responsible for organising all the relevant paperwork and conditions of employment. This alone accounts for a significant amount of time and effort savings for the business owner.

Providing training and guidance

To be their best and thrive in their role, electrical apprentices need the right training and guidance. This includes on-the-job training through work experience, off-the-job training at trade school and ongoing mentoring to encourage them to excel and stay in the role long-term.

In a direct employment scenario, all of this falls to the employer to arrange and/or implement, while those working under a leasing agreement only need to worry about the on-the-job training – the rest is expertly handled by the GTO.

Weighing up the Cost

While it’s clear that leasing an electrical apprentice will save you a huge amount of time, effort and headaches, there is always the question of cost. If you opt to hire under an Apprentice Management Program, you will receive a weekly invoice payable directly to the GTO which covers the work they do as well as all the ongoing costs associated with hiring an apprentice.

Because the apprentice is employed by the GTO (rather than your business) your weekly fee covers everything – so it is important when weighing up the value that you look at the total cost, not just their weekly wage. This includes leave entitlements, superannuation, uniforms, tools and training to name a few!

The Verdict

If you’re experienced in hiring and working with apprentices, and you have the available time and resources to find, hire, set up and mentor your apprentice, direct employment can be a great choice.

However, if you are looking for a fast and simple way to get an electrical apprentice onboard, a leasing arrangement through a GTO can be ideal. When you remove the stress of recruitment, paperwork, external training and variable expenses, taking on an apprentice has never been easier.

Do you have a question about our Apprentice Management Program? We’d love to help! Simply get in touch with our friendly team on 03 9381 1922 for a confidential chat.

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