Why lease an apprentice or trainee

So, you’ve decided to take on an apprentice or trainee. Great! They provide all sorts of different benefits to contractors, from a capacity to take on additional work all the way through to the simple satisfaction of giving back to the industry. However, there’s one decision you need to make first, and that’s whether you’ll handle the process yourself, or go down a simpler path and seek management assistance by leasing through NECA Education and Careers.

It can be tempting to go it alone, but without the right support, it’s easy for what should be a simple process to spiral out of control, taking up too much of your time and negatively impacting your business. Here at NECA, we don’t think any contractor should have to make that sacrifice, which is why our alternatives to hiring an apprentice or trainee are designed to be as stress-free as possible.

The benefits of leasing a trainee or apprentice start from the very beginning of the process during the recruitment phase. Contractors without support from a Group Training Organisation (GTO) often have little or no experience with recruiting an inexperienced employee, and aspects such as screening and induction can be left by the wayside. In addition, candidates recruited through a GTO are usually of much better quality thanks to ongoing support from experienced mentors. Over the long term, this quality can make a real difference to your business.
In addition, here at NECA Education and Careers we make sure to talk to you about the type of apprentice or trainee you’re after. From there, we’ll find somebody who doesn’t just fit your needs, but the culture and working environment of your business as well, ensuring a perfect fit for every party involved.
The benefits of leasing an apprentice or trainee don’t stop once they’ve been placed within your business, but continue throughout the relationship. One of the most obvious ways that you’ll feel the difference between leasing and simply employing is in the amount of paperwork and red tape that you have to deal with. Something as simple as paying wages can be take up hours of your time, and it’s far easier to simply let us manage the admin while you get on with your own work.

A recent independent study has found that GTO”s save host employers time and money. “For every $1 invested by host employers in GTO’s they received $1.70 value in return”. The value is created because GTO’s:

  • Screen, recruit and place apprentices
  • Manage induction, timesheets, payroll and entitlements
  • Manage work, health and safety and industrial relations; and
  • Apprentices and trainees hired from GTO’s are of better quality and therefore more productive. This outcome occurs because both apprentice/trainees and host employers receive mentoring support, which results in host employers being able to better manage the apprentice/trainee
    (source: SVA Consulting Report – GTO-Baseline Social Return on Investment – June 2015 download report)
Speaking of wages, one of the most common misconceptions about leasing is that it costs more than hiring. Many contractors think that the costs of leasing through a GTO should be compared directly to the wages paid to the trainee or apprentice, but the fact of the matter is that the real costs include far more than just payroll. You’ll also need to consider everything from annual leave and public holiday pay through to superannuation, tax, uniforms, tools, training, induction and ongoing support – all of which you’ll have to cover above and beyond wages.
Aside from the additional costs of paying for all of these elements separately, the sheer volume of paperwork associated with those bills can have a significant impact on the number of billable hours you can complete. So, not only will the process cost you more, but you’ll have less time to recoup the losses! Leasing provides a much simpler and more affordable solution, and NECA Education and Careers’ flexible approach means our Apprentice Management Program can be tailored to the needs of any business.

For more information on leasing an apprentice or a trainee, get in touch with us today.

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“For every $1 invested by host employers in GTOs, they received $1.70 value in return”

(Group Training Organisation – Baseline Social Return on Investment Report)

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