Incentives for employers leasing apprentices: a clear breakdown

Kathryn Whitfield BeltonApprenticeships, Electrical TrainingLeave a Comment


Taking on an apprentice is an integral part of many trades and industries. For young people just beginning their career, an apprenticeship provides an opportunity for on-the-job training, gaining an understanding of their chosen trade while also forming the key connections they’ll need to ensure long-term success.

For business owners, however, the question is why take on an electrical apprentice in any industry for that matter? There are several answers to this question, and in this article we’ll be exploring three of the most important incentives for hiring apprentices.

When leasing an apprentice, the GTO handles recruitment and admin, making it the apprentice’s legal employer.

Leasing or employing an apprentice

Before getting into those benefits however, it’s important to understand the difference between direct employment, and simply ‘leasing’ an apprentice.

  • Employment is where a business does its own recruiting, handling all of the associated admin and becoming an apprentice’s legal employer.
  • Leasing is when an employer uses a group training organisation (GTO) such as NECA Education & Careers to take care of the paperwork. When leasing an apprentice, the GTO handles recruitment and admin, making it the apprentice’s legal employer.

While leasing is easier and far less time-consuming than a business going through the entire process on its own, there are benefits of taking on an apprentice in both approaches. Let’s take a closer look.

Save money and boost productivity by taking on an electrical apprentice. Taking on apprentices can help electrical businesses complete more work at lower costs.

1. Save money and boost efficiency

Taking on apprentices can help businesses increase their productivity, simply by having a few extra pairs of hands around on large projects. Not only does this make it possible to complete more work in a shorter period of time, it’s also more cost effective than simply hiring more contractors, as the wages of an apprentice are lower while they complete their training.

Of course, this does come with the responsibility of training your apprentices while they work with you, but the fact that much of this happens on-the-job allows you to still get plenty of work done, ensuring your business’ bottom line isn’t affected. As an added bonus, once your apprentice receives their qualification, they may become a tradesperson or even supervisor within the business. This provides you with an employee who you know is fully trained, and who you already trust on the job site.

Taking on apprentices is an opportunity to give back to the industry, ensuring continued growth and the passing on of knowledge.

2. Give back to the industry

For many experienced contractors and business owners, taking on an apprentice is far more than a chance to secure financial incentives or improve productivity. It’s also an opportunity to give back to the industry, ensuring continued growth and the passing on of knowledge. This isn’t just a sentimental choice, as a healthy industry is good news for everybody, guaranteeing work for years to come.

3. Financial incentives

Perhaps the most obvious benefit to directly employing an apprentice in certain industries is the financial incentives that can come as part of the process. While these typically don’t apply to the electrical trade, there are plenty of other industries where benefits are available under the Australian Apprenticeships Incentive Program (AAIP) offered by the Australian government.

One example of this is the agriculture and horticulture industry, where payments are available to businesses that take on apprentices in order to contribute to the continued growth and development of the industry. However, it’s important to keep in mind that the financial incentives (such as a wage subsidy or tax credit) on offer for businesses can vary based on a variety of factors, including eligibility criteria and whether or not there’s a skills shortage, so it’s always best to talk to an expert when weighing up this aspect of committing to employing an apprentice.

While all of the benefits that we’ve touched on in this article make taking on an apprentice a fantastic option for businesses, there’s no denying that the process can be complex and time consuming, particularly when it comes to all of the associated paperwork. That’s where NECA Education & Careers comes in, with our Apprentice Management Program (AMP), making it possible to enjoy all of the benefits of an apprentice with none of the stress.

To find out more, get in touch with our team today.


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