For businesses, the competitive advantage has historically been driven by advancements in technology, capital investments and market expansion. Those pillars fueled growth for decades, and employers rarely had to worry about disruptions in the pipeline of skilled workers.
But as companies within all industries struggle to develop a strong workforce, leaders are navigating the new reality that demand for talent is outpacing the supply. Workforce development has become one of the most pressing issues for businesses.
To help address the challenge, organizations are turning to apprenticeships as a way to build talent from within rather than compete for the limited pool of skilled workers already established. In Indiana, a new statewide initiative is seeking to accelerate that process.
The Richard M. Fairbanks Foundation, a private Indianapolis-based philanthropic organization focused on improving workforce outcomes in the Hoosier state, has provided funding for a new program designed to lessen that hardship for employers.
Clearing Workforce Pathways
Indiana’s Career Apprenticeship Pathway (INCAP) is set to launch its first apprenticeship program cohort this fall. INCAP connects students and employers through paid workplace learning experiences. The program involves both classroom instruction and on-the-job training spanning several industries, including manufacturing, healthcare, technology, finance, logistics, construction, life sciences and others. While the initial program involves connecting high school students for apprenticeships, plans are to open programming to adult learners in the future.
The program is being led by CEMETS iLab Indiana, a group of over 300 leaders working together to address the state’s workforce challenges. Regional organizations have been selected to help coordinate employer engagement and student recruitment.
Elevating apprenticeship programs in Indiana has been a collaborative effort. In addition to the $13 million in direct grants from the Fairbanks Foundation to launch and implement INCAP, and $25 million invested from the organization since 2016 to support youth apprenticeship development, funding for career training has also come from the state and employers. Employers approach apprenticeships as a co-investment by paying wages and absorbing the on-the-job training costs.
Indiana has received over $6 million in federal support to expand registered apprenticeship programs, according to the Indiana Department of Workforce Development (Indiana DWD). The organization notes that the state supports tens of thousands of apprentices across a thousand occupations.
State leaders view apprenticeship development as a major movement behind Indiana’s long-term workforce strategy.
“Indiana is proud to be the first state with an education and training pathway led by employers. With the Indiana Career Apprenticeship Pathway, employers are taking the lead to develop talent that meets their workforce needs. It’s also helping more Hoosiers prepare for meaningful careers,” Gov. Mike Braun said in support of the INCAP program.
Nationally, apprenticeships are becoming more commonplace as a workforce strategy. According to the U.S. Department of Labor, registered apprenticeship programs fill employment gaps and improve retention and productivity for employers. They also contribute to long-term earnings and career outcomes for participants, as 94% of apprentices who complete a registered apprenticeship retain employment, with an average annual salary of $84,000.
Unlocking Value
For employers, the value of apprenticeship programs extends beyond filling empty positions. It creates the opportunity for developing employees with company-specific skills while exposing students to career opportunities they may not have otherwise considered.
As high school students begin the INCAP program this fall, those involved anticipate that the apprenticeships will be the beginning of a stronger connection between education and industry, for both students and employers. The support from organizations like the Richard M. Fairbanks Foundation, Indiana’s workforce leaders and employers across multiple industries represents one of the most ambitious efforts in the state for building a sustainable talent pipeline.
