If your organization is facing these hiring challenges, you’re in good company. Many are finding that attracting and retaining top-tier tech talent has become a major obstacle, especially for roles that require specialized skills.

What if there was a way to bridge this talent gap without competing for the same small pool of senior experts?

Here’s a fresh approach: consider partnering with a training center like Per Scholas to build your own talent pipeline. In this post, we’ll cover five reasons why tech apprenticeships could be the key to filling critical roles in your organization.

1. Address the Rising Demand for Skilled Tech Talent

It’s clear that specialized tech skills are becoming more than a nice-to-have — they are essential. However, traditional hiring methods aren’t keeping up with this demand. Not only are they somewhat ineffective, but they are costly. Companies worry not only about retaining talent but also about keeping these skilled tech employees. 

Apprenticeships are bridging the technical skills gaps by developing talent from within. 

According to CompTIA, in September 2024, the unemployment rate for technology occupations fell to 2.5% — the steepest month-over-month decrease in four years, and remained steady at 2.6% throughout October. Tech hiring is ramping up fast. When comparing this figure to the overall unemployment rate of 4.1%, it’s clear that the demand for tech talent is higher than ever. Yet despite that, active job postings are increasing, making fewer candidates available. 

If you invest in an apprenticeship program, you will benefit from a steady talent pipeline without investing heavily in requirement strategies — which may fall flat. 

Read more: Bridging the Cybersecurity Skills Gap: Apprenticeships Are the Answer

2. The Cost-Effective Solution: Apprenticeships

Costs are a major consideration, especially as skill sets become more specialized. When hiring for areas like artificial intelligence (AI), cybersecurity, and cloud computing, the recruitment costs are steep, as is the ongoing pay rate for this high-demand talent. 

Apprenticeships help address this ongoing concern, offering a scalable, hands-on approach to skill development without absorbing high external recruitment costs — and the numbers don’t lie.

A recent US Department of Commerce study found that apprentices provided companies with at least a 40% return on investment as they reduced overtime costs and increased revenue.

Additional benefits of apprentices include:

• Higher retention rates — resulting in greater cost savings.
• Greater employee loyalty, adding to a more positive company culture.

3. Apprenticeships Foster Retention in a Tight Market

Speaking of retention rates, figures show that apprenticeships build skills and improve employee retention by providing a sense of investment in the training program and comradery in their mentorship program. 

Data shows that:

• In the tech sector, where demand continues to grow, turnover rates are among the highest of any industry. Research indicates that tech turnover can reach 13.2%, with some studies suggesting rates as high as 18.3%.

Over 70% of college graduates plan on leaving their first job within three years. In contrast, 89% of apprentices have a three-year retention rate. Among those who complete their apprenticeship program, 91% retain employment with the company they started with.

4. Developing a Diverse, Future-Ready Workforce

Tech trends are evolving quickly, so it’s important to build a team that can meet your needs today and well into the future. The individuals you hire can be crucial in building a more diverse workforce. 

Apprenticeships create opportunities for underrepresented groups in tech, fostering a more inclusive and innovative workforce. In these cases, everyone wins. 

On-the-job training provides businesses with talent who bring unique perspectives. These ideas are something businesses wouldn’t normally have access to, and they should be taken seriously. This opportunity can help create more diverse, adaptable teams. 

This data supports how this approach can improve ROI:

• Gartner shows a potential 12% increase in performance when comparing diverse and non-diverse teams. 

McKinsey said, “Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.”

5. Tailored Training for Your Company’s Needs

Through apprenticeship programs, like the one offered by Per Scholas, you can work with talent experts to identify critical skill gaps and develop custom apprenticeship programs to target those areas. Doing so now can give you an upper hand moving into the future.

How These Technical Apprenticeships Work

Here is what you can expect:

• Technical skill gap assessment: We will work with you to evaluate your company’s needs in areas such as cybersecurity and cloud computing.
• A tailored program: We create customized, hands-on apprenticeship programs to address the gaps identified during the assessment process. 
• On-the-job training: Apprentices learn in real-world environments, guided by mentors.
• Ongoing evaluation: Regular assessments ensure skill mastery.
• Post-program support: After the apprenticeship program ends, individuals who graduate from our program always have the opportunity to continue training.

As Alanna Hughes, senior vice president of strategy and innovation for Per Scholas, said, “Registered apprenticeships do not have to be bureaucratic nightmares just because they are more structured,’ she says. ‘We make it easier on the employer to take advantage of the perks by managing the administrative pieces.”