As your community college looks for ways to serve your community, address your mission, and find initiatives that support or grow revenue streams, Registered Apprenticeship programming can be an answer. While Registered Apprenticeship programming at a college can accomplish these goals, it is important to note that each college, community, and Registered Apprenticeship Program (RAP) is different. AACC has found that when initiating a RAP at your college, it is important to understand the investment needed to develop and implement the program, the benefits your college and community can experience, and the resulting return on investment the college can expect.
A simple formula for calculating short-term return on investment (ROI) is:
Benefits – Costs = Return on Investment
In an example where the benefit is $2 and the cost is $1, the resulting ROI would be $1.
Ex. $2 – $1 = $1
While more advanced formulas can assess long-term ROI and include multiple variables, this basic calculation provides a valuable starting point. Conducting a detailed analysis of costs and benefits enables colleges to systematically explore the potential value of apprenticeship programs, positioning them for sustainable success and growth.
Understanding Costs
The financial requirements of implementing a Registered Apprenticeship Program depend on the role the college assumes—whether as a provider of related technical instruction (RTI), an intermediary, or a sponsor. For example, colleges offering RTI alone may face minimal costs if existing curriculum and resources are leveraged. In contrast, colleges acting as sponsors or intermediaries may incur expenses for curriculum development, mentorship training, apprentice registration, and managing U.S. Department of Labor (DOL) reporting requirements.
AACC encourages colleges to consider all potential costs, which may include:
- Human resources and staff time for program development and management
- Curriculum design and instructional materials
- Infrastructure needs, such as lab and classroom space
- Equipment, supplies, and technology
- Marketing efforts, including apprenticeship-specific branding and outreach materials
- Development of a dedicated website to house program information for employers and apprentices
- Investment in customer relationship management (CRM) systems for tracking and reporting data
- Staffing for employer outreach, apprenticeship coordination, and liaison duties with the DOL
Understanding and planning for these expenses is crucial for building a strong financial foundation for the program.
Identifying Benefits
The benefits of a Registered Apprenticeship Program are equally varied and depend on the program’s design, location, and community partnerships. Colleges often see tangible and measurable benefits such as increased tuition revenue, higher enrollment numbers, and improved retention and completion rates. Importantly, there are also some harder to measure, or more intangible, benefits that are critically important such as improved employer engagement, opportunities to reach new learners, and better visibility for the college within the community.
Apprenticeship programs also offer pathways for students to earn credentials while gaining practical, hands-on experience in high-demand fields.
AACC has identified additional benefits that can include:
- Strengthened employer relationships and expanded partnerships
- Enhanced community goodwill and economic development contributions
- Greater brand recognition for the college, both locally and nationally
- Improved eligibility for state and federal workforce development grants
- Increased credential attainment, including apprenticeship certificates and academic degrees
- Additional opportunities for employers to engage with the college through donations, advisory roles, and other forms of support
These benefits illustrate how RAPs align with institutional missions while delivering value to students, employers, and communities.
Estimating and Tracking ROI
Once a college identifies the costs and benefits of a Registered Apprenticeship Program, it can estimate the ROI to support strategic decision-making. Tracking actual costs and outcomes over time enables colleges to calculate the ongoing ROI and adjust program components as needed to maximize value. This data-driven approach helps answer critical questions such as, “How does this program benefit the college?” and “What risks must we manage to ensure success?”
The ROI analysis is a powerful tool for demonstrating the value of registered apprenticeship programs to college leadership, community stakeholders, and employer partners. By effectively communicating the return on these initiatives, colleges can prioritize investments that strengthen their missions, expand opportunities for students, and contribute to workforce development.
Other Resources
- The U.S. Department of Labor’s Workforce GPS online technical assistance website lists research and studies regarding the Return on Investment of apprentices. This information will be useful in determining the method and model a college should use in conducting their own ROI assessment.
- National Apprenticeship.org’s ROI calculator
- The Next-Gen IMT Apprenticeship: A Return on Investment Study (Jobs for the Future)
- Apprenticeship ROI Research and Statistics (U.S. Department of Labor)
- Do Employers Earn Positive Returns on Investments in Apprenticeship? (U.S. Department of Labor)
- An Effectiveness Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 10 States (Mathematica Policy Research)
- The Next-Gen IMT Apprenticeship: A Return On Investment Study (Jobs for the Future’s Center for Apprenticeship & Work-Based Learning)
- Rates of Return on Investments in Apprenticeships: Summary of the Empirical Evidence (by James Koch, American Institute for Innovative Apprenticeship)
- Investing in Talent Development (Apprenticeship.gov)