Overview - What is a Group Apprenticeship Program?
A Group Apprenticeship Program is based on an Australian model where apprentices are employed by a recruitment agency and hired out to host businesses. The program can be integrated with the existing activities of a range of organisations or it can be established as an entity in its own right.
Generally the charateristics of Group Apprenticeship Program are:
- A noble intent labour hire business for apprentices and trainees
- It’s a low margin business if the provider is to keep the service fee at a level employers will pay
- Depending on how it is integrated with the provider’s business breakeven should occur between 250 and 500 apprentices
- Above 1,000 apprentices it should be fully self supporting and robust
However some of the risks of running Group Apprenticeship Program include:
- Fail to ensure health and safety of the apprentices
- Non payment of bills by host companies
- Unethical practice by hosts
- Gross misconduct by apprentices
- Fail to identify and match apprentices with “stickability”
- Fail to meet contractual obligations
- Lack of investment to meet cash flow requirements
- Fail to develop all capabilities necessary to run a low margin noble intent labour hire company
GAP International provides MATE software and related contractual documentation to help manage this risk and optimise the success of the program.
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