Benefits of Hiring an Apprentice
14 Mar 2016
Originally published by The Ontario College of Trades here
What if one simple hiring practice could offer numerous tax credits and bonuses, help you build a loyal team and allow you to contribute to your industry’s future, among many other perks; would you be interested?
If you are a skilled trades employer, here are the TOP FIVE reasons you should consider hiring an apprentice:
Financial: By hiring an apprentice, employers become eligible for numerous different tax credits, grants and bonuses. For instance, the Ontario government provides the Apprenticeship Training Tax Credit to qualifying businesses that hire apprentices in certain skilled trades; an Employer Signing Bonus to sponsors who register new apprentices in sectors in which skilled workers are in high demand; and an Employer Completion Bonus to sponsors whose apprentices complete their programs.
Loyal employees: Apprenticeship programs help create some of the most loyal employees. A 2010 Canadian Apprenticeship forum report shows that apprentices felt more loyalty to employers who supported and eventually hired them. (Source: “The challenge of finding an employer-sponsor”).
Prepare for the future: To create or maintain a successful business, it is important to consider your future needs. The average age of a tradesperson today is 55 years old, which means some of those workers are nearing retirement. Hiring and training an apprentice now will have you prepared for when that time comes.
Your business, your training: By training an apprentice to the College’s training standards and best practices, you can mould them to ensure they are a good fit for your company’s needs and culture. This means they are not only learning the necessary skills of the trades, but also those specialized skills that are unique to your particular business.
Hire the best: Local colleges, high schools and training programs can help you track down the best talent and match you with the most qualified apprentice candidate.
- Apprenticeship Job Creation Tax Credit (AJCTC): Allows qualifying employers to claim up to $2,000 per year for each eligible apprentice.
- Apprenticeship Training Tax Credit: Allows qualifying employers to claim up to $5,000 per year for each eligible apprentice. The maximum credit over the first 36‑month period of the apprenticeship is $15,000.
- Employer Signing Bonus: A $2,000 bonus available to employers who register new apprentices in sectors where there is a high demand for skilled trade workers.
- Apprenticeship Completion Employer Bonus: Employers can earn a $1,000 taxable grant for each apprentice they employ and train who successfully completes his or her apprenticeship.