The rise of the apprentice: a European tradition comes
to the U.S
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[May 31, 2018]
By Chris Taylor
NEW YORK (Reuters) - The growing number of
apprenticeships in the U.S. has more to do with European companies
importing the practice into their American operations than with the
long-running NBC television reality show and its former host who now
lives in the White House.
Traditional apprenticeships are more than summer internships familiar to
Americans, and involve a significant service period of a year or two,
plus training, often for a community college degree. Apprenticeships
come with plenty of corporate support, including mentor partnerships and
placement across multiple company divisions.
And they always involve getting paid.
While companies such as Zurich Insurance Group, Accenture and Walgreens
are ramping up their programs, apprenticeships are not totally new to
the U.S.
About 80 percent of registered American apprenticeships occur in skilled
trades, such as plumbing, electrical work or metal work. Yet there are
only about 500,000 of these apprenticeships, representing a tiny sliver
of U.S. workers.
But if the U.S. continues to follow the European model, there is plenty
of room for growth. In Europe, the apprenticeship system has deep roots
throughout the entire economy, in particular in Germany, where
apprentices are almost 4.0 percent of the workforce.
HOW IT WORKS
European companies have been introducing apprenticeships into their U.S.
businesses. Switzerland-based Zurich Insurance, for instance, built a
U.S. program in 2015, beginning with about 20 apprentices per year and
the goal is to reach 100 by 2020.
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The first class already graduated and is rotating through various
business divisions of the insurance giant while getting a degree at
local community college Harper College (near headquarters in Schaumburg,
Illinois) at the same time.
The program lasts two years, with three days a week spent on the job and
two days in the classroom. It then requires a commitment to stay on for
a year at the company after that. Apprentices have the opportunity to
apply to different divisions throughout the company.
“We think of it as another avenue to attract and develop talent for the
industry,” said Al Crook, a human resources executive at Zurich North
America. “With the proven track record of apprenticeships in Europe, we
knew it was a fairly safe test to run.”
Zurich Insurance has since been sharing its model with other companies,
such as financial consultancy Accenture and pharmacy giant Walgreens,
which are developing their own apprenticeship plans.
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![](../images/053118pics/busine17.jpg)
The logo of Zurich Insurance Group is seen at the company's
headquarters in Zurich, Switzerland September 2, 2013. REUTERS/Arnd
Wiegmann//File Photo - RC193C10C3F0
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For apprentice graduate Dane Lyons, a 39-year-old father of two, the unique
program allowed him to get a foothold in an entirely new career, where he is now
an underwriting service specialist.
“It let me check both boxes, of getting some experience while also going to
school,” Lyons said. “With the current prices of college tuition, it is not
something everyone can handle – so this gives people another path.”
According to Mary Alice McCarthy, director of the Center on Education & Skills
at Washington-based think tank New America, other firms that are in the
apprenticeship vanguard include: The Hartford, Aon Insurance, and tech firms
like Microsoft and Amazon.
American apprenticeships have also flourished as German companies have set up
U.S. operations in recent years, including BMW, Siemens, Volkswagen <VOWG_p.DE>
and Bosch [ROBSCJ.UL].
The U.S. government is also trying to help out. The Obama administration
supported them, funding apprenticeship programs to the tune of $250 million. The
Trump administration does, too. An executive order pledges to double funding,
and a task force set up to promote their development will roll out guidelines
shortly.
Multiple states are active on the apprenticeship front, setting up their own
initiatives too, among them Colorado, the Carolinas, Wisconsin and Washington
State.
With the nation’s unemployment rate at a historically low 3.9 percent, the
unique combination of on-the-job and educational training is a useful way to
lure potential talent.
“Young people don’t have any preset notions about apprenticeships, so it feels
like there is an opportunity to reshape the whole space right now,” said New
America's McCarthy.
“It’s a real way for families to acquire good skills and get into good jobs.”
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(The writer is a Reuters contributor. The opinions expressed are his own.)
(Editing by Beth Pinsker and Lauren Young)
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