As technology advances at an unprecedented pace, the demand for skilled workers in the tech sector who can adapt to ever-changing industry needs has never been greater. While tech employment is projected to grow up to twice the rate of overall employment in the next decade, the industry faces a retention problem. This brief explores how apprenticeships can improve retention outcomes by examining data on apprenticeships and the tech workforce, along with insights from participants of Urban Institute’s Small and Medium Business Tech Apprenticeship project. Findings show how strong retention practices can improve diversity and sustain a strong talent pipeline in the tech sector.
Why This Matters
Tech companies regularly see high turnover rates due to employees switching jobs for higher pay and better conditions. Challenges with diversity and inclusion also affect the IT workforce, with women and underrepresented populations facing discrimination in the workplace and hurdles in pursuing leadership positions. Small and medium-sized businesses (SMBs), with their modest staff sizes and emphasis on relationship-building, are uniquely positioned to provide employees with personalized ongoing support to instill a positive sense of belonging. Registered apprenticeships are one model SMBs can use to grow and sustain a diverse talent pipeline while cultivating a workforce that meets the IT industry’s transforming needs.
What We Found
Apprenticeships can help reduce the retention challenges common in the tech field. To foster positive retention outcomes, we recommend four key strategies:
- Provide apprentices with higher compensation when and where possible;
- Foster a sense of belonging and inclusion in the workplace;
- Accommodate flexibility in programming and scheduling; and
- Leverage SMB resources to enhance core elements of the apprenticeship.
How We Did It
This brief draws on analysis of data from the Registered Apprenticeship Partners Information Database System (RAPIDS) at the project, state, and national levels, as well as interview and focus group data collected throughout the three-year Small and Medium Business Tech Apprenticeship project. Urban Institute’s team interviewed 12 apprenticeship program sponsors and 25 apprentices in North Carolina and South Carolina to learn from both perspectives about the challenges to retaining apprentices and successful strategies for building a skilled workforce.
