Cost benefit analysis of apprenticeships to the employers apprentices and the NZ Construction industry

Abstract

The Auckland construction sector is currently faced with a skills shortage which has the potential to impede the industry’s further development. The research focused on the potential of carpentry apprenticeship programmes to assist with this shortage, and evaluated the cost-benefit relationship of such apprenticeships within medium/large scale commercial construction companies in the Auckland construction sector, to determine the value to employers of this form of vocational training. Semi-structured interviews were conducted with senior management level staff of established construction companies within the Auckland sector, to explore employers’ perceptions of the value of apprenticeship training to employers. In addition, a quantitative analysis of data provided by the participating companies was carried out, to identify the overall cost of an apprentice to the employer over the vocational training period. Responses suggested growing concern within the industry about the skills shortage currently facing Auckland construction. Whilst the findings indicated an overall financial cost to employers during the four year training period, the respondents agreed that the practical benefits to the company and to the industry as a whole outweighed any financial implications. Apprenticeship training could therefore mitigate future risk by focusing on developing the knowledge capital of apprentice carpenters within the industry.