Earn & Learn Models

Can Pay for Success Scale Apprenticeships in the US?

by John Colborn, Harry Leech, and Deniz Nemli

Apprenticeships hold great promise for workers and businesses. But to grow apprenticeships in the U.S., employers need public funding as well as guidance from experienced intermediary organizations. Public support for expanding apprenticeships should tie funding to the achievement of outcomes.

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Key Highlights

Challenges

The United States offers far fewer apprenticeship opportunities than other countries. Existing public funding for apprenticeships in the U.S. is small and patchwork, involving federal, state, public, private, and some philanthropic funds. Businesses have generally been willing to pay wages to apprentices, but less willing to take on the other administrative functions required to establish and maintain an apprenticeship program, such as recruiting, recordkeeping, and coordination of apprentices’ technical instruction. Intermediary organizations are needed to persuade employers to try apprenticeships and then help employers establish programs and comply with funding requirements.

A public funding stream directly tied to hiring and retention of apprentices would be a game changer in the United States. In addition to offering substantially more funding, such a model offers the prospect of reliable and stable funding to attract investment in apprenticeship practices and the infrastructure of organizations and arrangements to scale apprenticeship.

Opportunities

Apprenticeship pay-for-success programs are publicly funded with multi-year commitments that pay a fixed rate per apprentice. To be compensated with public funding, the apprenticeship program must meet one or more success milestones, such as hiring, retention, or wage increases.

Successful apprenticeship programs benefit businesses by developing productive employees and apprentices by providing a pathway to a career in a high-paying occupation. Public pay-for-success funding models lead to rapid growth in successful apprenticeship programs — as evidenced by examples from England, France, and Australia and some states — and would provide significant benefits to businesses, workers, and the U.S. economy. The return on investment for such programs would be around $1.68 for every dollar invested.

Next Steps

Policymakers can create federal funding opportunities for apprenticeships that use a pay-for-success model
Scaling apprenticeships will require mobilizing an army of intermediary organizations with the expertise needed to create successful apprenticeship programs for businesses

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About the Authors

John Colborn

Executive Director, Apprenticeships for America

John Colborn is the Executive Director of Apprenticeships for America, a membership and advocacy organization working to expand apprenticeship in the United States. He has served as an employer sponsor and developer of apprenticeship programs in information technology, manufacturing, healthcare, and social services. Colborn has amassed over 30 years of experience with community-based and national nonprofits, including serving as an education, workforce, and human services practitioner, Director of the Aspen Institute Skills for America’s Future program, Vice President Operations at the Ford Foundation, and program manager at the Philadelphia-based Reinvestment Fund. Colborn holds a BA from Oberlin College and an MBA from the Wharton School at the University of Pennsylvania.

Harry Leech

Director of Strategy, Apprenticeships for America

Harry Leech is the Director of Strategy and Program Development at Apprenticeships for America. He leads initiatives analyzing federal and state apprenticeship policies and oversees the development for new programming for AFA’s growing member network.

Prior to his current role, Leech held leadership positions in the United Kingdom’s central government, including at HM Treasury where he oversaw post-16 education and skills funding and policy – including apprenticeships and higher education – and the Department of Education.

Leech brings over a decade of experience in education and workforce policy. He holds a BA in History from the University of Warwick and an MA in European Studies from Yale University.

Deniz Nemli

Research and Communications Coordinator, Apprenticeships for America

Deniz Nemli is the Research and Communications Coordinator at Apprenticeships for America. Since joining in January 2023, Nemli has focused on data management, research, and policy support. Nemli holds a BS in Economics with double minors in Statistics and Philosophy from the University of Maryland, bringing a strong analytical and interdisciplinary approach to the role. With a background in nonprofit work and economic development consulting through research and data analysis, Nemli is committed to advancing the success of Apprenticeships for America’s initiatives and supporting workforce development.