High school and college students seeking employment often lack the relevant work experience required for many jobs. But momentum is building around apprenticeship programs and other forms of work-based learning.

There’s no better way to learn how to succeed in the workplace than by sharpening relevant skills, on the job, while getting paid. Learning in the office, as well as in the classroom, allows students to put their lessons into context, while providing the important real-world experience employers desire.

Historically, apprenticeships have been reserved for trades, such as plumbers or electricians. But over the last few years, millions of dollars in federal funds have been generated to expand apprenticeships into new industries and communities, spurring interest and activity at both the state and local level.

Stakeholders are coming together to support more than 100,000 new apprentices and enhance a tradition initially created by labor unions that is now expanding into new industries such as IT, health care, financial services—and insurance.

In December 2017, the first cohort of insurance apprentices graduated from Zurich North America’s certified apprenticeship program—the first such program for insurance professionals in the U.S. While attending classes at William Rainey Harper College in Palatine, Illinois, the 18 graduates also worked at Zurich’s headquarters in nearby Schaumburg. Zurich anticipates having 100 insurance apprentices in the program by 2020.

Over the last year, InVEST® has been working with the Independent Insurance Agents of Washington and Pierce Community College in Puyallup, Washington to develop an apprenticeship program specifically designed to create a talent pipeline into the independent insurance agency system.

InVEST is currently part of a state task force that is investigating how to best structure the curriculum, garner local employer support and attract students into the program. InVEST is also partnering with a new program currently in development in St. Louis, and will be discussing insurance apprenticeships with the Arizona State Department of Education this summer.

When employers participate in apprenticeship programs, they not only invest in individual workers, but also create a “grow your own” talent pipeline to develop the skilled workers they need to grow their companies. And when the interests of workers and employers align, the U.S. economy benefits from the talent necessary to compete in the global marketplace.

Companies are increasingly concerned with finding and retaining skilled workers, and apprenticeship programs may offer the perfect solution. Most employers who offer this type of program say it gives them a chance to develop their own talent, and they cite a loyalty factor as well—many apprentices stay with their companies long after they complete their training. And because they show established team members that their company is investing in their future, apprenticeships are also good for morale.

Here’s how employers can benefit from hiring an apprentice:

• Build a pipeline of skilled workers.
• Gain workers with customized skills.
• Boost employee retention.
• Save money on wages—many apprentices start out earning up to 50% less than fully trained employees.

And here’s how students can benefit from an apprenticeship:

• Receive on-the-job training from industry professionals.
• Earn while you learn and gain specialist skills.
• Form good relationships with employers to access better job prospects in the future.
• Network within your industry and build a resume.
• Possibly land a full-time job.
• Receive assistance paying for college education, training and licensing.

As more employers and community colleges develop apprenticeships, opportunities will increase for underrepresented groups, including women, people of color, veterans, at-risk youth and people with disabilities.

In many states, a variety of work-based learning efforts reinforce the workplace to complement classroom learning. For apprenticeships to become successful, employers must take advantage of these programs.

Marco Albergo is InVEST communications coordinator.