Traineeships vs. Fee-for-Service Training

In today’s market a lot of companies are opting for traineeships over fee for service training to take advantage of funding from the Federal and State governments. Most companies are eligible for traineeships as long as they intend to employ the trainee for the duration of the course and are prepared to provide supervision and mentoring. This is an excellent path to take if many of your employees are without formal qualifications. However, as a training, HR or operational professional, it’s important to weigh up the challenges of traineeships and actual costs involved.

Some drawbacks of traineeships are that no funding or certification is received for a trainee unless all criteria, as well as the individual completion of a portfolio of evidence are delivered to prove their new learnt knowledge and skills. This commitment to take traineeships seriously falls both on the employee and the employer. It’s important that a company recognises the necessary effort required to ensure funding is received.

The actual costs involved in traineeships and time away from the office / shop floor also needs to be taken into account. Fee for service training and traineeships both need employees to take time away from their normal work duties for training purposes. However the difference is that fee for service training can usually be completed in half the time of traineeships programs and can usually deliver the same level of value to the employer and productivity to a company.

While a company may receive funding for traineeships, the additional time to complete the training should be taken into consideration. It typically costs a company $160 per day in replacement wages to train an employee for a day. This means that even if funding is being received, no training comes free of costs.

When assessing the different training options of fee for service or traineeships, ensure you consider the time away from the store/ business, replacement costs, and additional resources required to ensure completion of materials. Any training is good training but it’s important that training improves business performance, profit and staff morale.

Both options are viable, so always weigh up the costs and commitment and select the option that best suits your business.