Filetype Excel XLSX | Posted on 16 Aug 2022 | 3 years ago
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201x Filetype XLSX File size 0.04 MB Source: nationalapprenticeship.org
Sheet 1: Overview and Instructions
| APPRENTICESHIP BENEFIT AND COST CALCULATOR |
| In November 2016, the Department of Commerce and Case Western Reserve University published a joint report, "The Benefits and Costs of Apprenticeship: A Business Perspective." As a follow-up to this work, the Department seeks to aid firms in putting the findings and observations from that report into action. |
| This tool, the Apprenticeship Benefit and Cost Calculator, will allow your firm to estimate the potential return on investment from your existing or planned apprenticeship program. The enclosed worksheets, tools, and discussion will guide you through the process of thinking about and calculating the potential dollar value of apprenticeship. |
| Click here to get started! |
| Note: This tool is a beta version intended for testing purposes only. |
| Report |
| "The Benefits and Costs of Apprenticeship: A Business Perspective" |
| DISCLAIMER: The contents of this workbook are intended to be a tool for firms to better understand the costs and benefits of their current or planned apprenticeship programs. The tool is predictive and addresses only potential return; it should not be relied upon as the sole factor for decision-making. The Department of Commerce is not responsible for any loss or gains if predictive calculations are used for investment decisions. |
| Instructions for using this tool |
| Enter values in green cells on the sheets "ROI Calculator," "Cost Worksheet," and "Benefits Worksheet" to calculate the potential ROI of your apprenticeship program. Gray cells are pre-programmed to calculate values. "Calculations" sheet uses the values entered on the previous sheets to calculate the annual return on investment. The sheet "ROI Calculator" provides summary results of the return on investment for the number of years specified by the user. |
| CALCULATE THE POTENTIAL ROI FOR YOUR APPRENTICESHIP PROGRAM | ||||
| Enter values in the green boxes. | ||||
| Step 1. | Calculate the costs of your program. | |||
| Step 2. | Calculate the potential benefits of your program. | |||
| Step 3. | Choose the number of years (from 2 to 40) over which you want to estimate ROI | 6 | ||
| Suggestion: Estimate the number of years you expect an average apprentice | ||||
| to remain with your company (including their apprenticeship period). | ||||
| Simple return (benefits minus costs) | ||||
| Total cost of your program (per apprentice) | $-2,743,114 | |||
| Total potential benefits of your program (per apprentice) | $31,892,000 | |||
| Simple return on investment (per apprentice) | $29,148,887 | |||
| On a per-dollar-invested basis | $12 | |||
| Base counterfactual (apprentice vs. off-the-street hire) | ||||
| Total net cost of your program (per apprentice) | $112,387 | |||
| Total net potential benefits of your program (per apprentice) | $890,000 | |||
| Simple return on investment (per apprentice) | $1,002,387 | |||
| On a per-dollar-invested basis | $-8 | |||
| Internal rate of return | 26.88% | |||
| CALCULATE THE COSTS OF YOUR APPRENTICESHIP PROGRAM | ||||
| Enter values in the green boxes. | ||||
| Return to ROI Calculator | ||||
| A. | General Questions | |||
| The calculator examines the costs and benefits of an entire cohort of apprentices. For simplicity, it assumes that the entire cohort completes the program. Companies also may want to consider the costs incurred and benefits received from the work performed by apprentices that do not complete the program and remain with the company. | ||||
| A1. | How many years is your apprenticeship program? | 1 | ||
| A2. | How many apprentices begin each year? | 10 | ||
| B. | Fixed Costs | |||
| Add up the total annual fixed costs of your apprenticeship. These include any costs that | ||||
| do not vary based on the number of apprentices you have, such as curriculum | ||||
| development, equipment purchases, overhead, and classroom space. | ||||
| B1. | Fixed costs | $5,000.00 | ||
| C. | Cost of Apprentice Recruitment and Training | |||
| C1. | What is the per-apprentice cost of recruitment, search, screening, etc.? | $500.00 | ||
| C2. | What is the cost of recruitment, search, and screening for a non-apprentice? | $1,000.00 | ||
| For each of the following items, enter the per-year, per-apprentice cost. If you don't track the costs on that basis, add up the total and divide by the number of years in your program and the number of apprentices per year. If non-apprentices incur these costs as well, do not count them here--these costs should be unique to apprentices. | ||||
| C3. | Books | |||
| First year | $300.00 | |||
| Second year | $0.00 | Does not apply for your program | ||
| Third year | $0.00 | Does not apply for your program | ||
| Fourth year | Does not apply for your program | |||
| C4. | Tuition | |||
| First year | $2,500.00 | |||
| Second year | $2,500.00 | Does not apply for your program | ||
| Third year | $1,500.00 | Does not apply for your program | ||
| Fourth year | Does not apply for your program | |||
| C5. | Teachers or Consultants | |||
| First year | $1,500.00 | |||
| Second year | $1,500.00 | Does not apply for your program | ||
| Third year | $1,000.00 | Does not apply for your program | ||
| Fourth year | Does not apply for your program | |||
| C6. | Mentors (use mentor's hourly wage rate and pro-rated hours as an estimate) | |||
| First year | $12.00 | |||
| Second year | $13.50 | Does not apply for your program | ||
| Third year | Does not apply for your program | |||
| Fourth year | Does not apply for your program | |||
| C7. | Other apprenticeship-related costs | |||
| Examples: certification exams, pre-apprenticeship training | ||||
| First year | $1,000.00 | |||
| Second year | $0.00 | Does not apply for your program | ||
| Third year | $500.00 | Does not apply for your program | ||
| Fourth year | Does not apply for your program | |||
| D. | Wage and Benefit Costs | |||
| Fill in the average hourly wages of apprentices for each year in your program. | ||||
| D1. | Wages | |||
| First year | $10.00 | |||
| Second year | $13.50 | Does not apply for your program | ||
| Third year | $15.00 | Does not apply for your program | ||
| Fourth year | Does not apply for your program | |||
| Wage after completing apprenticeship | $17.50 | |||
| D2. | How many hours are apprentices working in your facility each year of the program? | |||
| First year | 1,200 | |||
| Second year | $1,500.00 | Does not apply for your program | ||
| Third year | $1,750.00 | Does not apply for your program | ||
| Fourth year | $2,000.00 | Does not apply for your program | ||
| Hours after completing apprenticeship | 2,000 | |||
| D3. | For how many hours do you pay apprentices in each year of the program? | |||
| First year | 2,000 | |||
| Second year | 1,500 | Does not apply for your program | ||
| Third year | 1,750 | Does not apply for your program | ||
| Fourth year | 2,000 | Does not apply for your program | ||
| Hours after completing apprenticeship | 2,000 | |||
| D4. | What are your company's benefits as a percentage of wages? | 35.0% | ||
| D5. | In which year do your apprentices begin receiving fringe benefits? | 1 | ||
| Return to ROI Calculator | ||||
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