Boosting Apprentice Commencement Funding By Anthony Gray, MIG Training

THE CLOCK IS TICKING

31ST MARCH 2022 – IS A KEY DATE FOR EMPLOYERS

As this magazine goes to print the clock is ticking on the Boosting Apprenticeship Commencement (BAC) funding initiative which has had such an incredible impact on the number of new people entering our industry since it was first announced in October 2020. Without further government intervention the program has an end date of 31/3/2022.

Designed to assist with the recovery from Covid-19 the Boosting Apprenticeship commencement funding provides a subsidy to the salon or barbershop owner of 50% of the wages paid to a new apprentice. In dollar terms this equates to $7000 per quarter or $21 000 over the duration of the first year. In addition to this first year support the government has announced that employers will then transition to the Completing Apprenticeship Commencements (CAC) incentive for the second and third year of the apprenticeship. Under the CAC salon owners will receive a 10% wage subsidy in the second year and 5% wage subsidy in the 3rd year of their employee’s apprenticeship.

The program was initially only meant to be in place for 12 months but due to its success it has been extended for a further 6 months as salons get back on their feet across the nation. The impact of this initiative to date have been significant. Despite large parts of the country being in lockdown the number of apprenticeship commencements has risen by 35% across all trades nationally when comparing the numbers with the same time in 2020. Drilling even further into this data shows that along with construction, the personal services trades of Hairdressing and Barbering are leading the charge when it comes to signing up new apprentices.

With incentives for employers remaining relatively unchanged for over 20 years what we are seeing as a training provider is in line with those national numbers and it shows no sign of slowing up anytime soon. The activity is at the point where keeping up with the volume of apprentice sign ups is a challenge across most training providers. The BAC incentive is available to all and has increased the demand for apprentices across all of the salons and barbershops we work with. Salons large and small are fuelling growth with new people. It is an exciting time for the industry, one that many will argue is long overdue. We have talked about chronic skills shortages for many years and with skilled migration currently at a standstill the time is right to make the changes that will sustain our industry in the time it takes to complete a 3 – 4-year apprenticeship.

Funding has provided an opportunity that the industry has embraced with open arms but for it to be the trigger for lasting change to our shortage of qualified hairdressers and barbers we need to inspire and train in order to retain these new people beyond the first 12 months of an apprenticeship. Apprenticeship completion rates remain below the 50% mark and will be the biggest hurdle to making the most of the opportunity we have been given.

The good news is that as a collective the hair community is incredibly progressive with salons and barbershops embracing the latest in workplace practices. Many of the salons we work with offer flexible working hours and conditions to suit the needs of their team and challenge them to build practical skills quickly in order to feel productive and to become an engaged member of the salon or barbershop.

For those employers who have not recruited an apprentice before or if it has been many years since you took on an apprentice then there are a couple of easy steps you can take to access the information you need. The best thing to do is to contact an Australian Apprenticeship Support Network provider such as Busy at Work, MEGT, MRAEL to name a few. They will guide you through the process of signing up an apprentice. Alternatively, a head to www. australianapprenticeships.gov.au This site will help you to answer all of your apprenticeship question and provide guidance on how to navigate the system

With only a couple of months remaining until the employer funding reverts to an amount of approximately $4000 over the life of an apprenticeship there has never been a better time to invest in your team and future proof your business. The acute shortage of qualified Hairdressers and Barbers which is holding many businesses back and the business uncertainty that has gripped our lives for the past 18 months has created the perfect environment to build your team and grow your own.