Calculator enables automotive employers to get odds on apprentices

JAKKIE Olivier, chief executive of the Retail Motor Industry Organisation.

JAKKIE Olivier, chief executive of the Retail Motor Industry Organisation.

Published Dec 17, 2019


Durban - South African automotive employers can achieve up to a 200% return on their investment from contracting or employing apprentices.

This is according to a research study conducted by the Retail Motor Industry Organisation (RMI), with the Manufacturing, Engineering and Related Services Sector Education and Training Authority and the Institute of the Motor Industry UK.

The research project was prompted by the skills shortages and limited opportunities for upskilling artisans, not only in the retail industry but in the industry at large.

“We needed to ascertain whether it made financial sense for automotive employers in South Africa to take on apprentices,” said Jakkie Olivier, chief executive of RMI.

“We focused the research on three occupations: auto mechanic, body repair and spray paint. The research criteria was of three parts. First, to apply modern data collection and analysis techniques at automotive employers for the three trades. Next, to ascertain the estimated business value in rands that an apprentice can be expected to deliver. And lastly to develop a return on investment (ROI) calculator for use by employers,” he said.

Olivier said small and medium-

sized employers were reluctant to contract and train apprentices because they perceived that apprentices don’t pay their way and it’s costly to train them.

“This research disproves this. Historically there’s been a lack of measurable apprentice performance and productivity data. We believe this problem has been resolved by the ROI calculator which is available free to employers.”

It’s a web-based, easy and user-friendly tool. Employers only need to input three items - expected sold hours for the selected occupation, the charge-out rate applicable in the business, and the apprenticeship duration. Using this information, the ROI calculator’s algorithm calculates the estimated ROI for the apprentices as if they were employed by the business.

It incorporates actual employer costs including time and level-based national minimum apprentice wages, training, level and trade testing, and ancillary costs and opportunity costs to calculate ROI.

The ROI calculator can be accessed on the following link:

The Mercury

Related Topics: