If Talent Can’t Be Found, It Can Be Grown

Wage-Based Learning Programs vs. DOL Registered Apprenticeships: How Do They Compare? 

Wage-based learning programs in tech share DNA with Department of Labor (DOL) apprenticeship programs, but there are a few distinctions worth noting. Understanding the similarities and differences can help clarify how a cloud or cyber “earn-and-learn” program might look today.  

Similarities:  

• Both models are built on the principle of learning by doing while earning a competitive wage. Rather than requiring people to study first and work later, these programs integrate paid work experience with on-the-job training. Just like a registered apprenticeship for an electrician, a cybersecurity or cloud apprentice spends a significant portion of their week doing real job tasks under the guidance of an experienced mentor, gradually building competence.  

• There is formal training component as well – apprentices spend a certain number of hours per week in paid training, typically 4-8 hours per week of the 40-hour work week.  

• Apprentices are full-time employees from day one, earning a competitive wage for the role and industry.  They may be full-time contractors for a host employer, as well. 

• And upon completion, the apprentice earns a credential or simply the work experience needed to be considered fully qualified for the role and earn a full-time job with the host employer.  

In essence, wage-based learning in tech is a modern twist to a traditional trade apprenticeship concept – a way to earn, learn, gain skills, and build your workforce with employee loyalty and productivity as a result. 

Differences:  

• Registered apprenticeship programs (think of traditional union trade apprenticeships) tend to be highly structured, multi-year, and formally registered with the Department of Labor. They often last 1-4 years with a set number of hours for both working and learning, typically 2000+ hours, and lead to a nationally recognized certificate.  

• Non-registered, wage-based learning in mid-sized tech companies can be more flexible. Many tech apprenticeships are shorter – some as short as 6 months, and more commonly around 12 to 18 months – aiming to get talent job-ready faster.  

• In cloud and AI roles, the field evolves so quickly that curricula may be tailored by the company and updated frequently, rather than adhering to a decades-old standards.  

Despite these differences, the line between internal wage-based learning and DOL registered apprenticeships is increasingly complex. For the purposes of solving the talent shortage, both approaches achieve similar results: bringing in motivated talent and providing paid training. Whether one calls it an apprenticeship, residency, or wage-based learning program, the goals and outcomes are comparable. What matters is structuring it well to balance productive work and learning and giving participants a clear pathway to a skilled role at program’s end.  

Success Stories: Mid-Sized Firms Solving their Talent Gap 

Real-world examples show that wage-based learning programs can effectively create tech talent – even for mid-sized firms without the hiring clout of a Google or Microsoft. In the past couple of years, numerous companies have reported success by “growing their own” experts. 

• Cengage Group (Ed-Tech) – This mid-sized education technology company has embraced apprenticeships to build its IT and cybersecurity teams. Since 2019, Cengage has hosted nearly 30 apprentices in on-the-job training roles, with many graduating into full-time positions in IT and security. In 2023, the company celebrated a cohort of five software engineering apprentices who completed a 12-month program and were promoted to junior developers on its product team. These new hires tackled complex coding projects under mentorship and are now part of Cengage’s permanent talent pool, validating the apprenticeship model for tech roles.  

• Twilio (Cloud Communications) – Twilio, a cloud communications company (mid-sized during its high-growth phase), built an apprenticeship track to grow software engineers. Over 2017–2022, Twilio brought in 65 apprentices (often coding bootcamp grads or folks changing careers) and achieved a remarkable 91% conversion rate – meaning over nine in ten apprentices transitioned into full-time engineers at Twilio upon completing the program. That high retention illustrates how effective wage-based learning can be in creating loyal, long-term employees with company-specific knowledge.  

These two success stories underscore that wage-based learning isn’t just altruism or PR – it’s solving real hiring needs. These programs have helped companies fill critical skill gaps (cloud, coding, cybersecurity) more affordably and reliably than competing for a dwindling pool of veteran experts. Importantly, apprentices who come up through these ranks are already familiar with company systems and culture, often becoming high-performing, loyal employees.  

The Business Case to Consider Wage-Based Learning 

The decision to implement a wage-based learning program should be grounded in solid business reasoning. Fortunately, the case is compelling. Adopting an apprenticeship-style talent pipeline can be a game-changer for tech firms facing skill gaps. Here are key benefits and persuasive insights for leaders to consider: 

Closing Critical Skill Gaps – Wage-based learning directly addresses the skills shortage by creating the talent you can’t hire elsewhere. Rather than fighting over the same handful of senior cloud architects or AI engineers, you can cultivate your own. This is especially valuable in cybersecurity and AI, where open positions might sit unfilled for months. An apprenticeship allows you to fill those roles with motivated learners who, in a year’s time, become the specialists you needed. It’s a proactive solution to ensure you have the skills when and where you need them. 

Cost-Effective Hiring – It might sound expensive to pay employees while they’re still learning, but consider the alternatives: high recruiter fees, inflated salaries to poach experienced talent, or the revenue loss from understaffed teams. In practice, companies find that apprenticeships save money. You can hire an apprentice at an entry-level wage and train them, instead of paying a premium for a veteran (if you can even find one). The U.S. Department of Commerce reports that apprenticeship programs yield an average of $1.47 in ROI for every $1 invested when accounting for increased productivity, reduced turnover, and other benefits. One major reason is reduced hiring costs down the line – successful apprentices become full-time staff, so you avoid expensive external searches and reduce turnover costs. 

Improved Retention & Loyalty – Directors know that turnover is costly and disruptive. Wage-based learning programs can significantly boost retention. Apprentices often feel a strong sense of gratitude and commitment to the company that gave them their career start. They’ve built relationships with mentors and colleagues over the training period, making them more likely to stay. Data shows that companies experience lower attrition among employees who came through apprenticeship pipelines. In a sector where jumping ship for a higher wage is common, home-grown talent is comparatively stable. This loyalty translates to higher team stability and lower “brain drain” over time. 

Cultural and Knowledge Fit – One underrated benefit: Apprentices spend months working within your systems, tools, and processes as they train. By the time they “graduate,” they are already integrated into your company’s culture and workflow. They know your tech stack, your security protocols, your product nuances – knowledge that an outside hire would take additional time to learn (if they adjust at all). This means shorter ramp-up for new hires and fewer mis-hires. Essentially, an apprenticeship doubles as an extended vetting period: you get to know the person’s abilities and work ethic thoroughly before bringing them on full-time. The result is a pipeline of talent tailor-made for your organization, which is a huge strategic advantage. 

Untapped Talent Pool – Wage-based learning opens doors to talent from nontraditional backgrounds, aiding diversity and inclusion goals. Many mid-sized tech firms struggle to diversify if they only hire from the same universities or companies. Apprenticeships intentionally draw candidates who may lack a formal degree or tech pedigree but have the aptitude to succeed. This includes people from underrepresented and overlooked talent communities such as veterans, community college talent, career switchers, or those re-entering the workforce.  

The Brookings Institution notes that apprenticeships onboard more diverse talent and can help employers tap into communities they previously overlooked. For an IT director, that means fresh perspectives on your team and potentially improved innovation and problem-solving (diverse teams have been linked to better performance. It also enhances your employer brand as you offer clear development paths which attract job seekers who value growth opportunities over quick perks. 

Agility in an Evolving Field – Especially in cloud and AI, technology is evolving so fast that today’s hot skill may be obsolete in a few years. Wage-based learning fosters a continuous learning culture in your organization. When employees see that the company invests in training newcomers (and upskilling them), it signals that learning is valued at all levels. Apprenticeship programs can be adapted over time to new skill needs – for example, a few years ago companies might have focused on training data analysts, whereas now the focus might shift to generative AI engineering. Having the infrastructure (partnerships with a training provider, a mentorship framework, etc.) in place means you can quickly pivot to develop new skills internally as needed. This agility is crucial for operations leaders planning workforce capabilities 2–3 years ahead. 

In summary, wage-based learning programs offer a strategic, cost-effective, and future-proof approach to talent acquisition. They turn the talent shortage from a threat into an opportunity: an opportunity to build a loyal workforce, aligned with your company’s needs and values.  

Tech leaders who champion these programs position their organizations to “win the talent war” in the long run. While your competitors are stuck with unfilled reqs and escalating salary bids, you’ll have a steady pipeline of trained, proven talent coming on board.  

Given the success stories and supportive data now available, it’s no surprise that more mid-sized tech firms are viewing wage-based learning not as a last resort, but as a competitive advantage in today’s challenging talent landscape. The companies that get this right will be the ones best equipped to innovate and grow, despite the talent shortages around them.  

How To Get Started

If you’re ready to explore Earn-and-Learn programs but aren’t sure where to begin, download our free quick guide. It breaks down the different models available, helps you choose the right approach for your hiring needs, and provides actionable steps to launch a program today.