Staff Development on a Budget? Here’s How Apprenticeships Can Deliver Big!

When designing an employee incentive program, training and education should be at the top of the list. Unlike one-off perks, training creates long-lasting benefits for both employees and employers, such as:

• Improved productivity;

• Greater employee satisfaction and retention;

• Stronger workplace culture; and

• Future leaders with recognised qualifications.

The best part? These benefits can be achieved at minimal cost to your business through the Australian Apprenticeship system. In this article, we’ll explore how you can leverage the Australian Apprenticeship system to deliver cost-effective training and education opportunities for hospitality businesses. While this article uses Canberra, ACT as the primary example (because that’s where Access Recognised Training Australia operates) the strategies outlined here can be applied in any Australian jurisdiction. Each state and territory has its own policies and funding models for government-supported VET, but the core principle remains the same: apprenticeships are one of the most cost-effective ways to develop your workforce.

Hospitality enterprises often operate on razor-thin profit margins, where any additional cost can be the difference between a profitable or loss-making operation. At the same time, there’s constant pressure to offer attractive employee incentives to remain competitive with other sectors. Nowhere is this challenge more evident than in Canberra, where private businesses compete with a booming public sector that attracts a large share of talent. So, how can hospitality businesses compete in such an environment?

The answer: Utilising the Australian Apprenticeship system strategically. When implemented well, it can be virtually cost-neutral for your business while delivering significant value through the many benefits discussed in this article.

The Financial Advantage of Apprenticeships

Here’s what most employers don’t realise:

• Many state and territory Governments subsidise the majority of training costs for eligible apprentices and trainees under funding programs like User Choice; and

• The Federal Government provides an employer priority hiring incentive for eligible employers through the Australian Apprenticeship Incentives Program, making this pathway even more attractive.

For example:

• Employers can receive $5,000 in incentives, paid over two years*; and

• Apprentices can receive up to $5,000 in support payments, also over two years.

Not every qualification attracts Federal Government employer priority hiring incentives, but several key trade-based hospitality qualifications do when delivered in Canberra through Access Recognised Training Australia, such as SIT30821 Certificate III in Commercial Cookery and SIT40421 Certificate IV in Kitchen Management.

Take the SIT40422 Certificate IV in Kitchen Management as an example: When you undertake this qualification in Canberra through an Australian Apprenticeship pathway with Access Recognised Training Australia, the training itself is valued at around $14,000. Add the Federal Government employer priority hiring incentive, and your business could unlock more than $24,000 in value by supporting just one employee through a nationally recognised qualification!

Have three or four suitable employees? That’s getting close to $100,000 in combined value, plus the productivity and engagement benefits of upskilling your team.

*Federal Government employer incentives are assessed and administered by your Australian Apprenticeship Support Network (AASN) provider and are subject to eligibility criteria and program conditions.

Let's also bust a few myths surrounding Australian Apprenticeships:

Myth #1: Apprenticeships Are Only for Young People

Wrong. Apprenticeships aren’t just for school leavers. Existing employees can also take part in the system, and in some industries, pathways go all the way up to Advanced Diploma level.

Myth #2: I Can Only Pay Apprentices Award Wages - Nothing More or Less

Not true. While apprentices must be paid at least the relevant award rate or as per any industrial agreement (such as an Enterprise Agreement), there’s no restriction on paying more. Employers often choose to pay above award to attract and retain quality staff.

What you cannot do is reduce an existing employee’s pay when signing them into an apprenticeship. They must remain on the same pay or higher. Using an apprenticeship to lower wages is illegal and goes against the purpose of the program.

Myth #3: I Must Use TAFE to Train My Apprentice*

Fact: Absolutely not. The funding comes from programs like the User Choice program, which means you and your apprentice can choose the training provider that best suits your needs. This could be TAFE or it could be an independent specialist like Access Recognised Training Australia, which has a Training Initiative Funding Agreement (TIFA) with the ACT Government.

Why the Training Model Matters

Every time you send your apprentice to TAFE for day or block release, a significant amount of time is lost. Travel to and from campus, waiting between classes, and downtime represent significant unproductive time, not to mention the headaches if they miss classes.

A work-based training model keeps your apprentice in the workplace while completing their qualification. Yes, you’ll need to allocate rostered time for theory and support practical training in line with the units of competency but the productivity gains are huge. Your apprentice stays engaged in real work, contributing to your team while building their skills.

In short, workplace delivery is the most efficient and industry-relevant approach for hospitality businesses.

Myth #4: Apprenticeships Are Expensive

Fact: When managed well, apprenticeships can be cost-neutral or even profitable. Availability of Government incentives can make this an incredibly cost-effective option for hospitality businesses.

The investment in training is also offset by improved staff retention, reduced recruitment costs, and better service quality. In fact, an apprentice is no different to any other employee when it comes to the need for guidance, direction, and leadership. Providing this support leads to improved performance and greater return on your investment.

When you think of an apprenticeship as a structured development pathway rather than an expense, the return on investment is clear.

Myth #5: Apprenticeships Don’t Lead to Real Careers

Fact: An Australian Apprenticeship is a pathway to high-demand careers in hospitality, both in Australia and internationally. Qualified chefs, cooks, and hospitality professionals are in short supply. Completing SIT30821 Certificate III in Commercial Cookery, SIT30622 Certificate III in Hospitality, or SIT40521 Certificate IV in Kitchen Management opens doors to leadership roles, business ownership, and global opportunities.

The Bottom Line for Hospitality Businesses

Apprenticeships aren’t just about ticking a training box, they’re a strategic tool to attract, develop, and retain skilled staff in a competitive labour market.

How Employers Can Use Training to Drive Performance

Instead of focusing on wage savings (which isn’t allowed), smart employers use training to:

• Link qualifications to job roles and KPIs for maximum relevance;

• Reward progress with performance bonuses or recognition to keep motivation high; and

• Tie training tasks to business improvement projects, such as updating outdated systems and policies.

This approach doesn’t just build skills, it boosts productivity, engagement, and loyalty. And the best part? The Government covers most of the cost through funding and incentives.

The Only Question Left

Why aren’t you using this system? And if you are, are you maximising the opportunity?

Want to know how to leverage the Australian Apprenticeship system to boost your business?📧 Email: markf@accessrt.edu.au

About the author: Mark Field is the Managing Director of Access Recognised Training Australia and has over 25 years of experience in the VET sector. He is a strong advocate for the opportunities vocational education and training provides individuals and businesses alike, and remains deeply committed to helping shape future industry leaders through quality training and education.