On-the-Job Training

Introduction

The term “on-the-job training” (OJT) can be used in three ways: It’s probably most commonly used in reference to the way people learn new things at work, either in formal professional development or just naturally as they do their jobs day in and day out. It can also refer to the structured work-based learning that is a required component of a Registered Apprenticeship. And finally, it can refer to short-term training programs funded under the federal Workforce Innovation and Opportunity Act (WIOA). 

In this section of the toolkit, we focus on programs funded by WIOA.

In WIOA-funded training programs, workers from groups that are eligible for services under the act (see “Typical OJT Participant Profiles,” below) are hired full time and paid reasonable wages in exchange for structured, customized, on-the-job training that will equip the worker with the skills needed for that job.

One thing that it’s important to understand is that the WIOA funding for these programs is a resource to offset the cost of training; it’s not a wage subsidy.

It’s also important to note that, as structured under the law, training programs funded by WIOA are designed to be worker benefits. However, employers can use them as a source of talent, and you might be able to benefit from the WIOA provisions for wage reimbursement and support in finding and hiring employees. 

SkillUp Career Builders say that earning a living wage and having the opportunity to learn skills on the job are among the principal benefits they look for in employment opportunities.

SkillUp Career Builders suggest outlining career trajectories for the roles for which you are planning to offer on-the-job training. They say workers will appreciate having a clear set of expectations for their work, and add that small and medium-sized businesses that offer consistent review meetings to discuss performance and career and salary paths would stand out as desirable places to work.

Where to Start

• Contact your local American Job Center (AJC) or workforce development board to determine whether your organization is eligible for WIOA-funded on-the-job training. If so, you must review and sign a contract package. Terms will differ by state, so you should seek out local guidance. 

• Verify that the role for which you plan to offer training is an in-demand position in your local labor market, as defined by WIOA Section 3(23), or a position that meets certain exceptions under WIOA guidelines.

• Be mindful of the fact that WIOA was created to serve specific populations—as noted above in the description of typical OJT participants. However, you should also know that WIOA funding isn’t restricted to training for new employees; you can also use it to offer training to current employees, so they can learn new skills—though they, too, must qualify for services under WIOA. Specialists at your AJC or workforce development board can help ensure that your recruiting and training efforts focus on the right people. 

• Visit OJT.com and read this state-by-state OJT directory to connect with a training provider if you need help training an employee.

Success Stories

Employers in industries like manufacturing have long track records of successfully using on-the-job training to help workers build skills. If you’re interested in hearing real-world examples of how you can use this model to develop talent and diversify your workforce, watch these videos from the Workforce Development Board of South Central Wisconsin, which feature workers and employers sharing OJT success stories: “Amcor’s On-the-Job Training With Corene” and “Q&A With Saris: On-the-Job Training Program.”

Additionally, if your business has limited resources, you may find that implementing an on-the-job training program is a more realistic option than setting up a Registered Apprenticeship or a paid internship, both of which require comparatively bigger investments of time and money. And for employers and workers alike, on-the-job training can represent a lower-stakes commitment than an apprenticeship or an internship—workers know that employers will offer full-time jobs to people who complete the training, but both parties can also agree to part ways if it isn’t a match.

Resources