The fourth Industrial Revolution (Industry 4.0) is the ongoing automation of traditional manufacturing and industrial practices, using modern smart technology. It is the altering of the way products are created by spreading digitized manufacturing/processing and automation.
The goal of Industry 4.0 is to increase the amount of usable data and improve decision making. Nowadays many organisations still don't understand how Industry 4.0 could impact their business as well as are struggling to find the know-how or workforce to support their transition.
The Knowledge, Innovation and Strategies Management Club is part of the TransIT project, co-funded by the Erasmus+ programme of the European Union. We are aiming to develop and provide innovative curricula, educational methods and training courses that guarantee an effective transition to Industry 4.0 standards. Moreover, the project is developing work-based competences necessary for managing the transition to Industry 4.0. Read more about the TransIT project's objectives here.
The project will provide a solution for company leaders, industry executives, HR professionals, SMEs and VET centers. We strive to inspire these groups to innovate and optimise their potential in the times of transitioning to Industry 4.0.
According to Worximity, more and more technologies will be implanted in factories, there will be increase in the human-machine interactions and new jobs will be created, whilst employers will look for a variety of skills related to the transition to 4.0.
In one of their blog articles, Worximity suggests a number of tips to address the changes impacting the workforce in the era of Industry 4.0.
Small and medium-sized companies are the backbone of the European economy and empower the growth and employment. Moreover, SMEs contribute to the training of the future work force through their involvement in apprenticeships and indeed, apprenticeship schemes offer great value not only to the SMEs and the apprentices themselves, but also to the entire society.
By documenting and sharing good practices, SMEs can learn from their own experiences and from others. They can turn this knowledge into action and develop their capacities and respond more quickly and effectively to different changes that may arise. If good practices are not documented, it is highly possible that mistakes will be repeated, successful examples will be forgotten and opportunities for improved practices will be lost.
That is why, as part of the Erasmus+ project ROI - Return on Investment of WBL and Apprenticeships, KISMC opens a call to collect good practices from collaborating companies. The collection of good practices will present different ways to facilitate the involvement of SMEs in apprenticeship schemes and will serve as a standard to promote knowledge sharing, collaboration, increase efficiency and enhance work-based learning (WBL) and apprenticeship supply.
The call aims at gathering a collection of good practices and successful examples from SMEs throughout the pilot experimentation of the ROI project. All partners: Knowledge, Innovation and Strategies Management Club (KISMC) - Bulgaria, the Technical University of Kosice (TUKE) - Slovakia, 3 training organisations active in VET: IDEC - Greece, CECOA - Portugal, PIT - Spain and Social Value UK , DLEARN - Italy and Cosmic Innovations - Cyprus, will work together for case studies of SMEs offering apprenticeships.
All the practices will be published in a Good Practices Guide, which will include a set of instructions, suggestions and successful examples from the project partners' countries. This will lead to contributing to the work-based learning (WBL) and apprenticeships' supply from SMEs.
Many SMEs realize the need of investing in young talent and have started to recognize the benefits. However, attracting new talent has its challenges and realizing what support is out there to assist this process and make it more appealing for SMEs to implement these practices requires better awareness of the existing materials, know-how and support. Moreover, this type of investment starts early, with partnerships and activities at school and universities.
Apart from the direct benefits for companies, there is also a broader spectrum of advantages for the society, such as increased employability and employment of young people, work experience opportunities, development of a pool of skilled workers at regional level, social inclusion of vulnerable groups, economic returns such as reduction of public expenditure etc.
Furthermore, SMEs providing WBL and apprenticeship programmes experience variety of advantages, ranging from financial to soft benefits both short and long term, such as higher productivity, reduction of external recruitment, highly motivated and talented personnel, enhanced corporate image, staff retention, opportunity to fill skill gaps etc.
There are various factors and elements of the education system across the EU but a unified approach and frameworks have been developed to enhance the role of work-based learning in its different forms and apprenticeships in particular. Moreover, to make them an effective tool for SMEs to solve the issue with lack of skills and talent, on the one hand. On the other hand, they are growth and success factors for businesses as well as key drivers for success for SMEs.
Implementing a holistic approach and system for apprenticeships allows SMEs to become more competitive and attract the right set of skills, knowledge and competences for growth and innovation as key competitive advantages in today’s economy and competitive markets.
According to the research and surveys as well as the conducted focus groups of the project “Return on Investment of Work Based learning and apprenticeships”, co-funded by the Erasmus+ programme of the European Union, SMEs' decision to engage in the supply of WBL and apprenticeship training is determined by the cost-benefit ratio of such an investment.
Knowledge, Innovation and Strategies Management Club (KISMC) is a partner in the "Return on Investment of Work Based learning and apprenticeships" project (ROI), along with a diverse and complementary mix of organisations - from Slovakia the Technical University of Kosice (TUKE), 3 training organisations active in VET: IDEC - Greece, CECOA - Portugal, PIT - Spain and also from the UK - Social Value UK - a network focusing on social value and social impact, from Italy a network focusing on the promotion of digital learning and use of ICT - DLEARN and an ICT company focusing in ICT-enabled E&T - Cosmic Innovations - Cyprus.
Costs & Benefits
The following costs and benefits have been identified through the project partners' research based on focus groups and surveys among SMEs:
Calculation of RoI
The ROI project has been focusing on developing:
- A model for the calculation of RoI of WBL and apprenticeships by SMEs
- A digital tool that will demonstrate the RoI model in a visual way
to calculate and visualize how investment on WBL and apprenticeships can manifest to multiple benefits.
To access the ROI calculation model and digital tool, please click here.
The Model for calculating the return on investment (ROI) of worked-based learning and apprenticeship reflects the perspective of the consortium project - “Return on Investment of Work Based Learning and Apprenticeships”, coordinated by Slovakia, with partners from Portugal, Greece, Bulgaria, Cyprus, Italy, United Kingdom and Spain. For more information about the partners in the project, read here.
The “RoI of WBL and apprenticeships” is based on the traditional model of calculating ROI, taking into consideration the costs and benefits of the SMEs regarding their investments in WBL and the apprenticeship courses.
The list/menu of key “costs” and “benefits” proposed by the model are based on national research reports, developed for partners' countries (such as Slovakia, Portugal, Greece, Bulgaria, Italy and Spain), highlighted the SMEs' needs and their national apprenticeship system.
What is ROI?
ROI is the calculation that compares the value of outcomes (changes as a result of an activity) to the value of the resources needed to create them.
Presented as a ratio, the value of outcomes is divided by the value of resources required to create them. The results of the calculation demonstrate the efficiency of an investment or activity. This can support the decision-making process by highlighting if an investment provides a positive return, and if there is more than one option, it can help decide which option provides the greatest return.
The return on investment formula is:
ROI = Value of outcomes / Value of investment
In the above formula, "Value of outcomes” refers to the aggregated value of all of the included outcomes of investing in WBL.
As well as presenting results as ROI, the net present value of money can also be used to support the decision-making process. This is calculated by subtracting the value of the investment from the value of the outcomes.
The net present value formula is:
Net present value = Value of outcomes – Value of investment
The results will provide the base for the elaboration of the digital tool for the calculation of the return on investments (ROI) of WBL and apprenticeships made by SMEs. The research is part of the project “Return on Investment of Work Based learning and Apprenticeships” project N°: 2017-1-SK01-KA202-035375.
We would highly appreciate your participation in this study. The research is taking place in all the countries of the project's partnership: Bulgaria, Greece, Italy, Portugal, Slovakia, Spian and the UK. However, with this post we are focussed on Bulgarian SMEs and will take you a few minutes to enourmously help the study.
* In the processing of analysis data, partners will maintain the confidentiality of your response.
Why the ROI Project?
The innovative force of the project is the development of a model of costs and benefits calibrated on the specific needs of small and medium enterprises (SMEs) in order to calculate in advance the return of investments. Differently from traditional ROI analysis, the model presented by the project focuses on both SMEs-related benefits as well as on society-related ones in order to clearly demonstrate the multilevel outcomes derived from work-based learning practices.
Your Contribution to the Research Matters
1. Model for Return on Investment of WBL and apprenticeships
2. Digital tool
3. Good practice guide
For more information on the tools, please read here and below you will find useful information from the resources you will have access to when they become available:
- If you are an SME already involved in apprenticeships, you will gain a model and a practical digital tool to calculate the return on investment from your engagement in the provision of WBL and apprenticeships. You will also benefit from the opportunity to promote your related activities through the Good Practices Guide and the participation in the apprenticeships-friendly enterprises badge. This will allow you to gain visibility on your local and national markets, as a company that cares for their apprenticeships. This visibility will support your company’s’ image and social responsibility.
- If you are an SME with no previous experience in apprenticeships, you will get familiar and discuss the benefits of apprenticeships for the local development and the progress of your own company. By visualising the benefits for your company, through the provision of WBL and Apprenticeships, you are expected to engage in the provision of such positions thus enhancing the overall VET provision at local level and enhancing access to training and qualifications for all.
- If you are a VET provider, you will have at your disposal a model and a digital tool to promote to SMEs in order to engage them in the provision of apprenticeships. This way you will be able to find more easily apprenticeship positions for your learners.
- If you are a policy maker, you will be able to use the model and the digital tool results in your decision making processes in order to discuss the funding mechanisms for apprenticeships and engage in a dialogue with SMEs, VET providers and social partners for the identification of a sustainable funding formula.
* Erasmus+ is the European Union’s (EU) programme for education, training, youth and sport, with the EU committing £12 billion to the programme between 2014 and 2020. By 2020 it is expected that over 800,000 education and training staff and youth workers will teach or train abroad across Europe with Erasmus+. Projects provide opportunities for learners and staff to improve their skills, enhance their employability and gain cultural awareness.
Knowledge, Innovation and Strategies Management Club (KISMC) is a partner along with a diverse and complementary mix of organisations - from Slovakia the Technical University of Kosice (TUKE), 3 training organisations active in VET: IDEC - Greece, CECOA - Portugal, PIT - Spain and also from the UK - Social Value UK - a network focusing on social value and social impact, from Italy a network focusing on the promotion of digital learning and use of ICT - DLEARN and an ICT company focusing in ICT-enabled E&T - Cosmic Innovations - Cyprus.
Calculate the ROI for Apprenticeships & WBL
For SMEs with limited financial resources, work based learning (WBL) represents an important tool. The RoI online tool offers:
- a cost and social benefits model calibrated on specific needs of SME managers and entrepreneurs to calculate the RoI for apprenticeships and WBL supply.
ROI Project Objectives
- Contribute to the sustainable investment of WBL and apprenticeships by making apparent their benefits for both individual SMEs and the society as a whole
- Develop a model for the calculation of RoI of WBL and apprenticeships by SMEs
- Design a digital tool that will demonstrate the RoI model in a visual way
- Develop a Good Practice Guide addressed to SMEs, giving guidance on how to design, implement and monitor profitable apprenticeship practices which can benefit the enterprise, the apprentice and the entire society
- Create and promote an apprenticeship-friendly SMEs badge to increase the engagement of companies in the provision of WBL
- Promote a VET – SMEs cooperation, through experimentation and validation of the RoI model
A Project Designed to Engage
- Managers, staff and trainers from SMEs that already host or are interested in providing WBL and apprenticeship;
- Staff from VET providers, i.e. VET teachers and trainers, administrative staff dealing with apprenticeships, etc;
- Policy makers, representative of stakeholders, VET expert and practitioners, social partners.
In addition to that, long-term beneficiaries such as VET learners who will benefit from the increased provision of WBL opportunities in their local, regional and national area.
Blog post by our team, innovation contributors, VIP members, blog guests, etc.
Funding For Innovation
Internet Of Things
Work Based Learning
The Knowledge, Innovation and Strategies Management Club is a non-profit organisation set up in Sofia, Bulgaria in 2012 to foster knowledge and innovation management across South East Europe. KISMC is supporting the development of the innovation ecosystem in the region by bridging the gap between education, research and business.
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