ON-THE-JOB TRAINING BENEFITS
On-the-Job Training (OJT) is funded through the federal Workforce Investment Act (WIA). OJT provides an opportunity for employers to receive financial assistance for training new employees in the skills needed to perform effectively. The OJT program is ideal for re-careering to a new occupation.
Benefits to Employers
OJT employees have a proven track record of employment and transferable skills which can be adapted to the employer’s operation. It includes financial reimbursement of up to 50% of the OJT employee’s wages (maximum of $4,000) during the training period (up to six months) for training specific to the employee's needs. The process is simple and effective.
Key Features
- Hire first - training on the job
- Must be skills mismatch between job specifications and applicant skills
- Contract must be signed prior to start date
- Jobs must be permanent
- Applicant cannot be related to owner or supervisor of firm
- Applicant cannot be hired by former employer
- Records required to be kept by employer are performance evaluations, attendance, and payroll
- Funds cover extraordinary costs and lower productivity related to new employee for three or four months average or maximum of six months (maximum $4,000)
- Reimbursement rate is usually calculated at half the pay rate for the agreed-upon training period
- Employer is reimbursed at the end of contract
- Support will be offered to the employer and employee by the One Stop Career Center Staff
Guidelines
- The company must be financially stable and have the intent and capability to retain the OJT employee in long-term employment
- The OJT employee must receive the same wages and benefits as those in comparable positions
- Training must be related to a specific career/occupational goal
OJT will not be approved for:
- Jobs depending on a commission as the primary source of income, i.e., insurance sales
- Professional occupations requiring a license such as: insurance adjuster, insurance sales, truck drivers Exception: Training plan provides an opportunity to obtain license during training period (6 month maximum)
- State and Federal jobs which require a civil exam to be passed in order to remain in the position
- Apprenticeship programs such as: electricians, plumbers
- Intermittent seasonal occupations
- Contract assignments - Any occupation