By Kathryn V. Harris, President & COO, ActivateWork

Employers across Colorado and the U.S. are paying close attention to potential changes in the H-1B visa program. The proposal under consideration could result in employers paying up to $100,000 annually for H-1B workers. If implemented, the higher cost could limit the number of mid-level professionals from outside the U.S. in the workforce, leaving companies to rethink how they fill critical roles, especially in the tech industry, which often relies on a global workforce.

At the same time, artificial intelligence is reshaping the entry-level job market. Many roles that once served as a foot in the door for new talent to learn from their more experienced peers are being automated away, meaning the traditional pipeline is narrowing from both ends—leaving an impending skills gap. The question for employers is no longer whether to innovate in workforce development, but how. And this isn’t just a problem in the era of potential H-1B visa fees, but is something companies have been struggling with across the board. These potential changes highlight an already urgent problem with filling talent pipelines in Colorado and beyond.

To make an urgent issue even more compelling, we’re beginning to see what is called the Silver Tsunami—a large demographic wave of older workers, primarily Baby Boomers, reaching retirement age, exiting the workforce, and taking decades of experience and institutional knowledge with them. According to the Colorado State Demography Office (SDO), approximately 1 million workers will age out of the workforce in Colorado over the next 15 years. In addition, SDO’s forecasts show the working-age share of the population is declining with the 65+ community rising significantly and the younger pool of workers proportionally shrinking.

Looking Inward: Turning Statewide Calls for Transformation into Actionable Change

With statewide leaders, including Governor Polis, calling for a transformation in how education and workforce systems work together, it’s more critical than ever to reimagine how we prepare Coloradans for successful careers—and how they enter the talent pipeline.

Many companies still rely on a “post-and-pray” mentality—flooding job boards with openings and hoping the right candidates apply. Others turn to poaching from competitors, a costly cycle that doesn’t expand the overall talent pool and can backfire. These methods may fill short-term needs but rarely deliver sustainable workforce growth.

An Emerging Pathway: Work-Based Learning and Training

Employers looking to build resilient employee pipelines should consider a broader set of strategies. The old adage of ‘You can’t get a job without experience, but you can’t get experience without a job,’ rings true for many. These strategies allow for gaining experience while working at a job, both earning and learning.

At ActivateWork, we favor apprenticeships as the best long-term strategy for talent and pipeline development. Unlike internships, apprenticeships are designed with conversion in mind. Apprentices earn wages, build defined competencies, and complete accredited training while on the job. While most people may still think of apprenticeships for skilled trades such as electricians, plumbers, and linemen, apprenticeships are now a great option in professional high-tech jobs such as data analytics, software development, and cybersecurity.

High-tech apprenticeships embed classroom training up front and generally last 12 months, leading to higher retention rates (read: lower turnover), increased productivity, and stronger alignment between skills learned and employer needs due to the purposeful nature of the program.

Colorado employers can qualify for up to $12,600 in tax credits per apprentice and access an additional $8,000 in cash incentives from ActivateWork via grants, as the Department of Labor further incentivizes employers to adopt this model, making it not just a workforce solution but a financial one as well. In the process, they gain “entry-level” employees with the exact skills needed for that specific role and company—and who are much further along than many other candidates in the same pool. From the employee side, these apprentices get the opportunity to enter a career right out of their training course, averaging a salary of $65,000 or more and zero debt as they override the need for a traditional four-year college with a completely free bootcamp-style training.

In the age of AI transformation—when technology roles demand higher-level skills and a wave of experienced workers is exiting the sector due to demographic shifts—tech apprenticeships offer a critical strategy to sustain workforce capacity by pairing emerging talent with seasoned professionals, enabling knowledge transfer, mentorship, and hands-on learning that bridges the growing skills and experience gap.

For instance, one of ActivateWork’s employer partners, the Governor’s Office of Information Technology, recently spoke at a conference on how one of their apprentices was able to deploy a code component across the State of Colorado, something that many developers don’t have the opportunity to launch for a decade or longer into their careers, due to the nature of the training for the apprenticeship and knowledge transfer studying under her tenured peers.

Outside of apprenticeships, employers can also consider internships. Traditionally short-term and seasonal, internships help students test career interests and can lead to long-term hires.

Employers can also think about work-based learning platforms like Riipen that allow small and medium-sized businesses to test “micro-internships” or project-based engagements with students or job seekers, giving both parties a low-risk way to explore the fit.

Myths About Apprenticeships: How to Create a Win-Win for Employers and Workers

Many businesses think apprenticeship programs are cost and time-prohibitive, but it’s easier and more cost-effective than ever for businesses in Colorado to onboard apprentices. Not only are there a myriad of incentives and tax credits available for apprentices, but nonprofit organizations are now serving as qualified intermediaries to reduce the administrative burden of apprenticeship programs for companies.

By partnering with employers such as Bank of America, Trimble, Janus Henderson, Sage Hospitality, and the State of Colorado’s Office of Information Technology, ActivateWork is one of a few in Colorado helping companies access untapped local talent pools for a modest fee. For employers worried about the time commitment and expense of formal apprenticeship programs, these intermediaries handle much of the administrative oversight, while state and federal incentives are higher than ever, reducing the cost barrier.

While only a few Colorado businesses, government agencies, and nonprofit organizations are currently leveraging apprenticeships in tech to build new talent pipeline strategies, those that do believe strongly in their power. In some places, misconceptions about apprenticeships persist—things like participants lacking the skills needed to contribute immediately, being a burden on teams, or the need for a formal four-year degree via the traditional education-to-career pipeline.

In reality, apprentices often bring an eagerness to learn, a solid foundation from their training, and in many cases, the ability to build and innovate faster than even experienced employees, as noted by the Governor’s Office of Information Technology team that has taken on several apprentices in recent years. Apprenticeships prove that with the right structure and support, unconventional talent sources can deliver highly capable, motivated professionals that are ready to succeed.

Looking Ahead

As companies prepare for the possibility of high H-1B costs, now is the time to diversify strategies for entry- and mid-level talent. Apprenticeships, internships, and innovative project-based learning can all play a role in building durable pipelines that keep businesses competitive, even as AI transforms the workforce.

The reality is that entry-level roles demand more skills than ever before. Employers who invest in developing talent locally through varied means, rather than depending solely on global labor supply, will be better positioned to weather change and thrive long-term. While apprenticeship is not the only tool in the talent toolbox, it is an increasingly important one.