VET Reform & Group Training Rod Camm Chief Executive Officer GTA National Conference 13 November 2014

State of the Training Market Where is Group Training? Key Policy Issues

So What Has Changed? Then…

Mobile Mobile is not simply another device…mobile is the manifestation of a much broader shift to new systems of engagement… Now… Source: Forrester (Jan 2013)

Success in a Connected World Today everyone is demanding real-time, multimodal access to social, entitled and public data sources and services.

Lies Damn Lies and Statistics

Total Operating Expenditures by State, 2008 – 2012

Non – TAFE Students by State 2009 – 2013

TAFE and Other Gov Students By State, 2009 – 2013

Commencements 12 months 31 December by State and Territory Source: NCVER Apprentices and trainees 2013 – annual

Quarterly Commencements Source: NCVER Apprentices and trainees – Early Trend Estimates June 2014

Apprentices and Trainees Source: NCVER Apprentices and trainees – June Quarter 2014

: In-training & Unemployment Rate Source: ABS Labour Force, Australia, Apr 2014, Apprentices and Trainees, March 2014

Completion Rates – Trades Source: NCVER Apprentices and trainees – March 2014 estimates, unpublished

Completion rates – Non-trades Source: NCVER Apprentices and trainees – March 2014 estimates, unpublished

VET Students in Australia Source: Historical time series of VET in Australia since 1981 (2013)

VET Students by State and Territory Source: Historical time series of VET in Australia since 1981 (2013)

Research Findings Estimated completion rates using Markov chain approach. Employer TypeCompletion Rate (%)N Private Group Training Government (excluding Defence) Government (Including Defence) Source: Karmel and Roberts (2012), Table 2

Main reasons for not completing an apprenticeship, 2008 and 2010, trade occupations Main reason for not completing an apprenticeship (n = 429)(n = 1154) (%) Did not get on with boss or other people at work Did not like the type of work Other reasons * Personal reasons Left job or changed career Lost job or made redundant The pay was too low Was not happy with the on-the-job training5.4*1.9 Not happy with the job prospects in the industry3.6*4.2 Got offered a better job3.3*2.2 Apprenticeship/traineeship cancelled or discontinued3.2*3.8 Poor working conditions3.1*3.1 Changed to another apprenticeship/ traineeship3.1*1.1* Left to study elsewhere1.9*0.8* Found the study too difficult1.4*1.6 Was not happy with the off-the-job training1.4*1.6* Total100.0 Notes:*indicates that the estimate has a relative standard error greater than 25% and therefore should be used with caution. The table is sorted by the main reason in ‘Personal reasons’ includes the following: family reasons, illness, lack of time, moved, problems with travelling/transport. Source:Apprentice and Trainee Destinations Survey (NCVER 2010, p.10).

Research Findings Karmel & Roberts (2012) found that GTOs had slightly higher completion rates than private employers, but the difference is marginal. Further research of this phenomena is required as most GTOs have employer characteristics associated with higher employment: Larger, experienced employers with well organised systems, offer varied work, strong recruitment policies, administration and pastoral care Government employers achieve completion rates that are up to 30 percentage points higher than completion rates of private or GTO employers

Research Findings Greater support for apprentices is needed to improve completion rates Between 10 and 15 per cent of all commencing apprentices are employed with GTOs. The GTO method of employing apprentices is becoming increasingly important as individual employers have become more reluctant to commit themselves to employ and train apprentices for up to 4 years.

Key Policy Issues National framework Entitlement (s) Contestability Quality Role of industry Training products

Longer Term Issues Participation Productivity Youth transitions Aspirations Indigenous

Help employers and workers adjust to technology and market changes Match training to needs of employers Maximise access to quality Vocational Education and Training Acticipate future skills needs (Build competencie s for the future) Skills Framework Framework to link skills development to gains in productivity, employment and economic development Source: A skilled Workforce for Strong, Sustainable and Balanced Growth: A G20 Training Strategy, International Labour Office, November 2010

Why We Need Quality

Variety of options for achieving qualifications has led to uncertainty about integrity of qualifications awarded Reassure consumers of learning that qualifications and skills gained will be valued in labour market Reassure employers of the value of a qualification Give credit for qualifications gained in other systems Increase transparency, portability and mutual recognition of qualifications across jurisdictional borders Meet government accountability requirements

Rick-Based Approaches

Self Assessments

Generally pre-cursor to external review Labour intensive, need to include or provide access to data on participation and outcomes External auditors or inspections use data to undertake risk assessment, and criteria for audit Provider describes how it has fared against criteria Auditors or inspectors make on-site visits Peer review processes used to support self-assessment (UK, Finland) Publication of data may change how providers approach the exercise

Regulator suspends or cancels registration Regulator applies progressively stronger sanctions Regulator conducts formal investigation into breaches and complaints Regulator monitors activities via communications, site visits, agreed compliance actions Regulator educates and supports via good guidance material, advisory services. educational events, quality awards Source: Based on Australian Government, 2012: Australian Charities and Not for Profit Commission website, Taskforce Implementation Report, and concepts of responsive regulation from Valerie Braithwaite and Melcolm Sparrow.

The Quality Stamp