Mechanisms for increasing employer contributions to training: an international comparison

The aim of this report is to identify and discuss policy options to promote employers’ increasing their contributions to employees’ training and development. This includes outlining the level of employer sponsorship of training identified through different statistical data, comparisons between Australia and other countries, highlighting models that seek to account for different approaches to and mechanisms for employer sponsorship of training, and consideration of policy options to lever greater commitment from Australian enterprises. The report seeks to establish the conceptual terrain for advancing policy in the area of employer sponsorship of training. The research involved a two-step methodology. In the first phase, an extensive literature review was conducted on the policies used by governments in Australia and overseas to encourage employers to invest in training. In the second phase, interviews were conducted with major stakeholders in Australia and a range of overseas experts to appraise the effectiveness of policies in more detail.

A range of policy goals were identified which have the potential to be met through an enhanced commitment by enterprises to training. These goals include fulfilling specific enterprise needs as well as building the national base of skills. Given the uncertainty of policy goals, and the evidence of inconsistent commitment to investment in training across sectors, and between enterprises of differing sizes, it was concluded that, in the short term, at least four policy mechanisms might be used judiciously to secure different kinds of goals and in different circumstances. These mechanisms are: levies; partnerships; leverage; and regulation. Enhancing the status of vocational practice and vocational education appears to be a key goal for the Australian context however the report suggests that it is important that governments take on this role, rather than industry, since the latter might well experience difficulty promoting arrangements which have the potential to jeopardise industrial processes.

The aim of this report is to identify and discuss policy options to promote employers’ increasing their contributions to employees’ training and development. This includes outlining the level of employer sponsorship of training identified through different statistical data, comparisons between Australia and other countries, highlighting models that seek to account for different approaches to and mechanisms for employer sponsorship of training, and consideration of policy options to lever greater commitment from Australian enterprises. The report seeks to establish the conceptual terrain ...  [+] Show more