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This conference paper focuses on training provided by firms. Many empirical studies demonstrate considerable variation across countries and across socio-economic groups in training participation rates, with Nordic countries showing higher participation than Southern European countries, and low-educated and older workers generally participating less than other groups in training activities. To investigate the reasons for this situation, the authors examine both the theoretical underpinnings and the empirical evidence in support of the under-provision of training. Under-provision is used to denote when 'training is below its efficient level, which equalises marginal social benefits to marginal social costs'. The authors argue that, if firms invest in general training, important evidence on under-provision can be gathered by examining the relationship between investment in training and labour turnover. They find evidence of a 'statistically significant and positive relationship between employer-provided training and subsequent turnover' for Denmark, Belgium, France and the UK. In the remaining countries the relationship is either not statistically significant or negative and statistically significant, as in the case of Finland. The evidence that, in no country except Finland, training significantly decreases the quit rate is suggestive of under-provision. The authors suggest that policies which aim at increasing the level of training above the market level should be designed to affect either supply or demand, or both.

Selected papers from the conference are indexed from TD/TNC 87.81 to TD/TNC 87.84. Show less

South Africa, though independent for a decade, still reflects the effects of the apartheid government that had more than half the country receiving minimal education and professional/vocational development. The profound need for education was a tall order not only for a third world country new to the role of governance, but even for thriving industrial countries such as the US. South Africa was fortunate in that it was able to attract and maintain sustained assistance by countries including Britain, Netherlands and Germany. However, external organizations have found their recommendations for solutions or programmatic training weakened by a lack of either research or direct knowledge of on the ground conditions and or needs. South Africa has experienced models or programs that, while successful in their regions, were not effectively geared to the needs in South Africa. These are rendered ineffective and quickly defunct leading to both a loss in money and time. Most small municipalities are unable to stand the stress of such a quick turn around of professional training investment that shows little or refutable outcomes. The participatory empowerment model of evaluation promoted by Dr. David Fetterman of Stanford University addresses many of the issues and problems encountered in the development of a solution for long term training of both an adult and vocational population. This paper will seek to define and discuss these issues in relation to this model and illustrate how it may be applied to promote effective training and sustainability. This will entail a reflection on present day life[long] learning and the knowledge economy and ways they may be informed and transformed by the process derived from each stage of the Participatory Empowerment Model. This paper utilizes interviews with participants of programs that use this model and South African organizations that have difficulty with ongoing sustained professional training.

Published abstract reprinted by permission of the copyright owner.

Collections of papers presented under each theme are indexed from TD/TNC 81.453 to TD/TNC 81.457; selected papers from this theme are indexed from TD/TNC 81.468 to TD/TNC 81.479. Show less

Many companies have traditionally considered training as a cost. There have been lengthy debates between human resource managers and operation managers on whether training is an investment or a cost. There is evidence that training pays back on its investment. These returns may include both monetary and non-monetary aspects and both should be considered important to any organization. Training will be considered an investment if it is well planned and the decision to invest in training is made in the same way as any other business investments. In this research, the Kirkpatrick and discounted cash flow methods will be used as possible tools in evaluating training investment.

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This document outlines a study, undertaken by Australian Business Limited, which found that red tape, bureaucracy and a lack of flexibility are adding to our current skills crisis. The study involved almost 400 businesses, registered training organisations (RTOs) and participants in vocational education and training (VET) programs, and is based on detailed interviews and surveys. The majority of responses indicated that employers found the VET sector confusing, highly structured and unsuccessful in delivering results. This perception sees many businesses, particularly small- to medium-sized enterprises (SMEs), hesitant in engaging in training. With SMEs accounting for 90% of Australian businesses, this is a particularly concerning situation. Some of the major results of the study include that: businesses wish to receive recognition from government for investment in training; there is a need for increased customisation in publicly funded training; red tape must be cut in the administration of New Apprenticeships; improvements must be made in the promotion of national training packages to business, with 56% of respondents having never heard of the term and a similar response received for mention of the User Choice policy. The study is presented under four main categories, which are: Engagement; Delivery mechanisms; Training process outcomes; Quality improvements. Show less

Although early childhood education must remain a policy priority to foster growth in the long-run, in 10-15 years from now, the bulk of the labour force will be still represented by individuals who are currently in the labour market. The education and training they receive after having started their working life is therefore crucial for output growth as well as individual career prospects. There is a lively debate, however, concerning whether the current level of investment in training is adequate. Furthermore, past research has shown that training opportunities are unequally distributed across workers, with workers who are already in a better position in the labour market having more opportunities to acquire new skills. To remedy these problems, policy innovations - intended to improve training outcomes - have been experimented in OECD countries in recent years. Nevertheless, some implementation problems have sometimes accompanied the introduction of these innovations, usually because the factors behind inadequate training outcomes have not been addressed properly. The purpose of this paper is therefore twofold: (a) to identify the reasons behind possible under-provision of training and inequality of outcomes; and (b) to discuss policy approaches, by mapping each policy instrument into the potential problems it can address. The empirical analysis of this paper focuses on employer-sponsored continuous vocational training (CVT) - i.e. that firms provide or pay for, at least partially. This is done for two reasons. On the one hand, CVT accounts for the largest share of education and training of the adult workforce in all OECD countries. On the other hand, CVT is closely related to the labour market and therefore must be analysed separately from the market for formal education. The first section of the paper provides further evidence of inequality in training participation and intensity across different labour market groups. The second section looks at the evidence of underprovision of training, as well as at the determinants of uneven training incidence. It also presents econometric evidence of training supply and demand effects for different groups. The last section draws some final conclusions.

Excerpt from published abstract reprinted by permission of the copyright owner. Show less

The 'ACCI review', published monthly, provides a means to communicate Australian Chamber of Commerce and Industry (ACCI) policy concerns to the Government, the public service, the media and the general public. This article calls for new approaches to fund education and training. It uses examples from the US, where donations and bequests are a major source of funds for the universities, and lists possible reforms proposed by Professor Roger Holmes, Vice Chancellor of the University of Newcastle, that could enhance tax incentives for gifts and bequests to Australian universities. While ACCI supports the changes that the government has put in place that recognise the importance of giving incentives to employers and other individuals who contribute to community activities, the article outlines a number of significant developments that have affected education and training in Australia over recent years and calls for new approaches that would encourage both employers and individuals to contribute to education and training. Show less

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. Show less

This report provides an overview of funding arrangements implemented as a result of the 1992 Australian National Training Authority (ANTA) Agreement. It describes the vocational education and training (VET) policy environment leading to the Agreement and the prevailing policy environment 10 years on. It discusses the outcomes of government, industry and individual investment in training, and includes examples of overseas funding models. The allocation of ANTA funds by training area is discussed and the observation is made that some industries rely largely on public funding for their training needs (for example, construction, tourism and hospitality), while some do not (for example, retail, finance and insurance). The discussion focuses on which industries spend the most on training and how much individuals contribute to their own training.

The author suggests that better integration in funding is just one issue. Australia’s public commitment to postschool funding is lower than comparable Organisation for Economic Cooperation and Development (OECD) countries and young Australians continue to be excluded from the education and training system. Increased VET participation among young people who drop out of all education should be a policy priority and future debate on VET funding should embrace the needs of the unemployed or those facing redundancy. Making individuals responsible for their own VET funding has the potential to increase social inequity. Comparing overseas funding models like levy schemes, and approaches which aim to increase demand for training, such as tax incentives, vouchers, loans and learning accounts, may be useful in helping Australia achieve greater educational equity. Show less

This document outlines how the department's approximately $355 million employment and training funds are to be allocated for the 2004-2005 financial year and provides details of the key areas where the Queensland Government will intervene in the short-term to address specific needs of industry, regions and key population groups. Highlights for 2004-2005 are: new and innovative approaches to skilling with investments supporting skills development in priority industries such as aviation, biotechnology, creative industries, the environment, manufacturing and tourism; new SmartVET Industry Training Partnerships program; new SmartVET investments to target skills shortages through initiatives, including accelerated apprenticeships, cadetships, enhanced recognition of prior learning practices and skills formation strategies; employer incentives to create 3500 additional apprenticeship places in skills shortages industries; inclusion of energy, sport and recreation, and transport and logistics as new Queensland training and employment priority industries from 2004-2005; extension of the 'Breaking the unemployment cycle' initiative; about $8 million in specific employment and training service for Aboriginal and Torres Strait Islander peoples; investment in recognised training for young people aged 15-17, in support of Queensland's education and training reforms for the future; and implementation of adult skills and knowledge commitments. Show less

This paper lists the processes and key factors involved in obtaining a high benefit from investing in training, and outlines methods of assessing the value of training. The author outlines methods of measuring the success of business developments. The paper concludes with a formula for assessing the cost of training and calculating the return on the investment. The paper is directed towards business employers and key stakeholders.

The forum program from which this paper is taken is indexed at TD/TNC 78.464. Selected papers are indexed from TD/TNC 78.465 to TD/TNC 78.467. Show less