Cooperation - not competition - the way forward for firms in training

22 July 2008

Higher quality training at lower cost to firms are the major benefits of a cooperative approach to skilling identified in new research from the National Centre for Vocational Education Research.

Based on a survey of 600 Australian businesses, Inter-firm cooperation in training by Richard Cooney and Michael Long, investigates cooperation among firms in the provision of training.

The research reports that for many firms, particularly small-to-medium sized companies, cooperation with others is a key strategy in driving business efficiencies, especially in support activities such as training and marketing.

The research found that more than one in six (17.6%) Australian manufacturing firms participate in cooperative training arrangements.

And, a high proportion (13.7%) of these rated the arrangements as being a 'very significant part of their business'.

Although cooperative work forms only part of the overall training effort, it is rated as providing higher quality training at lower cost through the use of shared facilities, training materials and trainers.

Cooney and Long also found that cooperative training is often an extension of existing business-to-business relationships and helped reinforce those relationships.

They reported that 'cooperative' firms tended to be strong businesses in competitive markets and saw 'the skills of their workforce as a source of competitive advantage'.

Currently, however, the VET sector has only a marginal involvement in cooperative training.

The research points to an opportunity for training providers to expand this role by developing networks within the business community and arrangements capable of meeting the needs of a cluster of firms.

To download a copy of Inter-firm cooperation in training, please visit  www.ncver.edu.au/publications/2010.html

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