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Key messages

Qualifications use for recruitment in the Australian labour market

The use of qualifications by employers is poorly understood and documented. This study explored how employers use qualifications in their recruiting processes.

  • The study found that about half of the 359 employers surveyed used qualifications as a screening mechanism and minimal requirement in their selection processes, while a quarter used them as a sorting or ranking mechanism. Employers valued qualifications as a signal of greater potential for further learning and skills acquisition.
  • As a signal of immediate competence, employers placed a high priority on previous work experience and experience in their industry. Employers also considered personal qualities in their recruitment decisions.
  • These uses of qualifications by employers do not apply across the board to all positions within the enterprise. They apply more to professional, managerial and clerical employees. Employers typically rely on networks and local contacts and work experience for operator level and technical trades positions. The growth of casual employment has not altered these behaviours.
  • The detailed results suggest that qualifications are embedded in employers' recruitment decisions. However, there is room to build stronger currency of vocational education and training (VET) qualifications by linking them with industry and work experience to reflect the behaviours and experiences that are most valued by employers.

 

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