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Key Messages

Group Training in Australia: A study of group training organisations and host employers

 

  • Group training involves an organisation employing an apprentice or trainee under an apprenticeship/traineeship contract and placing them with a host employer.
  • Since its inception in the 1970s employment in group training companies has grown from just a small percentage of total apprentices and trainees to employing around 14% of the total.
  • Group training appears to complement other training investment rather than substitute for it (that is, without group training less training would occur).
  • Group training companies are highly adaptive and responsive to their policy and commercial environment.
  • Host employers, in the main, are very satisfied with the services provided by group training companies.
  • Seventy per cent of group training apprentices and trainees are hosted by workplaces with fewer than 200 employees.
  • The main reasons for employers using group training are, in descending order of importance: savings on recruitment and selection; avoidance of administrative complexity; saving on employment costs; and lack of continuous work.
  • Government attempts to increase labour market participation of equity groups through group training have proved to be relatively successful.
  • Group training activities are becoming more commercially driven and this may threaten the quality of training generally and, in particular, training opportunities for the more disadvantaged.
  • Newer group training companies (post-1990) tend to be smaller, less likely to be in receipt of government funding (joint policy funding) and more likely to be operating a variety of related labour market activities which have become available through deregulation of labour market and training programs.
  • Deregulation has provided alternative means of financial support for the group training function but means, in turn, less government supervision and more emphasis on price as the basis of competition rather than provision of support services.

 

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