A highly skilled workforce is widely viewed as essential for prosperity in economies characterised by rapid technological change. However, the development of high level skills across the workforce is expensive and requires major investment from individuals, governments and employers. This report explores an alternative approach to estimating Australian employers' contribution to skills development of the workforce. The measure is based on the increase of workers' productivity as a result of learning skills on the job. Workers' productivity is obtained by observing how fast wages grow with additional years of general work experience and of tenure with the current employer. The author estimates that, on this basis, total investment in employment-based training is much larger than previously believed.
Fully on-the-job training, the majority of which is conducted in the workplace as part of the normal experience of the employee, is perceived to offer benefits to apprentices/trainees, employers and registered training organisations. This report finds fully on-the-job training is viewed by learners and registered training organisations as a good way to learn as it provides flexibility for all concerned and financial incentives to employers. With appropriate support for learners, benefits of this type of training include learning that is customised, encompasses real work experiences and is relevant to the individual and the enterprise. It also helps to identify ongoing employment opportunities for the learners and employers. Suggested areas for improvement include improving: the level of networking among students, the levels of time management skills of learners, the balance between work and study requirements, the level of theory training, and the way trainees are valued in the workplace.
The level of enterprise expenditure on training in Australia appears to be growing, and now compares favourably with countries often held as models for national policy and practice. This report outlines a range of policy options employed internationally, including levies, leverage and partnership arrangements to enhance employer contributions to training. Ultimately, the authors find decisions about expenditure on training depends on employers' interests, values and commitments. If new policies are to be effective and build upon enterprises' commitment to training, it is critical they align with employers' needs, and receive enterprise commitment. For government, a key strategic policy goal is to improve employers' perception of the value of training to increase levels of expenditure.