Two well-established findings about employer-provided training form the backdrop to this research. First, the provision of training and its associated expenditure are highly variable across employers, notably by industry and employment size. Second, employer engagement with the formal system of VET is substantial, and growing, but a number of employers are not entirely satisfied with the system. This publication consolidates and synthesises a body of research conducted over the past few years on the topic of training provided by employers for their workforces.
This study focuses on the general question of the value of vocational qualifications to employers by considering three areas in which the economic value of vocational qualifications to employers is evident: in prerequisites specified in job hiring, in employment levels of people with different qualifications, and in the wage levels of people with different qualifications. The findings indicate that employers want people with qualifications when recruiting for some jobs, but experience is more valuable. Employers are more likely to employ people with qualifications but this depends on the level of qualification, age and sex. Employers pay more for people with qualifications but again, this depends on the type of qualification - schooling matters more than low-level vocational qualifications. Revised 20 October 2005.