Higher-level vocational education and training qualifications: Their importance in today's training market

This project investigated higher-level vocational education and training (VET) qualifications (certificate IV, diploma and advanced diploma, vocational graduate diploma) in six sectors across three industries: disability services, nursing, engineering, electronics/electrotechnology, multimedia and design. It examined the relevance of higher-level VET qualifications for enterprises and employment outcomes for students; how higher-level VET qualifications might be improved; and the implications of the new associate degree for higher-level VET qualifications.

• Higher-level VET qualifications have a role to play in meeting employers’ needs for more highly skilled workers, but employers do not necessarily favour graduates with higher-level qualifications. The value and role of these qualifications differs across sectors studied; for example, the requirements for entry into enrolled nursing are quite different from those required for multimedia and design.
  
  
• Course developers need to work very hard to establish the credibility of higher-level qualifications in the eyes of employers. Higher-level qualifications need to:
  • emphasise generic skills, such as the ability to deal with change and problem-solving
  • involve substantial work placement/experience opportunities (which will be a challenge to organise).
    
    
• Currently, the role and value of the associate degree is little known, nor does evidence exist that the associate degree will have an impact upon participation in higher-level VET qualifications.

The purpose of this project was to investigate the relevance of higher-level vocational education and training (VET) qualifications for addressing the skill needs of industry and enterprises.

Higher skills are required to meet the challenges of globalisation and internationalisation of markets, technological and demographic change, as well as changes to the nature and operation of work. Higher-level VET qualifications have been substantially developed in both training packages and state-accredited courses. The Australian Qualifications Framework (AQF) has also been expanded to include the new qualifications of vocational graduate certificate, vocational graduate diploma in VET, as well as associate degree in higher education (Australian Qualifications Framework 2006).

The research focus and approach

The research explored the apparent inconsistency between industry and government policy drives for an increase in the level of skills, participation in higher-level VET qualifications and the use of these qualifications in the labour market. Higher-level VET qualifications were identified as: certificate IV; diploma; advanced diploma; vocational graduate certificate; and vocational graduate diploma. Associate degrees are delivered in higher education, but are included in the study as they are in potential competition with higher-level VET qualifications.

The relationship between employment outcomes and the uptake of higher-level VET is complex. Higher-level VET qualifications are aligned to employment at the associate professional level of occupations. These occupations involve a small (13%) but growing share of the employed population (Allen & Gientzotis 2002). However, despite government policies supporting the uptake of these qualification levels, growth in these occupations is not matched by growth in participation in higher-level VET qualifications. In fact, in recent years enrolments in higher-level VET have declined. Furthermore, many associate professionals do not hold higher-level qualifications.

Graduates of higher-level VET qualifications do gain employment at a higher rate than do other VET graduates, yet their employment may be in positions lower than at the associate professional level. Employment opportunities in associate professional positions increase after gaining experience in the workforce (Stanwick 2006). These employment outcomes are partially related to graduates’ aspirations and the nature of the qualifications held. However, the skill requirements and employment practices of employers determine the final employment outcomes.

The following research questions guided the investigation:

• Why do higher-level VET qualifications not translate into labour market outcomes for some participants?
  
  
• How can higher-level VET qualifications be improved to better meet employers’ and students’ needs?
  
  
• What is the likely effect of associate degrees on participation in diploma and advanced diploma courses?

The project focused on a range of diverse industry sectors (engineering, electronics/ electrotechnology, disability services, nursing, multimedia, and design) in order to gain a broad view of the influences determining the uptake and demand for higher-level VET qualifications. The research included a review of the relevant literature on higher-level VET skills and qualifications. Quantitative data on participation in higher-level awards and the outcomes of these programs were also collected. Qualitative data were collected through focus groups and interviews with representative enterprises, students enrolled in higher-level VET qualifications and training package developers in all six industry sectors.

Higher-level VET qualifications in the labour market: A complex picture

Employers interviewed identified a range of drivers of skill needs, including rapid technological change; globalisation and competition; external regulation and compliance; demographic change; difficulties in attracting and retaining staff; industry restructuring (in electronics/ electrotechnology); and increased non-standard work.

Employers reported that, to meet these challenges, they need a workforce that is able to deal with change and has strong problem-solving abilities, communication and organisational management skills and business acumen. Employers also require the ability to deploy their workforce flexibly across a range of service areas, particularly in disability services and nursing where clients present with complex needs that do not fall neatly into service areas of aged care, disability, drug and alcohol, or nursing. Workers increasingly require a high level of specialisation, together with a strong understanding of allied work roles. In the engineering and electronics/electrotechnology industries workers need to be able to understand and work with integrated systems.

Employers differed in their perceptions of the value of higher-level VET qualifications in meeting their needs for higher-level skills. Three viewpoints emerge that are aligned to the industries sampled:

• Clear expectations of required qualifications are provided for those in nursing and disability services, reflecting the highly regulated nature of the industry, particularly in nursing. A minimum of certificate IV is required for work as an enrolled nurse in most states and territories, other than South Australia and Queensland where a diploma is required. The industry is seeking to introduce requirements for qualifications for disability service workers but at a certificate III level, except in Victoria where certificate IV is required for permanent government positions for those providing services to clients. Certificate IV and diploma-level training are used by those seeking management roles in disability services.
  
  
• A relevant qualification together with workplace experience is valued by employers in engineering and electronics/electrotechnology fields. Higher-level VET qualifications are required for those occupying principal technical officer roles in engineering. They were also valued by the chemical manufacturer (from the engineering sector) for managing risks associated with training in occupational health and safety and in developing autonomous, self-directed workers across all occupation levels. Employers in the engineering and electronics/electrotechnology sectors preferred university graduates or a trade background augmented by workplace experience and further training for associate professional roles. This may include higher-level VET training. Students undertaking higher VET qualifications in institutions are at a disadvantage in the competition for employment at an associate professional level, relative to existing workers and university graduates.
  
  
• Experience and talent, as demonstrated through portfolios, are preferred over qualifications by employers in the creative industries of multimedia and design. Where qualifications were required, the majority of employers interviewed preferred higher education graduates over VET graduates. Employers in the multimedia and design sectors demonstrated limited understanding of what higher-level VET qualifications offered. However, graphic design students with VET diplomas and advanced diplomas were valued as much as university graduates. The design and multimedia sectors are not subject to the same level of regulation as the other sectors, being characterised by small businesses and sole traders, as well as being integrated with other industry sectors. These factors are likely to contribute to the looser association between qualifications and job roles relative to other sectors examined.

Higher-level VET qualifications will satisfy employers’ needs if they:

• are up to date and provide for emerging needs and job roles. Training packages are tightly specified to particular occupations, which constrains their timely adaptability to changes in occupations. Relaxing the rules for the development of training packages to increase the range of options within and across training packages would reduce the constraining effects of tight specification to particular job roles and occupations
• integrate knowledge and skills across job roles and streams within the industry, including the ability to work across systems in engineering and electronics/electrotechnology roles
• increase work and industry experience to improve job outcomes for students undertaking higher-level VET qualifications in order to gain entry to employment in associate professional roles
• are credible to employers in the creative industries.

Associate degrees

Associate degrees are a relatively new addition to the Australian Qualifications Framework. They are delivered in higher education institutions. The associate degree is, at this stage, relatively unknown to employers and students in interviews and focus groups. No evidence exists to indicate that the associate degree will have an impact on participation in higher-level VET qualifications.

While there is little awareness of this qualification at present, there is potential for associate degrees to provide an alternative to advanced diplomas or a complementary pathway into an advanced diploma. Associate degrees may provide for employers’ needs for employees with broader knowledge and skills, as well as the ability to work with greater autonomy, to be self-directed and to problem-solve across a range of situations within the industry context.

Conclusion

This research found that higher-level VET qualifications are valuable tools for providing higher-level skills and knowledge as required by employers, particularly in the highly regulated environment of nursing. However, employers in the multimedia, design, engineering and electronics/electrotechnology sectors fail to recognise the value of these qualifications.

The key areas where improvement is indicated lie in ensuring that higher-level qualifications are designed such that students’ expectations for employment-related outcomes are realised by including opportunities within training programs for extended and practical workplace experience.