Workplace and institute accredited training: Costs and satisfaction

The main purpose of this study is to provide a comparative analysis of the costs of delivery of comparable accredited courses delivered in educational institutions as opposed to those delivered in the workplace. A secondary purpose is to provide a comparative measure of student satisfaction related to each delivery mode.

The recent and ongoing reforms to the vocational education and training sector in Australia are aimed at increasing relevance and cost-effectiveness of industry training. The underlying assumption is that accessible, quality training will improve the competitiveness of Australian industry. The growing interest in workplace-based training is largely a result of this economic imperative. However, there is currently little information available concerning the cost of workplace-based training in Australia or its outcomes in terms of student satisfaction.

A case study approach was used to examine various models of technical and further education (TAFE) accredited training with particular emphasis on comparative costs and student satisfaction. Case studies were drawn from the retail, hospitality and automotive industries.

A sample of students/trainees from each participating organisation was surveyed by questionnaire to provide information on satisfaction levels with the various delivery modes and expenditure on training. A small sample (34 from each course) was selected for interview. Questionnaire responses were used to inform the interview schedule and interviews were conducted to follow-up and illuminate issues identified by the questionnaire data. Student satisfaction was one criterion used to judge the outcomes of the training.

Costing

While the findings are not definitive, they provide some insight into the components of costs and how they can vary under alternative forms of delivery. The following observations were made.

• Delivery in the workplace can allow for reduced cost of formal, structured tuition. However, if trainees in the workplace are provided with support from a coach or mentor, considerable costs are incurred.

• It may not be easy to arrange workplace training for large groups in the same way as that delivered to small groups.

• The cost to companies of providing structured on-the-job training can be offset by the unpaid work of trainees and the opportunity to assess trainees during the training period for possible employment.

• Employers tend to believe that training costs are justified by increased productivity; that is, that the benefits outweigh the costs.

• There was considerable variation in government contribution to training in the cases examined. The justification for this variation is a matter for further investigation.

Satisfaction

Generally, there was a high level of satisfaction with courses being undertaken.

• There was no evidence that there was less satisfaction with cheaper courses.

• There was very little difference in student/trainee satisfaction levels between industries or between TAFE and workplace-based delivery modes.

• TAFE students were, on average, less satisfied with the cost (to them) of their training than were workplace-based students. Given that they pay fees and may have other associated costs, such a difference is not surprising.

• The lowest level of satisfaction for both TAFE and workplace-based groups related to the time (scheduling) of classes.

• The highest level of satisfaction for the workplace-based trainees related to the trainers' knowledge, and for TAFE students, to the usefulness of the program in improving their job prospects.

• Practical application of the learning was highly valued by all students/trainees.