National Industry Skills Standards - Taking Training Packages beyond training
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National Industry
Skills Standards
Taking Training
Packages
beyond training
Prepared for Service Skills Australia by Caitlin HarrisContents
Overview 2
1. Standards for skills 7
1.1. Innovative and future-focused 8
1.2. Driving reform 9
1.3. B
uilding capability in a
competency-based system 10
1.4. Flexible workforce solutions 11
1.5. Skills standards in a global economy 19
2. International Perspectives 21
2.1. We have a world-class VET system 21
2.2. Australian education – an international success story 22
3. Measuring impact 23
3.1. Outcomes for Students 23
3.2. Outcomes for Employers 24
3.3. Outcomes for Industry 26
4. Looking to the future 27
References 28
A note on data: A robust debate about whether Training Packages are being effectively utilised is impossible without data on enrolments in private – and
enterprise-funded training. There are many “hidden” economic and social benefits of Training Packages, many of which are described in this paper. Many
niche qualifications have enormous economic and social impacts, irrespective of enrolment numbers.
A note on language: Training Packages do not tell you how to train, but rather specify the industry standard to be assessed against. For this reason, this
paper describes Training Packages as National Industry Skills Standards to better reflect their purpose and characteristics.Overview
Training Packages Standards for skills
specify the skills and Despite their name, training is just one context in
which Training Packages are used.
knowledge required to The national industry skills standards in Training
perform effectively in Packages also underpin workforce development
and planning, intra- and inter-occupational mobility,
the workplace. They do skilled migration and regulation and licensing.
They allow governments to initiate strategic reform
not prescribe how an quickly, effectively and across the whole economy.
individual should be They provide a comprehensive framework for
integrating skills and workforce development at the
trained. Trainers and national, enterprise and personal level, across 85
per cent of Australian occupations.
supervisors develop
This diversity of application, and the positive social,
learning strategies economic and environmental impacts that follow,
is why national industry skills standards will be the
to support individual enduring feature of Australia’s vocational education
learners’ needs, abilities and training (VET) system.
and circumstances.1 Innovative and future-focused
Training Packages reflect where industry sees itself
heading. As well as defining immediate priorities and
workforce practices, they drive innovation by reflecting
strategic and emerging skill needs. Because they are
future-focused and continuously reviewed Training
Packages keep pace with technological changes and
cutting-edge industry practices.
Training Packages are more relevant and powerful
than ever, precisely because they do not specify
how an individual should be trained. Their flexibility
and strength stem from this widely misunderstood
characteristic. As they do not stipulate how to
teach or how to learn they can be used in diverse
educational and occupational settings and lend
themselves to innovative and tailored training
methods. As standards, they also provide a
national benchmark that employers can use to
align business strategy, skills development and the
attainment of nationally recognised qualifications,
and allow for mutual recognition of qualifications
and workforce mobility across geographical areas.
2
National Industry Skills Standards
Taking Training Packages beyond trainingDriving investment in training Measuring impact
Australia’s high level of industry engagement Training is not an end in and of itself. Equally, counts of
with VET is largely attributable to the introduction qualifications and enrolments are just one indicator of
of national industry skills standards developed the success of the VET system. The effectiveness and
for industry, by industry, and the leadership and relevance of Training Packages and competency-based
proactive approach of Industry Skills Councils. A training (CBT) must be judged by outcomes in human
renewed focus on engaging industry in the system, capital, skill utilisation in the economy, social inclusion,
backed by targeted co-investment models for funding and national, local and personal achievements.
training such as the Enterprise Based Productivity
By all the quantitative measures available to us, the
Places Program (EBPPP) and the National Workforce
national system of competency-based qualifications
Development Fund (NWDF), can help short-circuit the
is achieving positive outcomes for industry, students,
backwards productivity trend being witnessed in the
and the broader economic and social goals of
Australian economy.
government in Australia. Students report very high
levels of satisfaction with the overall quality of their
A world-class VET system training and Australian VET is held up internationally
The world continues to look to Australia as a as a world-class example. Perhaps the greatest
successful, mature, integrated model for VET and achievement of the last fifteen years is the greatly
many countries are implementing similar national improved level of industry confidence, engagement
standards-based systems. The international trend is and satisfaction with the VET system (Figure 1).
increasingly for a national, sector-specific standards 89% of employers using the national system are
approach to Vocational Education and Training and satisfied with it, and 84% report that vocational
Australia is providing expertise to help develop of qualifications provide employees with the skills
many of these new frameworks. they require for the job.2
3
National Industry Skills Standards
Taking Training Packages beyond trainingFigure 1 – Satisfaction with VET, 1997-2011, Employers and TAFE Graduates
100 2011 2011
95% 95%
2011 2011
89% 90%
1997 1997
80 78% 77%
1997
68%
1997
60 58%
40
20
0
All employers Hospitality Retail TAFE
industry industry graduates
Source: NCVER Survey of Employer Use & Views 3,4, NCVER Student Outcomes Survey5,6
Sometimes competency-based training and Training
Packages take the blame for wider systemic
problems such as inflexibility or quality of training
delivery. Of the small number of employers
dissatisfied with the training system (only 8 per
cent in 2011) over 40 per cent cited poor quality
or low standard of training delivery as the reason.7
By comparison, prior to the introduction of Training
Packages employers were more concerned about
the content of courses being relevant, and the
personal characteristics of graduates.8
4
National Industry Skills Standards
Taking Training Packages beyond trainingLessons from the past – fairness, Figure 2 – Article in Australian TAFE Teacher, 1994
efficiency, investment
Prior to the introduction of a national system of
industry skills standards the picture of Australian
VET was one of fragmentation, duplication and
inefficiency. Initiated by then Education Minister
John Dawkins, between the late 1980s and late
1990s Australia completely reformed its VET
system. The elements of reform crossed party lines
and transcended the politics of federation. There
was consensus that there was an urgent need for
a national VET system, based on competency not
“time served”, which truly engaged industry in the
training system.
Then Now
Confusing duplication of qualifications across states and A national framework of qualifications. National, and
territories and industry sectors.9 Cumbersome and rigid increasingly, international recognition of qualifications.
external course accreditation arrangements.10 Limited
national recognition of skills or occupational portability
of qualifications.11
Many occupations (including retail, tourism. agriculture, Qualifications that embrace all industry sectors
telecommunications and information technology) and 85 per cent of the Australian workforce.13
without ‘nationally recognised training arrangements
or qualifications’.12
Low industry engagement with the system.14 High levels of employer engagement and satisfaction.15
Successful co-investment models of funding.16
A supply-driven system with VET provision ‘largely A national system with standards set by industry
being determined by what training programs providers and linked to tangible occupational outcomes.
wished to run’.17
Individuals seeking a qualification were not Increased levels of recognition of prior learning
recognised for skills that they had gained outside and more on-the-job training.19
of a classroom context.18
Disconnection between licensing regimes and Harmonisation of licensing with qualifications
qualifications resulting in duplication of effort in key occupational areas.
and resources.
Varying standards for workers in similar circumstances, A fairer industrial system with nationally consistent
based on geography or industry sector.20 skills and qualifications.21
5
National Industry Skills Standards
Taking Training Packages beyond trainingMoving the debate forward Figure 3 – A shared responsibility
Discussion of what competency based training can
and cannot do often deviates from pedagogical
debate into semantics. There is a real risk that
Im
amidst a war of words the more important objectives
ign
ple
are lost. If there can be an acceptance that capability
Des
me
National Skills Training and
Standards assessment
nt
and competence are both necessary and achievable, ISCs Trainers
Industry Assessors
the question ceases to be “can it be done?” and Enterprises Students TAFE
Unions ERTOs
becomes a much more useful assessment of “how & Private
Employers Colleges
is it being done?”, “how well is it being done?” and
“how can we support practitioners to do it better?”
Oversight, strategy,
quality, funding
There is a policy and funding vacuum when it Governments
Occupational regulators
comes to the systemic, professional development NSSC
AWPA
of trainers and assessors in Australia. ASQA will
not be taking a role in this area, describing is role R e g ulate
as purely regulatory.22 Nor are states and territories
taking the lead, and most training providers operate Looking to the future
on minimal budgets which restrict their ability to fully It’s time to establish the principles that will frame
invest in the professional development of their staff. the next decade of VET in Australia. The following
A national, strategic commitment to developing the elements will enable Training Packages to deliver on
skills of trainers and assessors and improving the their full potential and are critical to ensure Australia
quality of training delivery will have greater social and has the skills required to meet the economic and
economic impact than any other area of VET reform. social challenges of the next decade.
The national industry skills standards in Training • An industry-led, provider-responsive training
Packages lay the foundation for quality outcomes, but system with students and industry at its heart.
training and assessment, and quality assurance and • A national training system based on skills
regulation play equally vital roles. The success of the standards developed and validated by industry.
system is wholly dependent upon the effectiveness of • Evidence-based VET policy based on accurate data
each element (Figure 2). and evaluation of broader economic and social
impacts of national industry skills standards and their
role in lifting productivity and workforce development.
• Full data collection and reporting by all Registered
Training Organisations regardless of funding
source, scope or jurisdiction.
• A unique student identifier to enable better
tracking and recording of learners’ achievements.
• Flexible and nationally consistent funding and
regulatory models that support innovative training
and assessment practices that meet the needs of
industry and students.
• Collaborative frameworks that enable industry,
educators and governments to work together to
improve the quality of training provision.
6
National Industry Skills Standards
Taking Training Packages beyond training1. Standards for skills
A Training Package is a Training Packages specify the skills and knowledge
required to perform effectively in the workplace.
tool designed to close They do not prescribe how an individual should be
trained. Trainers and supervisors develop learning
the loop between industry strategies in accordance with individual learners’
needs, abilities and circumstances.
skill demands and the
This capacity to tailor the learning process
outcomes of training. recognises that no two people learn the same way;
Training Packages were it enables the National Training System to respond
to the needs of individuals from diverse educational,
never intended to be a ethnic, social and geographic backgrounds. National
industry skills standards are more relevant and
complete training resource powerful than ever, precisely because of this
or curriculum substitute characteristic.
Inflexibility of training delivery is more often the
– they are part of an effect of the systems that underpin Training
industry-driven system Packages, not a feature of the products themselves.
In the hands of a quality trainer, supported by
where curriculum is a flexible funding and regulatory models, skills
standards are a sophisticated tool that can be
teacher’s tool and not tailored to reflect an individual learner’s needs,
the driving force of abilities and circumstances.
The great advantage of skills standards is that they
vocational training.23 have much further application than just training
(Figure 4).
• They describe cutting-edge industry practice
and allow enterprises, regardless of geographic
location or business size, to benchmark against
national and international industry best practice.
• They are integrated into enterprise workforce
development strategies and provide a structured
framework for job design, recruitment, work
organisation, initial training, up-skilling, job
pathways, performance management and
evaluation.
• They provide a framework for lifelong learning and
career progression, pathways to further education,
national and international recognition of skills,
portability of qualifications, and benchmarks for
recognising informal learning and experience.
• Perhaps most significantly, they can be leveraged
by governments to target particular pressure-
points or skill needs in the economy and to drive
economic or social reform.
7
National Industry Skills Standards
Taking Training Packages beyond trainingFigure 4 – Applications of National
Industry Skills Standards Skills For Energy Efficiency
The electrocomms and energy utilities industries
Industrial are among the most rapidly evolving and
awards
Skilled
technologically advanced in Australia. They are
Licensing migration also leading Australia’s move to a low carbon
economy as energy efficiency becomes ‘the
accepted paradigm underpinning the design
Labour Workforce and construction and management of the built
mobility development
National and industrial environments’.24
industry
skills Energy Sector employers in electricity generation,
standards transmission and distribution; electrotechnology
Enterprise
risk Workforce
planning and refrigeration and air-conditioning, and
manage-
ment gas transmission and distribution, are key
disseminators of strategies and technologies
Career for energy efficiency. EE-Oz, the Industry Skills
Training
progression
Council for the electrocomms and energy utilities
Policy
reform industries, works in partnership with the industries
to continually revise and develop new standards to
meet the requirements of emerging technologies,
work practices and industry/regulatory standards.
1.1. Innovative and future-focused Examples include the development of more
specialised qualifications in Renewable Energy,
Training Packages reflect where industry sees itself Photovoltaic Systems, Energy Management,
going. As well as defining immediate priorities and Automation, Instrumentation and Industrial
workforce practices, they drive innovation by reflecting control. This continuous process occurs before
strategic and emerging skill needs. Because they are changes are taken-up on a broad scale so that
future-focused and continuously reviewed Training the economic and energy efficiency benefits of
Packages keep pace with technological changes and these technologies can be realised as rapidly as
cutting-edge industry practices. By having a national, possible.25
outward-looking focus they exemplify national and EE-Oz is continually seeking to develop new
international best practice. Training Package components to meet the
requirements new technologies, work practices
Training Packages are constantly revised and
and industry/regulatory standards before these
improved based on grass-roots industry intelligence are taken-up on a broad scale so that the …
and continual scanning of the industry landscape benefits of these technologies can be realised
to identify emerging trends. This allows Training as rapidly as possible. – EE-Oz, 201226
Packages to have immediacy, relevance and
responsiveness to the skill needs of the nation.
8
National Industry Skills Standards
Taking Training Packages beyond training1.2. Driving reform Green Skills
National industry skills standards play a critical role in In late 2009 COAG endorsed the National Green
government policy action. They provide governments Skills Agreement which seeks to build the capacity
with a mechanism to make nation-wide changes of the VET sector to assist the nation’s adjustment
quickly and effectively, and to strategically target to sustainable, low-carbon economy. Central to
sections of the economy. The standards allow policy the agreement was the strategic review of Training
and research agencies to analyse and benchmark Packages to embed sustainability knowledge, skills
across the economy, and enable fast, focused policy and principles.31 Today, skills for sustainability are
responses to build the required skills and knowledge an integral part of the majority of training programs
in the workforce. The following reforms would have across the country. By leveraging the national
been much less successful without a consistent, framework of skills standards in just twelve short
national system of qualifications and skills standards. months the federal government affected significant
reform to the content of training courses and
Occupational Health and Safety consequently Australian workplace practices across
The incorporation of Occupational Health and Safety all industry sectors and geographic regions.
(OHS) into the national standards is an early example National Licensing
of how governments were able to leverage the national
standards to implement urgent reforms. In 1998 Safe Many licenses in Australia, including for plumbers,
Work Australia (then Work Safe) released new national electricians, security and real estate agents, aircraft
guidelines for integrating OHS competencies into skills maintenance engineers are linked directly to the
standards in order to prevent workplace death, injury national standards in Training Packages. Where
and disease, and to improve workers’ compensation the VET system and regulatory systems are not
arrangements.27 In 2002 a new National OHS Strategy aligned there are significant costs to governments,
identified the need for ‘OHS competencies to be more individuals and to enterprises. National industry
widely integrated into vocational training.’28 skills standards underpin the new national
licensing system by providing ‘a consistent skill
Australia needs to invest in skills development to base for licensed occupations [and] the basis for
ensure an ongoing capacity to meet current and skills-related eligibility requirements for licensed
emerging OHS issues. Skills need to be developed occupations.’32 The continuous improvement of
in the workplace and among all practitioners, Training Packages has allowed the specific needs
inspectors, researchers, technical personnel of states and territories to be taken into account in
and professions that may impact directly or the new national licenses, and have informed the
indirectly on workplace health and safety. increased harmonisation of state-based legislative
– Safe Work Australia, 200229 and regulatory arrangements. The Commonwealth
Through the national standards, OHS training was government is developing a national licensing system
incorporated across all industries and occupations. under the Occupational Licensing National Law Act
Workplace practices were influenced as a result, and 2010 in order to overcome some of these barriers.
this contributed to a 25% decrease in the incidence of The National Licensing System will] boost productivity
injury and musculoskeletal claims between the base and labour mobility, which is essential at a time
period (2001-2003) and 2010, and a 42% decrease when there is massive jobs growth in the north and
in the fatality rate due to injuries and musculoskeletal west of the country – Senator Chris Evans, 201233
disorders decreased over the same period. 30
9
National Industry Skills Standards
Taking Training Packages beyond trainingFoundation skills 1.3. Building capability in a
Foundation Skills and LLN have always been an
competency-based system
integral aspect of workplace performance, and In this age of intense global competition, industry
accordingly, the Industry Skills Standards in Training needs free-thinking, innovative workers with both
Packages. Industry Skills Councils have taken a technical skills and broader capabilities. Likewise,
proactive role in identifying the foundation skills individuals benefit from a broad conception
needs of their industries and reflecting them in the of competency that encompasses innovation,
standards. EE-Oz, for example For example, has foundation skills and LLN, as well as technical skills.
made the Australian Core Skills Framework
an integral part of their Training Package design. A criticism sometimes levelled at Training Packages
suggests they only focus on technical skills,
In 2009 COAG decided to further leverage the which is untrue. Units of Competency have always
skills standards to ensure significant gaps in included broader capabilities, knowledge, LLN and
adult language, literacy and numeracy (LLN) in the employability skills as a fundamental element of
Australian workforce were addressed. All revised skill the criteria for performance. These capabilities may
standards will have a section dedicated to describing be developed in the context of a particular job role,
the foundation skills required for performance. COAG but are also “skills for life” that are transferrable to
also allowed, for the first time, for standards within other educational, occupational and social contexts.
the national framework to have a foundation skills
focus and not a specific occupational outcome.34 It is a mistake to view skills standards as static
This renewed focus on foundation skills in the objects, outside of their context within a broader
national standards has enormous potential to skill set, job role or training program. Individuals do
improve employment, educational and personal not operate in a vacuum, but within an occupational
outcomes for individuals, and for businesses, context and a professional community. Likewise,
through enhanced workforce productivity.35 units of competency are rarely taught in isolation,
but within an occupational and an educational
Animal welfare context. It is in this context that broader capabilities
and skills for innovation are best developed.
In May 2012 the NSW Government announced
Technical skills gained through initial training are
tough new measures to lift animal welfare standards
just part of a professional and educational process.
in domestic abattoirs, leveraging the existing
As AWPA notes, ‘the skills required for innovation
competencies in the Australian Meat Industry Training
tend to be learnt on the job, but formal training is
Package. As a condition of an abattoir’s license all
the foundation on which this learning is built.’37
relevant employees must now possess key animal
welfare competencies from the Training Package.36 It is important to recognise the critical role VET
professionals play in providing a meaningful context
for training to occur. The advantage of national
industry skills standards is they do not specify how
to train – this is left to the professional judgement,
creativity and innovation of the trainer. If there are
specific needs that an educator recognises in a
student, or that are required by an enterprise,
10
National Industry Skills Standards
Taking Training Packages beyond trainingtrainers can tailor and extend the educational 1.4. Flexible workforce solutions
experience to provide that broader context. By not
specifying curriculum, or the learning pathway, Training Productivity though industry engagement
Packages provide the greatest possible scope and
Productivity is the prime determinant in the
flexibility for VET professionals to be able to tailor and
long run of a nation’s standard of living, for it
target their pedagogy to best suit the learners.
is the root cause of per capita national income
Critically, funding models and auditing practices – in AWPA, 2012 39
must not restrict practitioners’ abilities to extend the
There is no question that increased investment
learning experience and build capability in innovative
in skills development will boost productivity
ways. A trainer who is only funded for a fraction of the
and economic growth. Productivity Commission
time necessary to holistically achieve the required
modelling indicates that achieving COAG’s 2020
outcome will be forced to cut corners. Unfortunately
participation targets for VET alone will raise labour
in practice this often means reducing or eliminating
productivity by 0.35%, employment by 1.04% and
the implicit knowledge components and broader
GDP by 1.95%.40
capabilities, and resorting to assessing competency
in a mechanistic fashion. One proven strategy to increase investment in
training is simple: ensure employers are fully engaged
Moving the debate forward in the training system. This increases private
Discussions of what competency based training can investment in skills development which improves
and cannot do often deviate from pedagogical debate the utilisation of skills in the workforce. This flows
into semantics. There is a real risk that amidst a through the economy in the form of productivity
war of words the more important objectives are lost. gains, economic growth and the social benefits
If there can be an acceptance that capability and that come from an increased standard of living.
competence are both achievable, the question ceases
Australia’s high level of industry engagement
to be “can it be done?” and becomes a much more
with VET is largely attributable to the introduction
useful assessment of “how is it being done?”, “how
in the late 1990’s of national skills standards
well is it being done?” and “how can we support
developed for industry, by industry. A renewed focus
practitioners to do it better?”
on engaging industry in the system, backed by
There is a policy and funding vacuum when it comes targeted funding models, can help short-circuit
to the systemic, professional development of trainers the backwards productivity trend (Figure 5).
and assessors in Australia. ASQA will not be taking
a role in this area, describing is role as purely
regulatory.38 Nor are states and territories taking the
lead, while most training providers are operating on
minimal budgets which restrict their ability to fully
invest in the professional development of their staff.
A national, strategic commitment to developing the
skills of trainers and assessors and improving the
quality of training delivery will have greater social and
economic impact than any other area of VET reform.
11
National Industry Skills Standards
Taking Training Packages beyond trainingFigure 5 – Prosperity through industry engagement
Industry Investment Skill Productivity Economic Increased standard
engagement in training utilisation gains growth of living
Using industry skills standards to invest in manufacturing
workers of tomorrow
“Our company is growing and expanding its service offer. Recently we
employed another 10 welders after winning a contract for the mining
industry – this is an example of how the training has allowed us to be
more competitive, especially with countries like China” – Allan Turner,
General Manager, WH Williams
WH Williams is a third-generation family-owned business that produces custom-made metal products and
believes in investing in its people – many of whom have been on its books for years.
Employees at the company, located in Silverwater, NSW, have now gained Certificate III and Certificate IV
national qualifications in Competitive Systems and Practices through Manufacturing Skills Australia’s (MSA)
most successful cross-industry training qualifications. These were formerly titled Competitive Manufacturing.
MSA supported WH Williams, one of Australia’s leading manufacturers of custom-made metal products, to apply
for support from the Australian Government’s National Workforce Development Fund (NWDF). The NDWF has
enabled WH Williams to increase productivity and competitiveness by improving the skills of its workforce.
Its commitment in undertaking this training has given WH Williams a competitive edge in providing end-to-end
service for customers. Lean manufacturing systems and work practices will reduce lead times and on-time
delivery of competitively priced, quality products to the customer. By developing and engaging their workforce
in lean principles WH Williams is able to equip employees with knowledge and qualifications and take ownership
of continuous improvement within the business.
WH Williams is completely committed to developing its employees, not only to meet the current and future needs
of the business but to support their own personal development.
12
National Industry Skills Standards
Taking Training Packages beyond trainingSkills utilisation through workforce mobility Figure 6 – An integrated approach
to workforce development
A key policy lesson from the OECD on putting skills
to effective use is to create a better match between Evaluation
& skills
people’s skills and the requirements of their job. One analysis
strategy to do this is to facilitate internal mobility
among local labour markets.
Retention & Workforce
succession planning
Reducing costs and other barriers associated with strategies
internal mobility helps employees to find suitable
National
jobs and helps employers to find suitable workers industry y
stment ivit
Inve P ro d u ct
– (OECD, 2012). 41 skills
standards
Australia’s national system of standards allows
for mutual recognition of qualifications and better Performance Training
management
workforce mobility across geographical areas.
It allows employers to compare the skills of
their workforce and potential workforce across
Recruitment
geographical boundaries, and to target recruitment
activities towards skill needs.
Integrated workforce development Due largely to the leadership and proactive
approach of Industry Skills Councils, the national
Workforce development contributes to productivity industry skills standards ‘are now enshrined in
gains by better matching demand for skilled people industry’s broader workforce development strategy
with supply across industry sectors so that growth in virtually all sectors and occupations.’44 This
is not constrained. – AWPA, 201242 is further bolstered by innovative co-investment
models for funding training such as the Enterprise
A proven method to encourage investment in skills
Based Productivity Places Program (EBPPP) and
development by industry is to assist employers
the National Workforce Development Fund (NWDF)
to embed skills development within their broader
which have proven a successful incentive for
business strategies. Industry skills standards
employers to integrate skills development into
provided national benchmarks employers can use
their business strategies.
to align business strategy, skills development
and the attainment of nationally recognised An independent analysis of the impact of EBPPP
qualifications.43 They are a tool to analyse skill found that Government investment leveraged a 2:1
needs, identify existing and future skill gaps, return. In June 2011, contributions by enterprises
develop recruitment strategies, train existing staff, totalled $18.9m while Government contributions
manage staff performance, and create succession totalled $36.9m. Indirect costs such as backfill,
and retention strategies. Individuals benefit from administration and travel were also contributed
the career opportunities, increases in remuneration by the enterprise. NWDF has adopted many of the
and increased job satisfaction that education can critical success factors from EBPPP and arguably
provide (Figure 6). provides the first national program which enables
Training Packages to be holistically as a tool which
underpins an integrated approach to workforce
development. Notably both programs have been
well supported by employers that had not previously
engaged with the formal VET system. 45
13
National Industry Skills Standards
Taking Training Packages beyond trainingInnovative and future-focused
Using National Industry Skills Standards
to deliver total engineering solutions Training Packages reflect where industry sees itself
heading. As well as defining immediate priorities and
workforce practices, they drive innovation by reflecting
®
strategic and emerging skill needs. Because they are
future-focused and continuously reviewed Training
Packages keep pace with technological changes and
cutting-edge industry practices.
Custom Fluidpower is one of the largest hydraulics,
pneumatics and electronic solutions providers in
Australia today. Custom Fluidpower are not only
known for being manufacturers, distributors and
their broad range of services – fluid power and
hydraulic products – but also an innovator in using
hydraulics, pneumatics and electronics technology.
Custom Fluidpower is a proud customer focused
company and their emphasis it not just about
components and parts; it’s about delivering total
engineering solutions!
The successful undertaking of Manufacturing
Skills Australia’s (MSA) national metal and
engineering qualifications, in particular Certificate
IV in Engineering (fluid power), and together with
assistance of the National Workforce Development
Fund (NDWF) has added to the success story for
Custom Fluidpower’s fitters, turners and engineers
workforce. With both nationally endorsed
qualifications and funding for training, plus the use
of state-of-the-art simulation equipment, means
that Custom Fluidpower’s workforce has advanced
their workforce’s skills in fluid power/hydraulics
technology. The expert knowledge of Custom
Fluidpower’s staff will now be the key to achieving
a competitive advance in the market place.
The aim of this project was to facilitate the training
of advanced trade skills (post trade qualifications)
for staff now and into the future to enhance
skills, improve productive output and maintain
corporate competitive advantage, both nationally
and internationally. A vital issue in the use of fluid
power is the knowledge of safety and the specific
first aid required for fluid power injection accident.
14
National Industry Skills Standards
Taking Training Packages beyond trainingUsing National Industry Skills Standards to
innovate and address changing business needs
“When the going gets tough, business gets smarter”
– Ward Tilbrook, CEO, SATIC
The Business: South Australian Tourism Industry Council
The South Australia Tourism Industry Council (SATIC) is a member-based
not-for-profit organisation. It is 600 members strong, the majority of which
are small business operators. SATIC has been operating for three years
building capability for the South Australian tourism industry.
The Need: Social media skills for tourism operators in a changing market
The development of the tourism industry in South Australia has, until recently, grown in response to demand.
The current climate of fewer visitors has meant businesses have had to start thinking about how they can
maintain, build and grow their business. In 2011 SATIC polled their members and identified that training in
on-line commerce, social media, management skills, customer service and visual merchandising was critical
to them in the changing the environment of the South Australian travel industry.
The Action: Training in social media and management to improve business outcomes
With the help of Service Skills Australia and the National Workforce Development Fund (NWDF) SATIC launched
a Front Line Management program based on the national industry skills standards in Business Services Training
Package. With 22 small businesses participating, it was essential that the program be relevant and in line with
small business needs in the changing online market. The course covered:
• Business Planning
• Operational Planning
• Online commerce and Social Media
• Enhanced Customer Service Strategies
The Goal: A program designed to meet the specific needs of business
Ward Tillbrook, CEO says SATIC wants to develop a training program for small and micro tourism operators to
build their businesses not just their resume. They want to create a program that participants rave about due
to the value of the content and how participation helped them improve their bottom line. SATIC want to build
a network of businesses that value the investment in the training they provide to spread the word that training
is valuable to a business and is worth doing.
Key Lessons from the Field
• It’s important to identify actual training needs by asking businesses what they need.
• An e-engagement strategy is an important component of training in the changing tourism industry.
• Businesses can identify value in training when it’s relevant to their specific needs.
• The national industry skills standards in the Business Services Training Package provided a framework
for a training program incorporating cutting-edge industry needs.
“Targeted training and education that meets specific business needs always works well” – Jeanette Allen, CEO,
Service Skills Australia.
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National Industry Skills Standards
Taking Training Packages beyond trainingA framework for risk management gaps and develop skills to address key areas of risk.
National industry skills standards also provide a They standards also represent a national benchmark
valuable tool to facilitate every step of enterprise which employers can use to assess their workplace
risk management approaches. They are a practices against the rest of the industry, to better
benchmark to assess the skills of staff, identify understand and implement best practice.
Using national industry skills standards to manage risk
and improve business outcomes
“We want our local businesses to collaborate to improve business outcomes
in the region.” – Russell Mills, CEO, Northern Rivers Tourism, NSW
The Company: Northern Rivers Tourism
Northern Rivers Tourism (NRT) is the regional tourism authority and peak body for the tourism sector in the
Northern Rivers region of New South Wales, Australia. Its remit is to develop and promote tourism and provide
strategic direction for the region’s tourism industry. NRT’s mission is to develop and promote authentic and
diverse tourism experiences for a sustainable future for the region. NRT’s aim is to provide a strategic focus
for the region to increase tourism visitation and yield, facilitate sustainable development and promotional
opportunity for the tourism industry, be a conduit for regional marketing intelligence and be an effective advocate
for the interests of the regional community in relation to tourism.
The Need: effective business planning in the region
NRT conducted a strategic analysis in 2011 and identified a regional need for training to increase the “supply
chain collaboration” to address the following areas of risk in the local industry:
• Low levels of professionalism
• Lack of cohesion and communication among stakeholders
• Lack of strategic alliances
• Varying levels of maturity among operators
• Inconsistent customer service standards
• Incidence of transient operators/unapproved/unregulated operators and activities
The Action: skills to manage risks and improve business outcomes
Working with Service Skills Australia and through funding from the National Workforce Development Fund
(NWDF), Northern Rivers Tourism helped local businesses work together to improve business outcomes. The
focus was on up-skilling business owners, marketing, networking and mentoring to increase business. NRT’s
approach involved:
• Supply chain analysis
• Collaboration with other businesses
• Creating and maintaining regional customer loyalty
• Using the regional footprint to maximise exposure-synergy across tourism (retail and operators), hospitality, and
food production industry/growers.
Key Lessons from the field
• Collaboration improves business outcomes and profitability individually and between businesses
• Investing in the training of business owners leads to better business outcomes
• The national industry skills standards in Training Packages provided an effective framework for this to occur.
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National Industry Skills Standards
Taking Training Packages beyond trainingSkills for life skills standards at various pivotal moments in
their careers. The national framework provides
Vocational education and training is not seen as a continuum of skills development opportunities
a one-off exercise but as a process of life-time across the whole of a person’s working life– from
learning, contributing to both personal and career foundation skills and school-based programs, to
development.46 initial training and job placement, to professional
Discussions about competency-based training development, re-training and up-skilling, recognition
sometimes have a narrow concept of what VET is in the form of wage increases and promotion, and
and can be. People encounter the national industry credit and articulation into higher learning (Figure 7).
Figure 7 – Skills standards for lifelong learning
Career Promotion &
progression VET in schools First job Career change wage increases Leadership
Foundation Entry level Transfer skills, Professional Advanced skills
Skill level skills skills re-skill, up-skill developmen & knowledge
17
National Industry Skills Standards
Taking Training Packages beyond trainingUsing national industry skills standards to create
rewarding career paths
“At Accor we recognised that a generation of future leaders could be created
with the design of better career pathways.” – John Timson, The Accor Group
The Company: Accor Hotel Group
Accor is one of the leading hotel groups in the world, with over 4,000 hotels in more than 90 countries. In Australia, Accor
has 203 hotels in both city and regional locations making it one of the largest employers of tourism and hospitality staff in
the nation. Through its training facility Académie Accor it provides unique professional development opportunities for staff.
Académie Accor Australia is one of 17 Accor academies around the world and provides training to over 10,000 employees.
The Need: To fill a skill shortage in senior management roles
Over the past five years Accor had been struggling to find senior managers. Staff were not progressing from
the middle management ranks through to senior management positions and as a result skill shortages in
senior management became a key challenge. Accor recognised the need to work with existing employees to
up-skill and identify future leaders within the company by generating better career pathways.
The Action: The EDGE – Educate, Develop, Generate, Explore
The EDGE is a 10-month intensive leadership development program, focusing on practical management and
critical skill development that encourages self-analysis and growth. It is based on the National Industry Skills
Standards in the Diploma of Hospitality from the Hospitality Training Package and is used both as a development
tool and to recognise skills and current competencies of existing staff. It covers four main themes:
• Educate: The EDGE educates existing employees on the management skills required to move to senior
management positions.
• Develop: The EDGE is designed to develop skills within the employee to assist them in identifying their next
career move.
• Generate: Career pathways are generated for existing staff to progress through the Accor group and improve
retention rates.
• Explore: Staff can explore the career opportunities available at Accor.
Participants are selected for the EDGE through a rigorous application process targeting the most successful and
motivated employees of Accor, often staff who have worked their way through the business into key roles with limited
or no formal qualifications.
The Goal: Create a new generation of leaders
The EDGE program is creating leaders to fill senior management positions at Accor through:
• The creation of more professional management practices across the hotel group.
• Improved design of career pathways.
• Increased retention rates.
• Increased engagement of teams.
Lessons from the Field:
• It’s important to invest in staff members to become future leaders.
• Leaders can be created by targeted investment in staff development.
• Provision of mentors to the next generation ensures employees gain valuable skills and knowledge from senior
managers who have had formal training as well as years of practical experience.
• Retention rates can improve by generating career paths.
• The National Industry Skills Standards in Training Packages provide an underpinning framework for the program.
“Career pathways are important for the service industry and it’s wonderful to see an industry leader, Accor,
breaking ground in this arena.” – Jeanette Allen, CEO Service Skills Australia
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National Industry Skills Standards
Taking Training Packages beyond training1.5. Skills standards in a global economy • Service Skills Australia and the Construction
and Property Services Industry Skills Council are
The complex interplay of technological advances, partnering with Indian counterparts on a range of
global demographic trends and macroeconomic VET initiatives including customising qualifications
forces has seen the emergence of global markets, and competencies to meet the needs of the Indian
economies, supply chains and labour markets. industry, and setting up quality processes and
(Cameron and O’Hanlon-Rose, 2011) staff training in India.49
Inbound and outbound labour mobility
The Trans-Tasman Mutual
Australian workers and businesses are increasingly
Recognition Arrangement
operating in a global market. Consequently, the
demand for increased mobility of skills has never The Trans-Tasman Mutual Recognition
been greater. This is international trend, but is likely Arrangement (TTMRA) came into effect in 1998.
to become especially important for Australia as an It seeks to remove barriers to the movement of
Asia-Pacific nation in this so-called “Asian Century”. people across the Tasman and within Australia
and create a trans-Tasman employment market
Australia has a great advantage in its proximity
and shared skills pool. Individuals registered to
to economies that are increasingly developing
practise an occupation in Australia are entitled
cross-border educational programs and globally-
to practise an equivalent occupation in New
ready workforces.47
Zealand, and vice versa, without the need to
A significant advantage of national industry skills undergo further testing or examination. The
arrangement covers all occupations with some
standards is it allows benchmarking and comparison
form of legislation-based registration, certification,
with the qualifications and skill needs of other
licensing, or other form of formal authorisation to
countries at a national, rather than institutional
practice. Equivalence of competencies must be
level. This allows for much more efficient inbound approved in legislation before they are awarded
and outbound mobility of students and workers. mutual recognition.50
The current national policy on internationalising Assessments of equivalence are possible
VET qualifications requires ISCs to consider how because of Australia and New Zealand’s clear and
standards can be internationalised to develop transparent competency standards. All ISCs are
skills for a global workforce. It also encourages involved in the benchmarking activities that inform
that the Australian standards be aligned where the mutual recognition agreements, including:
possible with international industry standards.48 • Service Skills Australia (Hairdressing and Beauty)
• Innovation and Business Skills Australia (Printing)
Industry is well ahead of the game.
• Government Skills Australia (Corrections)
• EE-Oz Training Standards, Australia’s Industry • Community Services and Health ISC (Dental)
Skills Council for the electrocomms and energy • EE-Oz (Electricity Supply, Electrotechnology)
utilities industries, continues its work on
• SkillsDMC (Drilling, Metalliferous Mining)
harmonising and recognition of equivalences
• Manufacturing Skills Australia
across national borders.
• Industry Skills Councils have undertaken extensive
joint work with their New Zealand counterparts to
examine the similarities and differences between
our respective qualifications as part of the Trans-
Tasman Mutual Recognition Arrangement.
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National Industry Skills Standards
Taking Training Packages beyond trainingSkilled migration RTOs that provide a qualification that is recognised
internationally can offer their students a unique
Globalisation and migration are inextricably linked value-add that sets them apart in the market.
and VET has an important role to play in Australia’s Models for international industry recognition such
skilled migration policy which is currently occupied as the International Professional Standards Network
with addressing skills shortages in some sectors.51 would not be possible without clear, national
Government agencies such as Trade Recognition standards for skills that can be benchmarked and
Australia (TRA) provide skills assessment services aligned with qualifications from other nations.
for Australian citizens wishing to have their skills
nationally recognised, and temporary, permanent
A model for global
and potential migrants seeking Visas to relocate
skills recognition
to Australia. Skills and qualifications of candidates
using National Industry
are assessed against the national standards, Skills Standards
recognition of prior learning is awarded where
appropriate, and additional training is offered to The International professional
address any skill gaps. Standards Network (IPSN) is an organisation
of standards- setting bodies recognised by
The advantage of a national system of skills government and industry from member countries
standards is it provides an integrated, fair and including Australia, New Zealand, Canada and
consistent framework to support skilled migration Hong Kong.
policy that encompasses all industry sectors.
A recent project of the IPSN involved each member
The immigration process needs to be simple, country mapping their hairdressing qualifications and
efficient and clear, to meet the needs of commerce industry recognition processes against an agreed
benchmark and common framework. Australian
and industry, and to enable Australia to compete
hairdressers who meet the IPSN criteria are now
with alternative migration destinations globally for
industry recognised in other member countries.
skilled workers. – ACCI, 2012 52
“Our hairdressing students will now have even
International industry recognition greater opportunity to develop and take their skills
around the world with our hairdressing qualifications
Outbound mobility of skilled labour is often overlooked
mutually recognised in these countries.”
in discussions of skilled migration, but students
– Jane Trewin, Gordon Institute of TAFE
can benefit enormously from a qualification that is
recognised and respected internationally as it allows
them to take their skills into new job markets.
Employers also benefit from the ability to compare
the skills of their workforce and potential workforce
across geographical boundaries, and can use industry
recognition programs to attract workers to Australia.
The strategic opportunities and diplomatic goodwill
that is fostered between countries through programs
such as this are also very valuable to governments.
Co-operation on skills policies between source and
destination countries can increase benefits to both.
– OECD, 201253
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National Industry Skills Standards
Taking Training Packages beyond training2. International Perspectives
2.1. We have a world-class VET system Competency-based qualifications or diplomas can
provide employers with a clearer sense of what a
Australia has a very well developed VET system future employee can perform on the job and enable
which enjoys a high degree of confidence. In individuals who have work experience to secure
particular, the engagement of employers is strong; credentials that reflect the skills they may have
the national qualification system is well established learned on the job. – OECD, 201260
and understood; the VET system is flexible and
allows for a fair amount of local autonomy and The international trend is increasingly for a national,
innovation to adapt learning to local circumstances. sector-specific standards approach to Vocational
– OECD, 201054 Education and Training.
• The Commonwealth and Industry Skills Councils
The world continues to look to Australia as a
are partnering with India to develop Indian sector
successful, mature, integrated model for VET
skills councils.61
and many countries are implementing similar
• Governments are looking to Australia as a source
national standards-based systems. Australia
of high quality VET training, notably India which
is providing expertise to help develop of many
Australia has committed to assist in their goal to
of these frameworks.
up-skilling 500 million people by the year 2022.62
Our VET system is recognised internationally [for its] • UK’s Leitch Review of Skills noted Britain’s
strengths: its strong employer engagement, its well- 20,000+ qualifications as a continuing source of
established and understood national qualifications widespread duplication and confusion, upholding
framework and its flexibility and openness to Australia’s Industry Skills Councils as a preferred
innovation. – Hon Julia Gillard, 200955 model for developing qualifications.63
The OECD makes a range of strategic and policy • Spain has announced its move a competency-
recommendations for VET which are evident in the based model of German-style apprenticeships
Australian model. In making recommendations to to address its 52% youth unemployment rate.64
improve the transition from school to work, the • The United States has increasingly adopted a
OECD gives Australia’s apprenticeship system as an sectoral strategy approach to economic and
example of good practice.56 It also advocates for: workforce development.65
• National systems of qualifications and VET • Sector councils are active in helping to define
assessment in order to improve quality and ‘occupational standards in Canada and the
coherence in VET provision. 57 United Kingdom, identifying the skills, knowledge
• Clear certification of learning outcomes, and understanding needed to undertake a
transparent standards embedded in a particular task or job to a nationally recognised
framework of national qualifications and level of competence.’66
reliable assessment procedures.58
Clear certification of learning outcomes and
• Mechanisms to involve industry stakeholders in the recognition of informal learning are also incentives
development of VET programs, citing Australia’s for training. Transparent standards, embedded
Industry Skills Councils as one example.59 in a framework of national qualifications, should
be developed alongside reliable assessment
procedures. – OECD, 201267
21
National Industry Skills Standards
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