Mechanisms for increasing employer contributions to Training

pdf file (589Kb)

By Andy Smith and Stephen Billett

"The aim of this paper is to identify and discuss policy options for increasing employer contribtions to their employee's training and development" (P6)

This paper compares the approaches taken in Australia and other developed countries by employers and governments in contributing to employee training. From my reading, the paper finds, without knowing which goals are driving a desire for more employer contributions, it is difficult to recommend a policy approach to achieve that goal.

While partnerships between enterprises and VET providers are likely to encourage expenditure on training, this approach is not necessarily feasible for small businesses. In addition, the report found that VET provision is more likely to be directed towards the needs of large enterprises. (P16)

To encourage greater expenditure on training within Australia, businesses are likely to want a 'business case' as to why the training will bring benefits. Smith has proposed a formula for calculating a ROI ratio for investment in training. pdf file

Small business has been reported as feeling that the VET system did not meet their needs, but also that, interestingly I thought, 'those who had actual experience in vocational education programs valued them in quite a different was from those who had not'. (p40)