Value of Vocational Quals to Employers

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For NCVER by Mark Cully - What it's worth: Establishing the value of vocational qualifications to employers

Key messages
This research starts from the premise that the value of qualifications to employers is what they are prepared to pay for them in the labour market.
There are clear differences in the way employers value the importance of qualifications for different categories of worker. Employers consider formal qualifications as important or essential for management, professional and trades/technical operations, less so in the clerical, sales and service, and plant and machine operator occupations, and virtually non-existent in labour and related occupations.

While employers may use qualifications in the selection process as a signal of competence, direct industry experience and evidence of personal qualities are often rated higher and more valuable.

Although qualifications are a less important element in the recruitment process than other factors, it is clear that those with higher-level qualifications have superior labour market outcomes.

Those with non-school qualifications (those issued by registered training providers and higher education providers) are more likely to be employed on a full-time basis, although much is dependent on the level of qualification - indicated by individuals with degrees or higher having the best employment outcomes.

In terms of earnings, there are considerable gains for degree and diploma holders, as well as those who have completed an Australian Qualifications Framework (AQF) certificate level III/IV qualification. High school Year 12 levels appear to matter more than lower-level (certificate I and II) vocational qualifications.