Wide-ranging changes are required in the vocational education and training (VET) system to ensure it meets the future needs of large businesses according to a report prepared for the Business Council of Australia.

The report on the key issues for large business in the VET system includes ten case studies, demonstrating the strengths and weaknesses of the current system.

BCA Chief Executive, Ms Katie Lahey said that as we increasingly rely on our knowledge-based industries, efficient and well tailored skill formation becomes a critical input into business success.

“The current VET system has served traditional industry well but the report questions whether there is a better way to meet company specific and industry-wide requirements for skill formation and skill upgrading in the future.

“The case studies show that the current policy framework, institutional and administrative processes within the VET sector do not proactively support the rapidly expanding skill development needs of large enterprises,” she said.

“Companies and their employees are looking for training and re-training, skill upgrading and skill expansion at different times through-out their career. Population ageing and workforce mobility add further to the expectations placed on the VET sector.”

The report states that modules of training rather than qualifications will be increasingly important, particularly for ongoing skill development. This brings into question how training packages are developed, their content and how they will be delivered.

“The report does not provide an answer on the best model for the future, but it does give us food for thought,” Ms Lahey said.

“We will now investigate the type of policies and models that can support future training and skilling in the private sector, given the range and variation of skills sought.

“A one-size-fits-all training package is unlikely to suit anyone.

“The results of our next stage of research will underpin recommendations to state and federal governments on ways to ensure Australian companies and their workforce get the skills they need to stay internationally competitive,” she said.

Download the report, The Vocational Education and Training System: Key Issues for Large Enterprises, using the following link.

The Vocational Education and Training System: Key Issues for Large Enterprises