Australia\u2019s system of apprenticeships and traineeships isn\u2019t producing enough skilled workers to meet our country\u2019s needs.\u00a0<\/p>\n
And, as the cost and complexity of employing apprentices and trainees increases, employers\u2019 satisfaction with the system is decreasing.\u00a0<\/p>\n
The findings were revealed in a webinar delving into Australian Industry Group\u2019s recently launched report, Apprenticeships and traineeships: The employer perspective<\/a>.\u00a0<\/p>\n The report provides the most comprehensive analysis of apprenticeships and traineeships in Australia for many years from an employer perspective.\u00a0<\/p>\n During the webinar, hosted by Caroline Smith, Executive Director of Australian Industry Group\u2019s Centre for Education and Training<\/a>, it also emerged a strong relationship between employers and local schools is crucial for developing a pipeline of potential apprentices. \u00a0<\/p>\n While the report highlights a range of issues and challenges, it also reveals the apprenticeship system is highly valued by employers.\u00a0<\/p>\n Strong support\u00a0\u00a0<\/p>\n \u201cApprenticeships and traineeships underpin the pipeline of skills central to delivering many of the biggest priorities we’re facing as a nation, and it’s a system that’s been in policy focus in recent times,\u201d Dr Smith said.\u00a0<\/p>\n \u201cGiven this significant policy focus and based on feedback from Australian Industry Group members about their experiences of employing apprentices and trainees, we identified the need for a stronger evidence base on the employer experience of apprenticeships and traineeships in Australia.\u00a0<\/p>\n \u201cAfter all, without employers offering opportunities to apprentices and trainees, there is no system.\u201d\u00a0<\/p>\n Comprehensive report\u00a0<\/p>\n Brett Hall, the Centre\u2019s General Manager of Policy, Research and Projects, said: \u201cThis report was all about shining a light on the employer experience of apprenticeships and traineeships in Australia, and to do that, we engaged with hundreds of employers across the country.\u00a0<\/p>\n \u201cWe distributed a survey earlier this year that was completed by 138 employers.\u00a0<\/p>\n \u201cInterviews added colour and nuance, helping us understand in detail what was happening for employers within the system.\u201d\u00a0<\/p>\n About 80% of surveyed employers were SMEs \u2014 the rest being large employers \u2014 and construction and manufacturing were the industries most broadly represented.\u00a0<\/p>\n Key messages\u00a0<\/p>\n In a period of widespread skills and workforce shortages, the system isn\u2019t producing enough skilled people to meet Australia’s needs, the report revealed.\u00a0<\/p>\n \u201cThe cost and complexity of employing apprentices and trainees is increasing for employers, while employers\u2019 satisfaction with the system is decreasing,\u201d Mr Hall said.\u00a0<\/p>\n \u201cTo grow apprenticeships and traineeships, which is necessary to address current and future skills needs, we need to ensure the system is viable for employers already in the system and for those yet to come.\u00a0<\/p>\n \u201cWe need a system that encourages employers to maximise the number of apprenticeships and traineeships they provide.\u00a0<\/p>\n \u201cFinancial incentives represent an important part of the overall economic equation.\u201d\u00a0<\/p>\n \u00a0While the apprenticeship system is highly valued by employers \u2014 with about 80% identifying apprentices and trainees as important or very important to their business \u2014 96% said they had experienced barriers in hiring apprentices and trainees.\u00a0<\/p>\n The most commonly reported barriers were difficulties in finding suitable candidates and difficulties associated with supervising and training on the job.\u00a0<\/p>\n About half the employers surveyed said their employment of apprentices and trainees would reduce if they no longer received financial incentives.\u00a0<\/p>\n Economic equation\u00a0<\/p>\n The employment of an apprentice or trainee represents a significant multi-year financial commitment.\u00a0<\/p>\n When an employer decides whether to employ an apprentice or trainee or how many to employ, they consider a range of issues and direct and indirect costs\u00a0\u2014 just like any other investment decision.<\/p>\n These costs collectively come together to influence what the report refers to as the economic equation.<\/p>\n Recommendations\u00a0<\/p>\n The report makes 10 recommendations aligned to six priority areas.\u00a0<\/p>\n These recommendations are directed to state and federal governments and the education and training system more broadly.\u00a0<\/p>\n The six priority areas include:\u00a0\u00a0<\/p>\n ensuring the economic equation remains viable;\u00a0 Developing relationships with the community\u00a0\u00a0<\/p>\n Fellow panellist David Brice, HR Manager at Stoddart<\/a>, a leading Australian producer of stainless steel solutions for the food service and building industries headquartered in greater Brisbane, said apprentices were hugely important to the business. \u00a0<\/p>\n \u201cWe’ve always used the apprenticeship system, and based on what it provides us, we\u2019ll continue to do,\u201d Mr Brice said.\u00a0<\/p>\n Stoddart, which has more than 400 employees, including 25 apprentices, was profiled in a case study in the CET\u2019s report<\/a>.\u00a0<\/p>\n Mr Brice said developing relationships with the community was key to developing a pipeline of apprentice talent.\u00a0<\/p>\n \u201cWe\u2019ve developed good relationships with industry liaison officers (ILOs) from schools in our catchment area,\u201d he said.\u00a0<\/p>\n \u201cThe ILOs from our local state schools meet quarterly, so we offered to host their quarterly meeting at the start of this year.\u00a0<\/p>\n \u201cWe were able to get all the ILOs on to our site, provide them with a tour of our facilities and give them an indication of what sort of apprentices we’re looking for and the types of work they will do.\u00a0<\/p>\n \u201cWe then set up a program of work experience to allow those schools to introduce students to our business.\u00a0<\/p>\n \u201cFrom that perspective, we’re developing a system of push demand, where we’ve got the schools wanting to engage with us and provide us with opportunities to see potential apprentices.\u00a0\u00a0<\/p>\n \u201cWe then have plenty of opportunities to offer apprenticeships the following year.\u201d\u00a0<\/p>\n Mr Hall said these strong relationships with local schools were cited by other employers in the survey who also had no trouble finding apprentice candidates.\u00a0<\/p>\n \u201cWhether it\u2019s by offering work experience or placements, providing school-based apprenticeships and traineeships or creating industry immersion experiences, it was the same for businesses of all sizes,\u201d he said.\u00a0<\/p>\n The cost of training and supervising apprentices on the job\u00a0<\/p>\n Taking supervisors off productive work to teach apprentices or watch them closely as they practise new skills is an issue for employers.\u00a0<\/p>\n \u201cNot having the continuity of skilled workers to oversee an apprentice’s activity can also be a challenge,\u201d Dr Smith said.\u00a0<\/p>\n \u201cA couple of companies in the manufacturing and construction sectors said they regularly lost skilled workers to the higher-paying big infrastructure projects underway all over the country, often in capital cities.\u201d\u00a0<\/p>\n These issues are not so much a problem for Stoddart.\u00a0<\/p>\n \u201cIt\u2019s about planning the work and having that next level up of production managers providing the work appropriately so we can get the most efficient use from our apprentices,\u201d Mr Brice said.\u00a0<\/p>\n \u201cWith regard to losing apprentices to those big infrastructure projects, we make sure we hire appropriately and see each apprentice as an individual.\u00a0<\/p>\n \u201cWe also look at hiring adult apprentices within our business so we have some understanding of what their career progression would look like and what they might want to do after finishing their apprenticeship.\u00a0<\/p>\n \u201cTypically, if they’re already in our business, they’re happy where they are and want to stay.\u201d\u00a0<\/p>\n Mature apprentices bring benefits\u00a0<\/p>\n Mature apprentices may cost more but tend to be more productive in the early stages of their apprenticeship, Mr Brice said.\u00a0<\/p>\n \u201cThey\u2019ve already spent some time in our business, and we can provide them with stretch tasks that allow them to be that little bit more productive,\u201d he added.\u00a0<\/p>\n \u201cWe try to strike a balance between employing adult apprentices already part of our business and taking apprentices fresh out of school.\u201d\u00a0<\/p>\n Employer incentives\u00a0<\/p>\n Financial incentives represent an important part of the overall economic equation.\u00a0<\/p>\n About two-thirds of employers surveyed said financial incentives helped offset the costs of reduced productivity associated with employing apprentices and trainees.\u00a0<\/p>\n Just over a quarter said incentives were used to support the funding of an apprentice\u00a0 coordinator, to boost the overall effectiveness of the apprenticeship program.\u00a0<\/p>\n A number of businesses said employing an apprentice coordinator led to higher completion rates.\u00a0\u00a0<\/p>\n \u201cIt also means they can maximise the number of apprentices they employ because they’re effectively optimising the way they operate their apprentice program,\u201d Mr Hall said.\u00a0<\/p>\n Several employers said it would be more difficult to justify having a dedicated apprentice coordinator in the absence of financial incentives.\u00a0<\/p>\n Some employers surveyed said the employer incentive was an important aspect of supporting the viability of adult apprenticeships.\u00a0<\/p>\n About half said they would reduce their employment of apprentices and trainees if incentives were no longer available.\u00a0<\/p>\n Mr Brice said that was a concerning finding.\u00a0<\/p>\n \u201cWe rely heavily on that push demand from schools \u2014 they\u2019re literally ringing me up, emailing me saying: \u2018Can you offer an apprenticeship to a particular student?\u2019\u00a0\u00a0<\/p>\n \u201cOr, can we offer work experience and potentially put them into an apprenticeship?\u00a0<\/p>\n \u201cIf we saw a decline in the number of apprenticeships, schools might be less inclined to approach us, thinking apprenticeships aren’t available anymore.\u201d\u00a0<\/p>\n Boosting completion rates\u00a0<\/p>\n While a focus on commencements of apprentices and trainees is important, so too is ensuring that those who do commence have the best possible chance of successfully completing.\u00a0<\/p>\n To enhance completion rates, Stoddart nurtures relationships important to apprentices including those with supervisors, its Apprenticeship Connect Australia Provider<\/a> and offsite trainer TAFE Queensland<\/a>.\u00a0<\/p>\n \u201cDeveloping those relationships and being aware of the non-financial incentives available to help us support apprentices through their years of training is vital,\u201d Mr Brice said.\u00a0<\/p>\n Mr Hall said attrition tended to occur during the first six to 12 months of an apprenticeship.\u00a0<\/p>\n \u201cThis suggests better recruitment and matching between the employer and apprentice would help,\u201d he said.\u00a0<\/p>\n \u201cThe report also explores how pre-apprenticeships can give a potential apprentice a solid understanding of the realities of an industry, trade or occupation before they start their apprenticeship.\u201d\u00a0<\/p>\n Mentoring and support in the early stages\u00a0<\/p>\n \u201cThe work experience model we use enables us to see the apprentice before they\u2019re signed up,\u201d Mr Brice said.\u00a0<\/p>\n \u201cIn those early stages, it\u2019s important to have some open and honest conversations with apprentices around any difficulties they might foresee.\u00a0<\/p>\n \u201cIn the past, we have made some very good decisions around employing apprentices who might be a little different but have become tradespeople for us. There can be some matching in terms of putting an apprentice who might be on the spectrum with a tradesperson also on the spectrum.\u00a0<\/p>\n \u201cAppropriate supervision and mentoring relationships can then develop. These have proven fruitful.\u00a0<\/p>\n \u201cBy understanding the apprentice early on through work experience or the like, we can find out who they are and what they want from their apprenticeship.\u201d\u00a0<\/p>\n REGISTER<\/a> for our next webinar Skills & workforce priorities: how education providers can help on Wednesday, August 27.\u00a0<\/p>\n FIND OUT about Australian Industry Group\u2019s Apprenticeship Supervision Program<\/a>.\u00a0<\/p>\n DISCOVER how Australian Industry Group\u2019s Apprentice and Trainee Centre<\/a> supports businesses by employing apprentices and trainees and hosting them to companies. The Centre looks after the entire employment process and provides comprehensive apprentice management services.\u00a0<\/p>\n CONTACT US<\/a> to find out how Australian Industry Group can assist organisations and education and training providers to design and implement higher and degree apprenticeship models in specific contexts.\u00a0\u00a0\u00a0\u00a0<\/p>\n JOIN the Centre for Education & Training Member Forum<\/a>, which gives Australian Industry Group members the opportunity to discuss and provide feedback on education and training issues which inform the thought-leading work of the Centre.\u00a0\u00a0\u00a0\u00a0<\/p>\n
\nwidening the pool of employers offering apprenticeships and traineeships;\u00a0
\nensuring a strong future pipeline of apprentices and trainees;\u00a0
\nexpanding the apprenticeship model into new areas, such as higher and degree-level apprenticeships;\u00a0
\nminimising inconsistency across jurisdictions to reduce system complexity and\u00a0\u00a0
\nsupporting high quality apprenticeship and traineeship experiences.\u00a0\u00a0<\/p>\n