Workforce Development
The term ‘workforce development’ is prominent in current discussion about the role and future directions of TAFE NSW. What does the term mean? Is it just a new term for ‘the same old same old’, or, on the other hand, does it take us away from TAFE’s traditional role in education and training?
The following article draws on recent papers and reports about workforce development to explore these questions.
How skills shortages reveal the need for new thinking
The concept of workforce development has gained prominence in the evolving discussion of Australia’s skills shortages. The need to increase the pool of skilled workers in critical industries has been a focus for COAG discussion for some years. If anything, the issue is likely to become more pressing under the new Labor federal government, which has identified tackling skills shortages as critical for national prosperity, and for avoiding inflationary pressure arising from unmet demand for skilled employees.
"Virtually no evidence that skills shortages, where they exist, are a result of an inadequate training system"
As a first response, it is often assumed that the training system is at fault for not producing enough skilled workers in the relevant fields. However, various reports conclude that this is not the case. For example, in South Australia the report Skills for the Future resulted from a high level government Inquiry, and on the issue of skills shortages stated:
There has been virtually no evidence put to the Inquiry to suggest that skills shortages, where they exist, are the result of an inadequate training system. The Construction Industry Training Board suggests that ‘skill is not a commodity that can be readily stockpiled for use when demand for it emerges’ and goes on to say that
“Much is made of current or impending skill shortages. Often it is contended that this reflects a failure on the part of the ‘training system’. In fact, rarely is the training system to blame.” (Govt S.A. p. 33)
In fact, skills shortages persist as a major problem for Australian industry despite the fact that there has been a huge increase in traineeships, and that “individuals are spending more time and money on education and training than ever before” while at the same time “increasing numbers of workers report that their skills are not used by employers”. (Buchanan 2006: p.6 & 10)
The clear conclusion is that ‘more of the same’ is not going to solve the skills shortage problem, and that more innovative and comprehensive approaches are needed. In TAFE NSW, the recent discussion paper, Doing Business in the 21st Century: Proposals for Consultation puts it this way:
Building the NSW skills base requires more finely tuned responses and is no longer about ‘running courses’. Offering training without fully understanding economic, business and workforce dynamics can potentially result in skill wastage and misplaced public and private investment. (p. 3)
Workforce development – skilling and ‘decent work’
Buchanan (2006) identifies two key aspects of the change required to meet the skill needs of the future - changing the nature of jobs as well as workers’ level of competence. He describes case studies where skills shortages were addressed by helping to create ‘decent work’ through making changes to jobs to make them more attractive, as well as upskilling workers. Buchanan makes the general point:
The key challenge for public policy is not just to create jobs at any price. The quality of jobs created is just as important. Ideally, they should allow people to develop and grow through undertaking tasks which extend them and build higher levels of competence over time. (Buchanan, p. 12)
"Workforce development extends beyond the development of workers though training, to the development of the jobs in which workers are employed" This broader view of the challenge facing public policy has been taken up by government agencies in various states, using the concept of ‘workforce development’ to focus the wider issues involved. In NSW, the Independent Pricing and Regulatory Tribunal (IPART), in its 2006 report Upskilling Australia, summarises the concept of workforce development as: “workforce development extends beyond the development of workers through training, to the development of the jobs in which workers are employed.” (IPART p. 45)
The IPART report specifically focuses on workforce development as part of its ‘new vision for the VET system’. It quotes the definition of workforce development offered by the South Australian Inquiry as
“those activities which increase the capacity of individuals to participate effectively in the workforce throughout their whole working life and which increase the capacity of firms to adopt high performance work practices that support their employees to develop the full range of their potential skills and values”. (IPART, p. 45)
In the TAFE NSW consultation paper, Doing Business in the 21st Century, the concept of workforce development is used to bring together aspects of the broader industry and policy context needed to take us beyond a sole focus on training as a response to skills shortages. Skills need to relate to economic and enterprise contexts. And skills need to be developed within a workforce development framework which is as much about industry directions, business strategies and workplace cultures as it is about training. (TAFE NSW p. 3)
Thus, the term ‘workforce development’ does take us in new directions, and is not just ‘more of the same’. The South Australian report specifically addresses the need for a new term:
The existing language of ‘education and training’, ‘VET’ and even ‘skills formation’ does not capture adequately the dynamics of skill in the contemporary world of work where the content of skill is changing and where skills are developed formally and informally in multiple contexts through multiple pathways, physical and virtual throughout a working life. (Govt S.A. p. 20)
Clearly, then, the goal of workforce development cannot be achieved by the VET sector alone, or even by a broader involvement of government. Instead, “a collaborative approach between government, employers and training organisations is needed, to achieve viable long-term participation of individuals in the labour market, and sustainable productivity and economic growth.” (IPART, p. 45)
So what would it look like?
While definitions allow us to grasp the key features of a new term, it is through examples that the concept is given substance. The VET Skill Ecosystem National Project is often used to provide examples of workforce development. The Project website, www.skillecosystem.net , gives the following introduction to the skill ecosystem concept:
Skill ecosystem is a concept adapted from biology that is used in the business literature, and in Australia to guide a series of national workforce development projects. It refers to a self-sustaining concentration of workforce skills and knowledge in an industry or a region, for example the South Australian wine industry or the super funds management industry in Melbourne and Sydney.
Workforce development projects focusing on a particular skill ecosystem typically bring together a range of partners to tackle challenges such as business strategy and performance, new business objectives, work organisation and job design, and employee relations. (IPART, p. 46)
An example of a skill ecosystem project often cited is that of the racing industry, which employs 60,000 people especially in regional areas, in a wide range of connected service areas. From the employers point of view, they faced ongoing ‘skills shortages’ for track work riders. However, from the workers point of view the issue was one of a casual work offering no real career path, and with recurring OH&S issues. The project brought together racing clubs, unions and training bodies, and the outcome included introduction of permanent part-time work, improved employment practices and, critically, expansion of employee skills into hospitality and track maintenance, providing access to more satisfying work with better career options. (Govt South Australia, 2003)
A further example of workforce development from TAFE NSW is the partnership between Country Energy and TAFE NSW. The geographical spread of Country Energy’s 4,200 staff, the diverse range of skills covered, the focus on identifying and developing skill requirement for the future, and the participation of a team of teachers drawn from Institutes across NSW, make this an example of the complex challenges of workforce development. (ICVET, 2007)
These examples demonstrate that workforce development means more than training or producing more employees with qualifications. More centrally, it involves creating ‘decent work’, as in the racing industry, where changing the nature of the jobs proved more important than training more people for a narrowly defined and insecure job; or creating opportunities for career advancement while addressing technological change, as in the case of Country Energy.
The future role for TAFE NSW, as an RTO, in workforce development is described in the IPART report as “intermediaries”
…with trainers becoming consultants to firms, designing training solutions for different working contexts, as well as acting as career advisors / counsellors to learners in the workplace and facilitators of learning. The workplace will increasingly become the site of learning, while classroom-based learning will change as technology-based learning options are blended with face-to-face delivery. (IPART, p 51)
A role for TAFE in workforce development will, of course, extend but not replace TAFE’s traditional role. As Buchanan puts it:
It is important that any initiatives directed at promoting healthier and more desirable skill ecosystems are seen to complement rather than replace a system of mass technical education provided by TAFE and others. (Buchanan, p. 23)
Workforce development and the unemployed
Workforce development is not just about those currently employed. The South Australian government report, Skills for the Future, makes this explicit, spelling out the range of people included in the definition of the workforce.
The workforce includes not only those people who are currently working but also those who are either actively seeking work or wishing to return to work in the private, public and community sectors. It includes not only permanent, full time workers but also those who are working part time or as casuals (including students), at home, for agencies or labour hire companies or on contracts. It includes people who work for themselves as well as those who work for others. It includes Indigenous people, people from other cultures and ethnic backgrounds, women and men and people with a disability. It includes young people in transition from school to employment and it includes older workers up to the generally accepted age of retirement. (Govt S.A., p. 20)
With these groups, as well, the task of skills development leading to employment goes beyond offering training to individuals. The IPART Review envisages scenarios where:
VET providers will need to adopt strategies that establish strong community alliances through effective networks and collaborations with Job Network providers, non-government organizations, recruitment agencies, and community service organizations, and that build on their links with local industries and firms. (IPART, p. 42)
Making it work – some implications for TAFE NSW
The lessons to be learnt from experience of workforce development projects, including the skill ecosystem projects, are discussed in a range of reports, including Buchanan, IPART, and articles available on ICVET eZine, listed in references below. This section focuses, not on implementation, but on some of the implications of the concept of workforce development and the way it challenges the traditional role of vocational education and training.
A gradual approach to a new way of working
"It is better to move gradually and effectively - learning as much from failures as from successes"
All commentators on workforce development emphasise that there is no single approach that will work. As Buchanan puts it, “Instead of attempting a ‘crash through or crash’ approach, it is better to move gradually and effectively learning as much from ‘failures’ as from ‘successes’.” (p. 26)
To achieve this type of change requires a broad coalition of stakeholders, where neither business nor education are driving change. All case studies emphasise that in this situation the role of the facilitator/ program manager is critical. Buchanan notes:
The best way to balance the competing demands of employment and education appears to be associated with the location of project and program coordination personnel. It is vital that no facilitator for a particular project is based in an education department or an education institution. Instead, they should be located either at a workplace that is part of the network or in an establishment located near leading employer members of the network. (p. 20)
The challenges this presents for TAFE’s normal way of doing business are obvious.
Competencies and the content of work
One of the strengths of the ‘skill ecosystem’ framework for workforce development is that it frames the discussion of the content of work in ways that go beyond either competency standards or job definitions. Buchanan states that “as a matter of practice, workers and employers tend to define types of work on the basis of what could be defined as loose vocational streams.” (p.15) If workforce development involves opening up thinking about ‘decent work’ and the skills and conditions that apply to it, then new ways of looking at ‘vocational streams’ may be needed. This requires flexible thinking not just from industry, business and unions, but also from TAFE, where the classification of teachers, and teaching sections, tends to determine the types of projects, and the mix of expertise, that is brought to an industry partnership.
A new funding model
The need for a new funding model to support workforce development has been widely recognised. The IPART report comments:
Public funding arrangements for VET also need to change, to reflect the new focus on outcomes in addition to qualifications and competencies, and to allow public funds to be used to leverage industry investment in training. (IPART, p. 44)
A submission from TAFE Directors Australia makes the point that
Across Australia, the majority of TAFE clients continue to be institutional based clients, that is only about 20% of VET students are involved in an apprenticeship/traineeship, and the system is skewed to responding to this stimulus.
Given the need to satisfy students coming through the door and the fact the funding formulas make it easier to run the business by responding to this particular clientele it is not unexpected that in some cases the VET sector has been slower to respond to industry requirements than would be preferred. (p. 12)
Unless new funding models are implemented, workforce development will remain a marginal option, explored only by enthusiastic individuals willing to ‘work around’ the system.
References
Buchanan, John 2006, From ‘skill shortages’ to decent work, NSW Department of Education and Training,
Government of South Australia 2003, Skills for the Future, Final Report of the Ministerial Inquiry,
Independent Pricing and Regulatory Tribunal (IPART) 2006, Up-skilling NSW: how vocational education and training can help overcome skill shortages, improve labour market outcomes and raise economic growth: other industries - final report,
Skill Ecosystem National Projects, 2002 – 2004, Department of Education Science and Training, http://www.skillecosystem.net
TAFE Directors Australia 2007, Investing in productivity: engaging TAFE to accelerate workforce development and job participation: response to the Council of Australian Governments' (COAG) human capital reform agenda
TAFE NSW 2007, Doing Business in the 21st Century: Proposals for Consultation
TAFE NSW International Centre for VET Teaching and Learning (ICVET), updated December 2007, TAFE NSW, Bridge Street, Sydney http://www.icvet.tafensw.edu.au/