Significant changes to the VET qualifications system have been proposed to make it more relevant to today’s labour market needs.
The proposed model, developed by the Commonwealth Government in conjunction with the state and territory governments, aims to benefit learners/workers, employers and RTOs by being:
It comes as skills shortages across the economy continue to create many issues for business and industry, Megan Lilly, Executive Director of the Ai Group Centre for Education and Training, said at an Ai Group webinar, Skills Standards and VET qualifications, this week.
“There is a heightened sense of urgency to address these problems,” she said.
“By 2030, approximately 45 per cent of all jobs will require a vocational qualification and probably the same amount a university-type qualification.
“So, the number of qualifications required across the economy is going to be strong and growing. It means we need to keep focusing on what those qualifications need to get the right skills base in our working-age population.”
The current qualifications system was largely designed in the 1990s.
“It was a different world,” Ms Lilly, who led the webinar, said.
“We didn't have the Internet per se, emails were a novelty, smart phones weren't even invented, and the jobs people were doing were different — and they were done differently.”
The Commonwealth Government committed to accelerating reforms to VET qualifications and micro credentials at the Jobs and Skills Summit in September.
“The aim is to reduce complexity, proliferation and the narrow prescription within national vocational qualifications while maintaining a focus on quality,” Ms Lilly said.
Chris Alach, Assistant Secretary – Qualification Reform, Dept of Employment & Workplace Relations, outlined the proposed model during the webinar.
“The current VET system has become cluttered and difficult to navigate, with over 1200 qualifications, 1500 skill sets and 15,000 units of content,” he said.
“Highly prescriptive content stifles innovation, flexibility and training delivery and hinders the recognition of transferable skills and learner mobility.”
Under the proposed model, which is being tested by Commonwealth and State officials on behalf of skills ministers, qualifications will support the skills and knowledge needed for a wide range of common job roles.
Presently, many VET qualifications are designed to lead to single occupational outcomes.
Industry clusters will be responsible for the training product development process.
These clusters, comprising industry, unions, training providers and relevant experts, will identify skills needs, now and into the future.
They will also develop job profiles outlining functions required to perform various job roles and map how people could move into and between roles and industries to support clear education, training and career pathways.
The model will retain features from the current system that are working well, such as qualifications underpinned by the Australian Qualifications Framework and nationally recognised micro credentials in the delivery of skill sets.
However, key structural elements will change.
Skills Standards will replace Units of Competency as the new building block of training.
To be developed by industry clusters, Skills Standards refer to the skills and knowledge required to perform a job function in the workplace, rather than a specific task.
They will be able to be used across a number of industries and job roles.
“The development of a high-quality training product starts with understanding the needs of the workforce,” Mr Alach said.
“Units of Competency have become increasingly detailed or prescriptive, which limits their use across industries, even for tasks that are essentially the same.
“In addition, the task-level focus of many Units of Competency does not reflect how workplaces operate.
“Training for a series of separate, discrete tasks does not always equip workers to undertake complex job function roles within the workplace.”
Learners
Employers
RTOs
Training and assessment requirements, developed by industry clusters, will be separated from Skills Standards.
This will result in fewer discrete qualifications and will support greater learner transferability between job roles and industries.
Fellow panelist Mary Faraone, Chief Executive, Holmesglen Institute, said the proposed model had much to offer.
“There are great positives with the focus on transferable skills and qualifications that meet occupational and skill standards as opposed to the very narrow perspective on tasks that we currently have,” she said.
“We're pleased the concerns about the current products have been heard and that there is a genuine look at what can be improved.”
Phil Clarke, General Manager, Industry Engagement, IBSA Group, said care needed to be taken to ensure the focus on occupational flexibility did not get in the way of essential skills being gained.
“There is no doubt the nature of occupations changes over time but at the end of the day, when we are educating and training people, you want them to be able to do certain roles in the workplace.
“For example, if you want metal fabrication or plastic moulding or if you want to maintain an aircraft, there are things you have to be able to do and there is underpinning knowledge behind that that you have to have.
“We should not lose sight of that, in terms of trying to build flexibility into qualifications, because there's nothing worse than huge gaps.”
Mr Clarke said he hoped the proposed changes would bring greater collaboration among stakeholders.
“One of the things I hope we get out of the new arrangements, when they are implemented, is a far more integrated approach between the different parties.
“Let's hope we do see that, because it's an important part of qualification design and development.”
Ms Lilly said there had long been tension between prescription and flexibility in the VET qualifications system.
“We have basically tried to have a one-size-fits-all model,” she said.
“Can we evolve to a model where it it doesn't have to be one size fits all? Is it possible to recognise that some industries or occupations have a different set of needs or that some need more prescription than others, for example?
“Can we find a more nuanced and accommodating space in in the qualification design piece?"
Ms Faraone said: “It comes down to the way the qualifications are set — not so much with the development of the Skills Standards but what then forms the qualification itself.
“We have been very prescriptive about it, and I don't know where that comes from. I’m not sure whether it's because of a lack of trust among the partners.
“I would hope the sector gets to a point where the parties trust each other more.”
Greater flexibility in how qualifications are developed is also needed, Ms Faraone said.
“While the requirements of a qualification need to be met, not everyone needs the same Skills Standards.”
On the other hand, some say there is more flexibility available than is used, Ms Lilly said.
“There might be X number of units available to put into a qualification, but the providers generally deliver the same thing year in, year out,” she said.
“So, do we have a problem with flexibility, or do we have a problem with utilisation of the flexibility?”
Probably both, said Ms Faraone.
“In terms of a provider delivering for particular cohorts, like large trade cohorts, it probably comes down to funding,” she said.
“It also comes down to workforce and workforce capability. In many respects, we've lost that expertise to analyse programs.
“There is a need to bring back some of those skills into the training sector.”
Micro credentials have an important role in a revised system, the speakers said.
“Micro credentials, however they might finally be designed and implemented, are essential,” Mr Clarke said.
“It is critical they are established with consistency and integrity.
“Currently, there is reticence around them being entry level and not as a substitute for quality entry-level training.”
Mr Alach added: “There is huge range of micro credentials, and we need to make sure the new qualifications model maintains that flexibility.
“We want a system that allows a micro credential to be topped up to allow someone to move from one job to another.”
No decisions have been made in relation to the proposed model, which is still undergoing Commonwealth consultation.
There have been two phases of consultations since 2020.
Skills Standards and VET qualifications was the Ai Group Centre for Education and Training’s final webinar for 2022.
Megan Lilly and the team wish to thank everyone who has taken part in this year’s webinars — both presenters and guests.
We look forward to continuing our discussions around skills, training and education in 2023.
Wendy Larter is Communications Manager at the Australian Industry Group. She has more than 20 years’ experience as a reporter, features writer, contributor and sub-editor for newspapers and magazines including The Courier-Mail in Brisbane and Metro, the News of the World, The Times and Elle in the UK.
