2013 Hairdressing and Beauty Scan - Service Skills
2013 Hairdressing and Beauty Scan - Service Skills
2013 Hairdressing and Beauty Scan - Service Skills
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Hairdressing</strong><br />
<strong>and</strong> <strong>Beauty</strong><br />
Environmental <strong>Scan</strong> <strong>2013</strong>
Acknowledgements<br />
This document has been produced by <strong>Service</strong> <strong>Skills</strong> Australia with the assistance of funding provided<br />
by the Commonwealth Government through the Department of Industry, Innovation, Climate Change,<br />
Science, Research <strong>and</strong> Tertiary Education.<br />
This document is supported <strong>and</strong> endorsed by the hairdressing <strong>and</strong> beauty services industries. Whilst<br />
the document sits with <strong>Service</strong> <strong>Skills</strong> Australia (the Industry <strong>Skills</strong> Council for the hairdressing <strong>and</strong><br />
beauty services sectors) it is owned <strong>and</strong> maintained by the sector, for the sector. <strong>Service</strong> <strong>Skills</strong> Australia<br />
acknowledges the contribution of the Wholesale, Retail <strong>and</strong> Personal <strong>Service</strong>s Industry Advisory Committee<br />
in the preparation of this document.<br />
May <strong>2013</strong>
Contents<br />
Introduction3<br />
<strong>Service</strong> <strong>Skills</strong> Australia 3<br />
Objectives3<br />
Key Messages 4<br />
Sector Profiles 5<br />
A Note on Definition 5<br />
Latest Industry Statistics 5<br />
Latest Industry Intelligence 6<br />
Household Consumption Patterns 6<br />
Product <strong>and</strong> Treatment Developments 7<br />
Customer <strong>Service</strong> 7<br />
Sustainability8<br />
Workforce Development Needs 10<br />
Small <strong>and</strong> Medium Enterprises 10<br />
Core <strong>Skills</strong> 10<br />
The National Workforce Development Fund <strong>and</strong><br />
the Enterprise Based Productivity Places Program 12<br />
Industry Workforce Statistics 13<br />
Qualifications Profile 17<br />
Workforce Ageing 19<br />
The VET Environment 22<br />
Institutional Delivery 22<br />
Quality23<br />
Assessment Practice 23<br />
Quality <strong>Skills</strong> Development <strong>and</strong> Right Way 24<br />
Graduate Outcomes 25<br />
Completion Rates 25<br />
VET in Schools 26
Current Impact of Training Packages 28<br />
Future Directions for Endorsed Components of Training Packages 32<br />
SIB10 <strong>Beauty</strong> Training Package 32<br />
SIH11 <strong>Hairdressing</strong> Training Package 32<br />
Appendices33<br />
Appendix A: Report of Continuous Improvement of SIB10 <strong>Beauty</strong> Training Package 33<br />
Appendix B: Report of Continuous Improvement of SIH11 <strong>Hairdressing</strong> Training Package 33<br />
Appendix C: <strong>Hairdressing</strong> <strong>and</strong> <strong>Beauty</strong> Occupations <strong>and</strong> Qualifications in Dem<strong>and</strong> 34<br />
Endnotes35
Introduction<br />
<strong>Service</strong> <strong>Skills</strong> Australia<br />
<strong>Service</strong> <strong>Skills</strong> Australia (SSA) is the Industry <strong>Skills</strong><br />
Council (ISC) for the service industries, one of 12<br />
not-for-profit, independent organisations funded<br />
by the Australian Government Department of<br />
Industry, Innovation, Science, Research <strong>and</strong> Tertiary<br />
Education (DIISTRE) to support skills <strong>and</strong> workforce<br />
development.<br />
The service industries encompass the following<br />
industry sectors:<br />
• Wholesale, Retail <strong>and</strong> Personal <strong>Service</strong>s:<br />
wholesale, retail, hairdressing, beauty, floristry,<br />
community pharmacy <strong>and</strong> funeral services.<br />
• Tourism, Travel <strong>and</strong> Hospitality: travel, tours,<br />
meetings <strong>and</strong> events, accommodation, restaurants<br />
<strong>and</strong> catering, holiday parks <strong>and</strong> resorts.<br />
• Sport, Fitness <strong>and</strong> Recreation: sport, fitness,<br />
community recreation <strong>and</strong> outdoor recreation.<br />
<strong>Service</strong> <strong>Skills</strong> Australia’s roles <strong>and</strong> responsibilities<br />
are to:<br />
1. Provide integrated industry intelligence <strong>and</strong><br />
advice to government, the Australian Workforce<br />
<strong>and</strong> Productivity Agency (AWPA), industry <strong>and</strong><br />
enterprises on workforce development <strong>and</strong> skills<br />
needs for the service industries.<br />
2. Actively support the development,<br />
implementation <strong>and</strong> continuous improvement<br />
of high quality training products for the service<br />
industries, including training packages.<br />
3. Engage in workforce development activities<br />
<strong>and</strong> services for the service industries.<br />
Objectives<br />
The Environmental <strong>Scan</strong> is a broad analysis of<br />
recent intelligence <strong>and</strong> the external environment for<br />
the hairdressing <strong>and</strong> beauty industries to identify<br />
trends <strong>and</strong> changes, <strong>and</strong> the associated workforce<br />
development needs.<br />
The Environmental <strong>Scan</strong> is a key piece of advice to<br />
government <strong>and</strong> industry on workforce developments<br />
needs. It also informs continuous improvement of<br />
SSA’s skills <strong>and</strong> workforce development strategies,<br />
which includes the development of training packages.<br />
This scan has been produced with information<br />
primarily collected between February <strong>and</strong> December<br />
2012. The key issues included in this scan have been<br />
identified in partnership with industry (employers <strong>and</strong><br />
unions) <strong>and</strong> supported with available statistics. SSA<br />
obtains its industry intelligence from SSA’s Industry<br />
Advisory Committees (IACs), state training advisory<br />
bodies <strong>and</strong> SSA’s consultation with industry <strong>and</strong> other<br />
key stakeholders.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
3
Key Messages<br />
In <strong>2013</strong>, a combination of altered spending<br />
habits, shifting social values <strong>and</strong> technological<br />
advances are driving change in the hairdressing<br />
<strong>and</strong> beauty industries.<br />
Dem<strong>and</strong> for hairdressing <strong>and</strong> beauty services is<br />
growing in response to a broader structural shift<br />
in the economy away from goods <strong>and</strong> towards<br />
services. Additionally, Australia’s ageing population<br />
<strong>and</strong> a society that is placing increasing value<br />
on appearance is further accelerating industry<br />
dem<strong>and</strong>. This is reflected in the forecast growth<br />
in employment for these industries, particularly<br />
the beauty industry.<br />
However, economic <strong>and</strong> demographic trends are only<br />
part of the story. Undeniably, the development of new<br />
technologies is a particularly significant driver of change<br />
in the hairdressing <strong>and</strong> beauty industries, resulting<br />
in the introduction of new treatments <strong>and</strong> products.<br />
Innovative tools, products <strong>and</strong> treatments including<br />
LED phototherapy, photodynamic therapy <strong>and</strong> global<br />
keratin are leading to an increase in the sophistication<br />
of the skills <strong>and</strong> knowledge of the workforce.<br />
These developments have bred their own set<br />
of challenges for the hairdressing <strong>and</strong> beauty<br />
industries, such as persistent shortages of skilled<br />
hairdressers, which is being exacerbated by reports<br />
of graduates from full-time training programs <strong>and</strong><br />
Certificate II qualifications that are not ‘job-ready.’<br />
Finally, these challenges are occurring against a<br />
backdrop of misconceptions that hairdressers <strong>and</strong><br />
beauty therapists are ‘low skilled’ <strong>and</strong>, as such,<br />
require less support <strong>and</strong> resources for training<br />
<strong>and</strong> skills development.<br />
4 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Sector Profiles<br />
A Note on Definition<br />
The hairdressing <strong>and</strong> beauty service industries<br />
are captured in the Australian <strong>and</strong> New Zeal<strong>and</strong><br />
St<strong>and</strong>ard Industrial Classification (ANZSIC) under<br />
Group 951 ‘Personal Care <strong>Service</strong>s’ in class<br />
9511 ‘<strong>Hairdressing</strong> <strong>and</strong> <strong>Beauty</strong> <strong>Service</strong>s’. The<br />
primary activities that are recorded in this industry<br />
classification include:<br />
• <strong>Hairdressing</strong> services<br />
• <strong>Beauty</strong> services<br />
• Electrolysis services<br />
• Hair restoration service<br />
(except hair transplant service)<br />
• Barber shop operation<br />
• Make-up services<br />
• Nail care services<br />
• Skin care services<br />
• Tanning services<br />
Latest Industry Statistics<br />
The hairdressing <strong>and</strong> beauty industries in Australia<br />
are characterised by a substantial number of small<br />
<strong>and</strong> medium-sized owner-operated businesses, with<br />
a growing number of franchises emerging. Most<br />
businesses are Australian owned, but there is also<br />
a small amount of international ownership.<br />
• As at August 2012, there were 99,700<br />
individuals employed in personal care services,<br />
representing an increase of 17.9 per cent over<br />
the year. 1<br />
• Strong employment growth of 4,600, or 5.1<br />
per cent, is expected in personal services in<br />
the five years to 2016–17. 2<br />
• In 2011, according to the Census, there<br />
were 52,928 Hairdressers <strong>and</strong> 20,300<br />
<strong>Beauty</strong> Therapists. 3<br />
The industry statistics presented in this<br />
Environmental <strong>Scan</strong> are based on this definition.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
5
Latest Industry Intelligence<br />
Factors influencing the hairdressing <strong>and</strong> beauty<br />
industries include: household consumption<br />
patterns, increasing consumer expectations <strong>and</strong><br />
developments in technology. Combined, these<br />
factors shape the workforce requirements of<br />
these industries, while simultaneously altering<br />
the set of skills required.<br />
Household Consumption Patterns<br />
There is a growing body of evidence of a structural<br />
shift away from the consumption of goods, towards<br />
the consumption of services. Such a trend is of<br />
obvious benefit to the hair <strong>and</strong> beauty industries.<br />
This is illustrated in the most recent release of<br />
the ABS’s Household Expenditure Survey, which<br />
indicates that the average weekly household<br />
expenditure on “personal care” increased from<br />
$17 in 2003–04 to $24 in 2009–10, representing<br />
an increase of 39.9 per cent. 4 This contrasts with<br />
the substantial decrease in spending on clothing,<br />
footwear, household equipment <strong>and</strong> furniture,<br />
which has fallen from 14 per cent in the 1980s<br />
to 8 per cent in 2011. 5<br />
Despite the frequent discussions around subdued<br />
consumer sentiment <strong>and</strong> a high savings ratio,<br />
this has not affected the dem<strong>and</strong> for personal<br />
care services in the same way that it has affected<br />
the retail industry. As noted at the Australian<br />
Economic Forum by the assistant governor of the<br />
Reserve Bank of Australia, Phillip Lowe, “although<br />
households are saving a higher share of their<br />
income than in the past couple of decades,<br />
[consumers] have also been prepared to increase<br />
their spending on services quite significantly.” 6<br />
This is consistent with industry feedback of the<br />
strong growth for the services of hairdressing <strong>and</strong><br />
beauty industries, <strong>and</strong> reports of a simultaneous<br />
decline in the sales of add-on products in salons.<br />
Industry feedback suggests that part of the increased<br />
dem<strong>and</strong> for services is highly linked to cultural <strong>and</strong><br />
demographic trends. In particular, the ageing of<br />
the population, together with a cultural emphasis<br />
on appearance <strong>and</strong> youth, are driving dem<strong>and</strong> for<br />
hairdressing <strong>and</strong> beauty services. Furthermore, it is<br />
increasingly culturally acceptable for men to engage<br />
in grooming, beyond ‘just getting a haircut,’ in salons.<br />
The decline in the sale of hair <strong>and</strong> beauty products<br />
is also related to the competition from cheaper<br />
alternative sources. This includes supermarkets,<br />
department stores, community pharmacies <strong>and</strong><br />
online stores.<br />
6 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Product <strong>and</strong> Treatment<br />
Developments<br />
The development of new technologies is a particularly<br />
significant driver of change in the hairdressing <strong>and</strong><br />
beauty industries, resulting in the introduction of<br />
new treatments <strong>and</strong> products. There has long been<br />
advanced technological treatments in the beauty<br />
therapy sector such as electrolysis, dermabrasion<br />
<strong>and</strong> facial treatments with the use of machines. In<br />
more recent times, the beauty therapy sector has<br />
seen the introduction of additional technologically<br />
advanced treatments such as, laser <strong>and</strong> light<br />
treatments, LED Phototherapy, Photodynamic<br />
therapy <strong>and</strong> dermal fillers. This has undeniably led<br />
to an increase in the sophistication of the skills <strong>and</strong><br />
knowledge required by beauty therapists. Keeping<br />
pace with the developments in salon equipment is<br />
an increasingly important aspect of the industry.<br />
The growing importance of advanced therapies for<br />
the industry is said to be driven by an increasing<br />
expectation from the consumer to see results.<br />
<strong>Beauty</strong> salons are also reporting a significant rate of<br />
development in new beauty products, particularly in<br />
the area of anti-ageing. <strong>Beauty</strong> product companies<br />
are also reportedly increasingly seeking approval<br />
from the Therapeutic Goods Administration to<br />
demonstrate the capability of their products. The<br />
development of more sophisticated technologies is<br />
also occurring in the hairdressing industry, where<br />
global keratin <strong>and</strong> other nanotechnology treatments<br />
are increasingly common. The industry reports that<br />
as a result of these developments in treatments <strong>and</strong><br />
products, there is an increasing need to undergo<br />
ongoing professional development in order to remain<br />
a specialist in the field. Many of these developments<br />
in treatments require new, high-level skills <strong>and</strong><br />
substantial levels of knowledge, in addition to<br />
economic investments.<br />
The risk inherent in some of these procedures is<br />
also significant. Consequently, these new services<br />
will need to be monitored <strong>and</strong> managed by the<br />
respective industries, with the skills required to<br />
deliver them outlined in future training packages.<br />
The most recent revision of the <strong>Beauty</strong> Training<br />
Package consequently introduced SIB70110<br />
Vocational Graduate Certificate in Intense Pulsed<br />
Light <strong>and</strong> Laser Hair Reduction. In addition to the<br />
provision of new services, salons report that they<br />
are increasingly called upon to provide professional<br />
advice to assist consumers in navigating these<br />
developments in products <strong>and</strong> procedures.<br />
Salons are increasingly incorporating software <strong>and</strong><br />
information <strong>and</strong> communication technology (ICT)<br />
in their business processes. This includes the use<br />
of appointment management software <strong>and</strong> text<br />
messages for appointment confirmation. Salon<br />
workers in both the hairdressing <strong>and</strong> beauty sectors<br />
require sufficient digital literacy skills to effectively<br />
engage with these technologies.<br />
Customer <strong>Service</strong><br />
The hairdressing <strong>and</strong> beauty industries are facing<br />
increased pressure from the rising dem<strong>and</strong>s of<br />
consumers. As consumers become better informed<br />
<strong>and</strong> their expectations rise, the level of service<br />
that is expected is increasing. In the hairdressing<br />
<strong>and</strong> beauty industries, the success of individual<br />
businesses is inextricably linked with the quality of<br />
its staff. Businesses must ensure that the services<br />
they offer distinguish them from their competitors.<br />
Not only is the quality of the provision of the<br />
treatment important, but also the consultation <strong>and</strong><br />
communication given throughout the service. As<br />
a result, it is essential that staff have a thorough<br />
knowledge of products <strong>and</strong> services, in addition<br />
to well developed interpersonal skills.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
7
Sustainability<br />
Awareness of the need for environmental<br />
sustainability, such as reducing water <strong>and</strong> energy<br />
use <strong>and</strong> buying locally grown or produced products,<br />
is on the rise among Australian consumers.<br />
Companies are being urged to become more<br />
environmentally friendly as consumers increasingly<br />
look for companies that incorporate sustainable<br />
practices <strong>and</strong> provide ‘green’ products <strong>and</strong> services.<br />
Many hairdressing <strong>and</strong> beauty salons are making<br />
steps to improve the environmental sustainability<br />
of their businesses. More businesses are dealing<br />
with companies that supply environmentally friendly<br />
products (such as low ammonia hair colouring<br />
products <strong>and</strong> biodegradable towels), <strong>and</strong> are taking<br />
measures to reduce energy <strong>and</strong> water use <strong>and</strong><br />
improve waste management.<br />
The requisite technical skills, knowledge, values<br />
<strong>and</strong> attitudes needed in the workforce to support<br />
environmental sustainability are being reflected in<br />
training packages. Both the <strong>Beauty</strong> <strong>and</strong> <strong>Hairdressing</strong><br />
Training Packages have addressed sustainability in a<br />
number of ways, including the:<br />
• embedding of sustainability within individual<br />
units of competency, where appropriate;<br />
• availability of broad environmental sustainability<br />
units to be selected in qualifications, where<br />
appropriate, <strong>and</strong>;<br />
• inclusion of sustainability in the employability<br />
skills summaries, where appropriate.<br />
Given the emergence of more environmentallyconscious<br />
consumers, salons are now offering<br />
a range of products that either contain natural<br />
ingredients or are br<strong>and</strong>ed with an environmental<br />
theme. For example, beauty products free from<br />
parabens or carcinogenic ingredients. Products<br />
which can be decanted or mixed in the salons<br />
provide a discount option for customers who<br />
choose to refill their product containers.<br />
8 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
9
Workforce Development Needs<br />
Small <strong>and</strong> Medium Enterprises<br />
The hairdressing <strong>and</strong> beauty industries are<br />
predominantly made up of small enterprises,<br />
where the owner/manager has to fulfill many roles<br />
in an increasingly competitive market. This is<br />
because the hairdressing <strong>and</strong> beauty industry is<br />
characterised by low barriers to entry <strong>and</strong> high levels<br />
of competition, which also has the effect of driving<br />
down profit margins. As a result, the industry is also<br />
characterised by a high level of entries <strong>and</strong> exits.<br />
IBISWorld’s estimates from shop registration figures<br />
indicate that between 15–25 per cent of salons will<br />
undergo a change in ownership each year. 7<br />
There is a basic need for salon owners <strong>and</strong> managers<br />
to develop managerial skills, especially in the area<br />
of marketing, which includes service packaging,<br />
merch<strong>and</strong>ising <strong>and</strong> promotional strategies <strong>and</strong><br />
financial areas which include pricing, cash flow<br />
management <strong>and</strong> cost control, as well as keeping<br />
up with any industry technical developments. These<br />
industries are also known for high levels of job churn.<br />
The 2008 ABS Labour Mobility Survey indicated<br />
that 14.2 per cent of hairdressers moved to another<br />
hairdressing employer. 8 DEEWR estimates that the<br />
gross replacement rate in the beauty services industry<br />
is 18.7 per cent, compared to 13.1 per cent across all<br />
occupations <strong>and</strong> 10.6 per cent for hairdressers. 9 As<br />
a result, employers could be seen to require a better<br />
underst<strong>and</strong>ing of modern human resources practices.<br />
These identified areas are available in SIB50210<br />
Diploma of Salon Management, which is in both<br />
the <strong>Beauty</strong> <strong>and</strong> <strong>Hairdressing</strong> Training Packages.<br />
Additionally, small businesses are often ill-placed<br />
to invest in training to the extent that larger<br />
organisations are capable of. As a result, there is<br />
a degree of market failure involved, related to the<br />
extent that small business owners will invest in their<br />
staff <strong>and</strong> in their own development. Given this, SSA<br />
believes that small businesses require support to<br />
encourage adequate levels of skill development.<br />
This is especially the case as it becomes<br />
increasingly apparent that Australia’s productivity<br />
performance is deteriorating.<br />
Core <strong>Skills</strong><br />
Apart from vocational education, the development<br />
of core, language, literacy <strong>and</strong> numeracy skills (LLN),<br />
helps individuals effectively <strong>and</strong> safely operate at work<br />
<strong>and</strong> in their personal lives <strong>and</strong> is important for the<br />
productivity <strong>and</strong> efficiency of businesses. Research<br />
indicates that a 1 per cent increase in literacy can lead<br />
to a 2.5 per cent increase in labour productivity. 10<br />
Sometimes employers <strong>and</strong> managers focus their<br />
training on vocational skills, neglecting the elemental<br />
literacy <strong>and</strong> numeracy knowledge that underpin those<br />
skills. When the development of LLN skills is h<strong>and</strong>led<br />
constructively <strong>and</strong> sensitively, one could expect this<br />
to positively impact upon retention rates.<br />
10 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
The results of the 2006 Adult Literacy <strong>and</strong> Life<br />
<strong>Skills</strong> Survey (ALLS) provide information on whether<br />
Australians’ literacy skills are adequate for the<br />
challenges they face in daily work <strong>and</strong> life. 11<br />
The ALLS provides information on the skills <strong>and</strong><br />
knowledge of 15 to 74 year olds in the following<br />
four domains: prose literacy, document literacy,<br />
numeracy <strong>and</strong> problem solving. The ALLS measures<br />
literacy <strong>and</strong> numeracy by using a 5 point scale<br />
where 1 is the lowest level <strong>and</strong> 5 the highest<br />
(except problem solving, where the highest is level<br />
4). Currently the 2006 ALLS survey is the most<br />
recent national data; newer 2011–12 data will be<br />
made available in <strong>2013</strong> when Australia-specific<br />
data from the OECD Program for International<br />
Assessment Competencies (PIAAC) is released. 12<br />
In 2010, SSA volunteered to manage <strong>and</strong> facilitate an<br />
ISC Foundation <strong>Skills</strong> Network with the aim to promote<br />
cross-industry knowledge sharing <strong>and</strong> collaboration<br />
on issues relating to essential skills including LLN in<br />
workplace training development. Industry views on<br />
LLN were obtained in a series of forums organised by<br />
the ISC Foundation <strong>Skills</strong> Network. The discussions<br />
centered on employer views of the challenges that<br />
exist in addressing the deficit of foundation skills in<br />
the workplace. These were identified at the level of<br />
the business, the training system, the learner <strong>and</strong><br />
funding arrangements.<br />
Enterprise Issues<br />
• There is a difficulty in teasing out whether LLN<br />
issues are the cause of workforce challenges, as<br />
opposed to other potential contributing factors.<br />
• There is a difficulty in gaining management<br />
underst<strong>and</strong>ing of, <strong>and</strong> buy-in, to foundation<br />
skills support.<br />
• It can be difficult to assign a dollar value<br />
to the improvements to business functions<br />
<strong>and</strong> processes from improving foundation<br />
skills in workers.<br />
• There is a lack of awareness that foundation<br />
skills deficits occur at all levels of employment.<br />
• The vocational context can be missing when<br />
learning LLN.<br />
• Even when there is an awareness of foundation<br />
skills issues, it can be assumed it only applies<br />
to those with English as a second language or<br />
those in lower level job roles.<br />
Training Issues<br />
• Single operators, shift workers, itinerant <strong>and</strong> the<br />
casual workforce need to be targeted for foundation<br />
skill training, as they are generally overlooked.<br />
• Foundation skill training must be relevant to the<br />
industry <strong>and</strong> the job task.<br />
• Businesses can have difficulties identifying<br />
training providers that meet their needs.<br />
Worker <strong>and</strong> Learner Issues<br />
• It can be difficult to identify <strong>and</strong> gain participation<br />
from those in need of LLN assistance.<br />
• Foundation skill support should include a range<br />
of literacies, such as computer literacy.<br />
An additional outcome of the employer forums<br />
was the increased awareness of the Workplace<br />
English Language <strong>and</strong> Literacy (WELL) program that<br />
is available to employers to assist in training their<br />
workers where these deficiencies exist.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
11
The National Workforce<br />
Development Fund <strong>and</strong><br />
the Enterprise Based<br />
Productivity Places Program<br />
In July 2011, The Australian Commonwealth<br />
Government announced the launch of the National<br />
Workforce Development Fund (NWDF). Continuing<br />
a model of funding established by the Enterprise<br />
Based Productivity Places Program (EBPPP), the<br />
NWDF is based on ISCs playing a broker role<br />
between employers <strong>and</strong> training providers.<br />
The overall policy intent of this program is to support<br />
training <strong>and</strong> workforce development for existing <strong>and</strong><br />
new workers in areas of skill need. This will assist<br />
enterprises to increase productivity <strong>and</strong> address<br />
the specific skilling needs of the enterprise. The<br />
crucial aspect of the NWDF arrangements (<strong>and</strong><br />
its predecessor, EBPPP) is that they are the first<br />
example of enterprise-driven funded training.<br />
As at January <strong>2013</strong>, NWDF applications brokered<br />
by SSA have resulted in almost 2000 students in<br />
training, with 829 training in wholesale, retail <strong>and</strong><br />
personal services qualifications.<br />
The experiences of the NWDF <strong>and</strong> EBPPP programs<br />
elucidate the return on investment for training in<br />
the service industries. In particular, knowledge <strong>and</strong><br />
skills adopted by an owner that is implemented<br />
in their business can have a significant multiplier<br />
effect as it is shared throughout the organisation.<br />
In addition, there is often the introduction of a<br />
learning culture once management <strong>and</strong> leadership<br />
roles are up-skilled. Overall, undertaking training<br />
that is targeted to addressing business need<br />
manifests itself as a gain in productivity, skills<br />
utilisation <strong>and</strong>/or financial return.<br />
SSA promoted the programs across its network<br />
<strong>and</strong> highlighted the opportunity for:<br />
• Micro <strong>and</strong> small business participation.<br />
• The inclusion of traditionally non-funded cohorts<br />
(owners, self-employed, casual <strong>and</strong> part-time<br />
workers <strong>and</strong> those with existing qualifications).<br />
• Building sector <strong>and</strong> regional capacity.<br />
• Identifying <strong>and</strong> responding to a community<br />
of interest i.e. the option for communities/<br />
enterprises/associations to identify needs across<br />
a range of industries (<strong>and</strong> ISC industry coverage).<br />
Access to the NWDF is based on meeting identified<br />
skilling needs for the enterprise, as described in<br />
a workforce development plan. SSA’s approach to<br />
developing this plan is through asking enterprises<br />
three questions:<br />
• What is the identified need of the business<br />
• How will the “qualification” <strong>and</strong>/or “skill set”<br />
address the identified need<br />
• How will the business measure the<br />
effectiveness/impact of the training<br />
on the business<br />
12 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Industry Workforce Statistics<br />
Employment within the beauty industry has experienced rapid growth <strong>and</strong> is forecast to continue to do so<br />
over 2011 to 2015–16. In the past five years, employment has grown by 15.8 per cent <strong>and</strong> is expected to<br />
grow by an additional 1.7 per cent annually to 2016–17, equating to an additional 1,900 beauty therapists. 13<br />
Figure 1. Employment Level of <strong>Beauty</strong> Therapists (2000–2011)<br />
30<br />
25<br />
Employment Level (’000s)<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
Years<br />
Source: ABS, Labour Force Survey, DEEWR trend data to November 2011<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
13
As shown in Figure 2, the employment of hairdressers has increased slightly in the past decade, but growth<br />
in employment has declined in the last five years. In particular, employment has decreased from its peak<br />
following the 2008 Global Financial Crisis. Looking to 2015–16, employment of hairdressers is forecast<br />
by DEEWR to grow marginally at 1.1 per cent per annum. 14 This equates to an additional 3,100 employees<br />
by 2015–16. Monash University’s Centre for the Economics of Education <strong>and</strong> Training (CEET) forecasts<br />
employment of hairdressers over 2009 to 2015 to grow at a similar rate of 1.2 per cent. 15<br />
Figure 2. Employment Level of Hairdressers (2000–2011)<br />
70<br />
60<br />
50<br />
Employment Level (’000s)<br />
40<br />
30<br />
20<br />
10<br />
0<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
Years<br />
Source: ABS, Labour Force Survey, DEEWR trend data to November 2011<br />
14 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Many of the contexts in which beauty professionals work are also increasingly linked to the broader field<br />
of health <strong>and</strong> wellness. This is demonstrated in the distribution of employment for beauty therapists, as<br />
shown in Figure 3. Interestingly, the top four employing industries of beauty therapists no longer includes<br />
the accommodation <strong>and</strong> food services sector, <strong>and</strong> is now overtaken by wholesale trade. The employment of<br />
beauty therapists in this sector was thought to reflect their employment in hotel day spas <strong>and</strong> health resorts.<br />
Figure 3. Main Employing Industries of <strong>Beauty</strong> Therapists (2011)<br />
Other <strong>Service</strong>s<br />
94.3<br />
Retail Trade<br />
3.2<br />
Health Care <strong>and</strong> Social Assistance<br />
1.7<br />
Wholesale Trade<br />
0.5<br />
0 10 20 30 40 50 60 70 80 90 100<br />
%<br />
Source: ABS, Labour Force Survey, Annual Average 2011<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
15
The continued level of employment of beauty<br />
therapists within the ‘health care <strong>and</strong> social<br />
assistance’ industry reflects the growing<br />
development <strong>and</strong> use of ‘para-medical’ procedures<br />
such as IPL <strong>and</strong> laser, which is classified under<br />
‘medical services’. As a result, beauty therapists are<br />
increasingly found in cosmetic medical centres <strong>and</strong><br />
plastic surgery clinics. While this does still represent<br />
a small proportion of the beauty workforce, this is<br />
expected to be an area of growth.<br />
There has been a great amount of discussion within<br />
the beauty industry about the broadening of the<br />
industry <strong>and</strong> the potential it brings for enhancing<br />
career pathways. While this is regarded as an<br />
opportunity, the industry is also cautious to ensure<br />
that the elevation of the industry into medical<br />
contexts is done with a high level of rigour. The<br />
industry fears that if it is not implemented correctly,<br />
the significant health risks from malpractice could<br />
result in significantly tarnishing its reputation.<br />
One response to this has been the formalisation of<br />
these skills into a qualification, SIB70110 Vocational<br />
Graduate Certificate in Intense Pulsed Light <strong>and</strong><br />
Laser Hair Reduction. SSA is endeavoring to ensure<br />
safeguards are in place to ensure that this course<br />
is delivered to the appropriate quality. It is critical<br />
that this be supported by State Training Authorities<br />
by providing adequate levels of resource support for<br />
training delivery in this area. There is also potential<br />
for the Australian Radiation Protection <strong>and</strong> Nuclear<br />
Safety Agency (ARPANSA) to develop national<br />
st<strong>and</strong>ards for the safe use of non-ionising radiation<br />
for cosmetic purposes.<br />
Currently, three jurisdictions have requirements in<br />
place in relation to the use of intense pulsed light<br />
<strong>and</strong> laser. In Queensl<strong>and</strong>, the use of non-ionising<br />
radiation for cosmetic treatments is currently<br />
subject to licensing under the Queensl<strong>and</strong> Radiation<br />
Safety Act 1999. In Tasmania, the accreditation<br />
of equipment, premises <strong>and</strong> operators is required<br />
under the Tasmanian Radiation Protection Act 2005.<br />
The Western Australian Radiation Safety Act 1975<br />
imposes limitations restricting the use of class<br />
4 lasers for cosmetic treatments, including hair<br />
reduction, to medical practitioners. However, in<br />
relation to other states <strong>and</strong> territories, no licensing,<br />
regulatory or certification requirements apply.<br />
16 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Qualifications Profile<br />
Figure 4, reflects the strong industry requirement of a qualification, particularly at Certificate III level or<br />
above, to practice as a hairdresser. It is concerning, however, that the number of hairdressers whose highest<br />
qualification is a Certificate I/II has increased by 4.6 per cent since 2010. Although it is important to note<br />
that over the same period, the number of hairdressers holding an Advanced Diploma/Diploma has increased<br />
by 5.3 per cent.<br />
Figure 4. Highest Educational Attainment of Hairdressers (2011)<br />
Post Graduate/<br />
Graduate Diploma or<br />
Graduate Certificate<br />
0<br />
6.7<br />
Hairdressers<br />
Bachelor degree<br />
0<br />
17<br />
All Occupations<br />
Advanced<br />
Diploma/Diploma<br />
9.1<br />
11.8<br />
Certificate III/IV<br />
17.4<br />
58.9<br />
Certificate I/II<br />
3.7<br />
11.3<br />
No Post School<br />
Qualifications<br />
10.5<br />
43.5<br />
0 10 20 30 40 50 60 70<br />
%<br />
Source: ABS, 2012, Cat. No. 6227.0, Survey of Education <strong>and</strong> Work, May 2011.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
17
Figure 5 indicates that the majority of beauty therapists (48.7 per cent) have the appropriate level<br />
qualification for their occupation. Since 2010, the number of beauty therapists with no post school<br />
qualifications has dropped substantially, declining from 29.1 per cent in 2010 to 15.5 per cent in 2011.<br />
Given the industry requirement for training, it is presumed that those recorded by the ABS as without<br />
further qualifications are students in training.<br />
Figure 5. Highest Educational Attainment of <strong>Beauty</strong> Therapist Employees (2011)<br />
Post Graduate/<br />
Graduate Diploma or<br />
Graduate Certificate<br />
0<br />
6.7<br />
<strong>Beauty</strong> Therapists<br />
Bachelor degree<br />
0<br />
17<br />
All Occupations<br />
Advanced<br />
Diploma/Diploma<br />
9.1<br />
48.7<br />
Certificate III/IV<br />
17.4<br />
27.7<br />
Certificate I/II<br />
3.7<br />
8.2<br />
No Post School<br />
Qualifications<br />
15.5<br />
43.5<br />
0 10 20 30 40 50 60<br />
%<br />
Source: ABS, 2012, Cat. No. 6227.0, Survey of Education <strong>and</strong> Work, May 2011.<br />
18 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Workforce Ageing<br />
Like many other advanced economies, Australia has<br />
an ageing population. The median age of Australia’s<br />
population (36.8 years at June 2010) is projected<br />
to increase to between 38.7–40.7 years in 2026<br />
<strong>and</strong> to 41.9–45.2 years in 2056. 16 Over the last<br />
two decades, the median age has increased by<br />
4.8 years, from 32.1 years at 30 June 1990. A<br />
significant effect of the ageing population is the<br />
intensification of competition for workers as the<br />
working age population diminishes. The working<br />
age population is projected to decline from 67<br />
per cent in 2004 to 57–59 per cent in 2051.<br />
Among beauty therapists, 59.6 per cent of the<br />
workforce is aged between 15 <strong>and</strong> 34, in comparison<br />
to 39.3 per cent across all occupations. 17 This<br />
indicates a greater reliance on a younger workforce<br />
within the main employing occupation in the beauty<br />
services industry compared to other occupations.<br />
Consequently, the effects of an ageing population<br />
will be felt more acutely within this workforce. Over<br />
the last year, the occupational profile has already<br />
exhibited some ageing, with the median age<br />
increasing from 28 in 2010 to 31 in 2011.<br />
Figure 6. Age Profile of <strong>Beauty</strong> Therapists (2011)<br />
15–19<br />
4.7<br />
6.1<br />
20–24<br />
10.6<br />
21.4<br />
<strong>Beauty</strong> Therapists<br />
All Occupations<br />
25–34<br />
35–44<br />
22.6<br />
24.2<br />
22.3<br />
33.5<br />
45–54<br />
12.1<br />
21.6<br />
55–59<br />
1.4<br />
8.3<br />
60–64<br />
65+<br />
2.3<br />
0.5<br />
3<br />
5.6<br />
0 5 10 15 20 25 30 35 40 45<br />
%<br />
Source: ABS, Labour Force Survey, annual average 2011<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
19
Among hairdressers, the workforce is similarly skewed towards a younger profile when compared to all<br />
occupations, with 52.6 per cent of the workforce aged between 15 <strong>and</strong> 34. 18 There is a greater proportion<br />
of hairdressers aged 15–19 than beauty therapists, reflecting the greater popularity of hairdressing as<br />
an occupation with early school-leavers <strong>and</strong> for those who have completed a VET course as part of their<br />
secondary education.<br />
Figure 7. Age Profile of Hairdressers (2011)<br />
15–19<br />
6.1<br />
12.3<br />
20–24<br />
10.6<br />
18.4<br />
Hairdressers<br />
All Occupations<br />
25–34<br />
35–44<br />
21.9<br />
22.6<br />
22.3<br />
26.7<br />
45–54<br />
12.3<br />
21.6<br />
55–59<br />
3.6<br />
8.3<br />
60–64<br />
65+<br />
1.3<br />
3<br />
3.5<br />
5.6<br />
0 5 10 15 20 25 30<br />
%<br />
Source: ABS, Labour Force Survey, annual average 2011<br />
20 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
The lower share of ‘mature age’ workers is indicative<br />
of the nature of work of these industries, especially<br />
hairdressing. It is also reflective of the feminised<br />
nature of both the hairdressing <strong>and</strong> beauty sectors.<br />
Among employed hairdressers, 85.3 per cent were<br />
female in 2011. 19 Furthermore, 96.8 per cent of<br />
employed beauty therapists were female. 20 As a result,<br />
there is a greater propensity for individuals to exit the<br />
workforce in order to take on family caring duties.<br />
This is reflected in the higher proportion of parttime<br />
jobs in both of these industries. Among<br />
hairdressers, 51.1 per cent of positions were<br />
part-time in 2011, up from 39.9 in 2010. <strong>Beauty</strong><br />
therapists similarly have high levels of part-time<br />
work, with 57.8 per cent of beauty therapists in<br />
2011 working in this capacity. This figure has also<br />
increased in the last year, in which 46.1 per cent of<br />
beauty therapists were part-time. Industry feedback<br />
has indicated that the ease at which part-time work<br />
can be structured into roles is a significant factor<br />
for attracting females to the industry.<br />
There will need to be a greater effort on the part of<br />
the industry to ensure greater retention of older age<br />
groups within the industry. The industry will also need<br />
to give greater attention to encouraging those who<br />
have left the industry, to return. This can be achieved<br />
with the greater assistance available from the<br />
Federal Government through the various measures<br />
committed to under the ‘Experience+’ initiative.<br />
This includes a toolkit for employers to assist in<br />
implementing age-friendly recruitment practices.<br />
In particular, funding is available for mature-aged<br />
individuals to undergo additional training for the<br />
purposes of entering a mentoring role. This is an<br />
excellent opportunity for the industry, considering<br />
frequent reports that young apprentices <strong>and</strong><br />
trainees require support to successfully complete<br />
their training <strong>and</strong> that many trainers have remarked<br />
that this forms a significant part of their role with<br />
students. As a result, adoption of this within the<br />
industry could potentially encourage greater levels<br />
of pastoral support for younger workers as well<br />
as greater retention of the skills <strong>and</strong> knowledge<br />
of older age groups.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
21
The VET Environment<br />
Institutional Delivery<br />
There is much industry discussion concerning the large numbers of international students accessing<br />
hairdressing VET in Australia with very few gaining employment in the industry at the completion of their<br />
training. Industry feedback indicates that there are a range of reasons for this, including poor quality<br />
training, students enrolling in hair <strong>and</strong> beauty courses with no intent on practicing <strong>and</strong> language barriers<br />
preventing most international students from operating effectively in the customer service environment<br />
of the hairdressing <strong>and</strong> beauty industries.<br />
Table 1. International VET Enrolments in <strong>Hairdressing</strong> Training Package (YTD June 2011)<br />
Level of study 2009 2010 2011<br />
Certificate II 2 1 0<br />
<strong>Hairdressing</strong><br />
Certificate III 5,653 4,051 827<br />
Certificate IV 1,315 2,036 718<br />
Diploma 3,217 3,030 1,674<br />
<strong>Hairdressing</strong> total 10,187 9,118 3,219<br />
Source: AEI, 2011, International Student Data, YTD June 2011<br />
Table 2. International VET Enrolments in <strong>Beauty</strong> Training Package (YTD June 2011)<br />
Level of study 2009 2010 2011<br />
Certificate II 10 14 17<br />
Certificate III 25 35 25<br />
<strong>Beauty</strong><br />
Certificate IV 43 64 62<br />
Diploma 225 289 311<br />
Advanced Diploma 21 1 6 3<br />
<strong>Beauty</strong> total 304 408 418<br />
Source: AEI, 2011, International Student Data, YTD June 2011<br />
22 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Quality<br />
SSA underst<strong>and</strong>s that a significant number of<br />
students in fee-paying colleges undertake a number<br />
of service industry qualifications, particularly in<br />
hairdressing, through an institutional pathway, often<br />
with minimal exposure to a real workplace context.<br />
Some employers are reporting that graduates of<br />
institute or wholly classroom-based programs do<br />
not have the equivalent skill depth <strong>and</strong> breadth<br />
to graduates from a program that is based in the<br />
workplace (for instance, an apprenticeship).<br />
It would appear that a number of providers<br />
are not meeting the requirements specified in<br />
the <strong>Hairdressing</strong> Training Package. It has been<br />
reported that training facilities often do not meet<br />
the recommended st<strong>and</strong>ard <strong>and</strong> that students<br />
graduate without getting adequate access to<br />
industry application at work or in training.<br />
A high volume of enrolments for Certificate II in<br />
<strong>Hairdressing</strong> occur through private registered<br />
training organisations (RTOs), which deliver through<br />
an institutional-based pathway.<br />
Industry feedback has voiced serious concern that<br />
a large number of Certificate II graduates are not<br />
work ready <strong>and</strong> therefore struggle to find employment<br />
within the industry. Consequently, industry has<br />
expressed the view that there is a limited role for<br />
the qualification in the future. SSA strongly urges<br />
governments to direct funding for training to areas<br />
in which there is a demonstrable job outcome. As<br />
a result, government funding for training at the<br />
Certificate II level should cease.<br />
Assessment Practice<br />
The perception is that there is widespread<br />
inconsistency <strong>and</strong> poor practice in relation<br />
to assessment, resulting in the awarding of<br />
qualifications which industry views as lacking value.<br />
Examples of this include:<br />
• lack of rigour in the interpretation <strong>and</strong> application<br />
of competency st<strong>and</strong>ards;<br />
• poor attention to industry expectations <strong>and</strong><br />
requirements in the context of assessment;<br />
• lack of industry experience among assessors.<br />
For the beauty industry, issues of privacy impact on<br />
the assessment of intimate treatments. The industry<br />
has identified a number of units of competency for<br />
which training delivery <strong>and</strong> assessment in a real<br />
workplace are considered inappropriate. This means<br />
that significant skills <strong>and</strong> knowledge areas are best<br />
assessed in simulated environments. However, for<br />
both the hairdressing <strong>and</strong> beauty industries it is crucial<br />
that in cases where a simulated environment is used,<br />
it meets the criteria described in the assessment<br />
guidelines section of each training package.<br />
While vocational training in hairdressing is traditionally<br />
apprenticeship-based, founded on the premise that<br />
learning <strong>and</strong> assessment best occurs in the workplace,<br />
training for the beauty industry has evolved largely<br />
through institutional training, predominantly via the<br />
SIB50110 Diploma of <strong>Beauty</strong> Therapy. This is because<br />
of the personal nature of treatments <strong>and</strong> services.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
23
Quality <strong>Skills</strong> Development<br />
<strong>and</strong> Right Way<br />
As is evident in industry’s concerns outlined above,<br />
industry representatives are keen to become more<br />
involved in implementation to support the national<br />
training system <strong>and</strong> build the nation’s productivity.<br />
In response to ongoing industry concern, SSA has<br />
already made improvements to the quality of its<br />
training packages. This has resulted in more specific<br />
units of competency, tighter assessment guidelines,<br />
<strong>and</strong> more detailed requirements for assessors.<br />
Future changes will also result in a more helpful <strong>and</strong><br />
detailed resource checklist available as part of the<br />
non-endorsed training package support material.<br />
A range of services <strong>and</strong> products underpinned by a<br />
set of policies <strong>and</strong> procedures have been developed<br />
that will underpin the work that SSA undertakes in<br />
implementing its training packages on a sustainable<br />
basis. This quality implementation framework<br />
consists of two parts:<br />
1. Training Package User Guides<br />
2. The Right Way Program<br />
The Training Package User Guides stipulate:<br />
• Minimum assessment <strong>and</strong> learning requirements<br />
to achieve qualifications<br />
• Required assessor/trainer qualifications<br />
<strong>and</strong> experiences above <strong>and</strong> beyond those<br />
required by regulation<br />
• Professional development requirements<br />
for trainers <strong>and</strong> assessors<br />
• Requirements around work placement<br />
<strong>and</strong>/or experience<br />
• Guidelines for selecting <strong>and</strong> recruiting students<br />
• Minimum equipment <strong>and</strong> facility requirements<br />
for delivery<br />
• A minimum recommended duration for delivery<br />
of units <strong>and</strong>/or qualifications<br />
The Right Way Program is an industry recognition<br />
system for quality training providers delivering in<br />
SSA’s training package areas. This program, part<br />
of SSA’s strategic work to achieve quality skills<br />
outcomes throughout the service industries,<br />
focuses on three key areas:<br />
• Quality training <strong>and</strong> assessment facilities.<br />
• Quality trainers <strong>and</strong> assessors.<br />
• Quality learning resources.<br />
Participants in this industry recognition system must<br />
adhere to st<strong>and</strong>ards <strong>and</strong> provide evidence of quality<br />
through an application <strong>and</strong> assessment process<br />
operated by SSA <strong>and</strong> its network of agencies.<br />
Consequently, through the Right Way program, SSA<br />
seeks to facilitate industry recognition of facilities,<br />
trainers, assessors <strong>and</strong> learning resources.<br />
Effective outcomes of training <strong>and</strong> assessment<br />
are inextricably linked to the quality of these core<br />
components of the VET system. Through this<br />
program, SSA aims to:<br />
• Ensure <strong>and</strong> recognise the provision of quality<br />
training <strong>and</strong> assessment by RTOs.<br />
• Build the capability of trainers <strong>and</strong> assessors<br />
who work in the service industries.<br />
• Promote the development of, <strong>and</strong> recognise,<br />
effective learning resources which align to<br />
training package content.<br />
• Achieve quality skills outcomes throughout<br />
the service industries. 22<br />
24 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Graduate Outcomes<br />
In November 2011, SSA commissioned the<br />
University of Melbourne’s Centre for Research<br />
on Education Systems (CRES) to investigate the<br />
pathways people undertake (in relation to work <strong>and</strong><br />
further study) upon completing a service industry<br />
qualification. The need for a thorough <strong>and</strong> credible<br />
investigation into occupational destinations following<br />
the completion of service industry qualifications<br />
has been identified for a number of years as an<br />
important focus for SSA.<br />
<strong>Hairdressing</strong> Graduates<br />
The research painted a very positive picture of<br />
hairdressing training <strong>and</strong> the industry more broadly.<br />
Analysis of NCVER’s Student Outcomes Survey<br />
revealed that hairdressing graduates report almost<br />
universally high levels of personal benefits from their<br />
course (98 per cent), a large number had gained<br />
job-related benefits (81 per cent) <strong>and</strong> a third gained<br />
access to further education (33 per cent).<br />
Compared with other service industry graduates,<br />
hairdressing graduates are much more likely to be<br />
interested in the intrinsic value of the work. The<br />
research found that 40 per cent of hairdressing<br />
course completers were mainly interested in getting<br />
a job. Similarly, 87 per cent entered their courses<br />
because they wanted jobs related to that specific<br />
area of training. This correlates to the high level<br />
of satisfaction reported by hairdressers with their<br />
work (92 per cent). Indeed, hairdressers are unlikely<br />
to leave the hairdressing industry. The Household,<br />
Income <strong>and</strong> Labour Dynamics in Australia (HILDA)<br />
Survey found that hairdressers have high levels of<br />
occupational (90 per cent) <strong>and</strong> industry (94 per<br />
cent) stability. However, this loyalty to the industry<br />
did not necessarily translate into employer stability,<br />
with half of hairdressers reporting that they switched<br />
employers over the five year period between 2004<br />
<strong>and</strong> 2009.<br />
<strong>Beauty</strong> Graduates<br />
Graduates of beauty qualifications are more likely to<br />
have enrolled in their course for reasons associated<br />
with wanting a new job—66.5 per cent compared<br />
with an average for graduates of other SSA-related<br />
courses of 34.3 per cent. Similar to hairdressing<br />
course-completers, beauty course-completers are<br />
more job-oriented. When asked what they hoped to<br />
achieve from their course, 30.1 per cent stated that<br />
they wanted to get a job, 24.5 per cent wanted to<br />
start their own business <strong>and</strong> 24.5 per cent wanted<br />
to try for a different career.<br />
A highly feminised industry—in 2010, 100 per<br />
cent of beauty graduates of publicly-funded beauty<br />
courses were female—beauty st<strong>and</strong>s out as a field<br />
of study with poor employment outcomes for males.<br />
Completion Rates<br />
Completion rates as an exclusive measure of training<br />
effectiveness continue to be a concern to the<br />
service industries. Industry overall, <strong>and</strong> the service<br />
industries in particular, believe that they have been<br />
unnecessarily disadvantaged by the use of completion<br />
rates as a measure of success of industry training.<br />
This situation remains a concern as there is a strong<br />
need for the development of nationally-consistent data<br />
collection tools that more accurately measure <strong>and</strong><br />
evaluate course outcomes on a longitudinal basis. In<br />
2010, SSA undertook a research project to determine<br />
if the current assumptions about the reasons for noncompletions<br />
are correct. The outcome was to, in part,<br />
mount a case for a national data collection method<br />
that accurately measures <strong>and</strong> evaluates course<br />
completion <strong>and</strong> non-completion rates. The publication<br />
of the study raised the profile of these concerns <strong>and</strong><br />
added weight to the call for the implementation of a<br />
Unique Student Identifier (USI) to allow better tracking<br />
of a student’s journey through the VET system.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
25
VET in Schools<br />
Industry feedback to SSA indicated problems around<br />
the delivery of Vocational Education <strong>and</strong> Training in<br />
Schools (VETiS). Industry has reported concerns<br />
regarding hairdressing qualifications that are<br />
delivered in school-based settings with high-school<br />
teachers rather than VET teachers, <strong>and</strong> strongly<br />
believes that hairdressing qualifications should not<br />
be delivered in schools.<br />
Feedback further suggested that typical delivery<br />
of VETiS does not achieve required industry<br />
outcomes <strong>and</strong>, in school environments, VET training<br />
requirements are often in competition with a<br />
fundamentally different pedagogical approach than<br />
that required by VET. Additionally, inconsistency of<br />
VETiS practice <strong>and</strong> delivery across the states <strong>and</strong><br />
territories makes delivery difficult for those providers<br />
<strong>and</strong> employers who employ across state borders.<br />
VETiS is seen as a critical area for action due to the<br />
involvement of a significant number of Australian<br />
students <strong>and</strong> the recent rapid growth of VETiS<br />
programs. While there has been huge growth in the<br />
participation numbers, there is increasing concern<br />
about the quality of VETiS delivery <strong>and</strong> particularly,<br />
lack of employment outcomes.<br />
Demographics, economic growth, competitiveness<br />
<strong>and</strong> increased skill requirements are creating<br />
even greater dem<strong>and</strong> for skilled youth in<br />
Australia. Today’s younger generations have more<br />
opportunities <strong>and</strong> therefore have become ‘cherry<br />
pickers’, which has consequences for the service<br />
industries as they are often percieved as a shortterm,<br />
second-rate career choice.<br />
Working with industry, SSA has worked to address<br />
these issues through its VETiS project in 2010,<br />
which includes the development of an industry<br />
position paper <strong>and</strong> ‘rules of engagement’ for the<br />
service industries. Further it aims to develop<br />
‘resource ready’ tools to assist VETiS delivery,<br />
as well as case studies that reflect what is occurring<br />
in industry. A literature review highlighted the variety<br />
of interpretations of the term ‘VETiS’; each state or<br />
territory system locates VET in a different curricular<br />
context. The major concern is the inconsistency<br />
between VETiS, both within a jurisdiction as well<br />
as across Australia. Currently there are no common<br />
st<strong>and</strong>ards around approval, regulation, resourcing,<br />
administration, delivery <strong>and</strong> monitoring of VETiS.<br />
Consultations occurred across the country over a<br />
period of four months to gather critical information<br />
on industry position <strong>and</strong> best practice examples of<br />
VETiS. The industry consultation process found:<br />
• Key stakeholders in VETiS have such<br />
fundamental differences in what they consider<br />
is the purpose <strong>and</strong> expected outcomes that<br />
some wish to ab<strong>and</strong>on or ignore this nationally<br />
critical skilling opportunity.<br />
• Quality issues (not just limited to VETiS) were<br />
a key component of consultations. There is<br />
great variability (excellent to indefensible) in<br />
VETiS modules across Australia.<br />
• Many stakeholders expressed a desire for<br />
clear <strong>and</strong> explicit guidelines.<br />
• The diversity across the services industries<br />
requires different VETiS pathways, industry<br />
engagement, links to regulation, award conditions<br />
considerations <strong>and</strong> workplace engagement, such<br />
that VETiS must be considered on an individual<br />
industry sector (training package) basis.<br />
• There was a consistent strong industry message<br />
about VETiS focused on job skills.<br />
Given the imperatives <strong>and</strong> importance of VETiS,<br />
the services industries need to take a strategic,<br />
pragmatic <strong>and</strong> holistic approach to VETiS in order<br />
to maintain their share of youth employees recruited<br />
via VETiS pathways to ensure they can meet future<br />
workforce needs. 23<br />
26 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
27
Current Impact of<br />
Training Packages<br />
A Note on Enrolments <strong>and</strong> Completions Data<br />
The following figures showing enrolments <strong>and</strong> completions data for hairdressing <strong>and</strong> beauty qualifications<br />
represents only a portion of the total training effort in these sectors. As they are drawn from NCVER’s database,<br />
they only cover qualifications being delivered by RTOs in receipt of public funding. A further caveat must be made<br />
with regard to completions figures, as they often underestimated due to the lack of a unique student identifier<br />
(USI) to track recommencements <strong>and</strong> the fact that completed skill sets are recorded as non-completions.<br />
Figure 8. Vocational Course Enrolments in <strong>Hairdressing</strong> Qualifications (2002–2011)<br />
18000<br />
16000<br />
14000<br />
12000<br />
10000<br />
Enrolments<br />
8000<br />
6000<br />
4000<br />
2000<br />
0<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
Certificate II <strong>Hairdressing</strong> 3,243 3,889 4,293 4,826 5,682 4,502 5,358 5,253 7,086 6,906<br />
Certificate III <strong>Hairdressing</strong> 6,066 8,436 9,888 11,877 12,187 13,354 14,067 13,958 15,085 15,773<br />
Certificate IV <strong>Hairdressing</strong> 284 353 185 136 223 315 469 790 1,371 1,091<br />
Certificate IV Trichology 0 0 0 0 0 1 5 9 20 5<br />
Diploma of <strong>Hairdressing</strong><br />
Salon Management<br />
0 15 32 84 261 288 353 518 950 932<br />
Viewing enrolment figure data from 2002–2011, it is positive to note that the highest number of enrolments have<br />
consistently been at the Certificate III level, as it is this level qualification that results in a labour market outcome.<br />
However, SSA is concerned that enrolments in Certificate II qualifications reached their highest point in 2010.<br />
Industry feedback has consistently advised that there are extremely limited job outcomes at this level. Despite<br />
this, there is some evidence that State Training Authorities continue to encourage enrolments at this level.<br />
28 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Figure 9. Vocational Course Completions in <strong>Hairdressing</strong> Qualifications (2002–2010)<br />
4000<br />
3500<br />
3000<br />
2500<br />
Completions<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
Certificate II <strong>Hairdressing</strong> 1,098 834 981 1,371 1,715 1,309 1,701 2,000 2,156<br />
Certificate III <strong>Hairdressing</strong> 735 1,136 1,527 2,203 2,573 2,970 3,419 3,730 3,418<br />
Certificate IV <strong>Hairdressing</strong> 27 107 31 28 78 116 182 307 589<br />
Certificate IV Trichology 0 0 0 0 0 0 1 0 12<br />
Diploma of <strong>Hairdressing</strong><br />
Salon Management<br />
0 8 3 9 73 70 137 254 376<br />
It is alarming to note that 2010 marked the first time that completions in the Certificate III in <strong>Hairdressing</strong><br />
have declined, particularly given that completions in Certificate II continue to increase. However, it is also<br />
worth highlighting that completions of higher level qualifications have continued to grow, with the Certificate IV<br />
in <strong>Hairdressing</strong> <strong>and</strong> the Diploma of <strong>Hairdressing</strong> Salon Management witnessing continued growth since 2007.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
29
Figure 10. Vocational Course Enrolments in <strong>Beauty</strong> Qualifications (2002–2011)<br />
4500<br />
4000<br />
3500<br />
3000<br />
Enrolments<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
Certificate II Nail<br />
Technology<br />
615 1,197 1,298 1,307 1,542 1,445 1,093 1,341 1,157 1,629<br />
Certificate II Make-up 755 790 827 944 1,046 1,163 1,319 1,599 1,802 1,841<br />
Certificate II<br />
Retail Cosmetic<br />
Certificate III<br />
<strong>Beauty</strong> <strong>Service</strong>s<br />
Certificate III Nail<br />
Technology<br />
Certificate IV<br />
<strong>Beauty</strong> Therapy<br />
Diploma of<br />
<strong>Beauty</strong> Therapy<br />
Diploma of Salon<br />
Management<br />
Vocational Graduate<br />
Certificate in IPL <strong>and</strong><br />
Laser Hair Reduction<br />
597 995 1,317 1,515 1,372 481 632 446 483 748<br />
1,443 1,679 1,728 2,387 2,735 2,912 2,650 3,151 3,610 3,941<br />
94 105 119 78 96 63 81 51 35 26<br />
765 957 1,121 1,369 1,636 1,802 1,975 2,082 2,206 2,447<br />
721 866 870 966 1,048 1,198 1,178 1,812 3,263 3,788<br />
0 0 0 0 0 0 0 0 0 20<br />
0 0 0 0 0 0 0 0 0 4<br />
As seen in Figure 10, most enrolments in the SIB10 <strong>Beauty</strong> Training Package in 2011 were in the Certificate<br />
III in <strong>Beauty</strong> <strong>Service</strong>s, despite there being limited job outcomes at this level. The greatest job opportunities<br />
in this industry are as beauty therapists (Certificate IV or Diploma) or nail technicians (Certificate II). As a<br />
result, the recent spike in enrolments at the Diploma level is a positive development.<br />
30 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Figure 11. Vocational Course Completions in <strong>Beauty</strong> Qualifications (2002–2010)<br />
1200<br />
1000<br />
800<br />
Completions<br />
600<br />
400<br />
200<br />
0<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
Certificate II Nail<br />
Technology<br />
264 300 390 474 455 468 427 470 459<br />
Certificate II Make-up 367 390 346 293 285 371 410 541 741<br />
Certificate II<br />
Retail Cosmetic<br />
Certificate III<br />
<strong>Beauty</strong> <strong>Service</strong>s<br />
Certificate III<br />
Nail Technology<br />
Certificate IV<br />
<strong>Beauty</strong> Therapy<br />
Diploma of<br />
<strong>Beauty</strong> Therapy<br />
Diploma of Salon<br />
Management<br />
Vocational Graduate<br />
Certificate in IPL <strong>and</strong><br />
Laser Hair Reduction<br />
245 191 143 201 158 118 204 176 133<br />
417 468 440 662 799 875 998 1,054 1,141<br />
17 48 33 30 26 29 39 25 5<br />
244 298 330 454 608 608 720 784 795<br />
186 246 176 218 317 458 478 598 781<br />
0 0 0 0 0 0 0 0 0<br />
0 0 0 0 0 0 0 0 0<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
31
Future Directions for Endorsed<br />
Components of Training Packages<br />
For detailed information on the continuous<br />
improvement of the hairdressing <strong>and</strong> beauty<br />
training packages, please refer to Appendix A.<br />
SIB10 <strong>Beauty</strong> Training Package<br />
The SIB10 <strong>Beauty</strong> Training Package was endorsed<br />
in September 2010, with version 1.2 released in<br />
December 2011.<br />
In August 2012, SSA commenced a comprehensive<br />
industry scoping exercise to identify the current<br />
l<strong>and</strong>scape of the industry. This scoping project<br />
sought information in key <strong>and</strong> emerging areas<br />
of the beauty therapy industry:<br />
• Essential beauty treatments <strong>and</strong> services<br />
• Make-up<br />
• Nail services<br />
• Advanced treatments<br />
• Spa <strong>and</strong> wellness<br />
• Business/management requirements.<br />
Industry identified that essential beauty treatments<br />
<strong>and</strong> services continue to be the core of their business,<br />
with emphasis placed on the value of underpinning<br />
areas of anatomy <strong>and</strong> physiology, communication <strong>and</strong><br />
customer service. Advances in technology continue to<br />
be raised as areas for development by the industry.<br />
The business acumen required to successfully<br />
operate a business in the beauty industry was also<br />
highlighted integral to the future of the industry.<br />
The revision of the SIB10 <strong>Beauty</strong> Training Package<br />
will also encompass the transition to reflect the<br />
new NSSC St<strong>and</strong>ards for Training Packages. This<br />
transition will provide industry with simplified<br />
competency st<strong>and</strong>ards to reference, both in their<br />
own practices <strong>and</strong> in accessing the training system.<br />
This is an opportunity to provide RTOs with clearer<br />
assessment parameters through the assessment<br />
requirements, with the development of supporting<br />
Companion Volumes alongside the SSA User Guide<br />
providing clear industry advice to support quality<br />
delivery of training.<br />
The revised SIB10 <strong>Beauty</strong> Training Package<br />
is anticipated for submission in early 2014.<br />
SIH11 <strong>Hairdressing</strong><br />
Training Package<br />
In June 2011, SSA released SIH11 <strong>Hairdressing</strong><br />
Training Package <strong>and</strong> the transition to the new NSSC<br />
St<strong>and</strong>ards for Training Packages will commence in<br />
2014. It is anticipated that this will be submitted for<br />
endorsement in late 2014.<br />
32 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Appendices<br />
Appendix A: Report of Continuous<br />
Improvement of SIB10 <strong>Beauty</strong><br />
Training Package<br />
No continuous improvement updates were made<br />
to the SIB10 <strong>Beauty</strong> Training Package in 2012.<br />
Appendix B: Report of Continuous<br />
Improvement of SIH11<br />
<strong>Hairdressing</strong> Training Package<br />
No continuous improvement updates were made to<br />
the SIH11 <strong>Hairdressing</strong> Training Package in 2012.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
33
Appendix C: <strong>Hairdressing</strong> <strong>and</strong> <strong>Beauty</strong> Occupations <strong>and</strong> Qualifications<br />
in Dem<strong>and</strong><br />
ANZSCO<br />
Code<br />
Occupation<br />
Training Package<br />
Qualification<br />
Justification/Evidence<br />
451111 Beautician Certificate III in<br />
<strong>Beauty</strong> <strong>Service</strong>s<br />
451111 <strong>Beauty</strong><br />
Therapist<br />
451111 Nail<br />
Technician<br />
Certificate IV in<br />
<strong>Beauty</strong> Therapy<br />
Diploma of <strong>Beauty</strong><br />
Therapy<br />
Certificate II in<br />
Nail Technology<br />
391111 Hairdresser Certificate III<br />
in <strong>Hairdressing</strong><br />
The growing affluence <strong>and</strong> ageing of the population,<br />
coupled with rapid technological advancements has led to<br />
strong dem<strong>and</strong> in the beauty <strong>and</strong> hairdressing industries.<br />
As a result DEEWR forecasts the need for an additional<br />
8,800 beauty therapists in the five years to 2016–17.<br />
This is equivalent to an annual increase of 8.8 per cent.<br />
For hairdressers, it is estimated that a further 3,100 will<br />
be required over the same period, equivalent to an annual<br />
increase 5.6 per cent.<br />
Certificate IV<br />
in <strong>Hairdressing</strong><br />
Diploma of Salon<br />
Management<br />
34 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
Endnotes<br />
1 DEEWR Trend Data based on: ABS, Cat. No.<br />
6291.0.55.003, Labour Force, Australia,<br />
August 2012.<br />
2 DEEWR, 2012, Industry Projections to<br />
2016–17, available at: http://www.deewr.gov.<br />
au/LMIP/default.aspxLMIP/Publications/<br />
IndustryEmploymentProjections<br />
3 ABS, 2012, 2011 Census of Population <strong>and</strong><br />
Housing (4-digit level ANZSCO data retrieved<br />
through ABS Census TableBuilder).<br />
4 ABS, 2011, Cat. No. 6530.0, Household<br />
Expenditure Survey 2009-10: Summary<br />
of Results.<br />
5 Lowe, P. (Assistant Governor, Reserve Bank<br />
of Australia), 2011, ‘Changing Patterns in<br />
Household Saving <strong>and</strong> Spending’, presentation<br />
at Australian Economic Forum 2011, 22<br />
September 2011, transcript available at:<br />
http://www.rba.gov.au/speeches/2011/spag-220911.html<br />
6 Ibid.<br />
7 Brennan, A., 2012, IBISWorld Industry Report<br />
Q9526 <strong>Hairdressing</strong> <strong>and</strong> <strong>Beauty</strong> Salons in<br />
Australia, p. 22.<br />
8 Oliver, D., 2011, Skill Shortages in the Trades<br />
during Economic Downturns, Adelaide: NCVER,<br />
p. 29 (figures based on ABS Labour Mobility<br />
Survey, 1994, 2008).<br />
9 Job Outlook, 2011, ‘Hairdressers: Statistics’<br />
based on ABS, Cat. No. 6209.0, Labour<br />
Mobility Survey, February 2008; DEEWR,<br />
‘Projections to 2015–16’, DEEWR Internet<br />
Vacancy Index, available at: http://joboutlook.<br />
gov.au/Pages/occupation.aspxsearch=alpha&<br />
tab=stats&cluster=&code=3911<br />
10 St<strong>and</strong>ing Council on Tertiary Education <strong>Skills</strong><br />
<strong>and</strong> Employment (SCOTESE), September 2012,<br />
National Foundation <strong>Skills</strong> Strategy for Adults,<br />
p. 7.<br />
11 ABS, 2006, Cat. No. 4228.0. NB: 2006 is the<br />
latest data available. The ALLS survey was<br />
developed <strong>and</strong> produced by the ABS as part of<br />
a broader international investigation into adult<br />
numeracy <strong>and</strong> literacy.<br />
12 SCOTESE, September 2012, National<br />
Foundation <strong>Skills</strong> Strategy for Adults, p. 11.<br />
13 Department of Education, Employment<br />
<strong>and</strong> Workplace Relations (DEEWR), 2011,<br />
Occupation Employment Projections – 2011,<br />
available at: http://www.skillsinfo.gov.au/skills/<br />
IndustryReportsCharts/<br />
14 Ibid.<br />
15 Centre for the Economics of Education <strong>and</strong><br />
Training, 2010, Forecasts of Labour <strong>and</strong> Skill<br />
Requirements in the <strong>Service</strong> Industries 2010–<br />
2015, prepared for <strong>Service</strong> <strong>Skills</strong> Australia,<br />
p.55.<br />
16 ABS, 2011, Cat. No. 3222.0, Population<br />
Projections, Australia 2006 to 2101, Series B.<br />
17 Job Outlook, 2012, based on: ABS, Labour<br />
Force Survey, annual average 2011, available<br />
at: http://joboutlook.gov.au/pages/occupation.<br />
aspxsearch=alpha&tab=stats&cluster=&co<br />
de=3911<br />
18 Ibid.<br />
19 Ibid.<br />
20 Ibid.<br />
<strong>Hairdressing</strong> & <strong>Beauty</strong> Environmental <strong>Scan</strong> <strong>2013</strong><br />
35
21 The endorsed SIB10 <strong>Beauty</strong> Training Package<br />
does not contain an Advanced Diploma.<br />
22 For further information on the Right Way<br />
Program, please refer to: http://www.<br />
serviceskills.com.au/rightway<br />
23 <strong>Service</strong> <strong>Skills</strong> South Australia, 2010,<br />
<strong>Service</strong> Industries VET in Schools Project<br />
Progress Report, October 2010, prepared<br />
for <strong>Service</strong> <strong>Skills</strong> Australia by <strong>Service</strong> <strong>Skills</strong><br />
South Australia.<br />
36 Environmental <strong>Scan</strong> <strong>2013</strong> <strong>Hairdressing</strong> & <strong>Beauty</strong>
www.serviceskills.com.au