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2013 Hairdressing and Beauty Scan - Service Skills

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<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

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