Skills Australia - AWPA

Skills Australia
Business Plan 2010
S k i l l s A u s t r a l i a B u s i n e s s P l a n 2 0 1 0

Introduction
When Skills Australia was established in April 2008 it was in the context of skills shortages and concerns
about inflationary pressures on wages. The demand for skills and labour was particularly strong in the
construction and resources sector.
The forums held with Industry Skills Councils in August and September 2008 repeatedly relayed stories
of skills and labour shortages and in many cases the struggle to compete with the attractive wages
offered in the resources sector.
The Global Financial Crisis changed everything; this was particularly evident from October 2008 until late
2009.
Now as we enter 2010 we have almost come full circle. In the medium and longer term we face the
prospect of a re-emergence of demand for skills in the resources sector, to support the major projects
that are planned especially in Western Australia and Queensland.
Across the economy, the issue of the ageing workforce and the need to replace skills continues to loom
as a significant challenge as has been highlighted in the latest Intergenerational Report.
In terms of our capacity to deliver on these future skills needs, we are aware that the effects of the
downturn have been uneven affecting some sectors, regions and groups of people more adversely than
others. The Global Financial Crisis posed significant risks to skills development especially in relation
to the number of new and existing apprenticeships in particular industries, which has implications for
the future engagement of individuals and skills in the economy. It appears that the swift response
by government and industry to mitigate the risks has helped to retain apprenticeship numbers at an
aggregate level, an outcome that is welcomed in terms of ensuring Australia has the skills it requires to
maximise the opportunities that arise as the economy recovers.
This Business Plan builds on the strategic direction and objectives established by Skills Australia in 2009
and sets out the priorities and activities that Skills Australia will undertake in 2010 in order to achieve
those objectives.
In the context of continuing to build on our previous work, the policy paper Australian Workforce Futures
will significantly influence the board’s work program for the next 12 months and possibly beyond.
Skills Australia has either direct responsibility or will take a leadership role to implement a number of
the recommendations arising from Australian Workforce Futures. It will also continue to collaborate
with governments, industry and education and training providers to encourage and assist in the
implementation of the necessary actions and reform agenda.
In March 2009 Skills Australia’s remit was expanded to include providing advice to government on skills
needs for the higher education sector. It was expanded again in February 2010 to provide advice on a
skilled occupation list for migration purposes.
In both cases the expanded remit fits with Skills Australia’s vision and mission and helps to ensure a
more coordinated approach by bringing a range of activities that are aimed at ensuring Australia’s future
productivity under the workforce development umbrella.
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Vision
The vision of Skills Australia is that Australia’s skills and workforce development needs are
anticipated and met and that skills are utilised to secure a prosperous and productive future.
Mission
The mission of Skills Australia is to provide independent and high quality advice to ensure the
government’s investment in education and training promotes the development of a highly skilled
workforce, increases workforce participation (especially among less advantaged groups), meets
the needs of industry and increases Australia’s productivity.
Skills Australia’s advice covers a broad range of areas that affect the demand for and supply of
skills, including (but not limited to), migration, the tertiary education system and the effective use
of skills in the workplace.
Our Values
Skills Australia’s advice and operations will be underpinned by the following values:
Leadership We will take the strategic perspective to achieve outcomes that strive to the
aspiration to have the best educated, best skilled workforce in the world. We will provide
leadership, face challenges and tackle the difficult issues in the interest of increasing productivity
and delivering benefits to individuals and the nation.
Commitment We support a training system that delivers knowledge and skills of high quality
that can be useful and used. We are committed to a nationally based system of recognised
competencies to meet the needs of industry and support mobility of skills and a framework that
provides ease of access for users to engage with the system.
Respect and Inclusiveness We aim to build relationships with our stakeholders based on trust
and collaboration. We will act as an honest broker, listening to the views of all stakeholders. We
will respect different views, act with integrity, openness and honesty, be fair and credible, and
share knowledge and information.
Flexibility We will provide advice to support reform of the national training system where it is
needed and will be willing to change and continuously improve our actions through a learning
approach.
Evidence based approach We will conduct and commission research that complements our
objectives and will provide advice based on critical analysis and sound evidence.
Public interest Our advice will aim to ensure that education and training is directed to those
areas that best address the public interest in supporting productivity improvement, increasing
workforce participation, lifting the capacity of individuals to participate in the workforce now and
to adapt to the future challenges arising from technological and other changes.
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Objectives
The strategic priorities and objectives of the work of Skills Australia as set out below are primarily
defined by the Skills Australia Act 2008. They are also informed by the recommendations arising from the
major work undertaken by Skills Australia over the last 12 months such as Foundations for the Future,
the Strategic Industry Forum, Australian Workforce Futures and work currently on hand.
• Develop advice and strategies on workforce development and the application of skills in the workplace
to improve productivity.
• Analyse current and emerging skill needs in the Australian economy. Provide the Government with
recommendations on current and future skill needs.
• Assess evidence from commissioned research and industry stakeholders to inform Australia’s
workforce development needs.
• Widely distribute information from research and consultations so stakeholders have the necessary
information to inform their training and employment decisions.
• Provide and drive ongoing reforms to the education and training sector, including priorities for the
investment of funds.
• Establish and maintain relationships with relevant state bodies and authorities to inform our advice
and facilitate alignment of responses.
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Our Stakeholders
Skills Australia aims to provide advice on the skills and workforce development needs of the Australian
economy ranging from unskilled to professional.
The success of the outcomes we are seeking relies on fostering cooperative working relationships
with a broad range of people and organisations that share an interest in workforce development needs
including but not limited to:
• The Minister for Education, Employment and Workplace Relations
• Industry as represented by Industry Skills Councils, professional associations, peak bodies, business
and employee representatives
• States and Territories and the relevant training authorities and through them the industry advisory
bodies within each jurisdiction
• Individuals and employers accessing education and training
• Providers of education and training including both vocational and higher education
• Commonwealth government agencies
• Research organisations
• Intermediaries such as job services providers, career advisory services and group training
associations.
In addition, the board recognises that while the development of human capital is a crucial factor
in Australia’s competitiveness, knowledge for its own sake does not represent the most effective
investment of training resources. Hence, the economic imperative underlying the work of Skills
Australia is to ensure that the skills and knowledge delivered by the education and training system are
used and useful. This is why the role of industry is critical to ensuring skills are used effectively. Skills
Australia’s relationship with industry is primarily through the peak industry associations, the Industry
Skills Councils, Professions Australia, the individual professional associations and the peak education and
training representatives.
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Strategic Priority 1:
Analyse current and emerging skills needs in the Australian economy. Provide
the Government with recommendations on current and future skills needs.
Rationale
Skills Australia has identified that Australia requires a highly skilled population to maintain and improve
its economic position in the face of increasing global competition. The number of jobs that require higher
skills continues to increase and the number of low skills jobs is declining. We need strategies in place to
both increase and deepen skills for the future and to manage the approach for those skills that are highly
specialised.
• More needs to be done to increase the participation of domestic students in VET, otherwise
Australia risks a lack of skilled workers to meet future growth and replacement demand.
• As the university sector moves to a student demand based system it will be important to
monitor the take up of university courses and identify potential gaps in specialised skills.
Actions for Skills Australia
• Develop a process for working in consortia with industry stakeholders and professional associations,
equity organisations and others to develop Industry Strategic Outlooks. The outlooks will examine
issues of supply and demand of skills and advise on interventions for the Specialised Occupations List
to address skills shortages or surpluses.
• Develop processes that enable Skills Australia to obtain sophisticated industry intelligence about new
and emerging skills needs biannually.
• Evaluate and report on the investment in education and training.
• Research and advise on strategies to increase individuals demand and participation in education
particularly for older workers.
• Research supply side issues, in particular, how to overcome barriers to individuals taking up education
and training.
• Continue to work with stakeholders on broad workforce planning activity and to address issues such
as the role and limitation of using ANZSCO in providing advice on skills needs.
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Deliverables
• Publish the revised Specialised Occupations List on an annual basis.
• Provide advice in regards to a Skilled Occupation List for migration.
• Publish Industry Outlooks and strategies for intervention to inform models of best practice for
workforce development.
• Report on tertiary education sector enrolments, graduations and demand – with analysis against the
Specialised Occupations List.
• Contribute to DEEWR’s review of the Productivity Places Program.
• Commence development of scenario work for 2012 review of future skills needs.
• Develop alternatives to address the data limitations in understanding and advising on skills needs.
• Publish research on factors effecting demand from individuals including best practice.
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Strategic Priority 2:
Develop advice and strategies on workforce development and the application
of skills in the workplace to improve productivity.
Rationale
Australia’s economic competitiveness rests on the productivity of its workforce. Australian Workforce
Futures identified the need to better utilise skills as a critical element of future productivity. It has also
noted the potential of programs designed to assist business management and productivity such as
Enterprise Connect to be better aligned with the workforce development agenda. To do this would act
as a mechanism for engaging employers, particularly from small and medium enterprise in strategies for
improved management, innovation and employee engagement.
• Australian Workforce Futures found that approximately 30 per cent of employees perceive that
they do not use the skills they possess.
• Research by the United Kingdom Commission on Employment and Skills (UKCES) has
examined how a High Performance Working (HPW) approach can help to ensure skills are
better used in the workplace. The research finds that there is a weight of evidence pointing to
the positive link between HPW, performance and employee wellbeing.
Achieving better application of skills in the workplace requires a holistic approach and is an extremely
difficult and complex thing to achieve and get right. There is no silver bullet or process to follow and
there can be a significant time lag before the benefits can be totally realised.
Whilst it is noted that employers control their own organisations and businesses there is a role for public
policy in encouraging employers to adopt HPW and other improvement strategies.
Actions for Skills Australia
• Make the case for change – by demonstrating the business case to employers. Identify best practice
in Australia and internationally and promote these examples through industry and professional
associations, HR and management networks.
• Encourage businesses to take action – Inspire employers to think about how they manage their
organisations and staff. Stimulate enterprises to act by raising awareness and providing guidance
on how they could do things differently to improve their productivity, competitive advantage and
employee engagement.
• Link in with other policy initiatives in Australia for example, the Society of Knowledge Economics
project on High Performance Workplaces and learn from international research and activities that aim
to improve the use of skills in the workplace.
• Pursue implementation of recommendations from Australian Workforce Futures to link funding
through government programs such as the Productivity Places Program and Enterprise Connect
to coordinate business management and the development of plans for application of skills in the
workplace.
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• Equip education and training providers and other intermediaries to undertake training needs analysis
for businesses and through this role facilitate workforce development and improved productivity.
• Provide specific advice on reforms to the VET system such as incentives and performance measures
to encourage an enterprise focus.
Deliverables
• Host a major conference/convention on use of application of skills jointly with business partners,
industry and education and training providers.
• Promote better application of skills in the workplace via case studies of best practice. The case studies
will aim to raise awareness and educate managers and individuals on the value and mechanisms for
improving the use of skills in the workplace. Articles will be published in industry, HR magazines and
other relevant publications to raise awareness and generate interest in better utilisation of skills in the
workplace.
• Lead a new partnership approach to workforce development at government, industry and enterprise
level.
• Provide advice on ‘enterprise responsive’ training programs to encourage better application of skills
• Raise the capacity of providers to work with businesses including by coordinating with current
business development programs, to provide training needs analysis with a view to improving the
productivity of the business and engagement of employees.
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Strategic Priority 3:
Assess evidence from commissioned research and industry stakeholders to
inform Australia’s workforce development needs.
Rationale
This priority supports Skills Australia’s values of: providing advice based on an evidenced based
approach; and ensuring that its advice works to ensure that education and training effort is directed to
those areas that best address the public interest, support productivity and the participation of individuals
in education and work.
Actions for Skills Australia
• Conduct and commission research that supports Skills Australia’s business priorities.
• Identify opportunities to collaborate with other organisations on research where appropriate, including
both within Australia and internationally.
• Provide advice on the outcomes and application of training.
• Research priorities for the coming year include:
»»
The application of skills in the workplace.
»»
Examination of completion rates – why they are low and how to improve them.
»»
Skills for the new economy including the green economy and new technology.
Deliverables
• Research findings will be published on the Skills Australia website.
• Research findings will be disseminated through presentations, industry forums and other media.
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Strategic Priority 4:
Widely distribute information from research and consultations so stakeholders
have the necessary information to inform their training and employment
decisions.
Rationale
Information is critical in assisting individuals and industry to make informed decisions about their
involvement and investment in training. Skills Australia will publish findings of its skills and workforce
development research to assist education, training and employment decisions.
Actions for Skills Australia
• Publish research conducted by Skills Australia, as appropriate, via the Skills Australia website and
through messages delivered by the Chair of Skills Australia at presentations, industry forums and
through other media.
• Provide advice on the options to better inform the general public of outcomes delivered by quality
training and training providers to enable them to make informed decisions in a competitive training
market.
• Conduct research to examine opportunities to facilitate a workforce development approach through
partnerships of training providers, industry and firms at the local level to promote the use of skills in
enterprises.
• Examine opportunities for partnerships with training providers, industry associations and enterprises
to promote the use of skills.
Deliverables
• Updated communications and stakeholder strategy.
• Research published on the website.
• Presentations and briefings focus on promoting key messages.
• Articles will be published in a broad range of media.
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Strategic Priority 5:
Provide and drive ongoing reforms to the education and training sector,
including on priorities for the investment of public funds.
Rationale
Australian Workforce Futures provides a macro approach to identifying the need for more and deeper
skills, and improvements in productivity, participation, language, literacy and numeracy and the use
of skills in the workplace. Skills Australia’s work on the VET system will focus on the opportunities
and barriers in VET and will make recommendations to improve the system to ensure it is well placed
to meet the objectives outlined in Australian Workforce Futures. This work will both articulate the
contemporary VET offer and advise on the fundamental aspects of the system that require reform. Skills
Australia will look at the industry, social and community context as the VET system is more than just
providers.
Actions for Skills Australia
• Conduct and commission research to inform Skills Australia’s work on the VET system to ensure a
better deal for learners, high quality teaching and learning and a broader remit of VET.
• Draft advice and recommendations in consultation with people who have expertise and understanding
of the sector.
• Liaise with key stakeholders to test the ideas and develop stakeholder buy-in to the process.
• Review other policy proposals being pursued by government agencies and others that align with the
objectives of the VET roadmap.
• Participate in the review of the Productivity Places Program National Partnership.
• Monitor and follow up implementation of recommendations outlined in Foundations for the Future.
• Promote and monitor implementation of recommendations contained in Australian Workforce Futures.
Deliverables
• Complete a report on Skills Australia’s work on the VET system by June 2010.
• Publish analysis of key data and trends of the education and training system based on international
comparisons.
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Strategic Priority 6:
Establish and maintain relationships with relevant state bodies and authorities
to inform our advice and facilitate alignment of responses to skills needs.
Rationale
There is a broad and diverse range of stakeholders who have an interest and role in the operation
and outcomes of the tertiary education and training systems. The systems should meet the needs of
industry, individuals, and economic development on a regional, national and international basis. Often
providers have extensive knowledge and information about skills needs in their local area.
Skills Australia recognises that its advice needs to be relevant to the broad stakeholder network and its
efforts to establish relationships and engage stakeholders across jurisdictions, industry and enterprises
have enhanced the relevance and acceptance of its advice on skills and workforce development.
Throughout 2010 the focus will be to maintain the good working relationships and broaden the network
to engage on an international level to share learning with other organisations that have a similar mandate
to Skills Australia.
Actions for Skills Australia
• Work with the Industry Skills Councils and other industry and professional associations to develop
arrangements for developing the industry strategies arising from the specialised occupations.
• Collaborate with industry stakeholders to agree the intelligence they will supply Skills Australia to
assist in understanding skills and workforce development needs in relation to the green economy,
innovation and skills for recovery from the Global Financial Crisis.
• Consult with stakeholders on the partnership approach for workforce development.
• Continue to use the Strategic Industry Forum to champion industry’s response to key issues in
education and training.
• Foster new partnerships with international counterparts particularly with a view to sharing ideas and
learnings and maintain regular contact with all stakeholders, provide support through speaking at
stakeholders conferences etc.
Deliverables
• Enhance and review the media, communications and stakeholder strategy.
• Establish a program of regular communication with key stakeholders.
• Conduct a Strategic Industry Forum Event.
• Provide linkages with relevant research and networks through the Skills Australia website.
• Conduct regular meetings with stakeholders as part of the board meetings and hold board meetings
at education and training provider premises.
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