The recent Initial Workforce Plan report by Future Skills Organisation sheds light on the current state and future needs of the business workforce in Australia. This comprehensive analysis provides valuable insights for RTOs with business training programs. Here’s what the findings mean for RTOs:
The Changing Landscape of Business Occupations
The business workforce in Australia encompasses about 1.4 million individuals, making up 9-17% of the total workforce across states and territories. However, the workforce is ageing, with a median age of 42 years and a below-average participation rate from First Nations and linguistically diverse people.
Business Training Programs: High Demand for Digital Skills
One of the standout findings is the increasing demand for digital skills within the business workforce in Australia. Since 2016, there has been a 16% change in the skills required, driven by the need for foundational digital capabilities. Skills like digital literacy, performance management, critical thinking, and advanced customer experience have grown the most.
Implication for RTOs: Organisations need to offer BSB training programs that integrate digital literacy and emerging technology skills to remain relevant. This could involve updating curriculum content of RTO training resources to include more digital tools, data analysis, and software applications used in business contexts.
Satisfaction and Employment Outcomes
The report highlights that 81% of students are satisfied with their BSB training, but there is a notable gap in employment outcomes. Only 16% of students are employed in the same occupation as their training course. Despite this, 72% of those employed after training found their training relevant to their current job, and 56% saw improved skills.
Implication for RTOs: Training outcomes need to be better aligned with employment opportunities. RTOs should focus on strengthening industry partnerships to provide work-integrated learning experiences and clearer career pathways for graduates.
Decline in VET Business Qualifications
Completions of business qualifications have declined significantly, especially at lower levels. Meanwhile, higher-level qualifications and university completions have remained stable. This decline is attributed to poor perceptions of the VET sector’s ability to meet skills needs and a preference for university graduates due to increasing regulatory requirements.
Implication for RTOs: To address the decline, RTOs must enhance the perceived value of VET qualifications. This can be achieved by showcasing success stories, improving the quality of training, and highlighting the practical, hands-on experience that VET provides compared to university education.
The Importance of Core Competencies in Business Training Programs
Business occupations require deep capabilities in planning and organising, with significant time spent on tasks like customer service, data analysis, and marketing. These core competencies are critical for business roles and must be reflected in BSB training programs.
Implication for RTOs: Training providers should ensure that their BSB training programs emphasise these core competencies, incorporating practical exercises and real-world scenarios to help students develop these essential skills and become valuable additions to the business workforce in Australia.
Addressing Workforce Challenges?
The report identifies three key workforce challenges impacting business occupations: training suitability, the digital capability gap, and job and career pathways. Addressing these challenges is crucial for the future success of the business workforce in Australia.
Implication for RTOs: Training providers must adapt to these challenges by offering flexible training options, integrating digital skills training, and providing clear career guidance. Collaborating with industry partners is essential to ensure training remains relevant and up-to-date with current business practices.
Conclusion
The Initial Workforce Plan highlights the evolving needs of the Australian business workforce and underscores the critical role RTOs play in preparing the next generation of business professionals. By updating BSB training programs to include digital skills, improving alignment with industry needs, and enhancing the value of VET qualifications, RTOs can ensure they continue to provide relevant and practical training that meets the demands of the modern workforce.
