The Initial Workforce Plan report by the Future Skills Organisation presents the current state and future needs of the business workforce in Australia. This extensive analysis delivers critical insights for RTOs offering business training programs. Here’s a breakdown of what these findings mean for RTOs:
The Changing Landscape of the Business Sector
The business workforce in Australia includes approximately 1.4 million individuals, accounting for 9-17% of the total workforce across states and territories. However, this workforce is ageing, with a median age of 42 years, and there is below-average participation from First Nations and linguistically diverse populations.
Increasing Demand for Digital Skills
A notable discovery is the rising demand for digital skills within the business workforce in Australia. Since 2016, there has been a 16% shift in required skills, mainly driven by the necessity for foundational digital capabilities. Skills such as digital literacy, performance management, critical thinking, and advanced customer experience have seen significant growth.
What It Means for RTOs:
RTOs need to incorporate digital literacy and emerging technology skills into their BSB training programs to stay relevant. This might require updating the curriculum to include more digital tools, data analysis, and business-related software applications.
Business Training Programs : Positive Satisfaction and Employment Outcomes
The report indicates that 81% of students are satisfied with their BSB training, yet there is a significant gap in employment outcomes. Only 16% of students find employment in the same field as their training. However, 72% of those employed after training find their training relevant to their current job, and 56% report improved skills.
What It Means for RTOs:
Training outcomes should be better aligned with evolving employment requirements and opportunities. RTOs should strengthen industry partnerships to provide work-integrated learning experiences and clearer career pathways for graduates.
Declining VET Business Qualification Enrolments
There has been a significant decline in completions of business qualifications, particularly at lower levels. On the other hand, higher-level qualifications and university completions have remained steady. This decline is attributed to negative perceptions of the VET sector’s ability to meet skills needs and a preference for university graduates due to evolving regulatory requirements.
What It Means for RTOs:
To combat this decline, RTOs must improve the perceived value of VET qualifications. This can be done by showcasing success stories, enhancing training quality, and highlighting the practical, hands-on experience that VET offers compared to university education.
The Importance of Core Competencies
Business roles require strong capabilities in planning and organising, with significant time devoted to tasks like customer service, data analysis, and marketing. These core competencies are crucial to business roles and must be reflected in BSB training programs.
What It Means for RTOs:
Training providers should ensure their BSB training programs, including RTO materials, emphasise these core competencies, incorporating practical exercises and real-world scenarios to help students develop these essential skills and become valuable assets to the business workforce in Australia.
Addressing Workforce Challenges
The report identifies three key challenges affecting 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.
What It Means for RTOs:
RTOs must adapt to these challenges by offering flexible training options, integrating digital skills training, and providing clear career guidance. Collaboration with industry partners is essential to ensure training remains relevant to current business practices.
Conclusion
The Initial Workforce Plan emphasizes the evolving needs of the business workforce in Australia. It also highlights the vital role that RTOs play in preparing future 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 continue to provide relevant and practical training that meets the demands of the modern workforce.
