Employer engagement in skills development and skills utilisation

Employer engagement in skills development and skills utilisation Recent ILO research and examples of technical cooperation in developing countries Paul Comyn, Ph. D. Senior Skills & Employability Specialist Employment Policy Department International Labour Organisation (ILO)

This presentation will…. outline the ILO program of research and technical assistance on employer engagement in skills development and skills utilisation consider recent examples from ILO technical cooperation projects outline key success factors that inform ongoing ILO work in this area

ILO research & resource materials Research Can Better Working Conditions Improve the Performance of SMEs? (2013) Global Apprenticeship Network Feasibility Study (2013) High Skilled Engineering Apprenticeships in the US (2014) Firm Level Return on Investments in Training – Indonesia, China (2014) Quality Apprenticeships in SMEs (2015) Employer Engagement in Apprenticeships ILO/OECD (2016) How to Improve Skills Utilisation? ILO/OECD (2016) Institutional Arrangements and Approaches to Skills Anticipation (2016) Trade Union Involvement in Skills Development Systems: National, Sectoral and Enterprise Perspectives from 10 Developing Countries (2016) Resource Guides / Policy Briefs Skills for Trade and Economic Diversification (STED) A Practical Guide (2012) Upgrading Informal Apprenticeship Systems (2013) Assessing Skills in the Informal Economy: A Resource Guide for Small Industry and Community Organisations (2015) Apprenticeship Toolkit (forthcoming 2016)

Examples from the field with a focus on… National skills policies and systems Sectoral approaches Strengthening apprenticeship systems (formal and informal) Levy-based financing Skill ecosystems

Coordination … employer and worker organisations at sector level … institutions and workplaces … skills and industrial, trade, technology and regional development policies … government agencies and development partners

National skills policies and systems What role do industry have? assessment and certification of training in India National Skills Development Corporation (NSDC) - STAR Scheme Ministry of Labour and Employment (MOLE) - MES Scheme quality control and revenue model industry managed assessment centres and industry endorsed dual certification arrangements sector specific assessment standards and qualification outcomes potential conflict of interest demands strong quality assurance and oversight controls

Sectoral approaches Variously known as industry skills councils, sector skills councils, industry training bodies Permanent and independent bodies have well established role in countries such as UK, Australia, South Africa, Canada, New Zealand, the Netherlands and Brazil. 22 of 28 EU countries have a sectoral approach Similar arrangements being established or considered in Bangladesh, Malaysia, Rwanda, India, Vietnam, Ghana, Sri Lanka, Nigeria amongst others In some cases they have developed organically and in others a consequence of specific state intervention but structures and roles vary considerably

Sectoral approaches can deliver…. labour market analysis of current and future skills needs; preparation of occupational or qualification standards; policy advice on lifelong learning or VET; fostering cooperation between educational providers and employers; coordination and provision of workforce training funding of training. But employer engagement relies on: ü Coverage - industry scope, sectoral or transversal Structure - committees, councils, independent bodies, secretariats Focus - initial or continuing TVET or both Members - bipartite, tripartite, multipartite, industry representation Mandate - advisory, technical, legal responsibilities Funding - public, private, donor, levy Coordination - reporting lines

Apprenticeships (formal & informal) “A quality apprenticeship is unique form of vocational education, combining on the job work-based learning and school-based training, for specifically combined competencies and work processes. It is regulated by law and based on an oral or written employment contract with a compensatory payment and standard social protection coverage. A formalized assessment and a recognized certification come at the end of a clearly identified duration” (ILO 2014)

ILO Technical Assistance • • • • Costa Rica: new system - IT, health, ecotourism Mexico: reform and expansion - SME focus (SIMAPRO) sugar, tourism Jamaica: re-establish a national program Greece, Portugal, Spain, Latvia: revitalising and strengthening programs Jordan: new system - pilots in automotive, manufacturing Bangladesh: reform and expansion, COE Pakistan: legislation and financing, informal upgrading pilots India: national reform and expansion, state implementation: Andra Pradesh SME focus / Mizoram informal strengthening Indonesia: reform and expansion Kenya: upgrading internships to apprenticeships Malawi: piloting new programs/pathways - horticulture Tanzania & Uganda: new system - hospitality pilots GAN: Spain, Turkey, Mexico, Indonesia, Argentina, Malawi, Costa Rica, Kenya

Global Apprenticeship Network (GAN) On a global scale the GAN is actively supported by: ILO: International Labour Organisation IOE: International Organisation of Employers BIAC: The Business and Industry Advisory Committee 13 leading companies: Adecco Group, Astra International, Ericsson, GI Group, Hilton Worldwide, Huawei, IBM, Mastercard Foundation, Nestlé, Randstad Holding Samsung, Telefónica, UBS) On a national scale the GAN acts via National Networks, which helps to act quickly, bringing the idea to the ground despite the large network. First three National Networks have been launched with different needs: Turkey with 25 member companies Indonesia with 19 member companies Spain with 29 member companies

Industry Apprenticeship Hub: Bangladesh Centre of Excellence for Leather (COEL) – industry skill centre registered as training organisation with BTEB 1 year duration: 3 months on COEL payroll, 9 months on industry payroll as apprentice COEL identifies demand of skilled workers from different enterprises and enrolls trainees upon signing agreement with company Supervisor/mentor from each enterprise for every trainee Log-books to record on-the-job training COEL batch coordinator support factory supervisors 2014: 8, 000 apprentices 13 enterprises Dual certification: Apprenticeship (BMET) and Level 2 Machine Operator Footwear (BTEB) SDC funding for expansion & Chittagong outpost

Intermediary collaboration: Turkey Turkish Confederation of Employer Associations (TISK) Turkish Employment Agency (ISKUR) Skills 10 Project – 6 month program of integrated on and off the job training as "apprenticeship" TISK as lead member of GAN facilitates enterprise involvement in Skills 10 Project Enterprises become GAN members and receive support for ongoing implementation of apprenticeships Allowed higher apprentice: employee ratios (20%) 1, 058 apprentices – 50% employment outcome

Informal apprenticeships: Niger National Crafts Association (Fédération National des Artisans, FNAN) organizes 70, 000 members in 527 associations (64% of all crafts associations) 10 pilot experiences in: car mechanics, plumbing, leather works, masonry, blacksmithing, radio and TV electronics, modern jewellery, cycle and motorcycle maintenance, electricity for construction, industrial electricity FNAN established training officer positions: training needs assessment and monitoring quality of training Complementary training for apprentices and master craftspeople in formal training centres Fixed duration: 2 or 3 years RPL for mastercraftspersons

Financing To increase the net demand for skills To encourage the utilisation of higher skills To support productivity growth and encourage innovation in other workplace systems: Technology Work organisation Product development Workplace relations To use investments in skills as a driver of workplace change

Training Funds Thailand Skill Development Fund (SDF) Skill Development Promotion Act 2002 encourages industry-institute linkages 200% of training costs deducted from annual taxation liability. establishments gain other benefits such as exemption of sales tax on training equipment and facilities, cost of experts or trainers, subsidised water and electricity fees. compulsory for all establishments with at least 100 employees which have to provide training to at least 50% of employees. if the training is not delivered, the employer has to pay $20 to the SDF per untrained employee.

Skill ecosystems Skills Development Initiative in Moradabad In 2012 led by the trade union Hind Mazdoor Sabha (HMS) with active support of the local government authority and local exporters association: Awareness campaign to sensitise exporters, employers, mastercraftspersons and workers on the importance of skills enhancement through workshops/small group meetings social marketing networking amongst stakeholders Implementation Committee (KVS) formed under the chair of the District Magistrate/Collector, to bring tripartite plus stakeholders together: relevant government departments (MOLE, MSME) employers and workers organizations education and training institutions other civil society organizations

Skills Development Initiative in Moradabad Skill Need Assessment Survey of 500 workers and 70 employers by union staff – first of its kind: employment arrangements working conditions business plans skill needs Skills gap and training needs analysis Competency standards and training manuals developed: engraving, etching, electroplating and lacquering RPL and gap training of workers/MCP for national certification Functional literacy and numeracy training as required

Results Follow-up union survey in 2014 reported: Improved workplace safety and working conditions Reduced injury rates Improved on-the-job training practices Improved productivity Diversified production Improved relationships along value chain

Key success factors When there is a genuine need to tackle skills issues in a sector When there is trust between stakeholders and motivation to work together When they are given a clear and meaningful role in the system that affects positive change When leading change champions are involved When they are adequately funded or given the opportunity to generate income for enterprise or industry development When technical assistance provides support

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