Employer engagement in skills development and

skills utilisation

Recent ILO research and examples of technical cooperation

in developing countries

Paul Comyn, PhD.Senior Skills & Employability Specialist

Employment Policy DepartmentInternational Labour Organisation (ILO)

This presentation will….

outline the ILO program of research and technical assistance on employer engagement in skills development and skills utilisationconsider recent examples from ILO technical cooperation projectsoutline key success factors that inform ongoing ILO work in this area

ILO research & resource materialsResearch

•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 IndiaNational Skills Development Corporation (NSDC) - STAR SchemeMinistry of Labour and Employment (MOLE) - MES Schemequality control and revenue modelindustry managed assessment centres and industry endorsed dual certification arrangementssector specific assessment standards and qualification outcomespotential 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: 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 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

On a global scale the GAN is actively supported by:ILO: International Labour OrganisationIOE: International Organisation of EmployersBIAC: The Business and Industry Advisory Committee13 leading companies: Adecco Group, Astra International, Ericsson, GI Group, Hilton Worldwide, Huawei, IBM, Mastercard Foundation, Nestlé, Randstad Holding Samsung, Telefónica, UBS)

Industry Apprenticeship Hub: BangladeshCentre of Excellence for Leather (COEL) – industry skill centre registered as training organisation with BTEB1 year duration: 3 months on COEL payroll, 9 months on industry payroll as apprenticeCOEL identifies demand of skilled workers from different enterprises and enrolls trainees upon signing agreement with companySupervisor/mentor from each enterprise for every traineeLog-books to record on-the-job trainingCOEL batch coordinator support factory supervisors2014: 8,000 apprentices 13 enterprisesDual 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 ProjectEnterprises become GAN members and receive support for ongoing implementation of apprenticeshipsAllowed 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 skillsTo support productivity growth and encourage innovation in other workplace systems:

TechnologyWork organisationProduct developmentWorkplace relations

To use investments in skills as a driver of workplace change

Training Funds

Thailand Skill Development Fund (SDF)

Skill Development Promotion Act 2002encourages industry-institute linkages200% 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 MoradabadIn 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, master-craftspersons 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

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

Skills Development Initiative in Moradabad

• 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

Results

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

THANKS

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