New Apprenticeships and Traineeships plummet, but we have a way forward.

In May - June, 700 less apprentices or trainees started a training contract in Tasmania than at the same time last year. With a lack of employer confidence in this uncertain world it’s understandable that they don’t want to commit to the full training journey with another employee.

But we must keep our training pipelines full and employers don’t have to make that full commitment. The GTO model is a great answer…

Scenario planning is an important tool businesses use to form a picture on the possible trading landscapes created by national and international governments and markets, and this is no different in response to COVID-19. At the very least, scenario planning permits businesses to picture what the “edges” of the landscape might look like so they can determine strategies that will work across a range of scenarios, or at least determine which triggers might cause a switch from one strategy to another. 

One of the major consequences of the uncertain future is its adverse impact on the confidence to hire employees, particularly apprentices and trainees. The graph from the Premier’s Economic and Social Recovery Advisory Council (PESRAC) Report (figure 4.4 below) shows 700 less apprentices and trainees starting a training contract in May-June 2020 than the same time last year. If this trend continues, there’ll be a huge shortfall of qualified workers to fill positions left vacant. With people retiring, let alone any new demands from all of the new projects being touted for Tasmania, this could be quite damaging for the industry sector. 

What’s the downside for direct employment?

There’s a bit more to this situation than just uncertain futures. The high commitment overall by employers to see people trained properly might also be a factor.

The downside of having employers with high integrity who have apprentices and trainees in their workforce is that unless there’s a clear horizon of work for the duration of the training contract, then most employers are reluctant to start an apprentice or trainee.

Is there an alternative?

There is, and it’s done by lifting employers sights from employing apprentices and trainees for a single business, to employing apprentices and trainees for a group of diverse employers. This is where one of the many Group Training Organisations (GTO) in Tasmania can help, like us. 

A GTO can negotiate with a number of employers and create multiple training opportunities for a group of apprentices and trainees. For example, if a GTO were to identify 3, 4 or 5 engineering businesses in a reasonable proximity to each other who service a range of sectors (mining, agriculture, marine, etc.) who have needs for engineering apprentices, this effectively creates multiple “training opportunities”. As workloads vary, the GTO manages the movement of apprentices. This can go both ways, as when it’s quiet, the apprentices move to the other workplaces. When there’s a peak, more apprentices can be mobilised to help the peak. 

Of course, assigning work experience with an industry partner that’s comparable to an individual's stage of training is an important consideration. That’s why GTO’s comes into their own with managing the interface between apprentices and an RTO. Industry partners need only concentrate on scheduling apprentices to work stations, allowing them to gain experience in consultation with the GTO, but the GTO manages the rest. Ultimately, GTO’s take a lot of the pressure from both the industry partner and the apprentice/trainee. 

The interim report from PESRAC have proposed a mechanism to promote a network approach to employing workers which is welcomed. The recommendation states the following:

“Group training organisations, labour hire firms, and other job matching services should be funded to support recruitment, mentoring and rotation of apprentices, trainees and short-term workers across employers that cannot currently commit to long-term employment contracts.” 

The biggest hurdle may rest with employers being open to using a new approach to solve the new problem, brought on by the COVID-19 pandemic. GTO’s need to demonstrate to employers that they are capable of bringing a lot more to the relationship than just being an administrative and recruitment service. Better yet, GTO’s could show how their “mobile industry apprentices” deliver more versatility and therefore more value to an employer.

Apprentices, trainees and skilled workers who have participated in this approach are likely to be far more capable than what any one employer can provide on their own. Not only is the technical skill more advanced, the resilience from working in multiple workplace cultures also helps round out employees.

Tasmania has a golden opportunity to take a step in changing the approach and truly create an environment that supports the growth of high quality and innovative technical people. Any desire Tasmanians have to become an Advanced Manufacturing powerhouse needs to have the people side of the equation addressed, in addition to the equipment and markets. Group Training Organisations can be the “arms and legs” to leverage the full collaborative benefits which already exist in Tasmania.