Government Funded Traineeship Information for HR Professionals

Introduction

This chapter provides clear information on how government-funded traineeships are effectively implemented in organisations. Traineeships are a valuable staff development tool if applied in a logical and business-focused way.
Traditionally there has been no central reference point for seeking clarification on the process of government-funded traineeships, and the confusion is compounded by traineeships being run under auspices of Australian ‘Apprenticeships'. It is no wonder many HR managers become frustrated when attempting to obtain funding for their workers' development!

This chapter aims to demystify the traineeship process and explain in simple terms how an HR manager can go about determining whether there are government-funded training opportunities for their employees.

What are the benefits to an organisation of introducing traineeships?

The advantages of introducing traineeships are on three levels:

1. From a national perspective, traineeships are intended to ensure that Australia is competitive against worldwide benchmarks and that skills shortage areas are addressed.
2. From an organisational perspective, traineeships provide a strong opportunity to up-skill employees to higher standards and to ensure that they also meet nationally stipulated requirements. The funding provided through traineeships becomes a useful extension to the learning and development budget of the organisation and a means for the implementation of on-going, consistent training.
3. From an individual perspective, the traineeships leads to a nationally recognised qualification that is portable to any industry sector and a valuable addition to a CV.

What is the difference between an apprenticeship and a traineeship?

Traineeships are for existing workers as well as new entrants to the workplace. Apprenticeships are for workers beginning a new trade.

Example

Apprenticeships Traineeships
Traditional trades such as hairdressing, plumbing, mechanics.

Typically apprenticeships have duration of 3 - 4 years.
Non-traditional trades such as financial services.

Duration periods of 12, 18 or 24 months.

This chapter will focus solely on the use of traineeships.

Which organisations can apply for funded traineeships?

Funding is available for registered Australian companies that hold an ABN number. Companies are only eligible to share in the funding that relates specially to their industry. For example, a bank cannot collect funding for a hairdressing qualification.

Federal Government departments are not eligible for funding. The owner of a business is not eligible for traineeship funding.

What training attracts Government funding?

Only training which leads to a nationally recognised qualification attracts funding. However, not all of the nationally recognised training qualifications in Australia attract traineeship funding.

The different States have varying funding arrangements and therefore one the best ways to determine whether a qualification attracts funding is to contact an Australian Apprenticeship Centre. These are listed on the Australian Apprenticeships website:

www.australianapprenticeships.gov.au

It is possible for HR professionals themselves to investigate Commonwealth and State funding opportunities using the following guidelines:

Commonwealth Funding
Two sources of funding are available - State and Commonwealth funding. Commonwealth Government funding is the main source of funding for Australian traineeships. However the level and availability of Federal funding for training qualifications differs between the States and Territories.

At the time of publication, there is no consistent approach to the levels of funding available for different qualifications. The introduction of a nationally standardised system is currently on The Council of Australia Governments agenda.

Until a nationally consistent system is implemented, to determine whether a qualification attracts Federal funding in each state, it is possible to use the Australian Apprenticeship Training Information Service website, which provides information for Australian Apprenticeship Centres, RTOs, other organisations marketing and implementing Australian Apprenticeships.

The website allows you to search for the amount of Commonwealth and State funding available for nationally recognised qualifications.

To investigate whether a qualification in a particular State attracts Commonwealth Funding:

• Navigate to The Australian Apprenticeship Training Information Service website:
• www.natinfo.com.au
• Click ‘Sample Training Programs'
• Search by ‘Field Officer Brief' on the left menu bar
• Select the State or Territory in which your organisation is located, and the appropriate industry.
• Hit ‘Submit'
• This will bring up a Summary report of the industry and qualifications which are funded.
• To find out whether your particular qualification in your State receives Federal funding, scroll down this page until you reach the ‘Availability & Duration' table:

Qualifications are federally funded only if they are designated by the applicable State or Territory Training Authority as having a nominal duration of 24 months.

Example:
A retailer in Mackay, QLD has an employee who would be suitable for a Certificate III in Retail Operations. This person is an existing worker, having been with the business for six months. Their HR manager, Jim, uses The Australian Apprenticeship Training Information Service website and clicks on the ‘Retail' industry box and submits the search.
Jim scrolls down the generated report and finds the following availability & duration table:

NSW VIC QLD WA SA TAS ACT NT
WRR20102 Certificate II in Retail Operations
Y 12 Y 12 Y 12 Y 12 Y 12 Y 12 Y 12 Y 12

WRR30102 Certificate III in Retail Supervision
Y 24 Y 24 Y 12 Y 12 Y 12 Y 24 Y 24 Y 24

WRR30202 Certificate III in Retail Operations
Y 24 Y 24 Y 12 Y 12 Y 12 Y 24 Y 24 Y 24

WRR40102 Certificate IV in Retail Management
Y 36 Y 24 Y 24 Y 12 Y 24 Y 36 Y 24 Y 24

According to this table, their employee in Mackay is NOT eligible for funding as the qualification in QLD is designated as being of a 12 month nominal time duration.

However, let's assume that the retailer has another employee in Parramatta, New South Wales, who also has worked for the organisation for six months and is also suitable for a Certificate III in Retail Operations. We see here that that employee would be eligible for traineeship funding as New South Wales has a nominal duration time of 24 months for the same qualification.

As of the beginning of 2007, some Diploma and Advanced Diploma programs are also eligible for funding. To investigate whether a particular diploma or advanced diploma receives traineeship funding, perform the same search as detailed above and check for a nominal duration of 24 months.

In addition to the funding arrangements, there are additional Commonwealth Government incentives (which vary by State) such as mature age (+45) commencements and completions; rural and regional skills shortage incentives and for identified innovation packages.

State or Territory funding
State or Territory funding differs from Commonwealth funding as it is only available to new entrants. This funding is paid in instalments directly to the RTO.

A New Entrant Trainee is defined as a person employed within an enterprise for not more than three months full-time or 12 months part-time or casual or any combination of the above for a continuous period not exceeding 12 months.

Note that such candidates must not have been employed at all by the applicant employer for at least six months prior to such full-time employment and twelve months prior to such part-time or casual employment.

State or Territory funding is not available for all qualifications. You can use the Australian Apprenticeship Training Information Service to investigate whether State funding is available for a given qualification:

• Navigate to www.natinfo.com.au
• Click ‘Sample Training Programs'
• We want to search by ‘Field Officer Brief', so on the left menu bar, click ‘Field Officer Brief'
• Select the State or Territory in which your organisation is located, and the appropriate industry.
• Hit ‘Submit'

Example:

A large national retailer wants to investigate whether state funding is available for its staff.
Their HR manager, John, navigates to the Australian Apprenticeship Training Information Service [www.natinfo.com.au], and searches under the industry ‘Retail', without selecting a State or Territory.

This brings up information about four qualifications specific to retail.

John scrolls down to 'User Choice Pricing' Indicative Information to give information state by state:

NSW VIC QLD WA SA TAS ACT NT
WRR20102 Certificate II in Retail Operations
$2,400 $2,348 $2,100 $2,252 $0 $1,530 $800 $4,000

WRR30102 Certificate III in Retail Supervision
$4,020 $3,540 $1,900 $1,684 $2,162 $1,290 $1,000 $6,030

WRR30202 Certificate III in Retail Operations
$4,020 $3,646 $1,800 $1,674 $2,228 $1,360 $1,000 $6,210

WRR40102 Certificate IV in Retail Management
$4,620 $4,380 $2,500 $2,166 - - $1,600 $7,460

A note of caution - although the Australian Apprenticeships Training Information Service updates this website regularly, information can vary from time to time and it is important to confirm this, particular information relating to State funding for packages with your State department.

Another consideration is that many qualifications attract Commonwealth funding but not State funding.

Besides the funding of training towards qualifications, the State governments also provide other incentives to organisations who implement traineeships. These incentives vary by State but could include:
• Payroll tax incentives
• Travel and accommodation allowances
• Workcover rebates
• Wage assistance for employers of Indigenous Australians
• Disability incentives

Who in the organisation is eligible for Government Funding?

It is important to recognise that government funding for training is not only dependent on the training program itself but also has specific criteria for the eligibility of candidates.

The main criteria for funding a traineeship are a worker's
1. Citizenship status
2. Prior qualifications
3. Employment status

Citizenship Status

The worker must be either an Australian citizen, permanent resident or New Zealand citizen who has been resident in Australia for at least six months.

There is also funding available for foreign nationals who have been sponsored by an employer with a ‘Trade Skills Training' visa (471). Visit the Australian Government Department of Immigration and Citizenship's website for information on Trade Skills Training visas.
www.immi.gov.au

Prior Qualifications

Typically funding is only available when ‘up-skilling' is occurring. That is, if a worker has previously attended training in a similar area funding is unlikely to be available for this training.

Only nationally recognised qualifications are considered as prior qualifications. For example, a candidate who holds a ‘Microsoft Certified Systems Engineer' qualification may still be eligible for funding, as this qualification is not nationally recognised.

To confuse the issue, certain nationally recognised qualifications (such as Certificates II, III or IV) are not taken into account in assessing whether funding is available if 7 years have passed since they were completed. Australian Apprenticeship Centres will be able to provide more specific information on which qualifications fall into this category.

Example:

Employer - ABC Bank Limited

New Employee Name: John Smith
Age: 28
Previous Qualifications: No previous qualifications
Currently enrolling: Certificate IV in Frontline Management
Funding Available? BC Bank Limited is eligible to receive Government incentive for the up-skilling in this qualification

Employer - ABC Bank Limited

New Employee Name: Jane Smith
Age: 28
Previous Qualifications: Diploma in Financial Services (completed 4 yrs ago)
Currently enrolling: Certificate IV in Frontline Management
Funding Available? ABC Bank Limited is not eligible to receive funding and will bear the costs involved with this qualification.

Employment Status

Candidates must be:
• Undertaking employment in an Australian Apprenticeship in a State or Territory of Australia, excluding Norfolk Island; and
• covered by a Training Contract signed by both the Australian Apprentice Centre and the employer that has been formally approved by a State Training Authority.
• undertaking an accredited program, which leads to a nationally recognised qualification, and includes both paid work and structured training.

The Apprenticeship Centre will also ask specific questions related to industry awards or registered Australian Workplace Agreements or formally approved contracts of employment.

Part-time employees may be eligible for traineeships, under certain circumstances. Check with an Australian Apprenticeship Centre with a specific case in mind.

How does the Payment cycle for traineeships work?

There is a three-month period from the date of the employee signs up onto the traineeship to the date of a claim form being generated by the Apprenticeship Centre and mailed to the employer.

It is the employer's responsibility to ensure that this claim form is signed by both an employer representative as well as the trainee. This claim form is in turn mailed back to the Apprenticeship Centre and a first payment occurs within approximately 10 days of the return of this claim form.

There are time constraints on claiming Commonwealth funding - if claim forms are not returned within a certain timeframe funding might not be provided.

Example:
Joe works for Funtel, a telecommunications company in Bathurst. Joe is signed up on the 1st of August for a Certificate IV in Customer Contact. On the first of November, the Apprenticeship Centre generates and mails the claims form to Joe's HR manager. Joe's HR manager, Powan locates Joe to sign the claims form. Powan also signs the form and mails it back to The Apprenticeship Centre on the 15th of November. Powan has previously provided the Apprenticeship Centre with Funtel's banking details.
By the 25th of November, Funtel receives an initial payment of $1,500.

Upon completion of the traineeship, once the individual has completed the training and a final certificate has been issued by the RTO, the host organisation can apply for the final amount of government funding.

Example continued:
Joe completes his Certificate IV qualification in Customer Contact within 18 months. The Registered Training Organisation issues his certificate and academic record. Powan, Funtel's HR manager posts an original or JP signed copy of this certificate to the Apprenticeship Centre, together with the Completion form which the Apprenticeship Centre provided.
These documents are scrutinised by the Department of Education and by the relevant Sate Training Authorities.
Approximately three months later, a further $2,500 is deposited into Funtel's bank account.

Note that completion procedures and time-frames vary from State to State.

Early Completion

If a candidate completes a qualification in less than 24 months, they may be required to complete an ‘early completion form', provided by The Apprenticeship Centre. There are no restrictions around early completion as outcomes and achievement of job competency is the paramount consideration.

In order to seek more information about what national qualifications are and how they are used in Australia, the following table provides some information.

Additional information is available from the following websites:

www.ntis.gov.au

www.training.com.au


Employer Checklist
The following is a checklist for the use of HR professionals when considering the deployment of a traineeship in an organisation.

1. Is the training envisaged suitable for government funding?
2. What certificate / qualification does the training link to?
3. Is the individual eligible for funding?
4. Which RTO will you use? Or will training be conducted internally and with certification services provided by an RTO?
5. When will you do the training? Are you prepared to release your staff for the time it will take?
6. How much training will be conducted onsite? Offsite?
7. How will you find an appropriate apprenticeship centre to help you get this done?

Choosing a Registered Training Organisation

Registered Training Organisations (RTOs) are a key component of running successful traineeships. The RTO might provide training and assessment services, and is also required to issue the nationally recognised qualification certificate.

When choosing an RTO
Be assertive in setting your expectations with RTOs. It is important to ensure you have fully agreed to the manner in which the training will be delivered and managed to achieve your desired outcomes.

Some questions to ask RTOs include:
• Which qualifications do you have on scope?
• How flexible are you in terms of delivery?
o Will you adjust the curriculum to make it suitable for our particular workplace?
o Can you work within the timeframes required by our organisation?
o Will you assist us with paperwork required by the apprenticeship centre?
o Will you customise your materials to make them specific to this workplace?
• What requirements do you have in terms of assessment?
o How user-friendly are your assessment tools?
o Will you tailor these to our business requirements?
o What turn-around times do you have for final assessments and certification?

Traineeship Process

Decide on suitability of traineeships for candidate and business

Approach Australian Apprenticeship centre and obtains information relating to funding levels for existing workers and new entrants

Select Registered Training Organisation to conduct training

Conduct information session on benefits of qualification and explain process

Hold a sign-up session with Australian Apprenticeship Centre and complete paperwork

Receive notification of approval of traineeship

Consult RTO on the creation of training plans which set out which core and elective units will be completed for the qualification and timeframe for completion

Induct trainees into the qualification and assessment requirements

Commence training according to agreed schedule

Receive initial claim forms, sign by candidate and employer, return to Australian Apprenticeship Centre

Initial funds received from Australian Apprenticeship centre

Monitor training and assessment, receive feedback from RTO

At six months, Apprenticeship Centre contacts workplace to monitor progress and provide support

Candidates complete all evidence and submit for final assessment by RTO

Receive certificate from RTO

Mail copy of certificate & other documentation to Australian Apprenticeship Centre

Final payment from Australian Apprenticeship Centre received

Hold internal graduation ceremony for closure of program

What Traineeship Documentation needs to be completed?

An agreement is signed by three parties at the commencement of a traineeship.
The Registered Training Organisation (RTO) signs the agreement to indicate that they are part of the process and they establish a training plan.
This training plan includes information about the units of competence that are selected for the relevant qualification and also provides details about the logistics of the training and how assessment will take place.
The employer is a party to the agreement and will comply with the requirements of delivering a traineeship in terms of the time provided to the trainee for training and assessment purposes.
The agreement that trainees are required to sign at the commencement of the traineeship include questions such as:
• Are you an Australian citizen?
• Do you have any prior qualifications?
• What is your date of birth?
• Where do you reside?
• How long have you been with this employer?
• What was the last year you attended school?
• What was your highest level of education prior to this qualification?
• Are you employed on a full-time or part-time basis?
• Do you have any disabilities?
• Are you an Aboriginal or a Torres Strait Islander?

The nominated Australian Apprenticeship Centre will provide the workplace with a checklist listing requirements for sign-ups.

Documents which need to be completed

It is a legal requirement for the following forms to be completed
• Training Contract
• Company ABN copy (confirms the details of the employer)
• Training Plan (RTO completes this section in consultation with the workplace)

Additionally, the Australian Apprenticeship Centre will provide brochures with information such as:
• Employer Information Quick reference guide for Apprentices / Trainees
• Information of possible benefits such as TOT incentives / Living Away from Home Allowance / Wage Support, etc
• Amendment form (relative to particular state of residence)

Employer Obligations
As an employer you have both legal and moral obligations when training your staff.

Legal obligations
All employers who provide training to their staff are obliged to:
• provide a healthy and safe training environment for all staff including those with special needs such as disabled employees
• ensure staff do not experience discrimination or harassment during the training
• provide adequate supervision and support during training
• have appropriate insurance policies for staff who undertake specialised training, such as heavy machinery training
• inform employees of their rights and responsibilities throughout the training
• commit resources necessary to complete agreed training such as safety equipment or computer hardware.

Employers must also observe their usual duties and statutory obligations, such as:
• workers' compensation
• occupational health and safety
• duty to pay appropriate remuneration
• anti-discrimination policy implementation
• meeting privacy requirements

Good practice
There are obligations that are not enforced by law, but represent good workplace practice during training. These include:
• reporting and record keeping of training and its outcomes
• adequate resources to support the business while staff are absent for training
• management strategies to deal with issues associated with the training such as individual problems with the training or changing staff roles.

It is suggested that the workplace also set up an internal written training agreement to be signed by both the employer and the trainee. This will ensure that all parties understand what they can expect from one another.
A training agreement will provide you with a reference document from which you can address any concerns that might arise in relation to the training.

What to do when a candidate leaves the organisation?
It is the responsibility of the employer to:
• Notify the RTO
• Notify the Australian Apprenticeship
• The RTO is responsible for providing the candidate with a statement of attainment for any completed units of the qualification

Obligations of the RTOs
Employers who appoint the services of a registered training organisation (RTO) usually enter into a formal purchasing agreement. A purchase agreement describes what services and products the employer has agreed to purchase from the RTO.

The RTO's services could include:
• Delivery of group training sessions on or off site according to an agreed schedule and timeframe
• The preparation of company specific and tailored course material
• The development of appropriate assessment tools
• One on one assessment sessions
• Individual coaching sessions
• Feedback reports to the workplace on progress of trainees
• Feedback to the trainees on progress
• Attendance at awards ceremonies

For more information about your obligations as an employer contact your Australian Apprenticeships Centre, your preferred RTO or the training authority in your state or territory.

Tips for ensuring buy-in to the traineeship process
• Consult with all stakeholders and union representatives if appropriate
• Conduct transparent and comprehensive needs analysis with potential candidates. If possible, hold focus group sessions or interviews where participants are asked to contribute in an inclusive way to the design of the training
(See Appendix for example of questions to be asked in a focus group)
• Communicate the reasons for the training both in writing and face-to-face presentations
• Provide information about the qualification and what it pathways it can open up for the candidates
• Explain how training will be conducted
• Explain the assessment requirements emphasising that assessment is competence based. Competence based assessment is applied to candidates who are not solely tested on their theoretical knowledge but on their application of skills in the workplace
• Assist candidates filling out Apprenticeship forms and agreements
• Be available for questions
• At program launch, encourage senior management participation - this ensures that trainees are aware that the program is being monitored at a senior level
• Encourage ongoing feedback on the progress of the program and how it might be improved
• Be proactively involved in monitoring the progress of the training and gauging whether tangible improvements are being generated in the workplace

Candidates occasionally fear they are moving backward in their career when they see the word ‘apprentice' on the Australian Apprenticeship Centre forms - it is important to point out that this is in name only

If candidates sense that an employer is merely attempting to provide the training for only financial reasons, there may be negative reactions from employees.

Example
An HR manager from a large national fast-food operator gave up on using national funding for the following reasons
• The paperwork became a burden
• The RTO would not fit in with the workplace's shifts
• Candidates had literacy levels not accommodated by the assessment tools used
• The RTO would not work within appropriate parameters

This could have been avoided by ensuring sufficient communication between the organisation and the RTO about the outcomes required. Establishing an agreed project plan with assigned roles and responsibilities is highly desirable.

Concluding Comments

Traineeships hold enormous benefits for the organisation and the candidate if applied in a way that makes business sense and that meets the learning and business improvement needs of the organisation.
The HR Manager would need to be pro-active in determining:
• Is there a need for training in the organisation that would be appropriate for traineeships?
• How would the roll-out plan work under the organisational constraints?
• Is it possible for the organisation to comply with the legal obligations stipulated?
• Will the individuals benefit from the training roll-out?
• What return on investment could be achieved and how will this be measured?
Once these questions are answered, it is possible for the organisation to become a site of excellence in the implementation of the traineeships with strong results for all stakeholders.