Ursel Hauschildt/Helen Brown Beijing, 27.05.2011

Costs, benefits and quality in TVET: Method, results and contexts of implementing a self-evaluation tool for companies in Germany and South Africa Ursel Hauschildt/Helen Brown Beijing, 27.05.2011

The projects’ background: A need to investigate the real costs and benefits of in-company training Estimated benefits The QEK (QRC) method and functioning Time for questions Measuring costs, benefit and quality of work-based apprenticeship: The self-evaluation tool QRC

The QRC method and functioning THE MEANING: QRC(Quality Returns and Costs) is an online tool that enables companies to self-estimate costs, returns and the quality of apprenticeship within their companies. ITS MAJOR AIMS: Collecting data about costs, returns and quality of in-company training by providing an instrument for companies, which would be easy to handle. Delivering another good argument for a strong(er) committment to apprenticeship – at high quality levels!

Benefits in the South African context: • Tothe individual companies, as a VET-controlling system: • To benchmark their training costs against other training companies; • To manage performance of role players in their training system; • To understand the differences of costs and returns between different trades; • To interpret possibilities of improving productivity of apprentices; • To understand which vocational education institutions offer best candidate apprentices for optimal quality and returns; • b) Chambers of trade & commerce,policy makers and researchers as a way for VET benchmarking and promotion: • To encourage increased interest in training apprentices; • To define incentives based on empirical information; • To define sectors that require additional assistance;

…..cont. Benefits in the South African context: • c) To the learner/apprentice as a way for vocational commitment and orientation: • To assist apprentices in determining best vocational education schools; • To guide apprentice expectations for productivity and quality in relation to averages for their trade/occupation; • d) To the VET training provider (public & private), as a VET-consulting system: • To assist clients (the companies) with qualitative information that would guide improvements in work based learning activities; • To guide decisions around cost and duration of courses for apprentices indentured by companies in a dual VET system; • To benchmark the performance of their students in companies against those of other VET Training Providers;

The QRC method and functioningThe analysis:- costs and benefits

Staff cost of trainers Staff costs of trainees Operational costs Other costs Full-time trainers Part-time/sideline trainers External trainers Training allowances Statutory social security contributions Voluntary social security contributions Teaching and learning material, media Fees to be paid to the competent body Professional and protective clothing External training Training management Composition of costs

How can companies calculate the net costs or benefits of apprenticeship? Staff costs of trainees + Staff costs of trainers + Operational costs + Other costs total costs of in-company training time of in-company training of an apprentice x degree of the apprentice‘s productivity compared to skilled/fully trained workers x salary of a skilled worker returns/benefit of in-company training net benefits/net costs

Cost/benefit analysis with QRC On average, in-company training lead to a net return of about 1300 Euro per apprentice and year.(mean of apprentice/year German QEK projects 2008-2010) Example for the development of cost-benefit ratio in one company during 3 years of apprenticeship

Distribution of net costs/returns in Bremen and Switzerland Allocation of costs/benefits of Bremen companies Allocataion of costs/benefits of Swiss companies. Percent Less than 10.000 € 0€ - 4.999€ -9.999€ - -5.000€ -4.9999€ – 0€ 5000€ - 9.999€ 10.000€ and over

The QRC method and functioningThe analysis: - quality of apprenticeship

Quality regarding the training design Learning in the workplace: experience-based learning Professional level of training: quality of work tasks Autonomous/independent learning: ability to fulfill complex work tasks (Vollständigkeit der Arbeitshandlung: complete action circle) Learning in business processes: process-oriented training Quality as a result of training Vocational commitment (a basis for the development of vocational identity and competence development) Professional competence (maturity) Quality factors examined by QEK

Illustration of TVET quality using the QEK-Tool: The „Quality Diagram“ 1. Learning in the workplace (very good: 1,33) 6. Vocational committment (very good: 2,15) 2. Professional level of training (good: 2,33) 3. Autonomous/independent learning (good: 2,00) 5. Professional competence (very good: 1,45) 4. Learning in business processes (good: 2,00) Average rankings of one companyAverage rankings of other companies

Illustrations…. A quality diagram with a low quality index (3.66) and corresponding benchmark/average other companies of the same branch Low level of independent and experience-based learning, therefore also low degree of vocational commitment and lower professional competence.. Mean values of total duration of apprenticeship Mean values of all benchmarked companies

Illustrations…. A quality diagram that shows the development over three years of training in one company This company should also change its training concept towards more experiences-based learning methods. 1st year 2nd year 3rd year

QEK is relating these two results • Cost/benefit ratio • Quality analysis

Quality and Profitability: how they correlate (the QEK quality/profitability matrix (showing the total course of apprenticeship) high quality lowefficiency (profitability) highefficiency (profitability) low quality

A SUMMARYWhat is QRC good for… • An analysis of in-company training in individual companies in terms of costs, benefits and quality • Illustrating the strengths and potentials of in-company training • Identifying the measures for quality improvement • Supporting VET consultants • Comparisons between economic branches, vocations etc. • encourage a dialogue between VET research and VET practitioners .... nevertheless: QRC is not able to • measure individual performance or competences of apprentices • change the world of work..

Total costs of different courses of German educational system in Euro (Source: Statistisches Bundesamt) „…dual vocational educations and training is by far the most effective way of training ? „Dual vocational educations is by far the most expensive course of education!?“ Kindergarden Elem. School Sec.mod. School Middle School High School Dual TVET System Universities excl. Medicine Quelle: Statistisches Bundesamt Costs of in-company training, not considering any benefits. Training costs in vocational schools

General assumptions for determination of the degree of productivity of apprentices (profitability) 1. An apprentice has to work on tasks, that fully or partly represent tasks or jobs which are characteristic for the profession they are learning 2. When defining the degree of productivity, it not the question, which degree of competence (competence level) an apprentice has already reached. What matters is the extend up to which an apprentice makes his or her contribution to the productive work process.

Increase of apprentice productivity during the 3 years of training 100 Niveau of skilled workers 90 80 70 60 50 40 30 20 Phase 1: vocational orientation Phase 2: rising competence development Phase 3: reaching proficiency 10 0 0 0,5 1 1,5 2 2,5 3 Years of apprenticeship

Ursel Hauschildt/Helen Brown Beijing, 27.05.2011