ILO Employer engagement in skills development

1. 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 Department
International Labour Organisation (ILO)

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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)

10. 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

11. 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 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)

12. 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

14. 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

15. 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

16. 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

17. 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.

18. 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, 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

19. 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

20. • 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

22. 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

23. THANKS
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