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Background
Since the introduction of traineeships in 1985, the proportion of
trainees not completing their traineeship has averaged around 40%.
In recent years the non-completion rate has risen to around 44%. In
1996, the most recent full year for which data are available, 19 000
trainees failed to complete. The report examines the following issues
associated with non-completion:
- To what extent is non-completion a problem?
- What is the nature of the problem?
- What are the options for intervention?
Key Findings
The rate of non-completion by trainees appears high.
- The rate of non-completion of traineeships is of the same order as
the rate of separation from permanent jobs similar to traineeships,
within a year of commencement, and considerably higher than the rate
of non-continuation in other forms of education or training.
Personal characteristics of trainees affect the probability of
non-completion.
- Trainees with low levels of educational attainment and those who
had been unemployed prior to commencing a traineeship were the most
at risk of not completing. Nonetheless, non-completion rates for
those who have completed Year 12 or have little or no prior
unemployment are still around 35%-36%.
Non-completers have poor employment chances in the short term.
- Other things being equal, individuals who complete a traineeship
have considerably higher chances of being in unsubsidised employment
three months after exit than non-completers—84% for completers
compared to 39% for non-completers.
Traineeship type affects non-completion.
- The non-completion rates for trainees undertaking the small
business and the hospitality/tourism traineeships were higher than
would be expected given the composition of participants. Both of
these traineeships allow training to be undertaken entirely on the
job. It is possible that discontent with the training provided in
these two traineeships contributes to their high non-completion
rates.
Non-completion is as much a result of choice as necessity.
- Some 55% of non-completers left their traineeship voluntarily,
with the remaining 45% doing so involuntarily. A range of reasons
seem to have been important in the decisions of voluntary
non-completers to leave their traineeship. These include a
perception that wages were too low, a lack of training and poor
workplace relations. The decision to leave a traineeship appears to
be a considered one in most cases.
Options for Intervention
More thorough screening of potential recruits prior to commencement
may ensure a better match of trainees and employers and so reduce
non-completion.
Although the availability and quality of the information provided to
prospective trainees has not been investigated in this study, the
concerns expressed by non-completers regarding wage levels suggest a
lack of understanding regarding the rationale for training wages.
Assessment of information strategies may be worthwhile.
In cases where individuals are laid off as a result of changed
business conditions, early intervention could be undertaken to enable
trainees to recommence with another employer, with appropriate
recognition of prior learning. This may be less viable for trainees who
left of their own accord.
Further Research
Some further investigation of the relatively high rate of
non-completion in traineeships where training is conducted entirely on
the job is currently being undertaken.
Analysis of the returns to training, including an assessment of the
costs and benefits associated with various traineeship options would
also provide a valuable contribution to knowledge in the area.
Apprenticeship Non-Completion
Research on attrition in apprenticeships has also been conducted, and
the final report is now available here.
You can download a copy of the report in pdf format here.
(140kb)
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