Wholesale,
Retail &
Personal
Services
Environmental
Scan 2014
Acknowledgements
This Environmental Scan has been produced by Service Skills Australia with the assistance of funding
provided by the Australian Government through the Department of Industry.
While this Environmental Scan is published by Service Skills Australia (the Industry Skills Council for
the wholesale, retail and personal service industries), it is endorsed and owned by these industries.
Service Skills Australia would like to acknowledge the significant contribution of its Wholesale, Retail
and Personal Services Industry Advisory Committee in the preparation of this document.
March 2014
Email: info@serviceskills.com.au
Web: www.serviceskills.com.au
About Service Skills Australia
Service Skills Australia is the Industry Skills Council
for the service industries, one of 11 not-for-profit,
independent organisations funded by the Australian
Government Department of Industry to support skills
and workforce development.
The service industries encompass the following:
• Wholesale, Retail and Personal Services
(wholesale, retail, hairdressing, beauty, floristry,
community pharmacy and funeral services)
• Tourism, Travel and Hospitality (travel, tours,
meetings and events, accommodation, restaurants
and catering, holiday parks and resorts)
• Sport, Fitness and Recreation (sport, fitness,
community recreation and outdoor recreation).
Service Skills Australia’s roles and responsibilities
are to:
1.Provide integrated industry intelligence and
advice to government, the Australian Workforce
and Productivity Agency (AWPA), industry and
enterprises on workforce development and skill
needs for the service industries.
2.Actively support the development,
implementation and continuous improvement
of high quality training products for the service
industries, including training packages.
3.Engage in workforce development activities and
services for the service industries.
The Environmental Scan:
Context, Purpose and Audience
Rapid advances in technology, seismic shifts in
global demography and rise of the conscientious
consumer are just some of the factors that have
left economists and policymakers recognising the
limited relevance of historical trends and data as
a reliable indicator of the future.
Attempts to predict industry’s future workforce
and skill development needs can be particularly
fraught as industries continue to evolve, converge
or re-locate and as new job roles emerge while
others become obsolete.
Leading developed nations are establishing ‘early
warning systems’ to quickly detect the onset of trends
and building agile vocational training systems capable
of responding to issues once identified. Environmental
Scans have been conceived on this basis.
Specifically, the Environmental Scan identifies
the macro and micro factors currently impacting
on the skill needs of the workforce and its
composition, it considers how well the national
training system, its products and services, and
industry itself are responding.
Grassroots evidence and real-time intelligence from
across Australia are what sets the Environmental
Scan apart from other reports in the national
training system. It captures intelligence gathered
from on-going visits and conversations with industry,
key stakeholders, regulators and critically, the
people doing the jobs across the sectors, and who
experience firsthand the impact of change. It also
draws on a range of topical sources such as the
latest industry, enterprise and government research,
and international developments.
The Environmental Scan does not seek to capture
every issue within every sector. It is a snapshot
of a continually evolving story that is intended to
alert and inform a wide audience and enhance
their capacity to act.
The Environmental Scan’s formal audience is the
Department of Industry, the Australian Workforce
and Productivity Agency and the National Skills
Standards Council although its relevance extends
far beyond and continues to be used extensively by
state and territory governments, industry bodies,
enterprises and many other stakeholders involved
in skills and workforce development.
Environmental Scans are produced annually by
Australia’s Industry Skills Councils as part of their
broader role in gathering industry intelligence and
undertaking high-quality analysis of the skills needs
and profile of the current and future workforce.
Wholesale, Retail & Personal Services Environmental Scan 2014
1
Contents
Key Messages
6
Retail8
Latest Intelligence
Changing Spending Patterns
9
9
Technology9
The Global Marketplace
11
Price Harmonisation
11
Sustainability and Ethical Practices
12
Changes to the VET Market
12
Workforce Development Needs
17
Improving Retention and Career Pathways
17
Management and Leadership Skills
17
Back-Office Retail Skills
17
Language, Literacy and Numeracy
18
The National Workforce Development Fund
18
Retail Services Occupations in Demand
20
Current Impact of the SIR07 Retail Services Training Package
23
Enrolments23
Completions24
Future Directions for the SIR07 Retail Services Training Package
25
Wholesale26
Latest Intelligence
27
Changes to the VET Market
28
Workforce Development Needs
29
Current Impact of the SIR07 Retail Services Training Package (Wholesale)
30
Enrolments30
Completions31
Future Directions for the SIR07 Retail Services Training Package (Wholesale)
31
Community Pharmacy
32
Latest Intelligence
33
The Fifth Community Pharmacy Funding Agreement
2
Environmental Scan 2014 Wholesale, Retail & Personal Services
33
Demographic Changes
33
Preventative Health
34
Technology34
The Pharmaceuticals Market
35
Household Consumption Patterns
35
Changes to the VET Market
36
Workforce Development Needs
37
Customer Service
37
Workforce Ageing
37
Retention37
Business and Management Skills
37
Language, Literacy and Numeracy
38
Community Pharmacy Occupations in Demand
39
Current Impact of the SIR07 Retail Services Training Package (Community Pharmacy)
40
Enrolments40
Completions41
Future Directions for the SIR07 Retail Services Training Package (Community Pharmacy)
41
Floristry42
Latest Intelligence
43
Competitive Pressures
43
Product Diversification
43
Market Segmentation
43
Technology43
Affiliation Models
43
Workforce Development Needs
44
Digital Literacy
44
Multiskilling: Marketing, Management and Business Skills
44
Sustainability44
Current Impact of the SFL10 Floristry Training Package
46
Enrolments46
Completions47
Future Directions for the SFL10 Floristry Training Package
Wholesale, Retail & Personal Services Environmental Scan 2014
47
3
Hairdressing48
Latest Intelligence
49
Changes to the VET Market
49
Workforce Development Needs
50
Continued Shortages
50
Salon Management Skills
51
Age Profile
51
Hairdressing Occupations in Demand
52
Current Impact of the SIH11 Hairdressing Training Package
52
Enrolments52
Completions53
Future Directions for the SIH11 Hairdressing Training Package
55
Beauty56
Latest Intelligence
57
Growing Demand
57
Advanced Treatments
57
Sustainability58
Intersection with the Tourism Industry
58
Business Processes
59
Changes to the VET Market
59
Workforce Development Needs
60
Beauty Occupations in Demand
64
Current Impact of the SIB10 Beauty Training Package
64
Enrolments64
Completions66
Future Directions for the SIB10 Beauty Training Package
4
Environmental Scan 2014 Wholesale, Retail & Personal Services
67
Funeral Services
68
Latest Intelligence
69
Changing Industry Structure
69
Changing Business Models and Processes
69
Key Demand Determinants
70
Cultural Shifts
70
Demographics71
Sustainability71
Legislation and Regulation
71
Changes to the VET Market
72
Workforce Development Needs
73
Funeral Services Occupations in Demand
74
Current Impact of the SIF Funeral Services Training Package
74
Enrolments74
Future Directions for the SIF Funeral Services Training Package
75
Appendices76
Appendix A: Report on Previous Continuous Improvement Activity
77
References81
Wholesale, Retail & Personal Services Environmental Scan 2014
5
Key
Messages
The wholesale, retail and personal services
industries are struggling with gaps in
management and employability skills, poorly
defined and articulated career pathways, and
ongoing changes to publicly funded training.
6
Environmental Scan 2014 Wholesale, Retail & Personal Services
Key Messages
This Environmental Scan contains a separate
chapter for each of the seven industry sectors which
comprise the wholesale, retail and personal services
(WRAPS) industries: retail, wholesale, community
pharmacy, floristry, hairdressing, beauty and funeral
services. Each chapter details the trends shaping
the skills and workforce development needs of that
specific industry sector. Yet, despite their diversity,
many of the key challenges are remarkably similar.
Indeed, gaps in management and employability
skills, poorly defined and articulated career
pathways, and ongoing changes to publicly funded
training are challenges facing each industry sector.
Consultation undertaken in the process of developing
this Environmental Scan has reaffirmed the critical
need for viable and visible career pathways within
each of the sectors comprising WRAPS. While low
barriers to entry can be beneficial in allowing lowskilled and inexperienced workers to gain a foothold
in the labour market, relying purely on a rotating cycle
of entry-level workers is unsustainable. The WRAPS
industries would benefit from the development
of formalised career structures and enhanced
skill development opportunities, as this will help
demonstrate that there is a viable future for those
entering these sectors.
Persistent skills gaps at both the entry and
management levels are another key challenge facing
the WRAPS industries. Despite being technically
proficient, owners and managers often lack the
business skills essential for success, whilst new
entrants frequently lack critical employability and
core skills which underpin excellent customer
service. Whilst Service Skills Australia’s training
packages lay the foundation for quality outcomes,
the delivery of training is equally important.
Finally, reform of state and territory vocational
education and training systems has been in full-flight
in 2013. While the introduction of demand-driven
funding could potentially increase training uptake
across the service industries, there is a concern
that the various mechanisms to determine priority
skills areas will disadvantage the WRAPS industries.
These concerns are not unfounded. Already we have
seen some jurisdictions remove funding for retail
qualifications in the face of tight budgets. With the
pace of reform set to accelerate in coming years,
it is critical that funding continues to be made
available for quality training in these industries.
Wholesale, Retail & Personal Services Environmental Scan 2014
7
Retail
The retail industry
employs 10.5%
of the workforce
Employment is projected to
grow by 4.1%
over the next five years
2011-12 RETAIL TRADE GVA WAS
4.8% OF GDP
8
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
Latest Intelligence
Changing Spending Patterns
Technology
Industry consultation and available statistics both
point toward a significant change in consumer
behaviour. This has occurred on two fronts. Firstly,
consumption levels and the savings rate have
readjusted to what Philip Lowe, Deputy Governor of
the Reserve Bank of Australia, has termed ‘normal’
levels.1 Secondly, the composition of consumption
itself has changed—shifting away from goods and
towards services.
Among the many changes occurring in the Australian
retail industry, none are as transformative as those
wrought by technology. This Environmental Scan
will focus on three key elements of technological
innovation and their impact upon the retail industry.
The first is the explosion of retail sales through
online channels. The second is the shift toward
mobile devices and the expansion of mCommerce
platforms. Finally, there is the integration of
increasingly sophisticated technologies in bricksand-mortar retail stores. Each of these trends has
implications for the skill needs of the industry.
In recent years consumption has grown broadly in line
with income. This current pattern of spending, while
reflecting historical norms, is quite different to the
period from the mid 1990s to the mid 2000s, where
consumption growth per person was consistently
strong and the savings rate was on a downward
trend: ‘put differently, growth in consumption was
consistently faster than growth in income. For part
of this period we spent every extra dollar we earned,
and then a bit more.’2 Current levels of consumer
spending require many retailers to readjust business
models that were predicated on assumptions of
higher overall levels of consumer spending. Moreover,
the fact that current levels of consumption reflect
historical norms suggest that training is more critical
than ever to improve labour productivity in the industry
as it is highly unlikely to witness a return to the
spending levels of the mid 1990s to the mid 2000s
in either the short or longer term.
The retail industry has also been adversely affected
by a trend toward the consumption of services over
goods. This has been occurring since the 1980s,
with food, clothing and footwear, and household
furnishings and equipment declining in their share
of the total household budget by around three
percentage points over the past 25 years.3
With food taken out of the equation the decline
is even more visible, at 6 per cent.4
Online retail
In the year to May 2013, $13.7 billion was spent
through online channels—equivalent to 6.1 per cent
of spending in traditional bricks and mortar retail.
The year-on-year online retail growth rate was 18
per cent compared to 3.2 per cent for traditional
retail.5 Yet despite these stark figures and the fact
that Australia has the fifth highest level of internet
penetration in the world, only 52.3 per cent of
retailers have their own website or a social media
page.6 This is a critical issue for the industry.
A recent report from Deloitte Restructuring Services
(DRS) warned that many retailers ‘just aren’t
preparing for digital disruption.’7 DRS estimated
that more than 50 traditional middle-market retailers
(those with between 50 and 200 stores) will need
to cut their store networks by up to a third to survive
‘as the shift to online retailing in Australia moves
into overdrive.’8
Access Economics cites the lack of skills and
knowledge in this area by businesses as the
most significant reason for the lack of uptake of
e-commerce.9 As a result, there is a significant role
for training packages to deliver the necessary skills
to businesses so that the potential of the internet
can be fully exploited. The SIR07 Retail Services
Training Package has already begun to address this
Wholesale, Retail & Personal Services Environmental Scan 2014
9
industry skill need through the inclusion of specific
units of competency such as SIRXEBS001A Acquire
and retain online customers and SIRXEBS002A
Manage retail brands online.
mCommerce
Three years ago, 37 per cent of Australians owned
a smartphone.10 Since then it has risen to 65
per cent.11 The use of mobile internet to inform
purchasing decisions is widespread, with 78 per
cent of smartphone users indicating that they used
their device to find out more about a product or
service to support a purchasing decision and 41
per cent making a purchase on their phone.12
However, research has found that mCommerce
platforms also supported traditional bricks-andmortar retailers, with nearly half of Australian
smartphone users (48 per cent) visiting a
business as a result of their search.13
The integration of location-based technology in
smartphones and the proliferation of geo-targeting
applications is further crystallising the need for
retailers to engage with mobile platforms. Geotargeting applications launch automatically upon
a customer’s arrival in a physical store, providing
them with a list of available products and detailed
product information. This offers retailers a powerful
tool to increase foot-traffic, complementing the
retail experience.
The SIR07 Retail Services Training Package has
responded to these industry changes through
the inclusion of a discrete unit of competency,
SIRXICT404 Adopt mobile commerce applications
to improve sales and service—which is included
as an elective in the SIR40212 Certificate IV in
Retail Management and the SIR50112 Diploma
of Retail Management. Additionally, mCommerce
skills have been flagged as a medium to long-term
priority in future revisions of the Retail Services
Training Package.
10
Environmental Scan 2014 Wholesale, Retail & Personal Services
Reimagining the retail store
A report by IBM noted that consumer use of IT allows
them to ‘dip in and out of the [buying] process,’ rather
than follow the continuous sequence that exists
when browsing and purchasing in-store. The effect
is that, through technology, the retail experience
is becoming a ‘series of moments’, whereby
the retailer’s window of opportunity to influence
consumer decisions is more important than ever.14
Retail stakeholders have indicated that customers
expect increasingly sophisticated technologies
in-store. They also expect access to sales staff
that possess a deeper level of product knowledge
than is available to the public. As a result, some
retailers provide smart devices in-store so that
sales staff can process transactions, look for
alternate products in stock and have access to
the same or better information as the customer.
Critically, the enrichment of retail stores with
greater levels of technology requires higher level
skills on the part of staff, not just because their
tasks may have changed, but because interacting
in a technology-rich environment requires more
advanced problem-solving skills and digital literacy.
Another use of in-store technology is self-service
kiosks, particularly in the supermarket sector.
Industry feedback indicates that the expanding
use of self-serve and self-scanning technologies
sees sales staff redirected towards providing
advice, guidance and engagement—higher skill
activities than transactions. These changes also
have implications on the definition and role of
customer service in the store. There is a strong
sense within the industry that this is critical to the
ongoing survival of enterprises. Some retailers have
responded by expanding the authority of frontline
customer service staff to more effectively manage
negative customer experiences. These strategies
require skill development for frontline staff in
addition to a thorough understanding of the
aspects of customer service.
Retail
The Global Marketplace
Price Harmonisation
As identified in the Australia in the Asian
Century White Paper, Australia is well positioned
geographically, economically and politically to
benefit from the increasing prosperity of Asian
countries, including China, India and South East
Asian nations.15 In particular, the retail industry
has the opportunity to capitalise on Asia’s growing
middle class and their appetite for luxury brands,
unique products and quality. Opportunities are
available for retailers to capture a greater share
of international visitor spending as well as for
Australian retailers to establish a presence in
overseas markets. Both of these opportunities,
however, will require the workforce to develop
new and more complex skills in cross-cultural
communication, language proficiency,
merchandising and marketing.
The increasingly globalised market through the
internet, which brings pricing transparency,
has also led Australian retailers to push a price
harmonisation agenda. Price harmonisation
refers to suppliers agreeing to remove pricing
disparities for the same product in different
regional markets.
Due to the relative strength of the Australian
economy, international retailers, particularly
those from the fashion and apparel sectors, are
accelerating their expansion into the Australian
market. Colliers International has identified fifteen
new entrants to the Australian market in 2014
(including major international retailers such as
Uniqlo, H&M and Banana Republic) and expansion
plans for at least thirteen others (including prominent
brands such as Apple, Zara and Topshop/Topman).16
These high levels of foreign investment, coupled
with the growth in online shopping, have created a
substantially more globalised marketplace. It has
increased the breadth of the brands, products and
services available to consumers, and, critically,
has increased the level of competition for domestic
retailers. Consequently, Australian retailers are
under growing pressure to innovate and remain
relevant to the consumer.
The price discrimination faced by Australian
consumers was highlighted in the Productivity
Commission’s 2011 report, Economic Structure
and Performance of the Australian Retail Industry.
The report compared the prices of 40 different
retail goods at a selection of Australian bricksand-mortar retailers, Australian online retailers
and overseas online retailers. Even after taking
into account shipping and delivery costs, the
Commission found that ‘for the majority of goods
examined, the cheapest price offerings were from
online retailers rather than from Australian bricksand-mortar stores, with the majority of the lowest
prices from international online retailers.’17
Such price discrimination in a context of heightened
competition puts local retailers at a distinct
disadvantage. Philip Lowe, Deputy Governor of the
Reserve Bank of Australia, commented in March 2012
that global pricing transparency brought about by the
internet was ‘part of the story’ behind the declining
sales volumes being felt by department stores
and clothing and footwear retailers as ‘Australian
consumers have responded by increasingly going
online.’18 Research into the online spending habits
of Australian consumers vindicates Lowe’s remarks.
A 2012 survey conducted by PwC and Frost &
Sullivan found that lower prices were the main
reason (59 per cent) for shoppers choosing to
purchase goods from offshore retailers.19
Prominent Australian retailers have expressed
criticism of supplier pricing for the Australian
market. In August 2012, Myer CEO, Bernie
Brookes, declared that 20 to 30 per cent of the
company’s product range is not internationally
price competitive.20 Myer competitor, David Jones,
Wholesale, Retail & Personal Services Environmental Scan 2014
11
has also expressed the need for global price
harmonisation.21 By negotiating with suppliers,
retailers are aiming to maintain their gross profit
margins in spite of revenue declines from lower
retail prices.22
Sustainability and Ethical Practices
While consumer demand for ethically procured and
environmentally sustainable goods and services has
been increasing for some time, growing consumer
access to information sources and increasingly
globalised supply-chains have meant that the
industry is more sensitive than ever to issues of
sustainability and ethics. This is particularly relevant
for the procurement of goods and services from
manufacturers. The public backlash to the 2013
tragedy in Savar, Bangladesh—when a garment
factory building collapsed with a reported death
toll of more than 1,120 and many more injuries—
highlighted the need for retailers and brands to
take more responsibility in choosing suppliers
and manufacturers.
Many brands and retailers have taken on
environmentally-friendly stock as a form of product
differentiation and to attract the emerging group
of environmentally-conscious consumers. In order
for this to work effectively, sales staff must
hold product knowledge on the environmental
credentials of individual products and understand
the relationship between the characteristics of
products and their environmental effects in order to
educate consumers on the value of their decision.
12
Environmental Scan 2014 Wholesale, Retail & Personal Services
Changes to the VET Market
Since agreeing to a revised National Agreement for
Skills and Workforce Development at the Council
of Australian Governments (COAG) meeting of 13
April 2012, nearly all states and territories have
embarked on reforms to their training systems,
with some jurisdictions already well progressed.
One of the core elements of the reform agreement is
the ‘National Training Entitlement’, which guarantees
government subsidised training places to individuals
up to their first Certificate III qualification. In 2011,
Victoria fully implemented its entitlement scheme—
the Victorian Training Guarantee—with mixed results.
In 2011, enrolments in publicly-funded qualifications
from the SIR07 Retail Services Training Package
in Victoria increased by 42.2 per cent from 2010
levels. For all other states and territories, the
increase was a much more modest 5 per cent
(see Figure 1). The rapid increase in Victoria placed
strain on the state’s training budget, leading to new
arrangements that applied different subsidy rates
for courses and qualifications based on ‘areas of
greatest public benefit and future jobs growth.’ 23
From 1 July 2012, the new fee arrangements grouped
qualifications into five subsidy bands, ranging from
under $2 per hour to in excess of $10 per hour.
Retail
Figure 1. Enrolments in SIR07 Retail Services Training Package, 2007–2012
45,000
40,000
35,000
Enrolments
30,000
25,000
20,000
15,000
Victoria
10,000
Other States
5,000
0
2007
2008
2009
2010
2011
2012
Year
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
Wholesale, Retail & Personal Services Environmental Scan 2014
13
Victoria is unique in its approach, with other jurisdictions using priority skills lists and caps to determine
the funding of VET qualifications. However, South Australia announced in December 2013 that it would also
commence applying subsidy bands to qualifications listed in its January 2014 Version 8 ‘Funded Training
List’. Funding for retail qualifications in the jurisdictions that have commenced implementing VET reform is
shown in Table 1.
Table 1. Funding of Retail Qualifications under VET Reform Programs a
Qualification
Jurisdiction
VIC
SA
Certificate I in
Retail Services
$1.50
per hour
ü
Capped
Certificate II in
Retail Fast Food
$1.50
per hour
Certificate II in
Community Pharmacy
$4.00
per hour
ü
Capped
Certificate II in Retail**
$1.50
per hour
ü
Capped
TGSS, FF
Certificate II in
Retail Services
$1.50
per hour
ü
Capped
TGSS
Certificate III in
Retail Operations
$1.50
per hour
ü
Capped
Certificate III in
Retail Supervision
$4.00
per hour
Certificate III in
Community Pharmacy
$4.00
per hour
ü
Capped
Certificate IV in
Retail Management
$4.00
per hour
ü
Certificate IV in
Community Pharmacy
$4.00
per hour
ü
Capped
Diploma of Retail
Management
$1.50
per hour
ü
Diploma of Visual
Merchandising
$4.00
per hour
ü
Vocational Graduate
Certificate in Retail
Leadership
$4.00
per hour
NT
ACT
QLD
WA
NSW
ü
ü
ü
ü
ü
Draft
inclusion
ü
ü
ü
ü
Draft
inclusion
Provisional
priority
aCorrect as at 16 December 2013. TGSS refers to the Training Guarantee for SACE Students. This means that qualifications listed
as TGSS on the Skills for All Funded Training List will be fully-funded for South Australian students who are 16 years or over and
who are enrolled and working towards completing the South Australian Certificate of Education (or equivalent). Full eligibility
criteria are available at the following website: skills.sa.gov.au/for-training-providers/training-school-students/training-guaranteefor-sace-students. FF denotes ‘fee free’.
14
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
There is the risk that the reduction of funding
for retail qualifications will result in a loss of
productivity for the industry, which is crucial
given the intensified competition from online and
international outlets. Additionally, this places
an extra burden on small and micro enterprises
struggling to upskill their staff. The funding available
per hour in Victoria also affects the number of
Registered Training Organisations (RTOs) providing
these qualifications, which is detrimental to regional
areas in particular. The lack of funding for Diploma
and Advanced Diploma level qualifications—with
the exception of the Australian Capital Territory
and Western Australia—is quite concerning. These
qualifications provide crucial management and
business skills. Moreover, the removal of these
higher-level qualifications may entrench existing
perceptions that the retail industry requires lowlevels of skill and lacks professionalism.
Additionally, at the federal level, the August 2013
decision to cease standard completion incentive
payments for employers engaging existing worker
trainees in non-priority occupations, including
retail, is likely to have a detrimental effect on
the industry’s training effort.
Wholesale, Retail & Personal Services Environmental Scan 2014
15
16
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
Workforce Development Needs
Improving Retention and Career Pathways
The retail industry suffers from the perception that
it is low skilled and without career prospects. It is
often seen as a short-term, stopgap employment
option. An Australian Centre for Retail Studies
research report found that respondents (from
schools, universities and existing employees) felt
that the retail industry is undesirable as a longterm career, because of the belief that there are
few opportunities for career progression. There
was little awareness of retail’s corporate support
functions such as marketing, merchandising, finance
and IT among respondents. While the industry was
perceived to be appealing because of the social
nature of the work, less than 5 per cent of retail
employee respondents indicated satisfaction with
retail as a long-term career option.24
Consultation with retailers identified that the
development of an industry-wide career promotion
strategy, including a career pathway map, coordinated marketing campaign and case-studies
of industry champions would be beneficial in
improving retention and attracting talent to the
industry. However, numerous stakeholders across
the country identified that implementing an
industry-wide career promotion strategy would
be challenging, due, in part, to the multiple peakbodies which service the industry. Regardless,
acting to improve retention and career pathways
needs to be an industry-wide priority.
Management and Leadership Skills
In the retail industry, managers are usually
promoted internally, often without adequate
development. Industry has identified this aspect
as a contributor to a deficiency in skills in people
management, financial management, operations,
innovation and small business management by
those in management positions. An international
study of management and productivity found that
an individual’s level of education and skills is a
crucial factor for management performance.25
Encouraging employers to engage their staff in
management training at the higher levels, such
as the Certificate IV, Diploma and Graduate
Certificate level will be a significant step in
improving management performance.
Back-Office Retail Skills
Industry consultation has identified that retailspecific support roles, such as merchandise
planning, buying, store design, data analysis and
information technology are in high demand. These
recruitment requirements are directly related to
the changing nature of the industry outlined in
the previous section.
A number of retailers have reported that they have
to recruit internationally for retail-specific back office
roles and some IT roles because local talent was
not sufficiently ‘deep’ or available. In particular
there is competition for people with digital media
skills, merchandise planning and buying skills, and
it was reported that it is difficult to retain people in
these jobs.
As brands are increasingly communicated
online, the retail industry requires a new set of
skills in marketing, which is proving difficult to
find. Marketing roles now require a thorough
understanding of the customer through expertise
in collecting customer data, as well as digital
marketing and social media management. Accessing
these skills is considered a high priority for the
future growth of retail businesses. Future revisions
of the Retail Services Training Package will be
looking at the changing occupational makeup of
retail with particular attention to back-office roles.
Wholesale, Retail & Personal Services Environmental Scan 2014
17
Language, Literacy and Numeracy
Despite evidence which suggests that a 1 per cent increase in literacy can lead to a 2.5 per cent increase in
labour productivity, recently released data on Australian adult literacy, numeracy and problem-solving skills
show that retail workers are below the all-industry average (see Table 2).26 27 Improving language, literacy
and numeracy (LLN) skills is critical as the industry adjusts to increasing customer demands and the tasks
demanded of sales and management staff become more complex. Improving technology skills and boosting
the qualification and language, literacy and numeracy levels of the retail workforce could impact positively on
the industry’s productivity and innovation performance.
Table 2. Literacy, Numeracy and Problem-solving Skill Level of Employed Persons (15–64):
Retail Trade and All Employed Persons, 2011–12 (%)
Below Level 1/
Level 1
Level 2
Level 3
Level 4/5
Retail Trade
10.0%
30.5%
41.8%
17.7%
All Employed Persons (15–64)
9.8%
28.5%
42.2%
19.4%
Below Level 1/
Level 1
Level 2
Level 3
Level 4/5
Retail Trade
17.9%
35.0%
35.9%
11.2%
All Employed Persons (15–64)
15.9%
32.5%
36.2%
15.4%
Problem Solving in
Technology-Rich Environments
Below Level 1
Level 1
Level 2/3
Not Classified
Retail Trade
10.6%
34.7%
35.9%
18.8%
All Employed Persons (15–64)
13.1%
34.9%
34.2%
17.7%
Literacy
Numeracy
Source: Australian Bureau of Statistics (ABS), 2013, Programme for the International Assessment of Adult Competencies,
Australia, 2011–12, Cat. no. 4228.0.
Through the Australian Government Workplace
English Language and Literacy (WELL) Program,
Service Skills Australia has been providing access to
customised, integrated LLN training for the service
industries. Over the course of 2013, retailers
accessing the WELL program have identified some
common LLN issues in the sector, including: literacy
barriers when developing the product knowledge
of sales assistants; limited communication and
report writing skills in supervisors, particularly those
who have been promoted from a sales assistant
role; and general issues around customer service,
including language, interpreting customer needs,
reading and understanding labels and packaging.
18
Environmental Scan 2014 Wholesale, Retail & Personal Services
The National Workforce Development Fund
In July 2011, the Australian Government announced
the launch of the National Workforce Development
Fund (NWDF). This continued a model of funding
established by the Enterprise-Based Productivity Places
Program (EBPPP), whereby the ISCs fulfil a broker role
between employers and training providers. The overall
policy intent of this program is to support training and
workforce development for existing and new workers
in areas of skill need. This assists enterprises
to increase productivity and address the specific
skilling needs of the enterprise. The crucial aspect
of the NWDF arrangements (and its predecessor,
EBPPP) is that they are the first example of enterprisedriven funded training. As of September 2013, 932
WRAPS businesses had accessed the NWDF through
Service Skills Australia, representing 2,260 learners.
Wholesale, Retail & Personal Services Environmental Scan 2014
19
Retail Services Occupations in Demand
Table 3 identifies the key retail occupations in
demand based on industry feedback and forecasts
from the Department of Employment. While the
table uses the same occupation titles from the
Australian and New Zealand Standard Classification
of Occupations (ANZSCO), industry has highlighted
that numerous ANZSCO titles do not reflect current
job titles and roles in the industry. For example,
retailers have argued that the occupations of shelf
filler and checkout operator infer that individuals
classified under these titles only undertake a few
core tasks, whereas it is accepted business practice
that an individual who fills shelves and maintains
displays would also be responsible for processing
sales and other retail-specific tasks. This means
that the skill levels identified in ANZSCO for these
occupations do not reflect industry practices.
It is also important to note that these are
occupation forecasts and by that virtue do not
identify the retail sub-sectors which will absorb this
growth. This is a critical point, as the composition
of retail sales is changing. Fresh food sales
have continued to trend up quite strongly, as
has spending on eating out and on ‘other retail’
(including, for example, stores selling mobile
phones). For some years, however, spending in
department stores, and spending on clothing,
footwear and household goods has been growing
only slowly. This is true in volume terms and even
more apparent in dollar terms.28
Table 3. Retail Occupations in Demand
ANZSCO
Code
6215
Occupations
Retail
Supervisors
Training Package
Qualifications
Justification/Evidence
SIR30312
Certificate III in
Retail Supervision
The Department of Employment forecasts employment
in this occupation will increase by 10.6 per cent between
2012 and 2017 (representing 3,600 workers).
Analysis by AWPA also shows that employment in this
occupation is set to grow in each of their four potential
economic scenarios.
1421
6359
Retail
Managers
Visual
Merchandisers
SIR40212
Certificate IV in
Retail Management
The Department of Employment forecasts employment
in this occupation will increase by 1.3 per cent between
2012 and 2017 (representing 3,000 workers).
SIR50112
Diploma of Retail
Management
Analysis by AWPA also shows that employment in this
occupation is set to grow in each of their four potential
economic scenarios.
SIR50212
Diploma of Visual
Merchandising
The Department of Employment forecasts employment
in this occupation will increase by 25.9 per cent between
2012 and 2017 (representing 1,600 workers).
Extensive consultation with retail employers through
Service Skills Australia’s Retail Futures study also
discovered that there is a demand for Visual
Merchandisers (both in-store and online).
20
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
ANZSCO
Code
1421
6359
Occupations
Retail
Managers
Visual
Merchandisers
Training Package
Qualifications
Justification/Evidence
SIR40212
Certificate IV in
Retail Management
The Department of Employment forecasts employment
in this occupation will increase by 1.3 per cent between
2012 and 2017 (representing 3,000 workers).
SIR50112
Diploma of Retail
Management
Analysis by AWPA also shows that employment in this
occupation is set to grow in each of their four potential
economic scenarios.
SIR50212
Diploma of Visual
Merchandising
The Department of Employment forecasts employment
in this occupation will increase by 25.9 per cent between
2012 and 2017 (representing 1,600 workers).
Extensive consultation with retail employers through
Service Skills Australia’s Retail Futures study
also discovered that there is a demand for Visual
Merchandisers (both in-store and online).
6211
Retail Sales
Assistant
SIR20212
Certificate II in
Retail Services
SIR30212
Certificate III in
Retail Operations
The Department of Employment forecasts employment in
this occupation will increase by 8.9 per cent between 2012
and 2017 (representing 45,500 workers). This represents
strong growth relative to the previous decade of relatively
steady employment numbers.
SIR10112
Certificate I in
Retail Services
The Department of Employment forecasts employment in
this occupation will increase by 18.5 per cent between
2012 and 2017 (representing 12,400 workers).
SIR20212
Certificate II in
Retail Services
Industry has also identified that this occupation will grow
in line with the demand for online retail as these workers
are responsible for managing stock in warehouses and
distribution centres.
Checkout
Operators
and Office
Cashiers
SIR10112 Certificate
I in Retail Services
The Department of Employment forecasts employment
in this occupation will increase by 10.1 per cent between
2012 and 2017 (representing 13,700 workers).
2612
Multimedia
Specialists
and Web
Developers
N/A
While retail is not a significant employer of Multimedia
Specialists and Web Developers in terms of share of
employment, the growth of online retail will ensure
they will play a larger role in the retail industry. Across
all industries, the Department of Employment expects
employment in this occupation to increase by 33.2 per
cent in the next five years.
6392
Retail and
Wool Buyers
N/A
The Department of Employment forecasts employment
in this occupation will increase by 24.8 per cent between
2012 and 2017 (representing 1,200 workers).
8912
6311
Shelf Fillers
SIR20212
Certificate II in
Retail Services
This reflects industry feedback that back-of-house roles
are in high demand, particularly retail buyers.
Wholesale, Retail & Personal Services Environmental Scan 2014
21
22
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
Current Impact of the SIR07 Retail
Services Training Package
Enrolments b
Around 65,000 service industry qualifications are completed in Australia each year and a quarter of these are
retail qualifications developed by Service Skills Australia, representing over 4 per cent of all VET graduates.29
Considering the youthful profile of retail graduates and their relative inexperience of further study and the
workplace, it is clear that the lower level certificate courses offered in retail play a vital role in skilling-up school
leavers and providing a pathway into the workforce. They can also act as a stepping stone to higher level study
and training.30 However, when looking closely at enrolment numbers in the Certificate I in Retail Services, it is
clear that there is limited and declining industry demand for the continuation of this qualification.
Figure 2. Retail Qualification Enrolments, 2008–2012
40,000
35,000
30,000
Enrolments
25,000
20,000
15,000
10,000
5,000
0
2008
2009
2010
2011
2012
Certificate I in Retail Services
3,765
3,247
2,312
1,889
1,023
Certificate II in Retail Services
28,466
28,275
30,929
34,044
30,099
Certificate III in Retail Operations
14,224
13,196
16,558
21,755
27,389
Certificate III in Retail Supervision
4,959
1,420
226
6
18
Certificate IV in Retail Management
1,718
2,546
3,181
4,877
5,803
Diploma of Retail Management
266
772
2,215
2,301
2,010
Diploma of Visual Merchandising
406
440
431
457
562
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
bNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity
not in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET
activity’ reporting requirements came into effect in January 2014.
Wholesale, Retail & Personal Services Environmental Scan 2014
23
Completions
Analysis of the training outcomes of retail graduates conducted by the University of Melbourne on behalf
of Service Skills Australia found that while some retail graduates enter training with the aim to work in
a specific job, many of them see the gaining of general skills, knowledge and work experience as major
benefits irrespective of the area of training. For example 47 per cent reported that training helped to improve
performance at work and that retail trainees were more likely than others to report that gaining knowledge
was a benefit of their course.31 32
Figure 3. Retail Qualification Completions, 2007–2011
16,000
14,000
12,000
Completions
10,000
8,000
6,000
4,000
2,000
0
2007
2008
2009
2010
2011
Certificate I in Retail Services
597
651
728
485
588
Certificate II in Retail Services
7,393
9,424
9,626
11,463
13,614
Certificate III in Retail Operations
3,717
4,679
5,046
6,326
9,256
Certificate III in Retail Supervision
1,006
1,403
652
141
5
Certificate IV in Retail Management
546
440
709
994
1,344
Diploma of Retail Management
131
146
216
1,119
1,101
Diploma of Visual Merchandising
50
87
75
142
118
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
24
Environmental Scan 2014 Wholesale, Retail & Personal Services
Retail
Future Directions for the SIR07
Retail Services Training Package
Consultation conducted as part of the 2012
Retail Futures project, the 2014 Environmental
Scan and the joint retail workforce study between
AWPA and Service Skills Australia has identified
the following areas for review in the SIR Retail
Services Training Package:
In addition, the SIR Retail Services Training
Package will be developed to meet the National
Skills Standards Council (NSSC) Standards for
Training Packages. It is anticipated that this will
be submitted to the NSSC for endorsement in
early 2015.
• strategic and operational technology skills
• financial, management and leadership
skills, including skills required to lead
and implement change
• merchandising, planning and buying
skills and roles
• customer service in the context of
multichannel and online retail
• analytics
• operations.
Wholesale, Retail & Personal Services Environmental Scan 2014
25
Wholesale
The wholesale industry employs
400,000 people
Employment is projected to
grow by 4%
over the next five years
In 2011-12 WHOLESALE GVA WAS
4.6% OF GDP
26
Environmental Scan 2014 Wholesale, Retail & Personal Services
Wholesale
Latest Intelligence
The wholesale industry is intrinsically linked to
the performance of the retail industry through
downstream demand. However, the relevance of
the wholesale industry is being diminished as
manufacturers increasingly internalise wholesale
functions. Retailers are establishing direct
relationships with manufacturers and by-passing
wholesalers. This is driven by the competitive
pressures in retail, in which cost savings are being
made by directly sourcing supplies, especially from
cheap overseas manufacturers.
Wholesalers are also becoming increasingly
redundant through the process of ‘disintermediation’
—manufacturers establishing direct consumer
accessibility.33 This involves retailing directly to the
public to reduce their costs and have more control
over pricing and marketing of the products.34 For
example, this has been the strategy of Apple.
The by-pass trend is also intensified by the rise
of online retail. Many discount enterprises are
competing strongly on price, which is enabled by
the cost savings from using the online model and
sourcing directly from manufacturers. An example
of this is the highly successful Kogan brand, which
sells Kogan-branded electronics obtained directly
from Chinese factories.
The increasing use of e-commerce platforms is
creating an imperative for wholesalers to remain
relevant by also adopting ICT systems. Currently,
Australian Bureau of Statistics (ABS) figures
show that 57.3 per cent of wholesale businesses
have a web presence and there has been some
development in terms of establishing websites.35
Furthermore, 48.8 per cent received orders via
the internet.36 Computerised stock control and
inventory systems have been the main technological
development within the industry; however, this
has been in place for some time. A fully automated
inventory system includes functions such as recording
and bar coding inventories, matching orders with
stock, assessing customer credit ratings and
generating invoices and address labels.
Service Skills Australia has made changes to
the wholesale qualifications in the SIR07 Retail
Services Training Package to reflect these changes
in the industry. Two qualifications—SIR20307
Certificate II in Wholesale and SIR30307 Certificate
III in Wholesale—have been deleted and replaced
with a newly developed SIR30412 Certificate III
in Business to Business Sales. This qualification
better reflects current job roles in the industry
driven by the development of multi-channel
retailing and an increasing convergence of the
retail and wholesale industries.
Wholesale, Retail & Personal Services Environmental Scan 2014
27
Changes to the VET Market
Since agreeing to a revised National Agreement
for Skills and Workforce Development at the COAG
meeting of 13 April 2012, nearly all states and
territories have embarked on reforms to their
training systems, with some jurisdictions already
well progressed. One of the core elements of
the reform agreement is the ‘National Training
Entitlement’, which guarantees government
subsidised training places to individuals up
to their first Certificate III qualification.
Different jurisdictions have developed their own
mechanisms to determine the level of government
funding for VET qualifications, with most states and
territories implementing capping or pricing signals
(subsidies) to manage demand. Table 4 indicates
the funding available for wholesale qualifications
in states and territories that have progressed with
VET reform. At present, funding is only available in
Victoria, South Australia and New South Wales.
Table 4. Funding of Wholesale Qualifications under VET Reform Programs c
Qualification
Jurisdiction
VIC
SA
Certificate III in Business
to Business Sales
$5.00
per hour
Certificate II in Wholesale*
$7.00
per hour
ü
Certificate III in
Wholesale*
$7.50
per hour
ü
*Denotes deleted qualification
c Correct as at 16 December
28
Environmental Scan 2014 Wholesale, Retail & Personal Services
NT
ACT
QLD
WA
NSW
Wholesale
Workforce Development Needs
The characteristics of the wholesale industry
workforce are substantially different to the retail
industry despite their links. The wholesale industry
workforce is mostly comprised of older and male
workers. In the year to August 2012, males
comprised 66.3 per cent of employment and 42.1
per cent of wholesale employees were aged over
45 in 2011.37 In November 2011, 14.1 per cent
of wholesale trade employees were classified as
casual (defined as without paid sick or holiday leave)
as opposed to permanent, compared to 39.6 per
cent of employees in retail.38 Additionally, only 15.8
per cent of wholesale trade workers are employed
on a part-time basis, whereas 51.2 per cent of
retail workers were employed part-time as opposed
to full-time.39 In February 2012, 19.1 per cent of
employees had been with their employer for less
than one year, which is below the industry average
of 19.9 per cent and the 23.6 per cent found in the
retail industry.40
Wholesale, Retail & Personal Services Environmental Scan 2014
29
Current Impact of the SIR07 Retail
Services Training Package (Wholesale)
Enrolments d
The low uptake of the SIR20307 Certificate II in Wholesale and SIR30307 Certificate III in Wholesale, as
shown in Figure 4, contributed to the deletion of these qualifications in the SIR07 Retail Services Training
Package. In place of both of these qualifications, Service Skills Australia developed the SIR30412 Certificate
III in Business to Business Sales. This qualifications better reflects current job roles in this sector, which
are a result of the development of multi-channel retailing and an increasing convergence of the retail and
wholesale industries. Due to reporting delays in the national data collection, there is no available enrolment
data for the SIR30412 Certificate III in Business to Business Sales.
Figure 4. Wholesale Qualification Enrolments, 2008–2012
700
600
Enrolments
500
400
300
200
100
0
2008
2009
2010
2011
2012
Certificate II in Wholesale*
3
32
69
7
87
Certificate III in Wholesale
154
131
316
600
602
*
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
*Denotes deleted qualification
dNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity not
in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET activity’
reporting requirements came into effect in January 2014.
30
Environmental Scan 2014 Wholesale, Retail & Personal Services
Wholesale
Completions
As can be expected, completions for wholesale qualifications have generally followed the trend of
enrolments, with a lag in correspondence with the time taken to undertake the qualification. Consequently,
completions have risen for the Certificate III in Wholesale in recent years and substantially lower and
more variable completions for the Certificate II in Wholesale. Due to reporting delays in the national data
collection, there is no available completion data for the new SIR30412 Certificate III in Business to
Business Sales.
Figure 5. Wholesale Qualification Completions, 2007–2011
140
120
Completions
100
80
60
40
20
0
2007
2008
2009
2010
2011
Certificate II in Wholesale*
18
0
0
30
1
Certificate III in Wholesale*
32
42
54
64
118
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
*Denotes deleted qualification
Future Directions for the SIR07 Retail
Services Training Package (Wholesale)
The SIR Retail Services Training Package will be developed to meet the NSSC Standards for Training
Packages. It is anticipated that this will be submitted to the NSSC for endorsement in early 2015.
Wholesale, Retail & Personal Services Environmental Scan 2014
31
Community
Pharmacy
IN FIVE YEARS, Employment of pharmacy sales
assistants is projected to
grow BY 6.4%
In the 2011–12 financial year, community
pharmacies generated ReVENUE OF
$12.4 billion
THERE ARE APPROXIMATELY 5,720 COMMUNITY
PHARMACIES ACROSS AUSTRALIA
32
Environmental Scan 2014 Wholesale, Retail & Personal Services
Pharmacy
Latest Intelligence
The Fifth Community Pharmacy
Funding Agreement
On 1 July 2010, the Australian Government and
the Pharmacy Guild of Australia formally initiated
the Fifth Community Pharmacy Agreement (5CPA).
A key component of the five year agreement is the
pharmacy practice incentive (PPI) payments for
the delivery of a defined set of activities that seek
to improve patient health outcomes. The intent of
the PPI payments is to reduce the burden on the
broader health care system by expanding the role
of community pharmacies. The underpinning
rationale for this development is Australia’s
ageing and growing population and the increased
incidence of chronic disease, often caused by
preventable risk factors.
As a consequence of this policy change, the role
of pharmacy and dispensary assistants has
expanded. For example, they are required to assist
with the documentation needed for the receipt
of PPI payments, which involves data entry for each
instance of service provision and collation of the
data for quarterly reporting to Medicare.
As these tasks are largely completed using
computer software, pharmacy assistants require
both data management and digital literacy
skills. Pharmacy assistants are also increasingly
implementing and managing services such as
dose administration systems and health promotion
programs as a result of the PPI payments. The
changing skill needs of pharmacy and dispensary
assistants as a result of the 5CPA are covered in
additional detail throughout this chapter.
Demographic Changes
Australia’s population is changing; we are both
an ageing and growing nation. Over the last two
decades, the median age has risen from 32.1
years at 30 June 1990 to 37.1 years in June 2011.
This trend is set to continue, with the median age
of Australia’s population projected to increase to
between 38.7 and 40.7 years by 2026, before
rising to between 41.9 and 45.2 years in 2056.41
In terms of population growth, Australia recorded
an increase of 1.5 per cent in the year ended
March 2012, propelling the estimated resident
population to 22,596,500.42
These changes are placing greater demands for
the services provided by community pharmacies,
both directly and indirectly. An ageing population
implies a greater incidence of age-related health
conditions that require medication. In 2012, 49
per cent of those aged 65–74 and 70 per cent of
those aged 85 and over had five or more long-term
health conditions.43 The most common conditions
among older Australians are some degree of vision
or hearing loss, arthritis and other musculoskeletal
problems and elevated blood pressure or cholesterol
levels.44 This is consequently driving the demand for
the dispensing of medications.
Indirectly, population ageing and growth has
the effect of broadening the role of community
pharmacies. Hospital expenditure rises exponentially
from the age of 60 upwards, thereby placing
increasing pressure on the hospital system.45 The
ageing and growth of the population is estimated
to account for 23 per cent and 21 per cent,
Wholesale, Retail & Personal Services Environmental Scan 2014
33
respectively, of the projected increase in total
expenditure on health and aged care between
2003 and 2033.46 In order to alleviate some of this
pressure, community pharmacies are increasingly
required to expand their provision of services in
relation to age-related diseases. This was seen in
the 5CPA, which incentivises medicine management
through dose administration aids and home medicine
reviews; disease-specific services, such as screening
for diabetes and cardiovascular disease; and
disease management programs.
Preventative Health
Australia is experiencing a fundamental shift in
attitudes towards healthcare, focusing much more
on preventative—rather than reactive—treatment
strategies.47 This shift is connected to growing cost
burdens on the health system resulting from the
increased prevalence of chronic illnesses. A national
study conducted in 2003 found that 32.2 per cent
of Australia’s illnesses are related to controllable
lifestyle and behavioural factors,48 such as obesity,
tobacco smoking and alcohol consumption, resulting
in health expenditure of $6 billion.49
The preventative health agenda has consequently
led to the recognition of the role community
pharmacies can play in reducing the incidence and
burden of chronic illnesses. Community pharmacies
are able to contribute to preventative health
strategies through health promotion, risk factor
screening and in encouraging medicine adherence.
Subsequently, these aspects have been formalised
into the role of pharmacies through the Fifth
Community Pharmacy Agreement. This builds on
the existing role community pharmacies have had in
providing a health advisory role to consumers, which
has been increasing in recent years. In the 2010–11
Patient Experience Survey, 23 per cent of people
aged 15 and over reported consulting a pharmacist
for health advice in the prior 12 months compared
to 13 per cent in 2007–2008.50
34
Environmental Scan 2014 Wholesale, Retail & Personal Services
The enhanced role of community pharmacies in
preventative health has had implications for the
tasks and duties of pharmacy assistants. Under
the 5CPA, pharmacy assistants play a role in
coordinating, marketing and encouraging client
involvement in the health promotion activities
undertaken by the pharmacy. They also provide
product and health care advice associated with
preventable disease risk factors and assist in
screening activities, such as blood glucose and
blood pressure testing. Consequently, pharmacy
assistants require heightened product and diseasespecific knowledge and skills in provision and
assistance with risk screening methods.
Technology
Developments in technology are also having an
effect on community pharmacies. A significant
development has been the implementation of the
national Personally Controlled Electronic Health
Record (PCEHR) system. Under the 5CPA, community
pharmacies are required to use and contribute to
these health records by dispensing e-prescriptions.
This development builds upon existing transitions
to digital processes, such as dispensing software
and Medicare Australia’s Pharmaceutical Benefits
Scheme (PBS) online claiming.
Industry consultation has also revealed that some
community pharmacies are adopting other forms
of technology, such as iPads for use as visual aids
in retail areas and SMS alerts for prescription
renewals. The rollout of the National Broadband
Network (NBN) is also improving the access of
all businesses to information and communication
technology (ICT), particularly in regional areas.
However, it has been recognised that the benefits
of this are dependent on businesses holding the
requisite skills and knowledge to fully exploit the
capabilities of these technologies.51 All factors
considered, digital literacy skills are increasingly
a key area of need for this sector.
Pharmacy
The converse implication of e-commerce is that it has
introduced new online competitors for pharmacies
that are able to compete heavily on price. This
has the effect of reaffirming many community
pharmacies’ commitment to providing additional
primary health care services in order to differentiate
themselves from low-cost, online-only operators.
The Pharmaceuticals Market
As a core product in community pharmacies,
changes in the pharmaceutical market have a
significant effect upon operating conditions.
In recent years, the level of remuneration and
allowable profit margins on pharmaceuticals has
decreased, coupled with key patent expirations
and supplier trading term changes.
Community pharmacies have reported a range
of increased strains on profit margins for their
dispensary activities. In September 2010, a
memorandum of understanding was signed
between the Australian government and Medicines
Australia to reduce the price paid on generic
medicines and all drugs listed on the F2A in April
2012. Furthermore, the 5CPA did not apply an
indexed increase to the amount pharmacies are
remunerated for dispensing PBS medications,
implying an effective cut. These changes also build
on significant reforms made to the PBS in 2008,
which decreased revenue to pharmacies. Finally,
it is expected that the expiry of key patents in
2014–15, which will allow generic products to be
sold, will have a further impact on pharmacy profit
margins. According to Pfizer, the generics market
in Australia is expected to double in size over the
next five years.52
Recent changes have also heightened the need
for strong stock management skills. Community
pharmacies need to ensure that they can provide
timely access to all PBS medications for customers.
However, this needs to be balanced against the
potential costs to the pharmacy through storage
and product life. These pressures have become
more acute with recent and expected changes.
The increase in the availability of generic products
is one aspect. As generic products are launched,
pharmacists need to manage the stock of the brand
name product in the lead up to the introduction of
generics. Furthermore, Pfizer altered its distribution
model in February 2011, which involved directly
distributing medicines to community pharmacies—
cutting out the wholesaler. The effect of this is that
distributors who had signed up to service standards
that ensure timely supply to all pharmacies—
‘Community Service Obligation Distributors’— are
now no longer able to stock the full supply of PBS
medications.53 These changes subsequently affect
the security of supply to community pharmacies
and raise the importance of stock management
practices. Finally, PPI payments for providing
|‘staged supply’ of medicines also adds further
complexity to the management of medicines
being held at the pharmacy.
Pharmacy and dispensary assistants will also
be involved in dose administration aids, as well
as alerting the pharmacist to potentially suitable
clients, and will be involved in the splitting and
storage of medications in relation to the staged
supply of medications.
Household Consumption Patterns
Industry feedback reports that Australians are
increasingly inclined to use alternative and
complementary medicines, resulting in the
increased demand for vitamins and other
alternative medicine products. Subsequently,
pharmacy assistants are increasingly required
to be able to effectively advise customers on
these products. This has been reflected in the
SIR07 Retail Services Training Package, which
contains a unit of competency on complementary
medicine advice and a product knowledge unit
on vitamins, minerals and supplements—
SIRCHCS306 Advise on complementary medicines
and SIRCPPK201 Assist customers seeking
commonly requested vitamins, minerals
and supplements.
Wholesale, Retail & Personal Services Environmental Scan 2014
35
Changes to the VET Market
Since agreeing to a revised National Agreement for Skills and Workforce Development at the COAG meeting
of 13 April 2012, nearly all states and territories have embarked on reforms to their training systems,
with some jurisdictions already well progressed. One of the core elements of the reform agreement is the
‘National Training Entitlement’, which guarantees government subsidised training places to individuals up
to their first Certificate III qualification.
Different jurisdictions have developed their own mechanisms to determine the level of government funding
for VET qualifications, with most states and territories implementing capping or subsidy bands to manage
demand. Table 5 indicates the funding available for community pharmacy qualifications in states and
territories that have progressed with VET reform.
Table 5. Funding of Community Pharmacy Qualifications under VET Reform Programs e
Qualification
Jurisdiction
VIC
SA
Certificate II in
Community Pharmacy
$4.00
per hour
ü
Capped
Certificate III in
Community Pharmacy
$4.00
per hour
ü
Capped
Certificate IV in
Community Pharmacy
$4.00
per hour
ü
Capped
e Correct as at 16 December
36
Environmental Scan 2014 Wholesale, Retail & Personal Services
NT
ACT
QLD
WA
NSW
ü
Draft
inclusion
ü
ü
ü
Pharmacy
Workforce Development Needs
Customer Service
Retention
The Quality Care Pharmacy Program (QCPP) was
created by the Pharmacy Guild of Australia in
recognition of the need for superior customer
service provision required by community
pharmacies.54 It has long been acknowledged
that community pharmacies increasingly need to
be built upon high-level customer service in order
to differentiate themselves from supermarkets
and, more recently, from discount pharmacies.
The growth of ‘big box’ community pharmacy is
consistently identified as an important factor in the
increased competition for community pharmacies.55
Retention of talent is an important focus for the
industry. Industry feedback suggests that good
pharmacy assistants are leaving the industry due
to a lack of recognition. In particular, the industry
is perceived as having few career progression
opportunities. Additionally, a reliance on casual
employees is contributing to retention difficulties.
Casual employees are often perceived as ‘precareer.’ This assumption is reflected in the gross
replacement rate for pharmacy assistants, in which
21.4 per cent of the workforce is estimated to
leave the occupation annually.58 Industry feedback
has indicated that this is especially the case in
metropolitan pharmacies, whereas regional and
remote pharmacies tend to have higher retention
levels. However, those close to mining regions do
not have this advantage.
Discount pharmacies are able to deliver more choice
and aggressively discount prices and IBISWorld
reports that industry polls show that consumers
are very supportive of discount pharmacies.56
This development calls for community pharmacies
to provide greater value through superior customer
service and additional professional services, such
as those encouraged by the 5CPA’s PPI payments.
Industry feedback has reported that customer
service and protocol requirements can be difficult to
manage, as meeting compliance needs can lengthen
the service time. As a result, pharmacy assistants
require particularly well-developed customer service
skills in order to manage these competing priorities.
Workforce Ageing
Across all industries, the working age population
is shrinking. It is projected that the working age
population will decline from 67 per cent in 2004
to between 57 and 59 per cent in 2051.57 The
relatively youthful profile of the pharmacy assistant
workforce—50.9 per cent of the workforce is
aged 15–24 compared to 16.7 per cent across all
occupations—presents a challenge for the industry,
as its labour supply is subjected to increasing levels
of competition from other industries as they replace
their workforce of retiring baby boomers.
Service Skills Australia’s industry engagement
has indicated that a useful way to retain skilled
employees is to show them potential career
pathways, enabling them to have a vision of their
potential future. Moreover, it also fosters employer
discussion around the issue of retention, whilst
ensuring that industry has a broader strategy to
attract, retain and develop skills.
Business and Management Skills
Government legislation requires that community
pharmacies are owned and operated by pharmacists.
While many pharmacies operate under a ‘banner
group’, which provide support for operational
functions, many pharmacists are still largely
responsible for running individual pharmacies and
function as a small business owner. Since business
management skills are not a mandatory component
of a pharmacist’s education, feedback suggests that
many find these aspects of operation challenging.
Wholesale, Retail & Personal Services Environmental Scan 2014
37
As outlined, community pharmacies are increasingly
exposed to a variety of pressures, which only
increase the challenge of running a business.
Owners and managers must be equipped with the
skills to run a profitable business in the face of
declining profit margins. Practice managers must
also carefully manage their finite space for stock,
which is made up of high value goods that are
sometimes perishable.
Community pharmacies are also highly regulated,
necessitating an understanding of changing
regulations in order to remain compliant.
Furthermore, the ageing population and traditionally
high reliance on a casual workforce brings a need
for highly developed human resource management
skills in order to better retain skilled employees.
The QCPP, which is an accreditation program, has
been one strategy to ensure high standards in the
operation of pharmacies. However, better developed
business skills are also required to ensure the
sustainability of these enterprises.
This need has been acknowledged in the training
package with the addition of the skill set,
SIRSS00003 Community Pharmacy Management,
which covers the essential areas of leading and
managing the work team, managing sales and
38
Environmental Scan 2014 Wholesale, Retail & Personal Services
service, managing the premises and equipment,
and investigating new products and services. An
additional diploma level qualification in community
pharmacy management will also be scoped in the
next review.
Language, Literacy and Numeracy
Though the Australian Government’s Workplace
English Language and Literacy (WELL) Program,
Service Skills Australia has been providing access
to customised, integrated language, literacy and
numeracy (LLN) training for the service industries.
Consultation undertaken in the course of managing
the program has revealed that many community
pharmacies are adversely affected by challenges
in LLN domains. For example, limited language
and communication skills often results in a lack of
confidence and reluctance on the part of pharmacy
assistants to approach customers, which impacts
both on teamwork and customer service levels and
stifles individual progression and achievement.
Ensuring that workers in the community pharmacy
industry have adequate LLN skills is critical to promote
continued confidence in the industry, particularly as it
begins to expand its scope of services.
Pharmacy
Community Pharmacy
Occupations in Demand
Table 6 identifies the key community pharmacy occupations in demand based on industry feedback and
forecasts from the Department of Employment.
Table 6. Community Pharmacy Occupations in Demand
ANZSCO
Code
6214
Occupations
Pharmacy
Sales
Assistants
Training Package
Qualifications
SIR20112
Certificate II
in Community
Pharmacy
SIR30112
Certificate III
in Community
Pharmacy
3112
Pharmacy
Technician /
Dispensary
Assistant
SIR30112
Certificate III
in Community
Pharmacy
SIR40112
Certificate IV
in Community
Pharmacy
1421
Retail
Managers
SIR40112
Certificate IV
in Community
Pharmacy
SIR40212
Certificate IV in
Retail Management
SIR50112
Diploma of Retail
Management
Justification/Evidence
The Department of Employment forecasts employment
in this occupation will increase by 6.4 per cent between
2012 and 2017, representing 2,000 workers.
Industry has indicated that this forecast is likely to be
accurate given the effect of the ageing population and the
increasing health needs of the community, particularly
chronic conditions such as diabetes and hypertension.
The Department of Employment forecasts employment in
the occupation of ‘medical technician’ (approximately 14
per cent of which are pharmacy technicians/dispensary
assistants) will increase by 20 per cent between 2012 and
2017 (representing 3,230 workers). Industry reports that
dispensary assistants will grow in line with other medical
technicians and the role will become more specialised,
transitioning to a supporting role for the pharmacist.
This is essential to improve workflow efficiencies, which
is required to enable the provision of a greater range of
services in community pharmacies.
While there were only 3,800 retail managers working in
community pharmacies in 2011, industry reports that
this will grow substantially as pharmacists move towards
more professional roles to improve health outcomes to the
general public, with less time to undertake administrative
activities, and hence a greater demand for and reliance
upon retail managers. Other stakeholders have reported
that many community pharmacies are now recognising the
need to for a dedicated manager.
Wholesale, Retail & Personal Services Environmental Scan 2014
39
Current Impact of the SIR07
Retail Services Training Package
(Community Pharmacy)
Enrolments f
As shown in Figure 6, enrolments in the Certificate III in Community Pharmacy are now outpacing
enrolments in Certificate II in Community Pharmacy for the first time in a decade. This reflects the
industry’s requirements for higher-level skills as the industry continues to expand into primary health
care management, public health promotion and screening.
Figure 6. Community Pharmacy Qualification Enrolments, 2008–2012
4,000
3,500
3,000
Enrolments
2,500
2,000
1,500
1,000
500
0
2008
2009
2010
2011
2012
Certificate II in Community Pharmacy
1,868
1,757
1,531
1,213
1,067
Certificate III in Community Pharmacy
911
956
1,216
3,008
3,473
Certificate IV in Community Pharmacy
109
116
201
231
223
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
fNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity
not in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET
activity’ reporting requirements came into effect in January 2014.
40
Environmental Scan 2014 Wholesale, Retail & Personal Services
Pharmacy
Completions
While completions are still highest in the Certificate II in Community Pharmacy, as those students who enrol
in the Certificate III in Community Pharmacy, begin to complete their courses it is expected there will be a
commensurate rise in the number of Certificate III completions.
Figure 7. Community Pharmacy Qualification Completions, 2007–2011
800
700
600
Completions
500
400
300
200
100
0
2007
2008
2009
2010
2011
Certificate II in Community Pharmacy
558
567
581
691
569
Certificate III in Community Pharmacy
195
303
247
337
431
Certificate IV in Community Pharmacy
44
35
26
38
62
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
Future Directions for the SIR07
Retail Services Training Package
(Community Pharmacy)
Future directions for the community pharmacy components within the Retail Services Training Package
include ensuring the training package meets the industry’s workforce needs under the Fifth Community
Pharmacy Agreement along with transitioning to the NSSC Standards for Training Packages. Consultation
will take place mid-2014, with a submission for endorsement anticipated to occur in early 2015.
Wholesale, Retail & Personal Services Environmental Scan 2014
41
Floristry
There are approximately
6,300 Florists
employed across Australia
Employment is projected to
grow by 9.1%
over The next five years
There were
2,440 floristry
businesses operating at the end of the
2011–12 financial year
42
Environmental Scan 2014 Wholesale, Retail & Personal Services
Floristry
Latest Intelligence
Competitive Pressures
Market Segmentation
As previous Environmental Scans have highlighted,
traditional floristry businesses are experiencing
high levels of competition in the generic cut flower
market from general retailers, online stores and
convenience stores. According to the most recent
figures, only half of all cut flowers are sold through
traditional floristry businesses.59 The decline in
floristry establishments in recent years is thought to
be due to the increase in purely online operations.
Since online-only establishments generally have
fewer overheads than their bricks-and-mortar
counterparts, this is heightening levels of price
competition, which in turn is affecting the industry’s
skill requirements. Industry reports that in order
to differentiate themselves from non-specialist
competitors, florists are increasingly focusing on
high-end products that are underpinned by high-level
floristry skills. In response to industry’s need for
increased floral design skills, the SFL10 Floristry
Training Package introduced the SFL50110 Diploma
of Floristry Design.
While the global financial crisis adversely affected
corporate demand for flowers, sources indicate that
this is now rebounding.60 It is currently estimated
that 20 per cent of industry sales are to corporate
clients and hospitality companies. This represents
an important market segment as these businesses
usually have standing accounts for floral displays
to be provided on a regular basis, thus providing
greater income certainty for floristry businesses.61
Technology
As previously mentioned, one factor influencing the
shift to online operations is cost savings through
reduced overheads. Reports also indicate that
more floristry businesses are using online channels
to reach a wider market. However, industry has
stated that many businesses perceive e-commerce
platforms as onerous to implement due to the time
and training investment required. This suggests a
greater focus is needed on developing the digital
literacy skills of florists.
Product Diversification
Industry has reported that due to cultural shifts,
flowers are no longer perceived as a default gift
item and compete with other goods and services for
discretionary spending. Consequently, florists have
been expanding their product range beyond cut and
arranged flowers over the past decade. However,
industry feedback has indicated that product
diversification is generally being kept to items with
a strong link to flowers so as to not dilute the value
of their core product offering.
Affiliation Models
A key development in the industry has been the
introduction of affiliate organisations, such as
www.florists.com and Interflora. These allow
floristry businesses to operate on both a national
and international scale, rather than the localised
arrangements that have previously characterised
the industry. Businesses participating in these
arrangements benefit from centralised marketing
campaigns and also have access to additional
sales through the home delivery service they offer.
Wholesale, Retail & Personal Services Environmental Scan 2014
43
Workforce Development Needs
Digital Literacy
The need for greater digital literacy skills in the
industry is critical to ensure ongoing profitability
as it will access to broader markets via online
channels. Additionally, investment in inventory
and handling systems is essential to maintain
profitability by reducing wastage. This is crucial
for an industry in which profits rely upon the
timely sale of perishable items. It is critical that
the implementation of IT systems is coupled with
appropriate staff training and development.
Multiskilling: Marketing,
Management and Business Skills
Feedback from industry has indicated that
employing staff skilled in both floral arranging and
business marketing can be a key success factor, as
these employees are able to assist in differentiating
floristry businesses in a highly fragmented and
competitive market. The increasing importance
of business and technical skills in the industry
has been reflected in the SFL10 Floristry Training
Package through increased flexibility in the number
of elective units in the SFL40110 Certificate IV in
Floristry. This allows for tailored training to meet the
various business models across the industry.
To assist with the cost of training staff, floristry
businesses can access the National Workforce
44
Environmental Scan 2014 Wholesale, Retail & Personal Services
Development Fund (NWDF) through Service Skills
Australia. The NWDF is an industry-driven, coinvestment funded skills development program
with small, medium and large enterprises required
to cover 33 per cent, 50 per cent or 67 per cent,
respectively of training costs. Access to the fund is
based on enterprises identifying their business needs
and the way in which training will address them.
Sustainability
Despite the fact that the industry is particularly
sensitive to environmental concerns (e.g. water
usage), feedback suggests that widespread
adoption of environmentally sustainable practices
has yet to occur. However, there has been moderate
uptake of environmentally-friendly wrapping, ribbons
and wiring. The SFL10 Floristry Training Package
addressed sustainability skills by embedding them
within appropriate individual units of competency,
making broad environmental sustainability
units available for selection in appropriate
qualifications and including sustainability in
appropriate employability skills summaries. As a
result, the successful completion of vocational
floristry qualifications requires knowledge of
the environmental impact of constructing and
maintaining floristry products and best-practice for
reducing energy usage, proper waste disposal and
use of hazardous substances.
Wholesale, Retail & Personal Services Environmental Scan 2014
45
Current Impact of the SFL10
Floristry Training Package
Enrolments g
In 2012, the Certificate III in Floristry overtook the Certificate II in Floristry (Assistant) as the most popular
qualification. This is a positive development due to the greater number of job opportunities available at
the Certificate III level. However, since 2010, enrolments in the Certificate IV in Floristry have declined.
This could be due to tighter entry requirements that were introduced, which stipulate that the qualification
is designed for senior florists who have significant vocational experience. The Diploma of Floristry Design
recorded its first enrolments in 2012, reflecting the industry’s focus on the sale of high-end products that
are underpinned by high-level floristry skills.
Figure 8. Floristry Qualification Enrolments, 2008–2012
1,200
1,000
Enrolments
800
600
400
200
0
2008
2009
2010
2011
2012
Certificate II in Floristry (Assistant)
949
930
1,118
1,068
844
Certificate III in Floristry
763
837
930
901
1,053
Certificate IV in Floristry
84
102
136
110
84
0
0
0
0
32
Diploma of Floristry Design
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
gNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity
not in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET
activity’ reporting requirements came into effect in January 2014.
46
Environmental Scan 2014 Wholesale, Retail & Personal Services
Floristry
Completions
As Figure 9 shows, there has been a steady rise in the number of completions in most qualifications since
2009. With the Diploma of Floristry Design only beginning to take enrolments in 2012, completions have
not yet been recorded for this qualification.
Figure 9. Floristry Qualification Completions, 2007–2011
600
500
Completions
400
300
200
100
0
2007
2008
2009
2010
2011
Certificate II in Floristry (Assistant)
312
386
355
489
553
Certificate III in Floristry
349
300
306
347
413
Certificate IV in Floristry
7
5
27
40
45
Diploma of Floristry Design
0
0
0
0
0
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
Future Directions for the
SFL10 Floristry Training Package
In 2014, the SFL Floristry Training Package will be transitioned to the NSSC Standards for Training Packages.
Work has already commenced on the units of competency and it is anticipated that the SFL Floristry Training
Package will be submitted to the NSSC for endorsement in late 2014.
Wholesale, Retail & Personal Services Environmental Scan 2014
47
Hairdressing
There was an average of approximately
64,000
hairdressers in Australia in the year to May 2013
Employment is projected to
grow by 0.7%
in five years from November 2012
20,331
hairdressing and beauty services businesses
WERE operating at the end of June 2012
48
Environmental Scan 2014 Wholesale, Retail & Personal Services
Hairdressing
Latest Intelligence
The hairdressing industry has not seen radical
shifts in recent times. However, there continues
to be a consistent increase in the demand for
premium salon services, particularly in city centres,
driving the need for the continued supply of highly
skilled hairdressers.
Additionally, there is an ongoing societal shift towards
men engaging in an equal level of grooming to their
female counterparts, which is ensuring an increase in
demand for the industry. While there is a decrease in
the demand for the service of barbers, there are also
reports of an increase in higher-end barbers in innercity areas. These operate more as male-only hair
salons rather than as a scaled-down service.
Salons are also increasingly incorporating software
and information and communication technology
(ICT) in their business processes. This includes
the use of appointment management software
and text messages for appointment confirmation.
Salon workers in the hairdressing industry require
sufficient digital literacy skills to effectively engage
with these technologies.
The growing awareness of environmental issues
has also led to an increase in the number of salons
that incorporate or specialise in the use of natural
products given the effects of synthetic chemicals
on the environment. This shift has implications
for hairdressers to understand and be able to
communicate the benefits of these products to clients
compared with standard products. Hair salons are
also increasingly addressing their water and energy
use and waste management practices. This requires
an understanding of best practice methods.
These industry trends have been addressed
in previous training package revisions with the
inclusion of sustainability skills and knowledge in the
appropriate units of competency and the development
of specific sustainability units of competency.
There are also industry reports of a greater
number of salons diversifying into beauty services,
such as manicures and waxing, but these salons
often do not have hairdressers who are skilled
across both fields.
Changes to the VET Market
Since agreeing to a revised National Agreement
for Skills and Workforce Development at the COAG
meeting of 13 April 2012, nearly all states and
territories have embarked on reforms to their
training systems, with some jurisdictions already
well progressed. One of the core elements of
the reform agreement is the ‘National Training
Entitlement’, which guarantees government
subsidised training places to individuals up to
their first Certificate III qualification.
Different jurisdictions have developed their own
mechanisms to determine the level of government
funding for VET qualifications, with most states and
territories implementing capping or subsidy bands
to manage demand. Table 7 (overleaf) indicates
the funding available for hairdressing qualifications
in states and territories that have progressed with
VET reform.
Wholesale, Retail & Personal Services Environmental Scan 2014
49
Table 7. Funding of Hairdressing Qualifications under VET Reform h
Qualification
Jurisdiction
VIC
SA
NT
ACT
Certificate II in
Hairdressing
$8.50 per
hour
ü
Capped,
TGSS
Certificate III in
Hairdressing
$8.50 per
hour
($10.50
Apprentice)
ü
ü
(Priority)
Draft
inclusion
Certificate IV in
Hairdressing
$7.00 per
hour
ü
ü
Draft
inclusion
Graduate Certificate in
Hairdressing Creative
Leadership
$4.00 per
hour
QLD
WA
NSW
ü
ü
ü
Workforce Development Needs
Continued Shortages
In August 2012, hairdressers were deemed to still
be in shortage by the Department of Employment
and that it has worsened since 2011, in which
there were a lower number of suitable candidates
per advertisement.62 This rating has been applied
to hairdressers consecutively since 1997, making
2012 the sixteenth year that this occupation has
been in shortage. It was noted that recruitment
difficulties were slightly more pronounced in
metropolitan areas compared to regional areas,
which contradicts usual geographical labour
market dynamics.
The Department of Employment’s analysis indicates
that the predominant issue is the number of
applicants who, despite having the requisite
qualifications, do not have the skills to the level
required for the role. As noted by the Department,
‘some applicants considered to be unsuitable
were unable to demonstrate the required level of
competency at trade tests’, which was attributed to
an increase in the number of learners undertaking
courses in an institutional-only setting rather an
apprenticeship pathway. The available statistics
from NCVER indicate that institutional-only training
has increased in recent years and is consistent with
the views of employers in our own consultations.
The Department of Employment also noted that
the level of practical experience in the industry is
lacking. Industry consultation undertaken by Service
Skills Australia indicated that there is a shortage
of hairdressers who have the requisite 3–15 years
experience to fill a ‘senior hairdresser’ role.
hCorrect as at 16 December 2013. TGSS refers to the Training Guarantee for SACE Students. This means that qualifications listed
as TGSS on the Skills for All Funded Training List will be fully-funded for South Australian students who are 16 years or over and
who are enrolled and working towards completing the South Australian Certificate of Education (or equivalent). Full eligibility
criteria are available at the following website: skills.sa.gov.au/for-training-providers/training-school-students/training-guaranteefor-sace-students. FF denotes ‘fee free’.
50
Environmental Scan 2014 Wholesale, Retail & Personal Services
Hairdressing
Salon Management Skills
Age Profile
The hairdressing industry has a high number of
business failures, with an exit rate of 13.8 per
cent of hairdressing businesses in 2011–12,
compared to 11 per cent across all industries.63
There is a strong industry pathway of hairdressers
going on to open their own salon, but many do not
necessarily have the requisite business skills to
operate profitably. Industry reports that it is still
not standard practice for hairdressers who are
either promoted into management positions or
open their own salon to upgrade their skills through
the SIB50210 Diploma of Salon Management.
Consequently, skills in finance, human resources
and promoting the learning and development of
staff can be lacking. This was also evident in the
results of a recent audit of hair and beauty salons
by the Fair Work Ombudsman, which found that from
a sample of 858 random salons, 55 per cent had
breached their obligations under workplace laws.64
Figure 10 shows the share of employment by
age group for hairdressers compared with all
occupations and indicates the high proportion
of hairdressers from young age groups. There
were 38.4 per cent of hairdressers aged 15–24
compared to 17.7 per cent of all occupations.
This is reflective of the fact that hairdressing
qualifications are often undertaken as an alternative
to finishing high school, with only 34 per cent of
hairdressing graduates having completed year 12.65
It is also often an individual’s first career, with only
23 per cent of hairdressing graduates having had
a full-time job before starting the course.66
Figure 10. Age Profile of Hairdressers, 2012
16.5
15-19
6.9
21.9
20-24
10.8
26
25-34
21.9
20.8
Age
35-44
23.4
10
45-54
22.2
2.6
55-59
8
1.1
60-64
Hairdressers
4.5
All occupations
1.1
65+
2.3
0
5
10
15
20
25
30
Percentage
Wholesale, Retail & Personal Services Environmental Scan 2014
51
Hairdressing Occupations in Demand
Table 8 identifies the key hairdressing occupations in demand based on industry feedback and
forecasts from the Department of Employment.
Table 8. Hairdressing Occupations in Demand
ANZSCO
Code
Occupations
391111
Hairdresser
Training Package
Qualifications
SIH30111
Certificate III in
Hairdressing
SIH40111
Certificate IV in
Hairdressing
Justification/Evidence
The Department of Employment has determined
that hairdressers are in shortage, particularly due to
applicants lacking the required skill level, and have
been so since 1997.
Employers note that senior hairdressers with 3–15
years experience are particularly in demand.
SIH80113 Graduate
Certificate in
Hairdressing
Creative Leadership
142114
Hair or
Beauty Salon
Manager
SIB50210
Diploma of Salon
Management
This industry, comprised of predominantly small businesses,
is continually professionalising and requires a greater
number of highly skilled managers.
Current Impact of the SIH11
Hairdressing Training Package
Enrolments i
Despite the Certificate II in Hairdressing recording the second highest number of number of enrolments out
of all qualifications in the SIH11 Hairdressing Training Package in 2012 (see Figure 11), industry has serious
concerns with the continued offering of this qualification. Industry deems the Certificate II in Hairdressing
to have no effective employment outcomes and that it only serves as a mechanism to generate profits for
training providers. It is the industry view that the Certificate II in Hairdressing should be discontinued and
that all funding for this qualification should cease.
iNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity
not in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET
activity’ reporting requirements came into effect in January 2014.
52
Environmental Scan 2014 Wholesale, Retail & Personal Services
Hairdressing
Figure 11. Hairdressing Qualification Enrolments, 2008–2012
18,000
16,000
14,000
Enrolments
12,000
10,000
8,000
6,000
4,000
2,000
0
2008
2009
2010
2011
2012
Certificate II in Hairdressing
5,358
5,253
7,086
6,906
6,971
Certificate III in Hairdressing
14,067
13,958
15,085
15,773
15,860
Certificate IV in Hairdressing
469
790
1,371
1,091
975
5
9
20
5
13
353
518
950
932
444
Certificate IV in Trichology*
Diploma of Hairdressing
Salon Management**
Source: NCVER VOCSTATS (http://www.ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013.
* Denotes deleted qualification
**This qualification has been superseded by the Diploma of Salon Management from the SIB Beauty Training Package.
For enrolment figures please refer to Current Impact of Training Packages in the Beauty Chapter.
Completions
Analysis of the results of the National Centre for Vocational Education Research (NCVER) Student Outcomes
Survey revealed that those who complete a hairdressing qualification report almost universally high levels
of personal benefits from their course (98 per cent), a large number had gained job-related benefits (81 per
cent) and a third gained access to further education (33 per cent). Compared with other service industry
graduates, hairdressing graduates are much more likely to be interested in the intrinsic value of their work.
The research found that 40 per cent of hairdressing course completers were mainly interested in getting
a job. Similarly, 87 per cent entered their course because they wanted jobs related to that specific area of
Wholesale, Retail & Personal Services Environmental Scan 2014
53
training. This correlates to the high level of satisfaction reported by hairdressers with their work (92 per
cent). Indeed, hairdressers are unlikely to leave the hairdressing industry. The Household, Income and
Labour Dynamics in Australia (HILDA) Survey found that hairdressers have high levels of occupational
(90 per cent) and industry (94 per cent) stability. However, this loyalty to the industry did not necessarily
translate into employer stability, with half of hairdressers reporting that they switched employers over the
five year period between 2004 and 2009.
The completions of hairdressing qualifications indicated in Figure 12 largely reflect the trends in
enrolments, with high and increasing numbers of completions for the Certificate III in Hairdressing
and Certificate II in Hairdressing.
Figure 12. Hairdressing Qualification Completions, 2007–2011
4,000
3,500
3,000
Completions
2,500
2,000
1,500
1,000
500
0
2007
2008
2009
2010
2011
Certificate II in Hairdressing
1,309
1,701
2,000
2,156
2,298
Certificate III in Hairdressing
2,970
3,419
3,730
3,418
3,503
Certificate IV in Hairdressing
116
182
307
589
423
0
1
0
12
2
70
137
254
376
360
Certificate IV in Trichology*
Diploma of Hairdressing
Salon Management**
Source: NCVER VOCSTATS (http://www.ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013.
* Denotes deleted qualification
**This qualification has been superseded by the Diploma of Salon Management from the SIB Beauty Services Training Package.
For enrolment figures please refer to Current Impact of Training Packages in the Beauty Chapter
54
Environmental Scan 2014 Wholesale, Retail & Personal Services
Hairdressing
Future Directions for the SIH11
Hairdressing Training Package
Future considerations for the Hairdressing Training Package include evaluating the qualifications framework
against the workforce needs of the industry. The planned continuous improvement of the Hairdressing
Training Package will ensure that the NSSC Standards for Training Packages are met and will include the
development of Companion Volumes. It is expected that this will be submitted to the NSSC in late 2015.
Wholesale, Retail & Personal Services Environmental Scan 2014
55
Beauty
There was an average of approximately
23,000
beauty therapists in Australia in the year to May 2013
Employment of beauty therapists is projected to
grow by 17%
in five years
20,331
hairdressing and beauty services businesses
WERE operating at the end of June 2012
56
Environmental Scan 2014 Wholesale, Retail & Personal Services
Beauty
Latest Intelligence
Growing Demand
Beauty therapy salons have seen significant growth
over the years and this growth is expected to
continue due to a substantial consumer shift in
the perception of these services. Industry reports
that there is a stronger societal culture of the
importance of personal grooming, with services
such as manicures, pedicures, eyebrow grooming,
body hair removal and facials seen as a basic
and regular requirement. This has been credited
to an ageing population, the normalisation of male
grooming and an increasing societal culture of
an appreciation of health and appearance.
The emergence of advanced treatments has
encouraged the expansion of services within
traditional beauty salons, as well as increased
the presence of specialised clinics. In some
instances, specialised clinics will see practitioners
from a range of fields and disciplines working as a
team. Within this model, pre-treatment consultation
is an important component of determining the best
treatment option. Subsequently, the industry reports
that this has heightened the need for skills in
conducting consultations and assessments, as well
as strengthening the required communication skills
both with the clients and inter-disciplinary colleagues.
Advanced Treatments
Some beauty therapists are undertaking further
studies in dermal therapies at the Bachelor
Degree level, qualifying them as a dermal therapist.
However, beyond the SIB70110 Vocational Graduate
Certificate in Intense Pulsed Light and Laser Hair
Reduction, which only focuses on hair reduction,
there is little in the way of formal and industrydefined career and educational pathways between
vocationally qualified beauty therapists and
dermal therapists. Industry reports that there is a
consequent over-reliance on equipment supplier
training, which is often as little as one or two days
in length and only covers one type of device or
technology, meaning that therapists are not able to
recommend more appropriate treatments beyond
their scope of practice or readily apply their skills in
another workplace.
A significant trend in the beauty industry has been
the continuing development of advanced treatments
for skin rejuvenation and hair reduction. These
advanced treatments incorporate the use of
light (such as Intense Pulsed Light), laser, or are
electrical or mechanical treatments. Advanced
therapies, however, still only comprise a relatively
small portion of the services offered by the industry
as a whole.
Industry representatives have also highlighted that
there is growing levels of inter-sector collaboration,
with medical practitioners developing referral links
with beauty therapists that are equipped to provide
the services that they recommend. While this
is not currently widespread across the industry,
representatives from Hair and Beauty Australia have
identified a ‘move from the beauty salons of the
past to the Medi Spas of the future.’ 67 Salons also
However, industry also reports that there has been
a reversal in the trend of indoor tanning services
in response to the implementation of regulation in
New South Wales and Victoria. The indoor tanning
segment is in a state of decline and if national or
state regulators follow the lead of New South Wales
and Victoria, this segment is likely to disappear in
the near future.
Furthermore, while there is a substantial long term
trend of an increase in beauty service demand,
there have been fluctuations in recent years in
response to subdued consumer sentiment owing
to a more difficult economic climate.
Wholesale, Retail & Personal Services Environmental Scan 2014
57
work with the medical professions to undertake
pre-screening of patients before they undertake
treatments that have the potential for complications.
These practices are assisting to strengthen the
reputation of this industry. While ‘best practice’
collaboration with the medical field is an emerging
trend, there is still significant industry concern in
regards to poor practices due to unenforceable
minimum standards of training or other forms of
regulation or accreditation.
The calls for more robust training standards and
other forms of accreditation or regulation stem from
the fact that these treatments have the potential to
cause minor and severe adverse outcomes, as well
as the potential to prevent or delay detection of skin
cancers when treating pigmented lesions. These
risks subsequently require practitioners to have a
thorough understanding of:
• skin reaction to treatments and
advanced cosmetics
• the required patient education in terms of
risks and post-treatment care
• infection control
• managing complications or minor
adverse outcomes
Sustainability
Awareness of the need for environmental
sustainability is on the rise among Australian
consumers. This has led to a strong emergence
of salons specialising in the use of ‘organic’ and
natural beauty products in reaction to the negative
environmental effects, and also personal effects,
of using products containing synthetic chemicals.
IBISWorld estimates that salons specialising in
these products have increased by 20 per cent per
annum in the last five years.68 This shift requires
beauty therapists to understand and be able
to communicate the benefits of these products
compared with standard products.
The growing awareness of environmental issues
has also encouraged beauty salons to address
their water and energy use and waste management
practices. This requires a significant understanding
of best practice methods. These industry trends
have been addressed in previous training package
revisions with the inclusion of sustainability skills
and knowledge in appropriate units of competency
and the development of specific sustainability units
of competency.
• wound healing and identifying abnormal
and delayed wound healing
Intersection with the Tourism Industry
• dermal anatomy and physiology
The beauty industry continues to draw upon the
‘visitor economy’ as a source of clientele due to
the societal shift towards health, fitness and
relaxation as a component of travel. This is
evident in the continued increase in the number of
day spas, health resorts and salon services within
hotels to provide beauty treatments to guests.
The businesses targeting this market tend to
differ slightly compared to a standard salon in
terms of an emphasis on treatments designed
for relaxation, the treatment ‘experience’ and
the provision of ‘one-off’ treatments.
• the science of how the new technologies
work and their safe use
• the chemistry of advanced cosmetics.
The risks involved in these treatments have also
instigated a review of their regulation. The Australian
Radiation Protection and Nuclear Safety Agency
and the state and territory regulators, through the
Radiation Health Committee, have been assessing
a range of regulatory controls that could be applied
nationally to the use of lasers and intense pulsed
light devices (IPLs) for cosmetic purposes.
58
Environmental Scan 2014 Wholesale, Retail & Personal Services
Beauty
Business Processes
Salons are increasingly incorporating software and
information and communication technology (ICT)
in their business processes. This includes the use
of appointment management software and text
messages for appointment confirmation. Salon
workers in the beauty industry subsequently require
sufficient digital literacy skills to effectively engage
with these technologies.
Changes to the VET Market
Since agreeing to a revised National Agreement
for Skills and Workforce Development at the COAG
meeting of 13 April 2012, nearly all states and
territories have embarked on reforms to their
training systems, with some jurisdictions already
well progressed. One of the core elements of
the reform agreement is the ‘National Training
Entitlement’, which guarantees government
subsidised training places to individuals up to
their first Certificate III qualification.
Different jurisdictions have developed their own
mechanisms to determine the level of government
funding for VET qualifications, with most states and
territories implementing capping or subsidy bands
to manage demand. Table 9 indicates the funding
available for beauty qualifications in states and
territories that have progressed with VET reform.
Table 9. Funding of Beauty Qualifications under VET Reform j
Qualification
Jurisdiction
VIC
SA
NT
Certificate II in Retail
Make-Up and Skin Care
$3.00
per hour
ü
Capped,
TGSS
ü
Certificate II in
Nail Technology
$3.00
per hour
ü
Capped,
TGSS
ü
Certificate III in
Beauty Services
$3.00
per hour
ü
Capped,
TGSS
ü
Certificate IV in
Beauty Therapy
$3.00
per hour
ü
Capped
ü
Diploma of Salon
Management
$4.00
per hour
ü
Diploma of
Beauty Therapy
$4.00
per hour
ü
Capped
Vocational Graduate
Certificate in Intense
Pulsed Light and Laser
Hair Reduction
$4.00
per hour
ü
ACT
Draft
inclusion
QLD
ü
WA
NSW
ü
ü
Draft
inclusion
ü
Draft
inclusion
ü
jCorrect as at 16 December 2013. TGSS refers to the Training Guarantee for SACE Students. This means that qualifications listed
as TGSS on the Skills for All Funded Training List will be fully-funded for South Australian students who are 16 years or over and
who are enrolled and working towards completing the South Australian Certificate of Education (or equivalent). Full eligibility
criteria are available at the following website: skills.sa.gov.au/for-training-providers/training-school-students/training-guaranteefor-sace-students. FF denotes ‘fee free’
Wholesale, Retail & Personal Services Environmental Scan 2014
59
Workforce Development Needs
Figure 13, which shows historical and projected employment levels to 2017 for beauty therapists,
indicates a long-term trend of increasing employment, albeit with year-to-year fluctuations.
Figure 13. Beauty Therapist Employment Levels (‘000s)
13.6
2002
14.1
2003
18.9
2004
21.8
2005
19
Year
2006
18
2007
22.6
2008
23.3
2009
24.4
2010
23.6
2011
18.2
2012
21.3
2017
0
5
10
15
20
25
30
Employment Level (‘000)
Source: ABS, 2013, Labour Force Survey, Department of Employment trend data to November 2012 and Department
of Employment projections to 2017.
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Environmental Scan 2014 Wholesale, Retail & Personal Services
Beauty
The occupation of beauty therapist is highly feminised, with 98.2 per cent of employment by women.
Beauty therapists are also more likely to be employed on a part-time basis compared to most occupations,
with 52.2 per cent of 2012 employment being on a part-time basis compared to 29.6 per cent of all
occupations.69 Employees in this industry are also younger than the average working population profile, with
35.1 per cent of workers aged 15–24 compared to 17.7 per cent of all occupations, as shown in Figure 14.70
Figure 14. Age Profile of Beauty Therapists
12.2
15-19
6.9
22.9
20-24
10.8
29.5
25-34
21.9
16.6
35-44
Age
23.4
15.5
45-54
22.2
2.9
55-59
8
0.3
60-64
Beauty Therapists
4.5
All occupations
0
65+
2.3
0
5
10
15
20
25
30
35
Percentage
Source: ABS Labour Force Survey, annual average 2012. Estimates have been rounded.
Wholesale, Retail & Personal Services Environmental Scan 2014
61
Figure 15 shows the highest educational attainment of beauty therapists compared with all occupations.
This figure demonstrates that the predominant qualification to work in this industry is the SIB50110 Diploma
of Beauty Therapy, but also shows the shift of this occupation into more highly skilled areas as demonstrated
by the existence of Bachelor Degree and post-graduate trained beauty therapists. Given the strong industry
requirement for qualifications to be held to work in this industry, it is assumed that those with no post-school
qualifications are individuals in training.
Figure 15. Level of Educational Attainment of Beauty Therapists
Below Year 10
Years 11 and 10
Year
Year 12
Certificate III/IV
Advanced Diploma/Diploma
Bachelor Degree
Beauty Therapists
All occupations
Post Graduate/Graduate Diploma
or Graduate Certificate
0
5
10
15
20
25
30
35
40
45
50
Employment Level (‘000)
Source: ABS, 2011, Census of Population and Housing, (Department of Employment custom request data). The measure of overall
educational attainment is the ABS ‘HEAP’ variable, which regards successful completion of Years 12, 11 or 10 of school as a higher
attainment than a Certificate II coupled with any lower level of schooling.
62
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Wholesale, Retail & Personal Services Environmental Scan 2014
63
Beauty Occupations in Demand
Table 10 identifies the key beauty occupations in demand based on industry feedback and forecasts from
the Department of Employment.
Table 10. Beauty Occupations in Demand
ANZSCO
Code
451111
Occupations
Beauty
Therapist
Training Package
Qualifications
Justification/Evidence
SIB40110
Certificate IV in
Beauty Therapy
The employment of beauty therapists is projected to
grow by 17%, or by 3,100 workers, in the five years from
November 2012.
SIB50110 Diploma
of Beauty Therapy
This growth is driven by an ageing population with high
demand for these services, coupled with advances in
technology and treatments.
451111
Nail Technician
SIB20210
Certificate II in
Nail Technology
Beauty services, including nail treatments, continue to
see increased demand, but industry reports that there are
insufficient numbers of qualified nail technicians to provide
these services with the required safety precautions.
142114
Hair or
Beauty Salon
Manager
SIB50210
Diploma of Salon
Management
This industry, comprised of predominantly small
businesses, is continually professionalising and
requires a greater number of highly skilled managers.
Current Impact of the SIB10
Beauty Training Package
Enrolments k
As Figure 16 shows, enrolments grew across all SIB10 Beauty Training Package qualifications—apart from
the Diploma of Beauty Therapy and the Certificate III in Nail Technology— between 2011 and 2012. While
the Certificate II in Retail Make-up and Skin Care remains the most popular qualification, the increase
in enrolments between 2011 and 2012 was slight compared to the increase between 2010 and 2011.
However, the Certificate III in Beauty Services and Certificate IV in Beauty Services have both grown steadily
over the past five years. Declining enrolments in the Diploma of Beauty Therapy is likely due to changes in
government funding, which incentivises enrolments at the Certificate III level.
kNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity
not in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET
activity’ reporting requirements came into effect in January 2014.
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Environmental Scan 2014 Wholesale, Retail & Personal Services
Beauty
Figure 16. Beauty Qualification Enrolments, 2008–2012
5,000
4
4
8
4,500
4,000
3,500
Enrolments
6
0
3,000
2,500
2,000
1,500
1,000
500
0
2008
2009
2010
2011
2012
Certificate II in Retail Make-up and Skin Care
1,951
2,045
2,285
4,314
4,584
Certificate II in Nail Technology
1,093
1,341
1,157
1,629
1,794
Certificate III in Beauty Services
2,650
3,151
3,610
3,941
4,408
Certificate III in Nail Technology*
81
51
35
26
4
Certificate IV in Beauty Therapy
1,975
2,082
2,206
2,447
3,176
Diploma of Beauty Therapy
1,178
1,812
3,263
3,788
3,560
Diploma of Salon Management
0
0
0
20
216
Vocational Graduate Certificate in Intense
Pulsed Light and Laser Hair Reduction
0
0
0
4
16
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
* Denotes deleted qualification
Wholesale, Retail & Personal Services Environmental Scan 2014
65
Completions
Figure 17. Beauty Qualification Completions, 2007–2011
1,400
24
8
76
1,200
1,000
Completions
5
46
800
600
400
200
0
2007
2008
2009
2010
2011
Certificate II in Retail Make-up and Skin Care
489
614
717
874
1,224
Certificate II in Nail Technology
468
427
470
459
568
Certificate III in Beauty Services
875
998
1,054
1,141
1,276
Certificate III in Nail Technology*
29
39
25
5
3
Certificate IV in Beauty Therapy
608
720
784
795
905
Diploma of Beauty Therapy
458
478
598
781
1,246
Diploma of Salon Management
0
0
0
0
1
Vocational Graduate Certificate in Intense
Pulsed Light and Laser Hair Reduction
0
0
0
0
0
Source: NCVER VOCSTATS (ncver.edu.au/resources/vocstats/intro.html), extracted on 05/09/2013
* Denotes deleted qualification
66
Environmental Scan 2014 Wholesale, Retail & Personal Services
Beauty
Future Directions for the SIB10
Beauty Training Package
A review of the SIB10 Beauty Training Package commenced in 2012, and in addition to transitioning to
the NSSC Standards for Training Packages, is seeking to respond to areas of change in the industry.
Subsequently, units of competency have been drafted to provide skills and knowledge for treatments
delivered by the industry that are not yet covered within the training package, including eyelash
enhancements, facial threading and infection control. Additionally, units of competency are have been
drafted to address the advanced treatments increasingly provided by the industry, covering skills and
knowledge for advanced consultation, treatments for complex skin needs and IPL use for hair reduction
and skin rejuvenation. It is anticipated that the SIB Beauty Training Package will be submitted late 2014.
Wholesale, Retail & Personal Services Environmental Scan 2014
67
Funeral
Services
2,772
FUNERAL WORKERS ON AVERAGE IN YEAR TO MAY 2013
Employment of funeral workers is projected to
grow by 84.6%
over the next five years
FUNERAL industry EMPLOYMENT overall is expected to
grow by 16.4%
in the next five years
68
Environmental Scan 2014 Wholesale, Retail & Personal Services
Funeral Services
Latest Intelligence
Changing Industry Structure
Changing Business Models and Processes
Industry reports that there has been a gradual shift
away from the norm of small, often family-owned,
businesses dominating the market, to ownership
by a large corporation or larger franchise chains.
This has been particularly driven by the corporation,
InvoCare, which now accounts for as much as 35
per cent of the industry’s revenue.71 The effect of
greater industry consolidation is an increased use
of centralised staffing resources, which will
decrease the demand for clerical or business
support roles (such as human resources, finance,
sales and administration roles). There are also
reports of more shop-front only operations that
make arrangements for shared facilities of
mortuaries with other operators, which would
decrease the need for embalmers.
Industry describes both an increase in the
complexity of service provision, as well as
greater demand for ‘basic’ or ‘low cost’ funerals.
This is demonstrated by the differing five year
forecasts when looking at total funeral services
industry employment compared to the employment
of funeral services workers (funeral directors,
embalmers, funeral director’s assistants, chapel
attendants). The employment of funeral services
workers is expected to grow by 1,200 workers in the
next five years; yet total industry employment is only
expected to grow by 800 workers, implying a loss
of 400 workers outside the occupations of funeral
directors, embalmers, funeral director’s assistants
and chapel attendants.
However, given the unpredictable nature of the
demand for funeral services, the centralised use
of staff can assist in stemming the need to rely
on casual workers to assist in peak periods. This
has the benefit of providing more stable work, and
therefore, can assist in the retention of workers.
Funeral directors report that funeral homes are
providing a greater breadth of services, such
as audiovisual or multimedia for the ceremony
(such as videos, PowerPoint presentations, live
webcasting for international guests and digital
condolence books), catering, as well as the
coordination of logistics, such as the provision of
lowering devices, chairs and canopies. Employers
believe that customer service expectations are
continually increasing, fuelling the increase in
service provision options. These trends are
driving demand for additional funeral director’s
assistants, but also changing the nature of the
skills required, such as skills to operate audiovisual
(AV) equipment and more advanced coordination
and customer service skills. In fact, an industry
representative has likened the skill base required
to ‘event management’. Customer service skills in
the funeral services industry are also unique in the
way that it incorporates the ability to interact with
those who are bereaved. IBISWorld reports that
some funeral homes are now employing part-time or
contracted qualified counsellors to offer professional
bereavement counselling services.72
The industry’s business processes and customer
service models are also being influenced by
technology. It is increasingly common for funeral
homes to maintain a website, utilise digitised
inventory systems, and for tablet devices to be
used in the sales process. Some key business
processes, such as submitting Death Registration
Wholesale, Retail & Personal Services Environmental Scan 2014
69
Statements, have also been moved online. As a
result, digital literacy skills are increasingly required
in the funeral services industry. This includes data
entry ability, file management, knowledge of IT
terminology, and understanding how to report or
troubleshoot basic technical problems.
While business services and processes are
becoming more advanced, economic conditions
over the past few years have been subdued, which
has led to greater price sensitivity from some
consumers. This has resulted in some businesses
reporting a decrease in the provision of more
complex services – ‘low cost’ funerals. This could
be a pattern associated with the location of the
business, with areas in Australia that are
undergoing greater economic stress exhibiting
these trends to a greater extent.
Prepaid funerals are increasingly becoming a central
tenet of the funeral services business model.
Industry feedback has indicated that this role is
often undertaken by consultants on a commission
basis. As such, the sales workforce is being drawn
upon, rather than up skilling the existing funeral
services workforce. This trend has the additional
impact of making the industry more sensitive to
interest rate movements and the potential for
increasing regulation to be applied to the industry.
Key Demand Determinants
The number of deaths per year is a key indicator of
the demand for the services of this industry. The
number of deaths has remained relatively stable
over the long term due to competing forces at play.
Since 2002, the number of deaths registered has
increased by around 0.9 per cent annually, with
year-to-year fluctuations.73
A force that could lead to an increase in the number
of deaths is the ageing Australian population. In
2012, 14 per cent of the population was aged 65
and over and it is expected that this will increase
to 20 per cent by 2040.74 According to the ABS,
the ageing population will cause a rapid increase
in the death rate between 2022 and the early
70
Environmental Scan 2014 Wholesale, Retail & Personal Services
2040s, in which the number of deaths in 2061 will
be double that in 2011–12.75 Up until this time, the
countervailing force of increases to life expectancy
through advances in medical treatments and
healthier lifestyles will contain the death rate
to a more stable figure.
Cultural Shifts
Given that funerals are highly influenced by cultures
and religions, societal trends in religious adherence
have a significant effect on the industry. Major
changes include the increase in non-Christian
religions, which is driven by migration patterns,
alongside the increasing number that are not
adhering to any religion.
According to the 2011 Census, Australia’s
overseas-born population is predominantly from
the United Kingdom, followed by New Zealand,
China, India, Italy and Vietnam.76 However, between
2001 and 2011, the proportion of the overseasborn population originating from Europe has
declined from 52 per cent to 40 per cent, while
the proportion born in Asia increased from 24 per
cent to 33 per cent.77 This has driven an increasing
diversity of religions, with the number of people
reporting a non-Christian faith increasing from 4.9
per cent of the population to 7.2 per cent between
2001 and 2011.78 The fastest growing non-Christian
religions have been Hinduism, followed by Islam and
Buddhism.79 However, there has also been a societal
shift away from ascribing to any religion, with the
number of people reporting ‘no religion’ increasing
substantially in just a few years—moving from 15
per cent of the population in 2006 to 22 per cent
in 2011.80
The ever-increasing multicultural and religious
composition of the Australian population has led
to industry calling for several years for the need
for funeral directors to develop greater cultural
awareness. The increasing religious diversity also
broadens the type of burials to be undertaken by
gravediggers, but has also increased the prevalence
of cremations, as it is consistent with traditional
Funeral Services
practices in some cultures and popular with those
not ascribing to any religion. This reduces the
demand for gravediggers and, while cremations
can be as elaborate as burial services, they tend
to be simpler events, subsequently requiring less
staff. The trend of increasing secularism has also
increased the popularity of secular funeral events.
These events are more variable than services
based on long-standing traditions and tend to focus
on personalisation. As a result, this extends even
further the need for a greater breadth of knowledge
for funeral directors.
Demographics
Australia also has high levels of inter-state migration.
There was an average of 366,300 interstate moves
per year over the 10 years to June 2010.81 This high
level of mobility means that families are more likely
to be dispersed across the country or not have an
attachment to a specific location. Industry reports
that this is also driving the increased preference for
cremations as ashes can be kept and transported, or
scattered in a location that has sentimental value. This
trend has also increased the numbers of deceased
persons needing to be transported by air. Given the
legislated requirement in Australia for any deceased
person to be embalmed when transported by air, this
has increased the demand for embalming services.
Sustainability
Growing community acknowledgement of a myriad
of environmental issues is driving consumer habits
and preferences, resulting in increased demand for
businesses demonstrating environmental credentials.
Since a significant aspect of the funeral services
industry is affected by the availability—and the
impact upon— land, sustainability is a key macroenvironmental factor for the industry. The availability
of suitable burial sites is an issue that some states
are addressing by making changes to legislation that
encourage the more intensive use of burial sites. This
includes the ‘lift and deepen’ method for family graves,
renewable tenure contracts and cemetery renewal.
An environmentally friendly funeral option is also an
emerging trend for the industry. This includes ‘biocremation’ processes, such as ‘resomation’, which
uses alkaline hydrolysis to speed up the natural
decaying process from many months to three hours.
There is also growing demand for natural burials
that utilise bio-degradable materials. For example,
bodies are wrapped in a shroud or placed in solid
pine, cardboard or wicker coffins. The graves are
often situated in natural settings that require
less energy to maintain and are not marked
with a headstone.
In order to further drive sustainable practices across
the industry, the SIF Funeral Services Training
Package has embedded sustainability skills in the
relevant units across all qualification levels. Specific
references to these skills within units include:
• adherence to the Environmental Protection Act
• hygiene and waste management and disposal
• water tables and water quality protection
• non-compacted soil
• clearing a work area
• disposing or recycling of materials according to
an environmental project management plan.
Legislation and Regulation
The health implications and the sensitive nature
of funerals means that there is significant, and
continuing, regulation and legislation that is
applicable to the industry. Most recently this has
been in relation to consumer transparency in
New South Wales and Victoria, with the notable
introduction of itemised price lists in Victoria.
Legislation also applies in the area of public health,
with disposable gloves and other protective gear
required, protecting against the spread of infectious
diseases. Given these health risks to employees, work
health and safety knowledge is crucial for the industry.
Stakeholders have also said that the growing incidence
of obesity has been something that the industry has
had to manage, with funeral home staff needing to
manually handle the bodies at the time of collection
and throughout the funeral service.82
Wholesale, Retail & Personal Services Environmental Scan 2014
71
Changes to the VET Market
Since agreeing to a revised National Agreement
for Skills and Workforce Development at the COAG
meeting of 13 April 2012, nearly all states and
territories have embarked on reforms to their
training systems, with some jurisdictions already
well progressed. One of the core elements of
the reform agreement is the ‘National Training
Entitlement’, which guarantees government
subsidised training places to individuals up to their
first Certificate III qualification.
Different jurisdictions have developed their own
mechanisms to determine the level of government
funding for VET qualifications, with most states
and territories implementing capping or subsidy
bands to manage demand. Table 11 indicates the
funding available for funeral industry qualifications
in states and territories that have progressed with
VET reform. It is notable that there is an absence for
these qualifications in many states and territories’
skills lists or equivalent.
Table 11. Funding of Funeral Industry Qualifications under VET Reform Programs l
Qualification
Jurisdiction
VIC
Certificate I in
Funeral Services
$6.50
per hour
Certificate II in
Funeral Operations
$6.50
per hour
Certificate III in Cemetery
and Crematorium
Operations
$7.00
per hour
Certificate III in
Funeral Operations
$7.00
per hour
Certificate III in
Gravedigging, Grounds
and Maintenance
$7.00
per hour
Certificate IV
in Embalming
$7.00
per hour
Certificate IV in
Funeral Services
$7.00
per hour
Diploma of Funeral
Services Management
$4.00
per hour
l
72
SA
NT
ACT
QLD
WA
NSW
ü
ü
ü
ü
ü
ü
Correct as at 16 December
Environmental Scan 2014 Wholesale, Retail & Personal Services
Funeral Services
Workforce Development Needs
Industry feedback indicates that smaller funeral
directing businesses are increasingly relying on a
mix of casual and part-time staff to support the
inherently unpredictable variation in daily demand.
This is also to support the degree of seasonality in
the demand for funeral services, in which a higher
number of deaths usually occur in the colder winter
months. However, larger funeral organisations are
able to utilise their economies of scale by shifting
staff across establishments where required, or draw
upon centralised functions, such as for embalming
or clerical roles.
Industry also reports that the workforce of the
funerals services industry is ageing significantly.
This is evident in the age profile in Figure 18, which
indicates the disproportionate number of workers
between the ages of 45 to 54. Furthermore, there
are no workers from the 15 to 24 age group.
The effects of an older age profile are also evident
in the gross replacement rate for the industry,
which measures the percentage of the workforce
lost annually.
Figure 18. Age Profile of Funeral Workers, 2012
15-19
20-24
25-34
Age
35-44
45-54
55-59
60-64
Funeral Workers
All occupations
65+
0
5
10
15
20
25
30
35
Percentage
Source: ABS, 2012, Labour Force Survey, Annual Average.
Wholesale, Retail & Personal Services Environmental Scan 2014
73
Funeral Services Occupations
in Demand
Table 12 identifies the key funeral services industry occupations in demand based on industry feedback
and forecasts from the Department of Employment.
Table 12. Funeral Services Occupations in Demand
ANZSCO
Code
451399
Funeral
Workers
Occupations
Funeral
Director
Embalmer
Funeral
Director’s
Assistant
Training Package
Qualifications
Justification/Evidence
SIF40113
Certificate IV in
Funeral Services
The Department of Employment forecasts strong growth
in employment for funeral workers, increasing by 84.6 per
cent over the next 5 years, or 1,200 workers.
SIF40213 Certificate
IV in Embalming
Industry on the whole, however, disputes these numbers.
They note that the ageing population will not substantially
affect the number of deaths until at least 2028.
Chapel or
Memorial
Attendant
The industry is also not currently experiencing any
recruitment difficulty for these occupations.
Current Impact of the SIF Funeral
Services Training Package
Enrolments m
Table 13 indicates the enrolments recorded in publicly funded qualifications for the funeral services industry
nationally. Data is not yet available for the new qualification, the SIF10113 Certificate I in Funeral Services,
and there have been no enrolments in the SIF20113 Certificate II in Funeral Operations and the SIF50113
Diploma of Funeral Services Management, or their predecessors. It should also be noted that there are only
small numbers of registered training organisations approved to deliver funeral services qualifications.
mNote on enrolment and completion data: NCVER’s VET provider collection provides information on publicly funded training
programs delivered by government funded and privately operated training providers and therefore excludes any training activity not
in the receipt of government funds. However, this excluded data will be available in coming years as mandatory ‘total VET activity’
reporting requirements came into effect in January 2013.
74
Environmental Scan 2014 Wholesale, Retail & Personal Services
Funeral Services
Table 13. Funeral Services Qualification Enrolments, 2008–12
Qualification*
2008
2009
2010
2011
2012
Certificate III in Funeral Operations
3
0
0
3
0
Certificate III in Cemetery and
Crematorium Operations
0
0
0
0
16
Certificate III in Gravedigging,
Grounds and Maintenance
0
0
0
12
13
Certificate IV in Funeral Services
1
19
0
2
7
Certificate IV in Embalming
0
0
0
7
10
* Qualifications not listed have not recorded any enrolments
Future Directions for the SIF
Funeral Services Training Package
Given the recent 2013 endorsement of the SIF Funeral Services Training Package under the NSSC
Standards for Training Packages, there are currently no plans for a review in the short term. Service
Skills Australia will continue to liaise with the funeral services industry to ensure that the training
package remains responsive to their needs.
Wholesale, Retail & Personal Services Environmental Scan 2014
75
Appendices
Report on Previous Continuous
Improvement Activity
76
Environmental Scan 2014 Wholesale, Retail & Personal Services
Appendices
Appendix A: Report on Previous Continuous Improvement Activity
Note that no continuous improvement activities were undertaken for the SFL10 Floristry Training Package
or SIB10 Beauty Training Package in 2013.
SIF FUNERAL SERVICES TRAINING PACKAGE
Brief summary of change
Industry Imperatives/Rationale for Change
Version 2.0
The SIF40213 Certificate IV in Embalming
and eleven units of competency and
associated assessment requirements were
made compliant with the NSSC Standards for
Training Packages.
Additional changes included:
• new coding applied to the qualification in
accordance with NSSC coding policy.
• removal of two existing units of
competency:
−− SIFMWK002A Maintain linen supplies
−− SIFMWK016A Treat tissue gas.
The qualification, SIF40213 Certificate IV in
Embalming, now meets the NSSC Standards
for Training Packages.
Date submitted
to office of the
NSSC:
28 August 2013
Date endorsed
by Nssc or Isc
upgrade:
9 October 2013
Date made
public through
National
Register:
10 October
2013
• Development of five new units of
competency:
−− SIFEMWK009 Apply anatomy and
physiology principles to embalming
−− SIFEMWK014 Perform arterial
embalming of natural cases
−− SIFEMWK015 Perform arterial
embalming of autopsied cases
−− SIFEMWK016 Treat complex ante
mortem cases
−− SIFEMWK017 Treat complex
post mortem cases.
The SIF Funeral Services Training Package
Companion Volume Implementation
Guide was updated to incorporate this
qualification and its associated units
and assessment requirements.
Wholesale, Retail & Personal Services Environmental Scan 2014
77
SIF FUNERAL SERVICES TRAINING PACKAGE
Brief summary of change
Industry Imperatives/Rationale for Change
Version 1.1
This ISC upgrade undertook
editorial corrections.
Brief summary of change
The qualification, SIF40213 Certificate IV in
Embalming, now meets the NSSC Standards
for Training Packages.
Industry Imperatives/Rationale for Change
Version 1.0
The SIF Funeral Services Training Package
was updated to be compliant with the NSSC
Standards for Training Packages.
Importantly, the changes made to this
Training Package ensure that it meets the
NSSC Standards for Training Packages.
The following changes were made to the
Training Package’s seven qualifications:
The SIF10113 Certificate I in Funeral
Services was developed in order to create
an introductory pathway into the funeral
services industry.
• addition of the SIF10113 Certificate I in
Funeral Services
• updated and re-titled SIF50108 Diploma
of Mortuary Management to the
SIF50113 Diploma of Funeral
Services Management
• removed specialisations from the
packaging rules for all qualifications
• revised all qualifications to reflect the
NSSC Standards for Training Packages
• new coding applied to all qualifications
in accordance with NSSC coding policy.
Two skill sets were added:
• SIFSS00003 Induction to the Funeral
Services Industry
• SIFSS00005 Safe Exhumation
of Burial Sites.
Two new units were developed:
• SIFXIND001 Plan a career in the
funeral services industry
• SIFXMGT004 Support people dealing
with grief and trauma.
Two units were removed:
Specialisations were removed from all
qualifications to increase flexibility and provide
access to other sectors of the industry.
The re-titling of SIF50113 Diploma of Funeral
Services Management reflects the industry’s
need for a higher-level qualification across all
funeral services sectors, not just mortuaries.
The addition of the two new skill sets have
been introduced to provide a structured
induction to new employees, and for existing
cemetery and crematoria workers and funeral
directors to become multi-skilled in the
specialist technical skills required for the
safe exhumation of burial sites.
All units of competency were reviewed to
be more specific to industry requirements,
including improving references to sustainability
principles, cultural awareness and new work
health and safety requirements.
The reduction of specified imported
units allows for more elective units to
be imported from other Training Packages
and accredited courses.
• SIFCCS002A Prepare and present
finger food
• SIFMWK002A Maintain linen supplies.
78
Environmental Scan 2014 Wholesale, Retail & Personal Services
ISC UPGRADE
Date endorsed
by Nssc or Isc
upgrade:
2 July 2013
Date made
public through
National
Register:
2 July 2013
Date submitted
to office of the
NSSC:
1 May 2013
Date endorsed
by Nssc or Isc
upgrade:
17 June 2013
Date made
public through
National
Register:
21 June 2013
Appendices
SIF FUNERAL SERVICES TRAINING PACKAGE
Version 1.0 Continued
All existing units of competency were
updated and associated assessment
requirements were developed. Amendments
included:
• new coding applied to all units of
competency, which distinguishes between
cross-sector and sector-specific units
• reduced number of specified
imported units.
The SIF Funeral Services Training Package
Companion Volume Implementation Guide
was also developed and is available on the
SSA website.
SIR07 RETAIL SERVICES TRAINING PACKAGE
Brief summary of change
Industry Imperatives/Rationale for Change
Version 3.3
Four community pharmacy skill sets were
added to the training package:
• SIRSS00008 Dispensary
• SIRSS00009 Human
Resources Management
• SIRSS00010 Quality
• SIRSS00011 Stock Control
ISC UPGRADE
These skill sets were developed to
address skill gaps in the community
pharmacy industry.
Date endorsed
by Nssc or Isc
upgrade:
13 September
2013
Date made
public through
National
Register:
14 September
2013
Version 3.2
ISC UPGRADE
The following changes were made in this
ISC upgrade:
Date endorsed
by Nssc or Isc
upgrade:
21 January
2013
• editorial updates
• updated Retail Services Qualification
Pathway diagram
• addition of BSBLED401A Develop teams
and individuals to the elective units in the
SIR50112 Diploma of Retail Management
• addition of SIRCDIS301 Accept
prescriptions and return dispensed
medicines to customers to the elective
units in the SIR40112 Certificate IV in
Community Pharmacy
Date made
public through
National
Register:
21 January
2013
• amended range statement for
SIRCPPK205 Assist customers seeking
to relieve cough and cold symptoms.
Wholesale, Retail & Personal Services Environmental Scan 2014
79
SIH11 HAIRDRESSING TRAINING PACKAGE
Brief summary of change
Industry Imperatives/Rationale for Change
Version 2.0
The SIH11 Hairdressing Training Package
Version 2 contains the following changes:
• qualification code and title of the
SIH80113 Graduate Certificate in
Hairdressing Creative Leadership was
updated to reflect the revised AQF
To be compliant with the Australian
Qualifications Framework Second Edition
January 2013.
• updated codes, removed version
identifiers and added competency fields
for the following:
−− SIHHTLS804 Provide creative
leadership to the hairdressing industry
−− SIHHTLS805 Conceive, develop
and realise innovative hairdressing
concepts for media
−− SIHHTLS806 Conceive, develop
and realise innovative hairdressing
concepts for events
−− SIHHTLS807 Plan and deliver
professional hairdressing presentations
−− SIHHTLS808 Originate and refine hair
design concepts
−− SIHHTLS809 Establish, negotiate and
refine hair design concepts for briefs
• updated mandatory text and
mapping information
• editorial updates.
80
Environmental Scan 2014 Wholesale, Retail & Personal Services
Date submitted
to office of the
NSSC:
4 July 2013
Date endorsed
by Nssc or Isc
upgrade:
15 August 2013
Date made
public through
National
Register:
19 August 2013
References
1Lowe P. Deputy Governor of the Reserve Bank of
Australia, 5 December 2012, ‘What is Normal?’
address delivered to the Australian Business
Economists Annual Dinner, Sydney, rba.gov.au/
speeches/2012/sp-dg-051212.html
2Ibid.
3Deloitte, 28 February 2012, ‘Consumer spending
patterns and retail implications’, Deloitte Access
Economics Weekly Economic Briefing, deloitte.
com/view/en_AU/au/industries/consumerbusine
ssandtransport/21374d79832c5310VgnVCM30
00001c56f00aRCRD.htm
4Lowe P., 22 September 2011, ‘Changing Patterns
in Household Saving and Spending’, presentation
at Australian Economic Forum 2011, rba.gov.au/
speeches/2011/sp-ag-220911.html
5National Australia Bank, May 2013, NAB
Online Retail Sales Index Monthly Update –
May 2013, business.nab.com.au/wp-content/
uploads/2013/07/norsi-05-2013.pdf
6Australian Bureau of Statistics (ABS), 2013,
Summary of IT Use and Innovation in Australian
Business, 2011–12, Cat. no. 8166.0.
7Smith M., 12 August 2013, ‘Retail needs an
“intervention” to survive online attack, says
Deloitte’, BRW., brw.com.au/p/business/
mid-market/retail_needs_an_intervention_to_
tztgC0jhjykc2Q8VihenxL
10Google, 2013, Our Mobile Planet: Australia –
Understanding the Mobile Consumer, services.
google.com/fh/files/misc/omp-2013-au-en.pdf
11Ibid.
12Ibid.
13Ibid.
14IBM, 2011, Capitalising on the Smarter Consumer,
ibm.com/services/au/gbs/pdf/capitalisingsmarter_consumer_aus_study_final.pdf
15Commonwealth of Australia, 2012, Australia
in the Asian Century White Paper, p. 1–3.
16Colliers International, 2013, International
Retailers Australia is Hot Property, colliers.
com.au/~/media/Files/Corporate/Research/
Speciality%20Reports%20and%20Property%20
White%20Papers/International%20Retailers%20
Australia%20is%20Hot%20Property%20
White%20Paper%20-%20Summer%202013.ashx
17Productivity Commission, 2011, Economic
Structure and Performance of the Australian
Retail Industry, p. 141–42.
18Lowe, P., 7 March 2012, ‘The Changing Structure
of the Australian Economy and Monetary Policy’,
address delivered to the Australian Industry
Group 12th Annual Economic Forum.
8Ibid.
19P wC and Frost & Sullivan, 2012, Australian
Online Shopping Market and Digital Insights:
An Executive Overview, p. 3.
9Access Economics, 2010, Household
E-Commerce Activity and Trends in Australia,
prepared for the Department of Broadband,
Communications and the Digital Economy, p. 19.
20Kruger C., 17 August 2012, ‘Old retail will rule
the web: Myer boss’, The Sydney Morning Herald,
smh.com.au/business/old-retail-will-rule-the-webmyer-boss-20120817-24det.html
Wholesale, Retail & Personal Services Environmental Scan 2014
81
21Kruger C., 22 March 2012, ‘Widespread price
cuts as David Jones races to catch up’, The
Sydney Morning Herald, smh.com.au/executivestyle/style/widespread-price-cuts-as-david-jonesraces-to-catch-up-20120322-1vlop.html
22Kruger C., 12 January 203, ‘If the price is right…
retail war just starting’, The Sydney Morning Herald,
smh.com.au/business/if-the-price-is-right8230retail-war-just-starting-20130111-2cllm.html
23State of Victoria, 2012, Refocusing
Vocational Training in Victoria, education.
vic.gov.au/Documents/about/department/
refocusingvetstatement.pdf
24Australian Centre for Retail Studies, 2011,
The War for Talent.
25Green R., 2009, Management Matters in Australia:
Just how productive are we? Findings from the
Australian Management Practices and Productivity
global benchmarking project, Report commissioned
by the Australian Government, Department of
Innovation, Industry, Science and Research.
26Standing Council on Tertiary Education, Skills
and Employment (SCOTESE), 2012, National
Foundation Skills Strategy for Adults, p. 7.
27ABS, 2013, Programme for the International
Assessment of Adult Competencies, Australia,
2011–12, Cat. no. 4228.0.
28Productivity Commission, 2011, Economic
Structure and Performance of the Australian
Retail Industry.
29Lamb, S., Long, M., Robinson, L., Doecke, E.,
Lai, A., 2013, Destinations Survey for the Services
Industries: Overview, report prepared for Service
Skills Australia, p. iv, education.unimelb.edu.
au/__data/assets/pdf_file/0009/860805/
Destinations_Overview.pdf
30Ibid., p. v
31Ibid., p. vi
32Ibid., p. iv
82
Environmental Scan 2014 Wholesale, Retail & Personal Services
33Productivity Commission, 2011, Economic
Structure and Performance of the Australian
Retail Industry, Draft Report, Canberra.
34Lohan, R., 2011, IBISWorld Industry Report
F4732: Furniture Wholesaling in Australia.
35ABS, 2011, Summary of IT Use and Innovation in
Australian Business, 2009-10, Cat. no. 8166.0.
36Ibid.
37SkillsInfo, 2012, DEEWR Special Order based
on ABS Labour Force, Australia, Cat. no.
6291.0.55.003 (2011 Four Quarter Average)
38ABS, 2011, Forms of Employment, Nov 2011,
Cat. no. 6359.0. N.B. This statistic excludes
owner managers.
39Ibid.
40ABS, 2012, Labour Mobility, Australia, February
2012, Cat. no. 6209.0, p. 15.
41ABS, 2008, Population Projections, Australia,
2006 to 2101, Cat. no. 3222.0.
42ABS, 2012, Australian Demographic Statistics,
Jun 2012, Cat. no. 3101.0.
43AIHW, 2012, ‘Australia’s Health 2012’,
Australia’s Health, No. 12, Cat. no. AUS 122,
Canberra: AIWH, p. 83.
44Ibid.
45The Pharmacy Guild of Australia, 2010,
The Roadmap: The Strategic Direction for
Community Pharmacy, Canberra, p. 11.
46Australian Institute of Health and Welfare (AIHW),
2012, ‘Australia’s Health 2012’, Australia’s
Health, No. 12, Cat. no. AUS 122, Canberra:
AIWH, p. 8.
47The Pharmacy Guild of Australia, 2010, The
Roadmap: The Strategic Direction for Community
Pharmacy, Canberra, p. 12.
References
48AIHW, 2012, ‘Australia’s Health 2012’,
Australia’s Health, No. 12, Cat. No. AUS 122,
Canberra: AIWH, p. 67.
49Hawker Britton, 2009, Report on Preventative
Health Taskforce: National Preventative Health
Strategy, hawkerbritton.com/hawker-brittonmedia/federal-act/preventative-health-taskforcereport-national-preventative-health-strategy.html
50ABS, 2012, Year Book Australia, 2012, Cat. no.
1301.0.
51Access Economics, 2010, Household
E-Commerce Activity and Trends in Australia,
prepared for the Department of Broadband,
Communications and the Digital Economy, p. 19.
57ABS, 2011, Population Projections, Australia,
2006 to 2101, Series B, Cat. no. 3222.0.
58Job Outlook, 2012, ‘Pharmacy Sales Assistants:
Statistics’ (based on ABS Labour Force Survey,
DEEWR trend data to November 2010).
59Rowley S., 2012, IBISWorld Industry Report
G4274: Flower Retailing in Australia, p. 4.
60Ibid., p. 9.
61Ibid., p. 12.
62Department of Employment, 2012, Labour
Market Research – Hairdresser, employment.gov.
au/occupational-skill-shortages-information
52Richardson, A., Pharmacies in Australia,
IBISWorld Industry Report G525a, p. 9.
63ABS, 2013, Counts of Australian Businesses,
including Entries and Exits, Jun 2008 to Jun
2012, Cat. no. 8165.0.
53Deloitte Access Economics, 2011, Economic
Analysis of Exclusive Distribution of PBS
Medicines, prepared for the National
Pharmaceutical Services Association,
nomonopolyonmedicine.com.au/downloads/DAENPSA_Revised_Final_Report_June_2011.pdf
64Redrup, Y., 12 August, 2013, ‘Fair Work
crackdown on hair and beauty industry highlights
hair-raising level of non-compliance, Smart
Company, smartcompany.com.au/legal/056961fwo-hair-and-beauty-audit-campaign-reveals-highnon-compliance-levels.html
54The Quality Care Pharmacy Program (QCPP) is a
quality assurance program aimed at raising the
standards of service that pharmacies provide to
the public. The program is based on business
and professional standards developed by the
Pharmacy Guild and other industry stakeholders.
For more information, please refer to qcpp.com/
about-qcpp/what-is-qcpp-
65Lamb, S., Long, M., Robinson, L., Doecke,
E., Lai, A., 2013, Destinations Survey for the
Services Industries: Overview, report prepared for
Service Skills Australia, p. 9, education.unimelb.
edu.au/__data/assets/pdf_file/0009/860805/
Destinations_Overview.pdf
55Big Box’ retail businesses typically operate
in large, free-standing, structures, several
times larger than traditional retail spaces.
Examples of ‘big box’ pharmacies include
Chemist’s Warehouse.
67Hair & Beauty Australia, unpublished, Feedback
on 2014 WRAPS Environmental Scan.
56IBISWorld, 14 September 2011, ‘The pharmacy
industry: Healthy and wealthy’ Smart Company,
smartcompany.com.au/health-andpharmaceuticals/healthy-and-wealthy.html
66Ibid., p. 9
68Brennan, A., 2013, IBISWorld Industry Report
S9511: Hairdressing and Beauty Services in
Australia, April 2013, p. 9.
69Job Outlook, 2012, ‘Beauty Therapists:
Statistics’(based on ABS Labour Force Survey,
DEEWR trend data to November 2012).
Wholesale, Retail & Personal Services Environmental Scan 2014
83
70Ibid.
77Ibid.
71Brennan, A., 2013, IBISWorld Industry Report
S9511: Hairdressing and Beauty Services in
Australia, April 2013, p. 5.
78Ibid.
72Ibid., p. 19
73ABS, 2012, Deaths, Australia, 2012, Cat. no.
3302.0.
74ABS, 2013, Australian Demographic Statistics,
Jun 2013, Cat. no. 3101.0; ABS, 2013,
Population Projections Australia, 2012 (base) to
2101, Cat. no 3222.0.
75ABS, 2013, Population Projections Australia,
2012 (base) to 2101, Cat. no 3222.0.
76ABS, 2012, Reflecting a Nation: Stories from the
2011 Census, Cat. no. 2071.0.
84
Environmental Scan 2014 Wholesale, Retail & Personal Services
79Ibid.
80Ibid.
81ABS, 2013, Migration, Australia, 2011–12, Cat.
no. 3412.0.
82Australian Safety and Compensation Council,
2009, The Bariatric Journey Australia: Funeral
Case Study, safeworkaustralia.gov.au/sites/
SWA/about/Publications/Documents/318heBa
riatricJourneyAustraliaFuneralCaseStudy_2009_
PDF.pdf
Wholesale, Retail & Personal Services Environmental Scan 2014
85
www.serviceskills.com.au