Small Business Skills Plan December 2013 1 SKILLS TASMANIA SMALL BUSINESS SKILLS PLAN Introduction Small business is critical to the Tasmanian economy and its importance is recognised in the Economic Development Plan1 and the related Small Business and Skills strategies. The Economic Development Plan has a key goal of supporting and growing business in Tasmania which includes making sure that businesses have the skills and information to be entrepreneurial and take advantage of market opportunities. The Small Business Skills Plan is designed to provide information about how the training system supports the needs of small business. This Plan will support small businesses to integrate business planning and skill development to assist them to operate successfully and grow their businesses. Skills Tasmania and the Department of Economic Development, Tourism and the Arts have worked together to develop the Small Business Skills Plan to ensure that information regarding skills development is easily accessible and that support provided to small business by each agency is complementary. Industry and small business have contributed to the formulation of this plan. Small business in Tasmania There are 36,000 small businesses2 in Tasmania which constitute 95% of all businesses and collectively employ approximately 106,000 people (46% of the workforce). Around 42% of registered small businesses employ staff whilst the remainder are non-employing micro businesses3 with the owners operating the business. Agriculture, forestry, fishing, construction and services account for almost 60% of small businesses in the state. Small businesses play a key role in maintaining self-reliant and cohesive communities, especially in regional areas, and also play a vital part in skills development. What support does the small business sector need? The small business sector is diverse and the support and workforce development needs of small businesses vary according to a range of factors. 1 Department of Economic Development, Tourism and the Arts, 2011, Economic Development Plan A small business employs less than 20 people, is independently owned and operated, and close control over operations and decisions is held by the owners 3 Department of Economic Development, Tourism and the Arts, 2011, Small Business Strategy 2 2 These include the industry sector, location, whether the business is a micro or small business, the stage of business development, complexity and strategic direction of business. In the development of the Small Business Strategy4 the Tasmanian Government conducted research into the key barriers to business growth. The major challenges identified include: costs of doing business compliance with government regulations a fair and competitive business environment management and business skills of small business operators access to skilled, quality staff access to finance and capital. The Small Business Skills Plan focuses on management and business skills and strategies needed to ensure skilled quality staff. The Tasmanian Government’s research and consultation with small business identified a genuine concern by small business operators that they do not possess the necessary business management skills to help their business grow. Many are highly skilled in the trade or profession that is their core business product or service but feel they do not have the management skills important in operating a business. Broader research indicates that the potential for business growth in small businesses tends to outstrip management capacity. Insufficient managerial capacity has the effect of limiting and contracting growth and is a major factor in business failure. Research undertaken by Innovation and Business Skills Australia (IBSA)5 has found that small and micro businesses are significantly different and that products and information need to be targeted to each sector at key times in the life cycle of a business. Most commonly small business issues relate to sales, customer service, health and safety, communication skills, marketing and promotion. Micro business has identified networking, sales, computer/IT skills, self-management skills, financial management and business planning as the major issues. 4 5 Department of Economic Development, Tourism and the Arts, 2011, Small Business Strategy Innovation and Business Skills Australia, 2007, Fresh thinking about Management Skills for Small and Micro Businesses. 3 The IBSA Environmental scan 20126 has identified as a major challenge the need for small business to understand how to plan and invest in workforce development. Why is Workforce planning and development important? Skills Tasmania works with industry to develop Workforce Plans that articulate workforce development needs for an industry. These are used to identify priority areas for the funding of training. The targeting of training to meet the State’s skills needs is critical to ensure the economic development of the State and to support growth of the small business sector. Whilst the term workforce planning is used in the wider business sector to encompass all facets of staffing such as recruitment, succession planning, retention strategies and training, small businesses may be more familiar with the terminology of human resource management and skills needs. Workforce planning for individual small businesses supports business growth and productivity as it identifies what knowledge, skills and experience are required and the size and type of workforce needed, based on an organisation’s business goals. Workforce development outlines the activities necessary, such as training or recruitment strategies, to ensure the business meets the skills needs it has identified. The government is committed to skilling small business for growth (Small Business Strategy) by contributing to funding identified training requirements. Skills Tasmania’s Small Business Engagement Policy7 described workforce planning at the small and micro business level as: succession planning and personal skill development for micro businesses and sole traders; incorporation of workforce considerations in strategic business planning for expansion and growth; and consideration of skills development of managers and staff, outsourcing of functions, recruitment to meet identified needs and retention strategies to keep key skills in the businesses. If this process is undertaken effectively small businesses will have the potential to acquire skills to enable them to grow and operate efficiently and the State’s funding for training this sector will be utilised for maximum benefit. 6 7 Innovation and Business Skills Australia, 2012, Environmental Scan – 2012 Skills Tasmania, 2012, Small Business Engagement Policy 4 THE LIFE CYCLE OF SMALL BUSINESS – CURRENT SERVICES AND SUPPORT Small business skills needs may vary according to industry and size with microbusiness having markedly different needs to businesses with several employees. The complexity of information and the amount of assistance required will also vary according to the life cycle stage of the business. For example the complexity of business health checks, business planning and identification of skills development requirements would be higher for businesses in a growth phase compared with those in an establishment or stable phase. Table 1(Page 7) shows the main requirements of businesses at different stages of their life cycle. Concept stage A major need for this group is basic information provision. Comprehensive information is currently available through: Websites such as Business Tasmania (previously Business Point) (DEDTA), business.gov.au (Australian Government) and the Australian Small Business Commissioner Enterprise Centres Tasmania (ECT) – learning activities about running a business Industry associations8 Commercial business coaches and advisors Training providers – training available New Enterprise Incentive Scheme (NEIS) - Australian Government9. Establishment stage Once an individual has made a decision to establish a small business, specific assistance with business planning is currently provided by Enterprise Centres Tasmania and industry associations. Eligible jobseekers may also be able to access training and mentoring assistance through the New Enterprise Incentive Scheme. Enterprise Centres Tasmania and industry associations provide learning activities related to basic business skills. Accredited small business training is available through TasTAFE or a range of private registered training organisations. The Australian Government Small Business Advisory Service funds organisations to assist small business with business management skills, financial and business planning. Two State funded Enterprise Centres Tasmania are also funded as Small Business Advisory Services. 8 9 Industry Associations includes Trade Associations. Participant must be registered with a Job Services Australia or Disability Employment Services provider. 5 The Australian Small Business Commissioner’s website provides information for small business and links to business.gov.au. Small business growth/expansion stage At this stage most business owners need coaching, mentoring and expert help to enable them to improve and expand their business. Skills development and staffing requirements need to be integrated with their business plans and training of the owner and staff may be required. In addition peer support and networking continues to be important. Simple diagnostic tools to assess the health of a business, and assistance with using them, are available on line. Basic staffing and skills planning and resources are available through Australian Government Skills Connect, some State government and some Industry Skills Council’s websites. In Tasmania assistance is available through Enterprise Centres Tasmania). The Australian Government provides assistance to small businesses planning to expand their business through: Commercialisation Australia which is a competitive, merit-based assistance program offering funding and resources to assist Australian entrepreneurs, researchers and inventors looking to commercialise innovative intellectual property. It provides case management, access to experts and funding. Enterprise Connect which offers small businesses in manufacturing or manufacturing-related services, resources technology, defence, clean technology, creative industries and tourism or in remote Australia, that have been operating for at least three years, the opportunity to undertake a comprehensive business review and benchmarking assessment by experienced consultants. The business can then apply for grants to implement recommendations 6 The small business lifecycle Table 1 Service/support Potential small business concept stage Small business establishment stage Micro business (no staff) early stage Information provision Introductory workshop – Business readiness Initial business planning/prebusiness assessment Workshops/traini ng in basic business skills Peer support Online forums Ongoing business planning Mentoring/coachi ng Business health analysis Skills development planning Training (owner) Training (staff) 7 Small and micro business with staff growth stage Small and micro business stable stage Transition/ Exit stage SKILLS DEVELOPMENT At all stages of business development small business owners are able to undertake accredited publicly subsidised training either individually through TasTAFE or through registered training organisations funded through competitive programs such as the Skills Fund. The latter funding is for existing workers and currently requires an application through industry associations or regional groups. Small business’ trainees and apprentices have their training subsidised by Skills Tasmania. NEIS participants undertake accredited training in either Certificate III in Micro Business Operations and Certificate IV in Small Business Management as part of their program. Small businesses have a strong record of attendance at workshops such as those provided by Enterprise Centres Tasmania. This training is typically non-accredited. The Tasmanian Building and Construction Industry Training Board is able to support small business in the construction industry to improve technical skills, safety knowledge and management skills through funding from the industry levy. A range of independently funded training is also provided through industry associations such as the Tasmanian Chamber of Commerce and Industry (TCCI). Accredited training Although small businesses have access to accredited training, research has shown that this sector typically values coaching, mentoring and short relevant courses, but does not value accredited training to a high degree, other than in the traditional trades and where it is required for licencing. At the same time Industry Skills Plans have recognised the need to foster a training culture in industry and assist small business to understand the benefits of accredited training. Accredited training has benefits for small business by: Assisting small business to learn new ways of planning and conducting their business to industry standards which will assist them to be competitive; Improving skills and knowledge of staff which should result in higher levels of efficiency and effectiveness; and Providing staff with the opportunity to obtain nationally recognised qualifications demonstrates to staff that they are valued. Small businesses owners and staff often attend non accredited training at workshops. In situations where knowledge and tools provided in workshops are subsequently applied in the business, this would meet requirements for assessment for a unit/s of competency in a nationally recognised qualification. 8 Small business owners and staff are able to access subsidies to undertake relevant accredited training through TasTAFE and contracted Registered Training Organisations (RTOs), to develop skills to grow and improve their business. The need for training to be delivered and assessed in a way that suits small business is a key factor in encouraging small business to undertake training. Strategies in the Elearning Capability Engagement Program to increase the use of e-learning will increase training options available to small businesses. A preferred RTO process for small business training delivery and assessment is incorporated in the Small Business Skills Plan, as is professional development for RTOs. Language literacy and numeracy (LLN) The low literacy skills of Tasmanians aged 15-74 years is well documented with the 2006 Adult Literacy and Life Skills Survey10 by the Australian Bureau of Statistics finding that half of this population age group lack the literacy skills to cope with the demands of everyday life and work. The Tasmanian Adult Literacy Action Plan addresses this with the Employer Pledge Program (EPP) being most relevant to small business. The unpublished Stennings report’s11 findings included that employers may not recognise that low language and literacy skills may be a problem in their workplace and that they require assistance in identifying their workforce’s literacy capability, how it impacts on business objectives and how it can be addressed. Relevant accepted recommendations of the report include that the program will fund LLN activities on a stand-alone basis or in combination with other training contextualised to the workplace; that a register of interest be established to facilitate the connection of micro and small business employers with similar LLN training needs; that EPP applicants be required to undertake a needs analysis prior to delivering any literacy training; and show how training will be contextualised to the workplace. The National Workforce Literacy Project12 identified that low levels of literacy and numeracy result in reduced productivity. Employers identified that literacy issues are not confined to the low skilled segments of the workforce; all workers at all levels need the appropriate literacy skills for their job. The report identified the importance of individualised training approaches taking into account business operational requirements and RTOs having literacy specialists to work on site with industry. Training package for small business management The Business Service Training Package which is the relevant training package for small business management skills has two main qualifications targeted at small business. These are Certificate III in Micro Business Operations and Certificate IV in Small Business Management. Australian Bureau of Statistics 2006, Adult Literacy and Life Skills Survey Stennings and Associates, 2012, Increasing Employer Take-up of Skills Tasmania’s Employer Pledge Program (unpublished) 12 Australian Industry Group, 2012, When Words Fail, National Workforce Literacy Project 10 11 9 The training package has a suite of eight skill sets to meet the needs of small business. These are: Small Business Contracting Small Business Financial Management Small Business Home-Based Business Small Business Indigenous Corporate governance Small Business Intellectual Property Small Business Marketing Small Business Operations Preparatory Small Business Preparatory Small business’ training needs are not just related to management skills; small business may need new technical skills related to expansion or changes in technology. Best Practice Approaches for Small Business Training Research into successful strategies to address the needs of small business owners (Dawe and Nguyen 2007)13 showed that the most successful programs: had a clear focus on meeting the specific needs of the small business; were based on a personal approach using locally based facilitators or service providers; and offered flexibility in delivery tailored to the individual needs of small business. Dawe and Nguyen further identified ten factors that contribute to successful training outcomes that provide an appropriate framework for design of small business training strategies when targeted to the needs of the small business operator. These are: Peer group mentoring Performance based learning Business cycle relevant content Individual needs assessment Professional mentoring support Flexibility of delivery Workplace embedded learning Affordably priced Delivered by small business relevant instructors Developed via a stakeholder network Dawe S and Nguyen, N (2007), Education and Training that meets the needs of small business; A systematic review of Research. National Centre for Vocational Education Research. 13 10 The design and delivery of programs for small business needs to take into account the above research in order for it to be embraced by, and result in, productive skills for small business. Mentoring Mentoring and coaching services are highly valued by small business. These services are available through Mentoring Services Tasmania (MST) and some industry associations.[1] Mentoring Services Tasmania (MST) provides business mentoring to small business through a network of experienced mentors. Diagnostic tools – business health and skills development Small businesses need training that meets the specific needs of their business. Diagnostic tools exist that can be used to assess “business health” as a basis for business planning, including skills development. Some examples are: Skillsmaximiser is an online tool that has been developed by SkillsDMC for the resources and infrastructure industries that provides skills needs analysis needs directly mapped to the industry training package. This type of model could be investigated for use in other industry sectors. The Growing Business Program – TCCI The Growing Business Program used a comprehensive business health diagnostic tool to support business planning. A critical feature of the success of this program was mentoring and coaching by a business advisor over a twelve month period. The skills development aspect of this project, and the potential to link to accredited training, has not yet been used to its full potential. Workforce Futures Program for the Tourism and Hospitality Industry (funded by the Australian Government) has a component of skilled advisors working with individual small to medium business to evaluate their workforce development needs. The tourism and hospitality industry project will link the outcomes of the workforce development process with targeted skills development. The Small Business Solutions Program has been widely used in Queensland and through the former Business Growth Centre in Western Australia. The core of the program is a Business Health Check which is a questionnaire designed to assess the small business owner’s performance against a set of 6 units of competency from the Small Business Operations Preparatory Skill Set. The questionnaire is administered by an advisor/mentor who must have a small business background and be qualified as an assessor. [1] Includes Trade Associations 11 1. BSBWOR204A 2. BSBWOR301A 3. BSBPRO301A 4. BSBINM301A 5. BSBREL402A 6. BSBCUS301A Use of Business Technology Organise Personal Work Priorities &Development Recommend Product &Services Organise Workplace Information Build Client Relationships & Business Networks Deliver and Monitor a Service to Customers A weakness of this program is the lack of competencies regarding financial planning, business planning, workforce development and marketing which are key requirements of small business owners and indicators of “business health”. The strength of the program is the advisor/mentor role. SMALL BUSINESS SKILLS PLAN The Small Business Skills Plan is based on the life cycle phase of a small business, addresses the current gaps in support for small business, and clarifies the roles of DEDTA, Skills Tasmania and industry participants. The Small Business Skills Plan aims to support small businesses to integrate information and assistance provided by different agencies and organisations, include skills development requirements as part of their business plans, and undertake accredited training. In the concept and early establishment stages small businesses have access to a wide range of information and support. As businesses enter into growth and expansion stages the availability of relevant information, formal coaching and assistance with business and skills development planning and appropriate training, is more limited and harder to access. The Small Business Skills Plan addresses the needs of this sector, which has the potential and desire to expand, and is therefore, critical to the economy. The Plan recognises that skills development strategies that work best for small business are based on business needs and best practice models of training delivery. The plan addresses the assessment of staff development needs (including literacy and numeracy), professional development of facilitators/trainers to link business plans to training and deliver training to meet the needs of small business. The funding of training is included in the plan. A key strategy is a project to implement an appropriate diagnostic tool to assist small businesses, in growth stages in particular, to identify business and skills development needs which would form the basis for accredited training. 12 13 Skills Tasmania will contribute to the skilling of small business through: 1. Information provision Skills Tasmania will: Contribute to the Business Tasmania on-line government information system to provide accurate, timely and relevant information about the training system, about workforce development and funded training options for small business. Work closely with industry associations to promote the importance of business planning including staff development needs. Publicise case studies from small business related to the benefits of improving workforce literacy and numeracy skills. 2. Capacity building Skills Tasmania will: Work closely with industry and DEDTA to build the capacity of Enterprise Centres Tasmania), industry associations, and relevant consultants to engage with small business to assess workforce development needs, develop skills for mentoring and coaching and promote accredited training. Facilitate professional development for TasTAFE and selected RTOs to build capacity in meeting training needs of small business based on a formal diagnostic assessment, staff development plan and best practice training models. Support professional development for TasTAFE and private RTOS to build the capacity of Vocational Education and Training Practitioners in e-learning, training and assessment Subsidise training for small business volunteer mentors to further develop their mentoring skills. Work with industry associations and RTOs to improve collaboration between them to improve the relevance and accessibility of training options for small business. Encourage communities of practice to support knowledge sharing amongst workforce planning and workforce development practitioners, Enterprise Centre Tasmania staff, volunteer business mentors/coaches, registered training 14 organisations and industry associations. 3. Establish mechanisms to quality assure the selection of RTOs and the delivery of training to small business. Linking business and industry planning to training Skills Tasmania will: Require Industry Workforce Plans to identify the needs of small business and include strategies to address these. Encourage DEDTA to align existing and proposed non accredited training programs to Certificate III in Micro Business Operations, Certificate IV in Small Business Management and related skill sets to encourage business owners to complete nationally recognised qualifications. Undertake a partnership project with DEDTA and/or industry associations to identify or develop an appropriate diagnostic tool to assist small businesses in growth phase to determine skills development needs (including LLN) as part of a business assessment. This assessment will form the basis for the subsidisation of training for a small business. Work with industry to investigate the availability of on-line training for small business qualifications and skill sets and promote e-learning to small business. Establish a register of interest to facilitate the connection of small business employers with similar LLN training needs. 4. Training – preferred providers and funding Skills Tasmania will: Develop a pilot project for small businesses in the growth phase. The project will utilise an appropriate diagnostic tool to assess business and skills development needs, provide mentoring and coaching, and fund identified training delivered by preferred providers. The pilot project will have the following elements: - RTOs seeking to be preferred providers for small business qualifications or skill sets will be required to address selection criteria related to their strategies to engage with the small business sector, address workforce literacy and numeracy, deliver training and assessment based 15 on best practice delivery models and have the capability of e-learning training and assessment - Industry associations and Enterprise Centres Tasmania will facilitate small business owners’ involvement in the project and have a role in evaluation. - Accredited training will be subsidised for small business owners and staff for skill sets or qualifications that are required to improve business productivity as identified through use of the diagnostic tool. - Evaluation of the outcomes for small business. Continue to improve small business group’s access to the Skills Fund through industry associations. Work with the Tasmanian Building and Construction Industry Training Board to align funding and support for small business in this sector. Subsidise training through the Skills Fund to develop the skills of volunteer mentors for the small business sector. . 16 Small Business Skills Plan - Tasmania Small business lifecycle phase Potential small or micro business concept stage Service/support Responsible agency Status Information on business planning including skills development. DEDTA and Skills Tas to develop. -Included on Business online Under development Introductory workshops – business readiness. DEDTA and preferred RTOs funded by Skills Tasmania Small and micro business establishment/early phase Pre-business assessment Diagnostic tool - utilised to form basis of business plan including skills development. - One to one discussion re business concept and plan. - Referral to endorsed RTO for identified skills development. DEDTA –Enterprise Centres Tasmania (ECT)Tasmania NEIS 17 Under development Stakeholder involvement Consultation with, and dissemination of, applicable information by: DEDTA – Business online Industry Associations Small Business Council TCCI – State and regional Regional bodies Accountants Banks Small business lifecycle phase Potential small or micro business concept stage Service/support Pre-start up training for small and micro business Workshops/learning activities Basic small and micro business skills. (Accredited training option adds value) Small and micro business establishment/early phase Mentoring/coaching Responsible agency Status DEDTA–ECT NEIS Existing Preferred RTOs funded by Skills Tasmania DEDTA - ECT NEIS Volunteer mentors. Planned new initiative To be enhanced New initiativetraining for volunteer small business mentors. Peer support Small business owner responsibility to access networks. Existing Training (accredited) Skills Tasmania Existing – TasTAFE or Skills Fund. 18 Stakeholder involvement DEDTA and Skills Tas to map existing courses/new courses to small business skill sets from training package to allow for assessment against nationally recognised qualifications. Skills Tasmania funding for training of small business volunteer mentors through the Skills Fund Industry associations, regional business networks, TCCI etc Small business lifecycle phase Small business and micro business with staff growth stage Service/support Business health assessment - Responsible agency Status DEDTA and Skills Tas New initiative Higher level diagnostic tool utilised to form basis of business plan including skills development plan Mentoring /coaching - Identify or develop a more complex diagnostic tool that assesses business health and skills development needs - and Accredited Training for business owner and staff Small business stable and transition/exit stage Peer support DEDTA /ECT Mentoring/coaching based on outcome of diagnostic assessment New initiative Skills Tas - contract RTOs (preferred provider model) to deliver training/undertake assessment New selection criteria for preferred RTOs for small business training. - Fund training identified as a skills need (including LLN) Existing – TasTAFE or Skills Fund. Small business owner responsibility to access networks. 19 Existing Stakeholder involvement Industry associations, regional business networks, TCCI etc Industry associations, regional business networks, TCCI etc Service/support Professional development for RTOs Professional development for RTOs as to requirements of small business in relation to training delivery. Responsible agency Skills Tas to facilitate professional development for RTOs to meet small business needs for training. 20 Status Stakeholder involvement Industry, small business and employer associations input. Appendix 1 Major sources of information and assistance for small business Organisation Information provision DEDTA Web addresses Assistance available Business Tasmania website www.development.tas.gov.au Australian Government Business.gov.au Australian Government Skills Connect Innovation and Business Skills Australia Skillsconnect.gov.au Business planning; legal requirements, finance, employment related requirements. Workshops. Business planning; legal requirements, finance, employment related requirements. Workforce Development http://www.ibsa.org.au IBSA • Undertakes research • Provides industry intelligence • Develop products (training packages), services and resources • Facilitates workshops to enhance professional practice Workforce development survey/tool. Australian Government NEIS http://deewr.gov.au/newenterprise-incentive-schemeneis Business training, mentoring and financial assistance for job seekers. Funding for training Skills Tasmania Skills Fund Small Businesses can access Skills Fund training through Industry associations and small business organisations that apply for qualifications and skill set training in conjunction with an RTO. The training requires a 10% contribution. Australian Government National Workforce Development Fund Business partners with Government to up skill workers in skill shortage areas REFERENCES: 21 Australian Government, 2012, Skills for all Australians, Building the Skilled Workforce for Australia’s Small Business now and for the Future. Dawe S and Nguyen, N (2007), Education and Training that meets the needs of small business; A systematic review of Research. National Centre for Vocational Education Research. Department of Economic Development, Tourism and the Arts, 2011, Economic Development Plan. Department of Economic Development, Tourism and the Arts, 2011, Small Business Strategy. Department of Economic Development Tourism and the Arts, Business Point. Innovation and Business Skills Australia, 2007, Fresh thinking about Management Skills for Small and Micro Businesses. Innovation and Business Skills Australia, 2012, Environmental Scan – 2012 Service Skills Australia, 2012, Workforce Futures. SkillsDMC, Skills Maximiser. Skills Tasmania, 2012, Small Business Engagement Policy. Skills Tasmania, The Tasmanian Skills Strategy 2008-2015. TCCI, Growing Business 22 Glossary 14 Accredited course A course developed to meet training needs that are not addressed by existing training packages. Training.gov.au (TGA) provides details of nationally accredited courses and the training providers that deliver these courses. Adult literacy and numeracy Adults ability to read, write and use numbers and numerical information. Apprentice A person contracted to an employer undergoing training for a recognised apprenticeable occupation during an established period. Assessment The process of gathering and judging evidence in order to decide whether a person has achieved a standard or objective. Certificate An official document, issued by an awarding body, which records the training achievements of an individual following a standard assessment procedure. Certificates I—IV A set of qualifications that prepares candidates for both employment and further education and training. They recognise achievement of specified national industry competency standards at four Australian Qualifications Framework (AQF) levels in a wide variety of trades, industries and enterprises. Certificates I and II are largely new qualifications recognising basic vocational skills and knowledge and Certificates III and IV largely replace the outdated category of trade certificates. Communities of practice Networks that emerge from a desire to work more effectively or to understand work more deeply among members of a particular specialty or work group. They focus on learning, competence and performance, bridging the gap between organisational learning and strategy topics and generating new insights for theory and practice. Competency An individual's demonstrated capacity to perform a task or skill, that is, the possession of knowledge, skills and personal attributes needed to satisfy the special demands or requirements of a particular situation. Competency standard An industry-determined specification of performance, which sets out the skills, knowledge and attitudes required to operate effectively in employment. In vocational education and training, competency standards are made up of units of competency, which are themselves made up of elements of competency, together with performance criteria, a range of variables, and an evidence guide. Competency standards are an endorsed component of a training package. 14 Vocational Education and Training terms sourced from NCVER VET Glossary 2011. 23 Department of Economic Development, Tourism and the Arts (DEDTA) The Department of Economic Development, Tourism and the Arts core business is to create and promote a leading vision for Tasmania by leading industry and community development, delivering marketing and development programs for Tasmanian tourism and providing policy and planning for Tasmanian arts and culture. Industry organisation An organisation representing an industry, including peak business and employer organisations and industry advisory bodies such as the industry skills councils. Industry skills council A set of eleven national bodies that provide advice to Australian, state and territory governments on the training required by industry. The 11 ISCs are: Agri-Food Skills Australia; Community Services and Health; Construction and Property Services; ElectroComms and Energy Utilities (EE-Oz Training Standards); ForestWorks; Government Skills Australia; Innovation and Business Industry Skills Australia; Manufacturing Skills Australia; SkillsDMS Industry Skills Council; Service Skills Australia; and Transport and Logistics. Integrated assessment An approach to assessment that covers multiple elements and/or units of competence from relevant competency standards. The integrated approach attempts to combine knowledge, understanding, problem-solving, technical skills, attitudes and ethics into an assessment task to reduce the time spent on testing and make assessment more 'authentic'. Mentoring Mentoring is a relationship between an experienced person and a less experienced person for the purpose of helping the one with less experience. Nationally recognised training An accredited program of study that leads to vocational qualifications and credentials that are recognised across Australia. Only registered training organisations that meet government quality standards such as TAFE, private providers and vocational divisions of universities can provide nationally recognised training. It includes accredited courses and endorsed training package qualifications. Qualification Formal certification that is awarded by an accredited authority in recognition of the successful completion of an educational program. In the vocational education and training sector, qualifications are awarded when a person has satisfied all requirements of the units of competency or modules that comprise an Australian Qualifications Framework (AQF) qualification, as specified by a nationally endorsed training package or an accredited course that provides training for that qualification. Recognition of prior learning (RPL) The acknowledgment of a person's skills and knowledge acquired through previous training, work or life experience, which may be used to grant status or credit in a subject or module. It can lead to a full qualification in the VET sector. 24 Registered training organisation (RTO) An organisation registered by a state or territory registering and accrediting body to deliver training and/or conduct assessments and issue nationally recognised qualifications in accordance with the Australian Quality Training Framework (AQTF). RTOs include TAFE colleges and institutes, adult and community education providers, private providers, community organisations, schools, higher education institutions, commercial and enterprise training providers, industry bodies and other organisations meeting the registration requirements. Skill An ability to perform a particular mental or physical activity that may be developed through vocational training or practice. Skill development The development of work-related skills or competencies through vocational education and training. Skill sets Single units or combinations of units which link to a license or regulatory requirement, or a defined industry need. In 2007, the National Quality Council (NQC) determined that skill sets would complement full qualifications within the Australian Qualifications Framework (AQF) and be included in training packages. Prior to this, students who did not complete a full qualification could only receive a statement of attainment for each unit completed, without any indication of whether the units selected met a defined industry need or licensing/regulatory requirement. Nationally endorsed skill sets provide formal recognition of training for a discrete part of a qualification linked to a function or role within an occupation. Skills Tasmania Skills Tasmania is Tasmania’s State Training Authority, developing strategies and providing support, advice, opportunities and funding to deliver quality training to meet the needs of Tasmanians and our industries. Small Business A small business employs less than 20 people, is independently owned and operated, and close control over operations and decisions is held by the owners. Trainee A person receiving training or undertaking a traineeship. Training culture An environment in which training is seen as important and is closely linked to business strategy, particularly in creating competitive advantage for an enterprise. Opportunities are given to all employees to participate in training to develop their skills and competencies. 25 Training package An integrated set of nationally endorsed standards, guidelines and qualifications for training, assessing and recognising people's skills developed by industry to meet the training needs of an industry or a group of industries. Training packages consist of core endorsed components of competency standards, assessment guidelines and qualifications, and optional non-endorsed components of support materials such as learning strategies, assessment resources and professional development materials. Vocational education and training (VET) Post-compulsory education and training, excluding degree and higher-level programs delivered by further education institutions, that provides people with occupational or workrelated knowledge and skills. VET also includes programs which provide the basis for subsequent vocational programs. Alternative terms used internationally include ‘technical and vocational education and training’ (TVET), ‘vocational and technical education and training’ (VTET), ‘technical and vocational education’ (TVE), ‘vocational and technical education’ (VTE), ‘further education and training’ (FET), and career and technical education (CTE). Workforce Planning Systematic identification and analysis of what an organisation is going to need in terms of the size, type, and quality of workforce to achieve its objectives. It determines what mix of experience, knowledge, and skills is required and sequences steps to get the right number of right people in the right place at the right time. 26