· The Right Skills. Right Time? Report uncovers the $4 billion annual cost of over-qualification affecting one in four Australian workers
· The SkillsIQ analysis shows 2.5 million Australians have spent money and time on qualifications they don’t need and which don’t make them better at their job
· The report is the first step in a conversation about how we as a community address the growing issue of skills mismatch now and into the future.
More than one in three Australian travel and tourism workers are over-qualified for their current job. Over-qualification costs Australian workers nationally $4 billion every year, a groundbreaking study has found.
SkillsIQ’s Right Skills. Right Time? Report shows 2.5 million Australian workers spend time and money on qualifications that are not required for their current role.
SkillsIQ, a national not-for-profit organisation, is working closely with a number of people-facing sectors including the tourism industry to develop clear standards to make sure Australians have the right skills for jobs now and into the future. The Right Skills. Right Time? Report measures the gap between the required and actual skills (through qualifications) of 10 million Australian workers across 400 people-facing occupations, including tour guides, event managers and front desk attendants.
“In more than half of the people-facing sectors we looked at, anywhere between one in three to more than half of the workers had qualifications they didn’t need and which often failed to deliver the necessary practical skills,” SkillsIQ CEO Yasmin King said. “This over-qualification costs Australians $3.6 billion annually in foregone income due to time spent in unnecessary study and $555 million in superfluous tuition fees – that’s a total cost of $4.1 billion each year.”
“Our research shows that it may not always be the best option for younger people to favour a higher qualification over practical work experience early in their working lives. A hotel receptionist doesn’t need an Advanced Diploma of Travel and Tourism management, they need practical VET skills.” Ms King added.
The average employee turnover rate in Australian tourism was reported as 66% in 2015. Almost 70% of Tourism businesses identified skill deficiencies within their workforce.
Over-qualified staff are dissatisfied, counter-productive, take more breaks and lack the practical skills necessary to perform at work. It costs tourism business owners time and money to retrain and replace over-qualified team members who leave their jobs.
“Four in five parents want their children to go to university rather than undertake vocational education yet nine out of the ten jobs forecast to have the greatest growth in the next five years can be achieved through training courses provided through vocational and educational training,” Ms King added.
“This isn’t about avoiding higher qualifications – more about making sure you’re getting the right qualifications at the right time in your career. It’s also a question of whether higher qualifications are what will give you the skills and career progression you’re looking for.
”Ms King said the Right Skills.Right Time? Report is the first step in a conversation about how we as a community address the issue of skills mismatch now and in the future.
“The travel and tourism sector must translate clearly defined entry requirements into the form of practical skills to address the sector’s over-qualification trend,” Ms King added.
The full report is available here https://www.skillsiq.com.au/CurrentProjectsandCaseStudies/rightskillsrighttime
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