Modelling the reasons for the use of vocational training in Australian enterprises

This paper analyses a unique data set to examine the determinants of the explicit reasons employers give for training employees in Australia. The nature of the data requires the use of multinomial logit methods to uncover how certain strategic, recruitment and organizational variables impact on the reasons employers provide for their training choices. The results highlight the complexity of training decision-making in enterprises and show that numerous reasons are cited by employers for undertaking training. The most commonly identified training drivers relate to training strategy variables capturing the status of the organization as a registered training organization (RTO), the use of a business plan and strategic importance of training. In contrast, the relatively least important drivers are the level of staff permanence, occupational structure, occupational status and the number of employees. The complexity of training decisions suggests that policy-makers should be cautious in following generic and simple solutions in trying to promote employer training.