The Need for Literature to Explain the Empirical Modeling of the Determinants Motivating the Employer to Train Employees

This research article explores the determinants motivating employers to train their employees and the choices they make for different types of training. It discusses the existing literature on employer training and evaluates the determinants of training decisions based on data collected from surveys. The article also examines the current state of employer training in Australia and the future direction it is heading towards. It concludes by discussing the challenges and implications of employer training.

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The need for literature to explain the empirical modeling of the determinants motivating
the employer to train employees is still growing. Part of this existing literature provides
empirical models that infer the determinants of institutional training from the parameters of
training activity and their anticipated determinants (Smith & Oczkowski, 2015). For instance,
parameters evaluating the use of management practices, the extent of unionization and the
utilization of expenditure on particular forms of training are employed to evaluate the
determinants of training decisions from data collected from surveys. It is then that inferences
arising from such studies get collected to elicit the motives of why employers implement training
in their organizations. However, it seems that the existing literature is yet to fully evaluate the
determinants of the clear motives employers provide as to why they train their staff and choices
for the various training they use. The research article will be identifying where we are, where we
are going, how to get there and how to know that we have finished.
Where we are
Based on this study, the data used has been collected from a particular survey of
employers who have explicitly cited their decisions for employing certain types of training
choices. The National Center for Vocational Education in Australia uses the Survey of Employer
Use and Views of vocational education and training to determine the degree of employer
satisfaction with the regional VET system (Smith & Oczkowski, 2015). It then followed
analyzation of data from such a survey to empirically evaluate the determinants responsible for
the explicit reasons employer state for utilizing certain types of training. Data from 2005 SUEV
survey was employed in the research, SUEV is usually the last to gather valuable information
regarding the position of training in the business stressing the vitality of training to the general
business strategy.

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Previously, the literature on employer training was broadly categorized into
psychological, economic and organizational aspects (Smith & Oczkowski, 2015). The
psychological literature was based on the benefits accrued to individuals from training with
regards to workplace performance, leadership, and well-being(psychosocial). On the other hand,
economic literature underpinned the theory of human capital and the nexus between training
investment, wages, and productivity. However, organizational literature was embedded on
expounding the correlation between training and the general policies of human resource
management employed by organizations and evaluated a series of factors hypothesized to impact
the incidence, degree, and nature of training provision at the institutional level. The dependent
variables assessed related to the amount of expenditure spent on training, the kind of training
conducted that is whether formal or informal, the proportion of employees who receive the
training and the time spent on training.
Where we are going
As of today, Organizations in Australia have begun to utilize the national vocational
education and training (VET) system to demonstrate the importance of employer training in
many possible scenarios (Smith & Oczkowski, 2015). It is from the introduction of training
packages back in the ’90s that backed employees to provide national accredited qualifications-
focused training commonly known as nationally recognized training (NRT) that there has been
an enormous increase in the number of Australian employers subscribing to this kind of
accredited training to their employees (Smith & Oczkowski, 2015). The reason why Australian
employers subscribed to this form of training is not only because the state partially funds the
training due to its national character but also because of the accredited kind of the training, it
yields the needed quality benchmark responsible for the effectiveness of the training. It also

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provides the platform to attract high-quality employees by offering established training
qualifications. Employers enter into a partnership with the registered training organizations
(RTOs) for instance with public TAFE institutes or training providers from the private sector to
offer NRT to their employees enabling them to award the qualifications (Smith & Oczkowski,
2015). It is only after 1990 that employers were accorded the privilege to register as RTO
themselves allowing them to provide NRT directly to their workers which later translates to
awarding the qualifications themselves. Since then, there has been substantial growth in both the
numbers and size of institutions such as RTO to about 250.
How do we get there?
Based on the research conducted as to the reasons behind employers training decision
making paints a sophisticated picture and this has drawn insight from government policy
practitioners in the area of VET, employers, and FTAs (Smith & Oczkowski, 2015).The many
calls and concerns from both the researchers and other relevant stakeholders demonstrate that in
future, employers will demand more of the training and VET which will be crucial if Australia is
to breed a highly skilled labor force (Smith & Oczkowski, 2015). The Australia policy will need
to be sensitive to the variations depicted by different industries based on the analysis from this
research. Thus, this calls for policy to be tailored towards the different needs and circumstances
of the many different sectors. It is in light of the results from this research that what has been
coined as ‘strategy and skill’ determinants are imperative in the study. Employers will have to
grapple with the challenge of focusing on the skills that are needed by their organizations in the
long-run (Smith & Oczkowski, 2015). It is thus vital that employers shift their direction on
emphasizing the role that skills will assume in their future business strategy and organize their
training investments properly. Based on the findings of the research it came to surface that

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training as strategic importance is one of the most vital factors influencing training choice. Thus,
incorporating training into the strategic planning of the enterprise will enable employers to
prioritize on the skills needed by their organization allowing them not only to invest the optimal
amount in training but also in the right kind of training (Smith & Oczkowski, 2015). The
employers will increasingly depend on training as one of their strategies to thrive in an
increasingly competitive environment. An increasing number of organizations will be looking
forward to using training particularly the NRT to back the improved approach with regards to
management of the human resource in the future.
How do we know we have finished?
A more nuanced approach has been identified as the most preferred solution where RTOs
and other providers of training need to relate with employers if significant dividends are to be
reaped for themselves and the business (Smith & Oczkowski, 2015). The necessity of ‘strategy
and skill’ determinants substantiate that it is crucial for RTOs to consult with organizations on a
wider perspective as opposed to simply marketing the training products in what is termed as ‘off
the shelf.’ However, a far-reaching approach will be to tap on the power from the strategy and
skill factors to facilitate consultation with the business enterprises on a problem-solving platform
where training plays a crucial role though it may not be the final solution to the challenges facing
organizations.
Challenges experienced
One of the challenges is how the B coefficients were derived statistically. Also, the
organization of factors responsible for training decision-making by employers at first was
confusing, but as I read more of the work, they became clear.

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References
Smith, A., & Oczkowski, E. (2015). Modelling the reasons for the use of vocational training in
Australian enterprises. Asia Pacific Journal of Human Resources, 53(1), 370–385.
doi:10.1111/1744-7941.12060