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The importance employers attach to employee qualifications

Melbourne, Australia, selby.smith{at}bigpond.com

Lee Ridoutt

Human Capital Alliance, Normanhurst, NSW, Australia

Data from quantitative and qualitative sources were gathered from enterprises in five industry sectors (construction, manufacturing, services, transport and other) using targeted interviews, focus groups, a mailed questionnaire survey (N = 81) and a telephone interview survey (N = 69) to ascertain the level of importance employers place on their employees' qualifications. Analysis was undertaken to determine whether employers value qualifications differently by type of employee (e.g. job classification); the type of human resource management decision; and the business risk being managed. The study results suggest that employers generally value qualifications less than stakeholders inside the formal education and training system. Employer perspectives appear to vary according to enterprise size and other characteristics. However, all employers distinguish between formal qualifications and relevant experience. They seek outcomes from training consistent with their perception of business needs and how competence contributes to satisfying those needs (including minimising risks).

Key Words: employees • enterprises • experience • qualifications • risk management

Asia Pacific Journal of Human Resources, Vol. 45, No. 2, 180-199 (2007)
DOI: 10.1177/1038411107079115


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