Vocational Education and Training (VET) and the Chambers of Commerce in Germany - and elsewhere Geneva Scurek, German American Chamber of Commerce of the Midwest, Inc. May 25, 2017
Transition from School to Work Education/Training and Labour Market in Germany Vocational School School + combined with = Jobs in Companies In-Company-Training Match!!! because companies are involved in Vocational Education and Training (VET) 29.05.2017 Yorck Sievers, DIHK, Berlin 2
German VET The Dual System 350 standard curricula defined by sector experts and decreed by the federal government Specialized occupation Specialized but broadly Occupations cutting employable occupations across different branches 29.05.2017 Yorck Sievers, DIHK, Berlin 3
Transition from School to Work 60% 29.05.2017 4
German VET The Dual System Training in Companies and Schools 2-3.5 Years Training Period on the job training in companies 3-4 days a week based on training contract between company and trainee theoretical training in vocational schools 1-2 days a week run by the state 29.05.2017 5
Structure of CCI further training examinations 29.05.2017 6
Youth Unemployment Data from 01/2013 Age: 14-25 years Source: Eurostat 29.05.2017 7
EU 28 Youth Unemployment Rates in Comparison Quelle: EUROSTAT, December 2015
German VET Triple WIN The Private-Public-Partnership is a triple win situation for Companies Government Apprentices Demand driven Familiar with workplace Reduced search costs Low turnover Positive image of the employer Reduced costs for youth unemployement Reduced budget for vocational training Higher revenues through taxes & social insurance contributions Demand for occupations Salary Work experience during the training / appropriation of social skills Nationally standardized certificate 29.05.2017 9
Input/output ratio in Euro German VET The Dual System Input/output ratio of an apprentice Costs Earnings Duration of apprenticeship 2 to 3.5 years 29.05.2017 10
Training reasons of the company 29.05.2017 11
Reasons for Training for the Companies I Survey of 12,500 Employers in 2014* Why do companies provide vocational training? (Multiple answers possible) Nr. Answer Number Percent 1 I want to secure well-trained, skilled-workers for my company. 11,371 90,4% 2 I would like to make a contribution to society. 6,995 55,6% 3 Training is a tradition in our company. 6,340 50,4% 4 I want to position my company as an attractive employer. 6,231 49,6% 2 Dual training in my own firm is more effective than training external workers. 5,122 40,7% 3 For economic reasons. 2,272 18,1% * source: DIHK 2014
Role of IHK, AHK DIHK/IHK Business Fields Location Policy Start-up Policy and Business Support Vocational Education and Training Innovation l Environment International Affairs Legal Affairs l Fair Play 29.05.2017 13
Financing IHK Role in German VET The Dual System A Public-Private Partnership Initiate training Monitor training Assure quality Delegation of operations Legal framework Research Validate success Development of standard curricula Training on-the-job Examinations Financial investment Private Financing Chambers Companies Government Vocational schools Shared training Public School curricula Teachers with DVT experience Midterm and final exams 29.05.2017 14
German VET Key Elements IHK Role Chambers of Commerce are responsible as competent bodies by law (VET act from 1969/2005) for organization, registration, examination, certification on a national level for quality assurance throughout the whole training process for representing and organizing the companies needs, interests and inputs in co-operation with business associations IHKs guarantee VET standards and quality by organizing and certifying VET 29.05.2017 15
German VET The Process Making, Executing, Updating of Training Regulations and Occupations Competence and curricula development IHK Need IHK Marketing for new occupation IHK Registration Start of VET In-Company Training under IHK Monitoring IHK Examination IHK Certification IHK Evaluation Need to update 0 1 2 3 4 5 6 7 years Step by Step always involving the Companies to make sure their demands are covered 29.05.2017 16
How IHKs achieve Quality - VET Committee IHK administration Employee representatives Employer representatives Vocational teachers representatives 29.05.2017 17
IHK Examination Board Employer Employee Teacher Examinee 29.05.2017 18
Facts and Figures about VET in Germany Dual Vocational Training 1,5 Mio. apprenticeships 600.000 new contracts every year Youth unemployment rate 7,9% Germany 23,6% EU average Company activities 500.000 companies offering apprenticeship positions 80% are SMEs 320.000 company in-house trainers 160.000 company jury members Financial investment 23 bn. companies 3 bn. government 29.05.2017 19
Lessons learned Practical in company training is the key to employability. Chambers and business associations support the in company training. Public and private work together. Responsibilities of the partners are clearly structured and regulated (i.e. by law). Based on their legal mandate, their organizational structure, their close relations to the companies and their specific know-how, chambers play a critical role in the quality assurance of vocational training nationwide. 29.05.2017 20
Challenges and goals More PPP: VET Alliance (2015-2018) Problem: more training offers than eligible applicants, more school levers choose the academic career path Focus on attracting youth. Major goals are to: Increase attractiveness of vocational education offerings to youth Give better orientation to youth about professional career options Improve match between supply and demand establish better data about companies that are prepared to offer training reduce number of youth in transition system between school and training Further occupational development Companies committed to offer more internships, entry qualifications and trainings -pipeline A lack of trainees today means a lack of skilled labor tomorrow. 29.05.2017 21
AHK Functions Internationally AHK Functions 29.05.2017 22
Service of Dual Education Export Business Promotion in Germany and worldwide Extension of bilateral Business Relations Development of Locations for Business Spreading and Establishing the Idea and Method of dual Education and Training Strengthening the Private Sector in regards the role of Business Chambers and Associations 29.05.2017 23
Co-operation Co-operative Structure for VET Activities Worlwide AHK Co-operation IHK Platform and Service Provider for dual VET worldwide Co-operation Partner for IHKs Assessment and Certification Know-how Base Competent Body for dual VET in Germany Co-operation Partner for AHKs Strategy Development Co-operation Definition of Quality Standards in terms of Quality Assurance and Certification Political Support and Back-up DIHK 29.05.2017 24
Role of AHKs in vocational education Offer Local dual VET following the German approach Classification of VET into several quality categories Internationally standardized training of in-company trainers Examination based on German assessment tasks Award of homogeneous certificates as quality brand for German VET Locally established Closely linked to Germany and the IHK-Network Access to IHK- VET know-how Client & Partners Companies VET companies VET schools VET institutes Political bodies, chambers and business association Platform AHK Showroom for dual VET made in Germany System consultancy for institutions and politics 29.05.2017 25
German VET for Export AHK Business Field German VET has attracted other countries to develop same standards German Chambers of Commerce Worldwide (AHK) expand their activities to promote adaptation of key elements of German VET Activities are spread all over the world, i.e. Logistics, Hotel Busines, Accounting, Mechatronics, Industrial Maintenance, CNC Machining USA, China, Poland, Mexico, Hongkong, Portugal, Argentina, India 40+ More is added through the regional AHK wherever a demand is demonstrated 29.05.2017 26
AHK Chicago GACC Midwest, Inc Skills initiative services nationwide Company consulting for curriculum and examination, in company training Organization Quality control, standards Only official DIHK Certification Certifications in multiple states 29.05.2017 27
Industry Consortium for Advanced Technical Training A competitive HR Strategy ICATT Industry Consortium for Advanced Technical Training 28
Our Worldwide Network 130 offices in 90 countries around the globe ICATT Industry Consortium for Advanced Technical Training 29
Introducing the German dual model of education Dual vocational training after public school Approx. half of Germans chose this track Time split between company and school 2.5 4 years of training in field Rigorous theoretical and practical testing Result: The most highly-skilled workforce in the world ICATT Industry Consortium for Advanced Technical Training 30
Challenges in the US Varied college/tech school systems Different high school set up Different style of vocational training project based vs. specific content focus Less emphasis on company role within the college Companies have less responsibility and less structure in training for a career Cultural perception ICATT Industry Consortium for Advanced Technical Training 31
Fundamental Goals of dual-vocational training Year 3 Transition to future department Prove ability to work independently and in teams Contribute to continuous improvement as a loyal long term employee Year 2 Interdisciplinary application and development Bridge the gap from fundamentals to company specific training Year 1 Practice Fundamentals - Apply and develop competencies Establish mutual expectations while developing pride in work and a mindset of quality through personal/special projects that demonstrate knowledge ICATT Industry Consortium for Advanced Technical Training 32
How ICATT works Multiple companies 1 cohort of students Same theoretical training Different company specific training Program wide standard aligned and certified through written and hands-on exam = Sustainable workforce for skilled jobs. Wisconsin ICATT Industry Consortium for Advanced Technical Training 33
Occupational profiles Based on companies needs Aligned with German profiles Refers to industry standards Occupational profiles Industrial Maintenance Technician (IMT) (Industriemechaniker) CNC Machining Professional (CNC) (Zerspanungsmechaniker) Mechatronics Technician (MT) (Mechatroniker) Freight Forward and Logistics Agent (LA) (Kaufmann für Spedition und Logistikdienstleistung) and more to come based on company needs ICATT Industry Consortium for Advanced Technical Training 34
How ICATT works Weekly Block System Exam Exam Company College Company College Company College Company College Company College Company College Company Year 1 Year 2 Year 3 2/3 Model 2 days of college each week 3 days of training in a company each week College College Company Company Company Monday Tuesday Wednesday Thursday Friday ICATT Industry Consortium for Advanced Technical Training 35
How ICATT works 3-year company-sponsored work and education + 2-year FTE commitment Increasing hourly wages while at work Company-paid $40 per day stipend while in classes Full transparency between company, student and school Community Colleges Companies GACC Midwest Y1 $9 Y2 $10.50 College curriculum and company training plan aligned to German Y3 $12 standard Outreach and additional student recruitment provided through GACC with centralized application system at www.thinkicatt.com Training plan support as well as theoretical and hands-on testing to the German standard DIHK certifications ICATT Industry Consortium for Advanced Technical Training 36
How ICATT works Company training College Company Industry-defined competencies Company training guide including core skills and knowledge Additional company specific training possible Tailored to needs of company Apprentice reaches FTE productivity approx. in 3 rd year Ensures company specific knowledge College education Based on industry standards Complimenting company training Classroom and lab training Extra courses available upon request Aligned to internationally recognized standards Customized Associates Degree Ensures proper theoretical knowledge Exams Periodic testing throughout the apprenticeship Written and practical testing Comprehensive skills and knowledge test Developed by GACC exam board Results in internationally recognized DIHK Certificate Ensures quality ICATT Industry Consortium for Advanced Technical Training 37
Certificates Associates Degree DIHK Certificate Journeyman s card (potential) ICATT Industry Consortium for Advanced Technical Training 38
Our Services As an ICATT company you benefit from Milestone Services Ongoing Services Program development and support HR Services Promotion & Marketing Program Management & Administration Train the Trainer Program (T3) Exam preparation Guidance Exam administration Certification ICATT Industry Consortium for Advanced Technical Training 39
Regional Contact Geneva Scurek Manager, Skills Initiative German American Chamber of Commerce of the Midwest, Inc. -GACC Midwest 321 North Clark Street, Suite 1425 Chicago, Illinois 60654-4714 Tel.: +1 (312) 585-8339 Fax: +1 (312) 644-0738 E-Mail: scurek@gaccmidwest URL: www.gaccmidwest.org www.ahk-usa.de www.ahk.de http://www.thinkicatt.com https://www.facebook.com/thinkicatt https://twitter.com/thinkicatt https://www.instagram.com/thinkicatt/ ICATT Industry Consortium for Advanced Technical Training 40