employer_engagement
Employer engagement with ITOs
Introduction

It is important for ITOs to know how many businesses in the sectors they serve have staff engaged in training. In many trades, a large proportion of businesses are sole traders with no employees. By definition, these businesses will have no employees engaged in training. In general, larger businesses are more likely to have employees in training.

Business entities in a sector

To orient ourselves, we give a summary of the businesses in each trade sector. We define a business’ size by the number of people it employs. People who are self-employed with no employees will have a size of zero. We show how many businesses there are of each size, and how many employees are employed by businesses of each size. In the first chart below, we show the number of businesses in each sector over time, segmented by the number of employees they have. In terms of the number of entities, most sectors are dominated by sole operators and small businesses.

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Methodology

The data is sourced from the IDI. Business information comes from the business register, this includes the industry and the region that the business operates in. The number of employees is determined from IRD tax records. An employee of a business in a given tax year is defined as someone who received wage or salary income from that business in that tax year.

The next chart shows the number of employees working for firms of different sizes in each sector. From this perspective, larger businesses (more than 20 employees) make up a larger share of each sector.

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Methodology

The data is sourced from the IDI. Business information comes from the business register, this includes the industry and the region that the business operates in. The number of employees is determined from IRD tax records. An employee of a business in a given tax year is defined as someone who received wage or salary income from that business in that tax year.

Employers with apprentices

We would like to know what percentage of employers are engaged with the ITO training system. To do this, we track the percentage of businesses who have had an employee in ITO training in the previous five years. The number in training includes only those enrolled with the relevant ITO for the sector.

A significant majority of large businesses have recently had an employee in training, though the number of smaller businesses who have recently had an apprentice is also significant. We would expect the general trend of larger businesses being more likely to have had an apprentice simply on the basis that they have a larger pool of employees.

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Methodology

The data is sourced from the IDI. Business information comes from the business register, this includes the industry and the region that the business operates in. The number of employees is determined from IRD tax records. An employee of a business in a given tax year is defined as someone who received wage or salary income from that business in that tax year.

Businesses are considered to be engaged with ITOs if they have had an employee start or successfully finish an ITO qualification in the previous five years.

Proportion of workers training

We can also look at what proportion of employees among each type of business were recently engaged in training. This takes into account the fact that larger businesses are simply more likely to have an employee in training at any given time.

Across all of the sectors we consider, the percentage of employees recently in training does not vary much by business size. However, this disguises significant differences among sectors served by the different ITOs. For sectors served by BCITO, smaller businesses have had more of their employees recently in training. For sectors served by Competenz, it is the larger businesses that have had more of their staff in training. This likely reflects differences in the types of training in each sector.

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Methodology

The data is sourced from the IDI. Business information comes from the business register, this includes the industry and the region that the business operates in. The number of employees is determined from IRD tax records. An employee of a business in a given tax year is defined as someone who received wage or salary income from that business in that tax year.

An employee is considered to have recently been in training if they started or successfully finished an ITO qualification in the previous five years.

This approach also allows us to determine the proportion of women in training compared to men. We generally see that women are engaged in training at lower rates than men, since many of the women in trade industries are not in trade roles.

Conclusion

Employer engagement with ITOs is already high among large employers when measured by the percentage of employers who have recently trained staff through an ITO. When we measure by the proportion of employees who have recently been trained, we find that small businesses in sectors served by BCITO and The Skills Organisation are strongly engaged with ITOs.

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Training engagement by region

Explore our dashboard displaying the breakdown of training engagement by region

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Training engagement by employee gender

Explore our dashboard displaying the breakdown of training engagement by employee gender