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Published on Saturday, December 23, 2006 @ 11:37 AM by John McCarthy
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16 November 2006
The economic benefits of career
development services
Scoping Study by Access Economics Pty Limited for
The Career Industry Council of
Australia
The economic benefits of career development services
Disclaimer
While every effort has been made to ensure the accuracy of this document, the uncertain nature of economic data, forecasting
and analysis means that Access Economics Pty Limited is unable to make any warranties in relation to the information
contained herein. Access Economics Pty Limited, its employees and agents disclaim liability for any loss or damage which
may arise as a consequence of any person relying on the information contained in this document.
TABLE OF CONTENTS
Executive Summary ................................................................................................................ i
1. Introduction ...................................................................................................................1
1.1 Defining career development services 2
2. Direct benefits of career development to individuals................................................3
2.1 Types of direct benefits 3
2.2 Information on direct benefits 5
2.3 Future research options 6
3. Broader benefits of career development to the economy.........................................8
3.1 Types of broader benefits 8
3.2 Australia’s demographics make the task urgent 10
3.3 Future research options 12
4. References...................................................................................................................16
Appendix A - Literature summary.......................................................................................19
The economic benefits of career development services
i
EXECUTIVE SUMMARY
This scoping study looks at possible areas of research on the economic benefits from career
development services. Career development services refer to vocational and educational
advice provided by career development practitioners. School-based advice currently
dominates career development services, though advice is also provided in universities,
TAFEs, via Job Network and related programs, and via private agencies.
The key benefit from career development services is better informed decision-making in
education and career choice. That should assist over the longer term in achieving higher
workforce participation, lower unemployment (less job search time and less skill mismatch),
greater skill development on average (and so higher earnings) and higher career satisfaction.
These benefits accrue to the individual, but are also benefits to society as a whole (for
example, through the tax/transfer system – higher productivity and participation and lower
unemployment translate into higher tax revenues and less welfare payments – with those
savings then able to be spent on other things or handed back as tax cuts).
While it makes sense that more informed decision-making should lead to improved labour
market outcomes of the kind noted above, proving the case is a more difficult proposition.
Thus far in Australia there appears to have been very little research along these lines.
This scoping study outlines potential avenues of research which may be available to help
inform on the benefits of career development services:
which may be currently collected on usage of services, what sort of services are being
accessed and characteristics of users.
A stocktake of current usage of career development services, compiling data
post-consultation surveys, examining how satisfied people were of the service provided
to them. This could also include interrogation of existing career development related
questions in the likes of LSAY, Young Visions and other longitudinal datasets.
A stocktake of performance of career development services, such as via
on the material presented in this paper.
A detailed literature review of the benefits of career development services, building
development services, to help track longer term outcomes for individuals. The key
questions would relate to future employment, wages, further education and career
satisfaction. Such a study should contain a well defined target group and a control
group. A cost-effective method may be to include questions on career development
services as part of other surveys, such as graduate destination surveys and LSAY.
A survey-based approach, preferably via a longitudinal study of users of career
which career development services are hoping to influence could be monitored over
time at a macro level, such as monitoring the average length of job search, levels of job
mis-match and measures of skill shortage.
An outcomes-based approach using research other than surveys – key outcomes
economic benefits
of career development services if appropriate, and evaluating economic benefits with
the assistance of a well specified macroeconomic model.
Terms of reference for future research into the economic benefits of career development
services could be developed with these research strands in mind.
Finally, any evidence on improved outcomes could be translated into broaderby extrapolating survey results to the broader population of users
The economic benefits of career development services
1
1. INTRODUCTION
The Career Industry Council of Australia (CICA) has commissioned Access Economics to
prepare this scoping study into the economic benefits of career development services.
Career development services refer to vocational and educational advice provided by career
development practitioners. The advice includes career counselling and development of
career management skills along with the provision of career information. The advice may be
provided to:
students at school;
students at TAFEs or universities;
via Job Network services for those looking to enter or re-enter the labour market;
via publicly funded Career Information Centres for the general public; and
paid for by employers.
School-based advice currently dominates career development services. The OECD (2004)
reports that, in Australia, 69% of career development practitioners are employed in schools,
12% in further education colleges, 6% in universities, and 12% in other settings.
The term ‘career development’ is used principally in this report, as this is the term adopted in
Australia to encompass the wide range of career development services on offer such as
providing career information, career advice, career education, and career counselling. The
matching term in the UK is ‘career guidance’. In many respects the two terms can be used
interchangeably with ‘career development’ being the preferred term used for this report.
The aim of this scoping study is twofold. First, it aims to outline some of the channels by
which career development services may provide benefits to individuals and note areas where
there may be research or evidence to support some of these putative benefits. Second, this
scoping study aims to identify priorities for further research, both in examining the direct
benefits to individuals provided by career development services, and in assessing the
potential broader economic benefits which may flow from career development services.
Thus far in Australia there appears to have been very little research along these lines.
Internationally, there has been some significant research in the area on the whole, however,
some aspects of career development have received comparatively little attention.
Such research is likely to be in line with current priorities expressed in the Council of
Australian Governments’ (CoAG) Human Capital Agenda. Among CoAG’s aims are to:
via private agencies, often in the form of career counselling or outplacement services
work or further study;
increase the proportion of young people making a smooth transition from school to
active and productive working lives; and
increase the proportion of adults who have the skills and qualifications needed to enjoy
recipients, the mature aged and women.
With development of human capital firmly on the CoAG agenda, it would appear timely to be
examining the benefits that career developments services may bring to that goal.
improve overall workforce participation, with a particular focus on income support
The economic benefits of career development services
2
1.1 DEFINING CAREER DEVELOPMENT SERVICES
The term ‘career development services’ can mean many things to many people. National
and international bodies concerned with career development services have attempted to
better define the spectrum and reach of services encompassed by the term.
The Professional Standards for Australian Career Development Practitioners notes:
Career development practitioners work in a range of occupations in a range of
settings and provide a wide variety of services to a diverse client group. For
example, career development practitioners may deliver services in settings as
diverse as schools, TAFE, universities, business organisations, government
agencies and private practice in a range of formats including one-to-one, small
groups, via the web, large classes and self-help materials. Such services may
include career counselling, career education, job placement, employment
services, recruitment, career coaching, training, mentoring and coordinating work
experience or internships. This diversity of career development practice is
reflected in the constituencies of the member associations of CICA.
The OECD defines career development services as:
services intended to assist individuals, of any age and at any point throughout
their lives, to make educational, training and occupational choices and to manage
their careers. These may include services in schools, in universities and colleges,
in training institutions, in public employment services, in companies, in the
voluntary/community sector and in the private sector. The services may be on an
individual or group basis, and may be face-to-face or at a distance (including
helplines and web-based services). They include career information (in print, ICTbased
and other forms), assessment and self-assessment tools, counselling
interviews, career education and career management programmes, taster
programmes, work search programmes, and transition services.
The Canadian national body for determining career development guidelines and standards
concurs. This group has identified the term career development practitioner as:
an umbrella term that refers to any direct service provider in the career
development field. This includes but is not limited to: career counsellors,
employment counsellors, career educators, career information specialists, career
management consultants, career practitioners, rehabilitation counsellors, work
development officers, employment support workers, work experience
coordinators, job developers, placement coordinators, career coaches, and
vocational rehabilitation workers. ([Canadian] National Steering Committee for
Career Development Guidelines and Standards, 2004).
The economic benefits of career development services
3
2. DIRECT BENEFITS OF CAREER DEVELOPMENT TO
INDIVIDUALS
2.1 TYPES OF DIRECT BENEFITS
The use of career development services should provide individuals with:
A range of interventions including career education and counselling, that help
people to move from a general understanding of life and work to a specific
understanding of the realistic learning and work options that are open to them.
(Miles Morgan Australia, 2003, p. 12)
This could include:
current or future skills shortage;
alerting individuals to courses of study which will provide them with skills in areas of
alerting job seekers to occupations where there are labour shortages;
strengthening individual’s job search techniques;
motivating those in education and training programs to complete courses; and
acquire which in turn is likely to reduce job change and turnover in both education and
employment.
The above list is far from exhaustive, but provides an indication of the important benefits that
can (and do) accrue from career development services. While such benefits accrue directly
to the individual, they also flow through to employers and the broader economy.
improving the match between an individual’s interests and talents and the skills they
2.1.1
BENEFITS OF GOOD INFORMATION
By accessing career development services, individuals access an
vocational and educational advice
decision-making, and better decision-making in education and career choice should have
benefits for the individual and the economy.
The OECD across various reports have noted that part of the wider economic benefits to be
had from improved career guidance is in improved individual decision-making and labour
market efficiency:
informed source of. Good information should lead to better
As far as individual decisions are concerned, effective guidance can ensure that
job search and employment-related decisions are better informed, thereby
resulting in a more efficient workforce and greater complementarity between the
supply of, and demand for labour. Similarly, decisions relating to learning
opportunities are more likely to be appropriate and lead to ‘successful’
outcomes.
1
1
OECD Outcomes from Career information and career guidance services, January 2003.
The economic benefits of career development services
4
This largely rests upon the value of information in improving labour market
transparency and flexibility. It also rests upon higher allocative efficiency as the
result of a better match between individual talents and qualifications on the one
hand and the skills and qualifications demanded by employers on the other.
2
2.1.2
LOWER RISK OF UNEMPLOYMENT
Being better prepared for the labour market through knowledge of current conditions and
opportunities, and an understanding of one’s own career direction should generally help to
lower the risk of both unemployment and underemployment (working but would prefer to
work more hours).
Individuals can benefit through:
a reduced period of time in searching for work
are available); and
a higher probability of finding suitable work (and that work being in an area where jobs
one’s career direction.
That component of overall unemployment which is due to a lack of aggregate demand, or to
labour market rigidities (such as inflexibility in wages) is difficult for career development
services to address. That said, individuals accessing the services, by utilising an informed
source of vocational and educational advice, are more likely to place themselves higher in
the queue and therefore avoid a poor labour market outcome.
higher job satisfaction (and higher self esteem) from working in an area aligned with
2.1.3
BENEFITS OF SKILLS DEVELOPMENT
Improving career development will, on average, mean raising the skill levels of individuals.
In some cases, career development advice may be to direct individuals towards work rather
than further study, or towards lower levels of study (commensurate with the abilities and
interests of the individual). But the economy’s skill needs are increasing at a rapid rate, so in
general greater use of career development services is likely to see an increased level of skill
development (with that skill development hopefully targeted towards the areas of greatest
emerging need for the economy).
For individuals, skills development pays off via higher salaries, with salaries generally
positively correlated with the level of qualifications held.
3
That is not only true in the short term, but over a longer time horizon also. The higher are a
person’s skills, the more likely they are to keep participating in the labour force for longer. To
the extent that higher skilled jobs tend to be less ‘back breaking’ and more interesting, it also
means that older higher skilled workers are more likely to be willing and able to maintain a
connection with the workforce than less skilled workers.
2
OECD, Career Guidance and Public Policy: Bridging the Gap, 2004, p.31.
3
Brooks (2003) which found that between 1963 and 1989, real average weekly wages for the least skilled workers
declined by about 5%, whereas wages for the most skilled workers rose by about 40%.
A multitude of studies can be found in support of this finding including Juhn, Chinhui, Murphy, Kevin M., Pierece,
The economic benefits of career development services
5
2.2 INFORMATION ON DIRECT BENEFITS
Appendix A includes a brief summary of a number of papers which have examined the
benefits provided by career development services.
A recent OECD study has examined literature on these benefits.
have concentrated on
study, as well as a fairly easy one to examine (learning outcomes are immediate and are
easy and cheap to measure). The positive impacts of learning outcomes are reported in the
majority of studies.
4 Most evaluations to datelearning outcomes – both because it is an appropriate measure to
Behavioural outcomes
second area of focus for studies evaluating careers guidance. Studies of behavioural
outcomes require a follow up design to the study which imposes a number of difficulties.
Control group studies are particularly difficult to maintain over an extended period of time.
There has been little research on
needed to enhance our understanding of the potential longer term outcomes.
Among studies of career development services, a large proportion attempt to assess
individual evaluations of the career development services they have accessed. Such studies
include Beinhart, Smith et al (1997), Bosley, El-Sawad et al (2001), Bysshe and Parson
(1999), Hasluck (2000), James (2001), Kileen (1996) and Sims, Nelson et al (2001).
Studies which directly assess demand for career development services are less common
than studies analysing other aspects of career development services.
There are likely to be a range of
extent and usefulness of career development services in Australia
include:
(such as participation in education and training programs) are alonger term outcomes, with better longitudinal datadata sources which provide some information on the. These would
Records of usage of services at an agency or broader level.
Post-consultation surveys at an agency or broader level.
part of tracking cohorts of people.
The latter are likely to be particularly relevant in establishing the level of benefit provided by
career development services, in large part because they are likely to contain an effective
control group (who did not access the services, or accessed services in a different form).
Access Economics is aware of two such datasets which include information on career
development services as part of their surveys – the Longitudinal Survey of Australian Youth
(LSAY) conducted by the Australian Council for Educational Research (ACER), and the
Young Visions study conducted by the Commonwealth Department of Education, Science
and Training (DEST).
The
for every year since then, focuses on paths of future employment and study. Of particular
relevance here, it includes questions such as:
Longitudinal studies which include some questions on career development services asLSAY Y98 survey, which has tracked a cohort of students who were in Year 9 in 1998
4
OECD (2004a), Career Guidance and Public Policy: Bridging the Gap, Paris
The economic benefits of career development services
6
interview, including whether the individual has talked to a careers guidance officer, or
attended information sessions; and
nominating any careers advice which has been received since the previous annual
As the LSAY dataset is very detailed and tracks the same cohorts over long periods of time,
it is possible to separate the different responses to such questions and track the subsequent
labour market and future study performance of those individuals.
The
leavers and the experiences of continuing students. The data was collected based on a
follow up survey of students who had participated in the Young Visions survey one year
earlier in 2002.
across Australia and examined among other things the students’ experiences of career
education. Differences in responses to such questions can be examined by those who went
on to University education, relative to vocational education or work.
nominating how helpful was information received from the careers guidance officer.DEST Young Visions 2003 survey examined the post-school transitions of schoolYoung Visions surveyed more than 20,000 Year 10, 11 and 12 students
2.3 FUTURE RESEARCH OPTIONS
Further research could be undertaken into establishing the direct benefits which are accruing
from career development services, in general and by type of service offered.
The immediate outputs of career development services are the number of people using the
services and some measure of the usefulness of the services to those people. Career
development services are likely to provide more benefit:
the greater the demand is for the services (a quantity measure); and
the more satisfied people are with the services provided to them (a quality measure).
Stocktake of current usage of services
An important element of measuring outputs of career development services, as well as the
outcomes which would follow, is to undertake a stocktake of data which is currently collected
about users of career development services:
How many people are accessing career development services?
role in seeking new employment to use of published material only).
What sort of services are they accessing? (Ranging from consultations to a pro-active
previous employment etc.?
What is known about the characteristics of users, such as age, study being undertaken,
Analysis of existing data on users of career development services could then be used to
examine issues such as how
the potential pool who can access them (for example a share of the school or tertiary
education population), as well as potentially reporting on the characteristics of those people.
In interpreting such output, one would need to look at whether such services were
compulsory (in which case the ‘demand’ for them is less meaningful), and whether spare
How is the information collected and how could it be readily utilised?many people are using career development services from
The economic benefits of career development services
7
capacity existed to provide the services (if there were no spare capacity, then total usage
may understate ‘demand’, though one may possible also be able to examine waiting lists).
5
While providing some information on direct outputs (who is using the services), such a data
stocktake would also be important in establishing the broader outcomes being generated
from these services, by allowing results from tailored surveys to be extrapolated to a broader
population.
Stocktake of performance of career development services
Surveys of users of career development services could be used to measure the performance
of those services in terms of
This is likely to comprise information from two sources:
how satisfied people were of the service provided to them.
may be undertaken immediately after the service is provided, or more usefully, some
period of time afterwards (as perspectives may have changed on how useful the
information was).
Post-consultation surveys which ask clients for their feedback on the services. These
part of tracking cohorts of people. Interrogation of the LSAY and Young Visions
datasets noted above would be a useful starting point, while there may well also be
other sources of information of this kind which may be useful in monitoring the sector.
As well as client satisfaction, these datasets may provide information on
have fared in the labour market or in further study following their use of career
development services
services as discussed in the next chapter. Where such information is already available via
existing datasets it would make sense to collect it as part of a stocktake of existing
information sources. Information which is part of a longitudinal study may be particularly
useful as there is likely to also be a control group who have not accessed the services.
There may also be surveys of employers or other interested parties (such as teachers) on
how well career development services were performing (perhaps as part of a program
review).
Longitudinal studies which include some questions on career development services ashow individuals. This forms part of the broader benefits of career developments
Literature review
Future research could also include a detailed literature review. This could build on the
summary of material shown at Appendix A, including the additional sources listed in
Appendix A, though that material is taken from the international experience.
Focusing on any studies to date (or components of broader studies which focus on career
development services) from the Australian experience may be most useful as an areas of
further investigation.
5
were cost-effective. Students may place a low value on their time, and even though they choose to use such
services, the benefit they receive may not necessarily cover the cost of providing the service. Career
development services which are paid for by the recipient of the service are less likely to be subject to this problem
– the recipient makes a decision to purchase the service knowing the full cost of the service.
Note high usage of career development services might imply usefulness but would not necessarily imply they
The economic benefits of career development services
8
3. BROADER BENEFITS OF CAREER DEVELOPMENT TO
THE ECONOMY
An informed source of vocational and educational advice can provide individuals with
benefits such as reduced risk of unemployment, better job satisfaction and higher pay.
For society as a whole that can place downward pressure on the level of unemployment. It
can also translate into two factors which are very important in the current Australian
economic debate:
higher labour force participation; and
higher productivity.
3.1 TYPES OF BROADER BENEFITS
3.1.1
REDUCING UNEMPLOYMENT
Two forms of unemployment can arise from a degree of mismatch between workers’
knowledge and/or skills and the current (and potential future) state of the labour market.
Good decision-making in career choices, as encouraged by career development services,
should assist in reducing these.
Frictional unemployment
skills of the unemployed, yet a lack of adequate information about vacancies disseminated to
workers means the right workers are not filling the right vacancies, or that it takes longer than
might otherwise be required to fill the vacancies. Career development services could assist
in disseminating such information.
The overall number of people who may be seen as ‘frictionally’ unemployed could be
reduced through reducing the average period of time for job search. That suggests that
monitoring the average length of time taken to find a job may be an indicator of the broader
impacts of career development services.
exists where there are job vacancies matching the number and
Structural unemployment
available jobs. In a rapidly growing economy, the labour market cannot always match this
pace of change and some workers are sometimes left behind with an outdated skill set.
Again, career development services which identify current or looming skills shortages and
encourage potential workers to gain skills which are relevant to those parts of the economy
which are growing can help alleviate structural unemployment.
The amount of structural unemployment may be measured as the overlap between the
number of people seeking work and the number of job vacancies (less an allowance for
frictional unemployment). It could also be measured at an occupational level through skilled
vacancies or employer demand for temporary migrants to fill vacancies.
Beyond frictional and structural unemployment, the balance of ‘other’ unemployment could
be attributed to a lack of aggregate demand, or labour market rigidities (such as inflexibility in
wages), which is difficult for career development services to address.
Career development services could however play a part in reducing a portion of
unemployment (frictional unemployment and structural unemployment) if interventions
occurs where workers’ skills are not a good match for the
The economic benefits of career development services
9
encouraged those made redundant to improve their qualifications or to seek new types of
work in different regions, along with encouraging those in school or other study to adopt a
skill set which will be more relevant to future labour market requirements. Career
development services could also be used by those in jobs which are ‘disappearing’ (when the
economy is restructuring), before those people become redundant.
Benefits of course would accrue to the individuals affected via higher incomes and higher
self-esteem. Yet there are also benefits to society generally from reducing unemployment:
it increases the productive capacity of the economy;
on them; and
those affected are generally contributing to government revenues, rather than drawing
as well as reductions in health care costs (through better engagement of at risk
individuals in society).
less unemployment means potentially less risk of other social problems such as crime,
Those wider benefits to society are why governments and their policies have an
incentive to address the underlying reasons for any mismatch between workers’ skills
and the economy’s skill requirements.
3.1.2
HIGHER LABOUR FORCE PARTICIPATION
In general, greater use of career development services is likely to see an increased level of
skill development (with that skill development hopefully targeted towards the areas of
greatest emerging need for the economy).
Higher labour force participation is one of the benefits of a greater rate of skill development.
Higher education increases the wage an individual can command, giving them a stronger
incentive to work, and reduces their likelihood of any spells in unemployment. There is
ample evidence to suggest that increased educational attainment results in increased labour
force participation.
6
3.1.3
HIGHER PRODUCTIVITY
Higher levels of education mean higher pay for individuals, because the better educated
individuals are more productive.
Education has a direct effect on the level of productivity in the economy (and therefore output
growth) because it increases the productivity of individuals.
more productive worker, and investment in education provides a pool of more skilled labour.
In addition, some researchers argue that a more skilled workforce is more able to adapt to
new technologies in the workplace. This argument puts forth the idea that not only does
education increase the
7 A more educated worker is alevel of productivity in the economy, it also has an effect on the
growth
6
workers were less likely to participate in the labour force across all ages for both males and females.
of productivity over time. 8For example, Commonwealth Treasury researchers Kennedy and Hedley (2003) found that lower skilled
7
strongly related to participation rates and skill levels among workers.
For example, Commonwealth Treasury researchers Gruen and Garbutt (2003) noted that productivity growth is
8
underlying multifactor productivity growth rather than applying the traditional assumption of an ‘exogenous’
parameter.
This is a strand of the literature on ‘endogenous growth’ economic models which attempts to identify the forces
The economic benefits of career development services
10
3.2 AUSTRALIA’S DEMOGRAPHICS MAKE THE TASK URGENT
CoAG has expressed an aim to improve the stock of human capital in Australia. CoAG
endorsed:
A new national reform agenda to
productivity by building the nation’s human capital.
more Australians to realise their potential, and that of the nation. It will have a
major impact on the living standards of Australians, and generate significant
dividends for the Australian economy. It is an agenda that is both good for people
and good for the economy.
The reason that we need to focus on skills development now is because Australia’s
demographic make up is leading us towards a destiny of slower growth in living standards
over time. Population growth is slowing and, in particular, working-age population growth is
slowing as the number of new retirees a year is growing while the number of new entrants to
the labour force is stagnant. That means there will be a big increase in numbers of the aged
relative to numbers of workers, and a notable fall off in growth of those traditionally seen as
being ‘of working age’ – see Figure 1.
enhance workforce participation andThis agenda will enable(COAG communiqué Feb 2006)
F
IGURE 1: THE DEMOGRAPHIC CHALLENGE
Growth in Australia's working age population
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
1995 2000 2005 2010 2015 2020 2025 2030
Persons, change on
year earlier
Source: ABS population projections Series B, 3222.0
The
impact of ageing on Australian Government Budget outcomes as equivalent to a primary
budget deficit of some 5% of GDP by 2042. However, that is a public sector deficit figure –
not an estimate of lost output. The bigger picture figure is the impact on national output of
ageing. By 2041-42, the figuring in the
national output (compared with where it would otherwise be in the absence of ageing) of
13½%.
Intergenerational Report prepared by the Australian Treasury in 2002 quantified theIntergenerational Report implies a reduction in annual
The economic benefits of career development services
11
Slower growth in the labour force places a speed limit on the economy
of economic growth capacity in terms of ‘the 3 Ps’:
. One can think
Population – Those aged 15+.
Participation – The proportion of that population pool who are available to work.
The challenges put forward by an ageing population relate mainly to the
Productivity – How productive each worker is.participation
component to that equation. As a larger share of Australia’s adult population move into
retirement, the overall ratio of employment to population is set to fall (see Figure 2).
F
IGURE 2: THE SLIPPERY SLOPE
Employment to population ratio
40%
42%
44%
46%
48%
50%
1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013
Forecast
This ratio of total employment to total population is closely linked to the participation rate (the
difference is that the above figure removes the unemployed, and allows for those aged under
15). The predicted fall in it explains the reduction in annual national output (compared with
where it would otherwise be in the absence of ageing) by 2041-42 of 13½% noted above.
Declining birth rates over recent decades also present challenges on the
Fewer young workers will enter the workforce over coming decades to replace the growing
number of retirees.
Australia’s working age population usually grows by an average of around 166,000 people
every year. But trends already in place will see the working age population grow by just
190,000 for the entire decade of the 2020s – a tenth of the current pace.
With challenges ahead in two of the ‘3 Ps’, it is clear that
central component of growth in the Australian economy in coming decades. Many comments
from the Federal Treasury on adjusting to Australia’s ageing trends have focused on the
need to lift productivity growth over the longer term.
population front.productivity growth remains a
The economic benefits of career development services
12
CoAG has recognised that, to enjoy the same growth in living standards a year that we
are enjoying today, productivity growth will need to increase – that means having a
higher skilled workforce, and makes career development services aimed at improving
study and work choices all the more important.
3.3 FUTURE RESEARCH OPTIONS
The relevant outcomes one would be hoping to measure in examining career development
services include:
rates of labour force participation;
rates of unemployment;
earnings;
levels of study or further education (including monitoring drop-out rates); and
These outcomes in large part benefit the individual affected, but beyond those they also
deliver benefits to the broader economy as a whole.
Ideally these outcomes would be measured at different points in time following the period in
which career development services are provided, in order to judge whether any change in
outcomes is temporary or permanent.
The following outlines some possible approaches to assist in building the case on the
broader benefits which can accrue from use of career development services.
career satisfaction.
3.3.1
SURVEY-BASED APPROACH
The most definitive approach to estimating outcomes for individuals after using career
development services is via a longitudinal study of users of the services. The key questions
would relate to the main points above – future employment, wages and career satisfaction.
Also of interest would be any further education in related fields in the short term (indicating
continuity of career), or further education in different fields (indicating potential career
change).
Anyone undertaking such a study would need to be aware that there would be a range of
influences which affect individual’s labour market and career outcomes over time, of which
career development services are but one. Accordingly:
examined, such as previous employment and courses of study or academic ability;
one would need to have some summary information on the target group being
accessing career development services; and
the study would need a control group of people with similar characteristics who are not
and some period of time thereafter, so as to establish if the career choice was a
successful one (but not so long that the career development services are no longer
relevant to decisions made). Bysshe, S., Hughes, D., & Bowes, L., (2002) recommend
a three to five year longitudinal study as optimal for evidence of outcomes (and
potential career changes).
the study should extend for a period of time which covers both the next career choice,
The economic benefits of career development services
13
Of the surveys reported in Appendix A, Killeen and White (2000) is possibly the best practice
example from the literature of a longitudinal study relating to career development services.
That study obtained background information about respondents’ personal characteristics,
education and training experience, occupation, job satisfaction and their exposure to some
form of guidance activity. A matched sample of employed people who had not received
guidance was also interviewed, to operate as the control group. Both groups were then
followed up some 12 to 15 months later for information about education and training, job
satisfaction, earnings and progression, and then again a further eight to ten months later.
A key problem with longitudinal studies is that they require a very long time to wait for
evidence on policy issues which are important now, though the issues are likely to still be
important when the results come in. Dedicated surveys can also be costly to conduct.
3.3.2
CAREER DEVELOPMENT ANALYSIS AS PART OF OTHER SURVEYS
One means of obtaining some survey based information would be to try to include questions
on career development services as part of other surveys which are already conducted. This
could be via:
graduate destination surveys conducted from universities;
any school leaver destination surveys;
counselling (which was the practice for many of the studies discussed in Appendix A);
or
reviews of labour market programs which include career development advice or career
Australian Council for Educational Research (ACER) or the longitudinal Household,
Income and Labour Dynamics in Australia (HILDA) Survey conducted by the
Melbourne Institute of Applied Economic and Social Research.
As discussed in Chapter 2, some questions on the use of career development services have
already been included in longitudinal studies such as LSAY and the Young Visions study
undertaken by DEST. Future research could look to tailor any such questions in these
surveys to information priorities on career development, for example, to provide greater detail
on the type of services which were accessed (and then linking this detail to outcomes
captured within the survey such as labour force status, earnings and job satisfaction).
Answering questions on career development through an existing survey process is likely to
provide a natural control group via people who are part of the survey but haven’t used career
development services (or not to the same extent as others), though the target group may not
be specified as well as in a targeted survey and/or survey timing may not be ideal to examine
outcomes over both the short and medium term.
surveys such as the Longitudinal Survey of Australian Youth (LSAY) conducted by the
3.3.3
NON-SURVEY BASED MEASURES
Another approach to examining outcomes is to look at some key broader economic
measures which career development services should assist.
One would not be able to specifically isolate the contribution of career development services
to changes in these measures. Rather, career development services are one of a suite of
interventions which should help to drive improvements on these measures. Monitoring the
The economic benefits of career development services
14
following types of data items could provide performance measures for the outcomes career
development services are trying to help achieve
9:
proxy reflecting poorly informed study choices);
drop-out rates for schools, universities, and vocational education (these are a possible
individuals have made poor employment or even education choices);
job turnover rates (particularly in terms of drop-outs from graduate programmes where
changing jobs (as a measure of frictional unemployment);
average length of time for job search, for those leaving school, higher education or
vacancies (as a measure of structural unemployment);
the overlap between the number of people seeking work and the number of job
skilled vacancies for particular occupations (as a measure of skill shortage);
and
employer demand for temporary migrants by occupation (a measure of skill shortage);
Research could monitor these measures either over time or via a cross-sectional analysis,
with the cross-sectional study potentially between regions within Australia or across nations.
The cross-sectional approach may be able to look at outcomes across different jurisdictions
where the level of career development services offered also differed (though it would still be
difficult to fully attribute any difference in outcomes to career development services, given the
range of other influences which would also be involved).
labour force participation rates.
3.3.4
BROADER ECONOMIC OUTCOMES
The most difficult element of the research agenda is to measure the direct outcomes which
accrue from career development services.
Evidence of such benefits can then be translated into broader economic benefits by:
services if appropriate; and
extrapolating survey results to the broader population of users of career development
general equilibrium model.
The key benefits which would be modelled in an economic model are:
evaluating economic benefits with the assistance of a well specified macroeconomic or
education for a given level of benefit;
a reduction in higher education drop-out rates, reducing the average cost of delivering
increased skill development as a shift up in the average productivity of workers;
capabilities of the economy; and
increased labour force participation as a long term supply side boost to the productive
reduced unemployment as a further supply side boost.
9
career development services.
Note however that these are very broad measures and it would be difficult to attribute changes specifically to
The economic benefits of career development services
15
If information on direct outcomes allowed, the modelling could look at these benefits in terms
of specific occupational demand, with larger economy-wide benefits accruing if labour supply
can be increased in areas of greatest skill shortage.
The modelling would take into account benefits to government such as higher tax revenues
and lower welfare payments from reducing the unemployment rate (with such benefits
distributed back to taxpayers as tax cuts among other options).
Such modelling would allow the labour market benefits to be expressed in terms of overall
improvement in welfare for the community as a whole. The most commonly used measure of
economic welfare is real consumption, which summarises the ability of consumers to
purchase goods and services. The change in real GDP over time is also commonly used as
a summary measure of economic benefit.
Because some of the potential benefits of career development services are long lasting –
such as the higher participation rates of the better educated – the modelling option adopted
should be conducted over a longer term timeframe.
3.3.5
DIMENSIONS FOR RESEARCH
In undertaking the research options discussed in this chapter a number of dimensions would
need to be considered. These include:
face-to-face consultations, more pro-active roles or just accessing published material
(with the latter more difficult to track or distinguish from other factors in attributing
outcomes)
the types of career development services being examined – those involving a series of
secondary, late secondary) or adult; clients who are studying/working/unemployed etc.;
the context of career development services eg. school-based (primary, early
State or the whole country?;
the geographic scope of the research – does it cover a particular institution, region,
the timeline of the research, particularly with reference to longitudinal surveys; and
the sample size examined for any survey.
The economic benefits of career development services
16
4. REFERENCES
ACNielsen (1999)
Rapuara, New Zealand.
Beinhart, S., and Smith, P. (1997)
London DfEE.
Bosley, S., El-Sawad, A., Hughes, D., Jackson C. and Watts, A. G. (2001)
Individual Learning Accounts (ILAs)
University of Derby.
Bysshe, S. and Parson, D. (1999)
Bysshe, S., Hughes, D., & Bowes, L., (2002)
Review of Current Evidence
University of Derby
COAG,
February 2006.
Connor, H., and Dewson, S., with Tyers, C., Eccles, J., Regan, J., and Aston, J. (2001)
Research into Outcomes from Career Intervention. Career Services:National Adult Learning Survey. Research Series No. 49.Guidance and. Report. Derby: Centre for Guidance Studies,Evaluation of Learning Direct. London: DfEEThe Economic Benefits of Career Guidance: A, an occasional paper from the Centre for Guidance Studies,Human Capital Reform, Report of the COAG national reform initiative working group,
Social Class and Higher Education: Issues Affecting Decisions on Partcipation by Lower
Social Class Groups:
Department of Education Science and Training (2006),
Career development and workforce development,
development and public policy
Gardiner, K. (1997)
Ltd.
Grubb, W. N., (2002),
age
Gruen, D. and Garbutt, M.,
Treasury Working Paper, October 2003
Hasluck, C. (2000)
Development Report ESR41. Sheffield: Employment Service.
Hughes, D., Bosley, S., Bowes, L., and Bysshe, S. (2002)
Guidance
Jackson, C. Watts, A. G., Hughes, D., Bosley, S. and El-Sawad, A. (2001)
Work with Adults: A Survey
University of Derby.
James, K. (2001)
for Adult Continuing Education.
Sheffield. DFEE.Shaping the Future: ConnectionInternational Symposium on CareerBridges from benefit to work: a review. York: York Publishing ServicesWho am I: The inadequacy of career information in the information, OECDThe output implications of higher labour force participation,The New Deal for Young People: two years on. Research andThe Economic Benefits of, Centre for Guidance Studies Report, University of DerbyCareers Service. Occasional Paper, Derby:Centre for Guidance Studies,Prescriptions for Learning: evaluation report. Leicester: National Institute
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Juhn, Chinhui, Murphy, Kevin M., Pierece, Brooks "Wage Inequality and the Rise in Returns
to Skill",
Killeen, J. (1996)
Gateways to Learning
Kennedy, S and Hedley, D, (2003),
Participation in Australia
Killeen, J. and Maguire, M., (2003)
Services
OECD.,
Killeen, J. and White M. (2000)
DfEE, Research Report RR226: Sheffield.
Killeen, J. and White M. (2000)
DfEE, Research Report RR226: Sheffield.
Mayston, D.,
University of York.
Mayston, D. (2002)
Discussion Paper No. 8, University of York.
McLeman, P., and Smith, P., The Career Management Initiative at Buckinghamshire
Chilterns University College, in Yorke, M., and Stephenson, J., (1998)
Quality in Higher Education,
McMahon, M., Patton, W., Tatham, P.,
Journal of Political Economy, Vol. 101, No. 3 (Jun., 1993), pp. 410-442Does guidance work? An evaluation of the intermediate outcomes of. London: Department for Education and Employment.A Note on Educational Attainment and Labour Force, Treasury Working Paper 2003-03.Outcomes from Career Information and Guidance, National Institute for Careers Education and Counselling, prepared for theThe Impact of Careers Guidance on Adult Employed People,The Impact of Careers Guidance on Adult Employed People,Assessing the Benefits of Career Guidance, Centre for Guidance Studies,Developing a framework for assessing the benefits of Career Guidance,Capability andLondon: Kogan PageManaging Life, Learning and Work in the 21st
Century
MORI (1996)
DFEE.
MORI (2001)
Winchester.
OECD (2004a),
OECD (2004b),
OECD (2002),
Park, A. (1994)
quantitative survey
Quality and Performance Improvement Dissemination (2001)
, Australian Blueprint for Career Development, Miles Morgan AustraliaEvaluation of ESF Vocational Guidance and Counselling Schemes. Sheffield:Demand for Information, Advice and Guidance. The Guidance Council:Career Guidance and Public Policy: Bridging the Gap, OECDCareer Guidance; A Handbook for Policy Makers, OECDOECD review of career guidance policies, Australia Country Note, OECDIndividual Commitment to Learning: Individuals’ Attitudes. Report on the. Research Series No. 32. Employment Department.Training Older People,
Sheffield: DfEE
Sims, D. Nelson, J., Golden, S. and Spielhofer, T. (2001)
Learning Gateway.
Skills.
Young people’s experiences of theResearch Report RR277. London: Department for Education and
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Van Reenen, J., (2001)
British New Deal for the young unemployed in context
for Fiscal Studies
Watts, A. G. (1999) The economic and social benefits of guidance,
Guidance: Bulletin,
Guidance.
No more skivvy schemes? Active labour market policies and the. WP01/09. London: The InstituteEducation and Vocational63/1999. International Association for Educational and Vocational
The economic benefits of career development services
19
APPENDIX A - LITERATURE SUMMARY
This appendix provides a review of the (mostly international) literature which has examined
the benefits which accrue from career development services. The focus is more on the
methodologies employed in these studies (and less on the results) in order to identify options
for possible research in Australia.
A further series of studies (which have not been examined as part of this scoping study but
have been suggested as potentially of use for a future research project) are listed at the end
of this appendix.
The international literature comes predominantly from the UK, yet also contains studies from
the US and countries within our own region.
As an aside, we note that studies which attempt to quantify the benefits of career
development services are beset by a range of problems, as identified by Hughes et al (2002):
decision-making, and/or which can impact on outcomes.
There are a wide range of factors which impact on individual career choice and
simultaneously.
Career development is often one of a range of interventions presented to individuals
study making cross-study comparison very difficult.
The nature and extent of career development can vary considerably from study to
results in studies of career development programs.
There is also difficulty in analysing results in terms of positive and negative effects. For
example, a reduction in student drop out from courses may be seen as a positive effect of
guidance services. However, consideration must be given to the fact that some students
would have left courses to find jobs, thereby making the lower drop out rates ambiguous in
terms of impacts.
There is also considerable variation in outcome measures and methods for collecting
THE BROAD LITERATURE
A New Zealand (ACNielson) study conducted in 1999 identified soft and hard outcomes of
careers guidance, where soft outcomes related to how respondents felt about their career
goals while hard outcomes were measures of what they did to achieve these goals. Career
intervention was defined in this study as "having attended a career guidance session with a
career counsellor".
This study involved 400 respondents who were followed up for up to a year after the careers
guidance. Both qualitative and quantitative interview techniques were used. The study
found that 80% of the respondents said that they had made changes relating to work as a
result of the careers guidance. Of this group, 28% had entered a job matching their career
goals or skills and a further 27% had begun further education or training. Significantly, 86%
of the total sample felt that the careers guidance had been influential in their employment
decision-making.
The Maguire and Killeen study (2003) discusses the Watts 1999 paper which identified three
locations for assessing the outcomes of guidance, each of which has a different timescale
The economic benefits of career development services
20
attached to it. These are: the
‘learning outcomes’ are immediate,
designated as ‘school effectiveness (for example)’ are intermediate; and
outcomes which are designated as ‘economic benefits and social benefits’ are ultimate.
Watts focuses then on four types of outcomes with economic and social benefits being
treated separately. Within the category of organisations for which benefits may be derived
from guidance, Watts includes employers, as well as schools and other education and
training providers. "Retention, productivity and greater efficiency and effectiveness among
employees will accrue to employers from suitable guidance activity". (Maguire, Killeen, p4)
The OECD has examined career guidance policies and practices across countries and
produced some major reports in this area.
individual, where the outcomes which are designated asorganisational, where the outcomes which aresocietal where the
OECD (2004a),
Career Guidance and Public Policy: Bridging the Gap, Paris
This OECD study acknowledges the difficulties inherent in assessing the efficacy of career
guidance in practice. Most evaluations to date have concentrated on
both because it is an appropriate measure to study, as well as a fairly easy one to examine
(learning outcomes are immediate and are easy and cheap to measure). The positive
impacts of learning outcomes are reported in the majority of studies.
learning outcomes –
Behavioural outcomes
second area of focus for studies evaluating careers guidance. Studies of behavioural
outcomes require a follow up design to the study which imposes a number of difficulties.
Control group studies are particularly difficult to maintain over an extended period of time.
That said, a limited number of studies have shown positive effects on behaviour, such as
improved participation in learning, a reduction in welfare payment receipts and an improved
education attainment.
Finally,
date the evidence on longer term impacts is very limited. Long term longitudinal studies face
a number of challenges meaning accurate and informative data on longer term outcomes of
careers guidance is difficult to establish. Better longitudinal data is needed to enhance our
understanding of the potential longer term outcomes.
(such as participation in education and training programs) are alonger term outcomes can be assessed in relation to the effects of guidance. To
OECD (2004b),
Career guidance – a handbook for policy makers, Paris
This report by the OECD doesn’t look specifically at the economic benefits accruing from
career guidance, but may be very useful as part of a benchmarking exercise or inputs-based
approach.
The report highlights the lack of adequate labour market information available. While much
data on the labour market and areas of skills shortage are collected and known, there
appears to be little translation of this information into usable learning material for career
guidance. The report also notes that very little career information is designed based on
research as to the most effective methods of providing career information.
Chapter 15 of the report assesses the effectiveness of career guidance. It notes that few
governments today have the data available to provide an overall perspective on career
guidance provision and assess how well it is matching public policy objectives. Where data
The economic benefits of career development services
21
is collected, the tendency is to focus on simple quantitative indicators (such as the number of
users interviewed by guidance services, success rates in job placements by public
employment services) rather than more policy-relevant indicators such as client satisfaction
or improved career decision making skills.
Despite a strong research tradition in the career guidance field, there are few researchers
and specialised research centres specifically addressing methodological and other issues
related to the generation of a sound evidence base with direct policy relevance. The little
research that exists remains fragmented and is not cumulative in nature. Even where an
evidence base is being built up, the link between such data and the policy making process is
often tenuous.
CENTRE FOR GUIDANCE STUDIES REVIEW
A 2002 study prepared for the Centre for Guidance Studies in the UK entitled "The economic
benefits of guidance" was undertaken by Hughes, Bosley, Bowes and Bysshe. It aimed to
review the literature and weigh up the evidence in support of the benefits of career guidance.
The study found that there were three types of evidence available:
opinion studies,
outcome measurement studies with no or very weak counterfactuals, and
This study analyses the evidence found in the literature to support the benefits of career
guidance accruing through motivational and attitudinal change, learning outcomes,
participation in learning, student retention and achievement, job search/ reduced
unemployment, increased employment/ improved employer satisfaction and broader
economy-wide benefits.
A selection of the studies analysed in the Hughes, Bosley, Bowes and Bysshe paper follows.
These are sorted alphabetically by author.
controlled studies.
Beinhart, S., and Smith, P. (1997)
Series No. 49. London DfEE.
National Adult Learning Survey. Research
The focus of the National Adult Learning Study (NALS) was to gather data from 5,653 adults
(aged between 16 and 69 years old) about their participation in, and attitudes towards, taught
and non-taught learning in the three years prior to the survey. Both vocational and nonvocational
learning were included, questions about advice and guidance were included.
This study highlighted the difficulties in evaluating guidance when no distinction is made
between different aspects of information, advice and in-depth guidance or between guidance
providers.
Bosley, S., El-Sawad, A., Hughes, D., Jackson C. and Watts, A. G. (2001)
Guidance and Individual Learning Accounts (ILAs)
Guidance Studies, University of Derby.
. Report. Derby: Centre for
This report was based on the case studies of three pilot ILAs (Individual Learning Accounts),
an employee development scheme and a careers service with good links with the TEC and
The economic benefits of career development services
22
local businesses. Some 25 learners were interviewed. The study was conducted prior to the
national launch of the ILAs.
Researchers had difficulty in gathering data because two of the ILA pilots had not focused
specifically on guidance or on other forms of help to learners. Data had not been collected
from learners or not collated; learners’ progress had not been tracked and evaluation of
guidance had not been built into the design of the pilots.
The direct evidence available from this study is limited because of the absence of data about
guidance. The report highlights the need to include mechanisms for collecting relevant data
in order to evaluate the effects of guidance.
Bysshe, S. and Parson, D. (1999)
Evaluation of Learning Direct. London: DfEE
This study evaluates
used in the study included a baseline survey of 6,000 users and a follow-up survey of those
who had responded to the first survey.
Individuals associate attitudinal, learning and economic benefits with guidance. The
characteristics and views of over half of the callers who did not respond to the baseline
survey and over half of those in the baseline study who did not respond to the follow up are
unknown. It is also unclear whether respondents would have taken the action they did
without
Learning Direct (now learndirect) in its first year of operation. MethodsLearning Direct.
Connor, H., and Dewson, S., with Tyers, C., Eccles, J., Regan, J., and Aston, J.
(2001)
Participation by Lower Social Class Groups
Social Class and Higher Education: Issues Affecting Decisions on: Sheffield. DFEE.
This study was commissioned by the UK Department for Education and Employment to
explore the factors that influence the decisions of individuals from lower socioeconomic
groups to participate in higher education. The study was designed to build on previous
research that suggests that educational factors, family background and perceptions of costs
have the greatest impact on the decision-making process. A total of 223 potential students
from 20 schools and colleges took part in focus groups. A further 1,600 undergraduates from
14 institutions in England and Wales returned a postal questionnaire, while 20 respondents
took part in follow up interviews. Finally, 112 individuals from lower social class groups who
had decided not participate in higher education were also interviewed over the telephone.
It was found that a wide range of factors influence the decision to go to university including:
potential career prospects, earnings and job security, the desire for self-improvement,
financial concerns, the necessity to work while studying, academic pressures and gaining the
entry requirements. Advice and guidance was found to be an important influence, with some
students reporting a lack of adequate information.
Gardiner, K. (1997)
Services Ltd.
Bridges from benefit to work: a review. York: York Publishing
This research was funded by the Joseph Rowntree Foundation. The aim of the research –
coming as it did at the time of the advent of the then incoming UK Labour Government – was
to take stock of what had been learnt from prior experience of welfare to work programmes,
The economic benefits of career development services
23
and in particular to consider evidence arising from programme evaluation. The area of
research that is most relevant to guidance relates to the assessment of the relative
effectiveness of job-search programmes.
The review indicates that pilots and evaluations of welfare to work measures are expensive
to undertake, but provide crucial information. It argues that if these costs are to be justified
there is a need for a greater integration into the policy-making process, and a requirement to
standardise methodologies and data collection. In particular, efforts should be made to
record systematically short and longer-term impacts in a form that enables meta-analysis.
Hasluck, C. (2000a)
and Development Report ESR41. Sheffield: Employment Service.
The New Deal for Young People: two years on. Research
This report provides an overview of the NDYP evaluation programme and covers the
Pathfinder period (January 1998 to April 1998) and national programme from April 1998 to
November 1999. Data sources include the New Deal Evaluation Database, qualitative and
quantitative research with individuals and employers, and case studies.
Jackson, C. Watts, A. G., Hughes, D., Bosley, S. and El-Sawad, A. (2001)
Careers Service Work with Adults: A Survey
Guidance Studies, University of Derby.
. Occasional Paper, Derby:Centre for
This study was based on a postal survey of 45 (67%) careers service companies (CSCs) in
England. The report suggests that individuals believe that guidance may help them to find
paid work and more appropriate work. However, findings are based on the perceptions of
guidance workers not on clients. CSCs appeared to have limited evidence of effectiveness of
their work with adults. It is not possible to assess employers’ views of the benefits of
guidance from this study.
James, K. (2001)
National Institute for Adult Continuing Education.
Prescriptions for Learning: evaluation report. Leicester:
For the "Prescriptions for Learning" project a learning adviser was based in health care
centres to help patients identify learning opportunities and to provide on-going support during
any learning they undertook. The evaluation was conducted in the early stages of the project,
but covered the role of the learning adviser in the project in some detail. Views were
gathered from some healthcare staff and from 19 of the 46 individuals who had received
guidance from the learning adviser.
The report suggested that further evaluation of this and similar projects may provide more
specific evidence, from larger sample groups and over a longer time frame.
Killeen, J. (1996b)
outcomes of Gateways to Learning
Employment.
Does guidance work? An evaluation of the intermediate. London: Department for Education and
The economic benefits of career development services
24
Guidance services were provided through the Learning Gateway
find suitable education and training as a step towards gaining work. During the year
following guidance the experiences of over 800 Gateway clients were compared with those
of an equivalent number of similar people who did not use the Gateway. Data was gathered
first by interviewing research participants and at a later date by postal survey.
The author of the report draws attention to different interpretations of data, to the potential
flaws in design and the unreliable nature of retrospective perceptions of the effects of
guidance.
10 to help unemployed adults
Killeen, J. and White M. (2000)
Employed People
The Impact of Careers Guidance on Adult, DfEE, Research Report RR226: Sheffield.
The aim of this study was to provide a rigorous evaluation of the net impacts of guidance on
adult employed people, with particular emphasis on economic outcomes. The focus was on
publicly available (usually free or subsidised) guidance services being provided to currently
employed people, and specifically excluded guidance which was based within – or given by –
the individual’s employers. The services considered included a personal interview with a
guidance practitioner/counsellor (94% of cases), or talking to an adviser in a group (6%), and
in many cases other inputs (e.g. taking skills and interest tests 26%, using a computer to get
information/help 45%, and using leaflets/books 55%).
In total some 2,700 guidance clients were approached, and, of them 1,612 responded (about
a 60% response rate). The research cautions that, like most evaluation studies, the results
can not be directly generalised, and that as usual, the study uses volunteers who may have
untypical characteristics.
Postal questionnaires or telephone interviews were administered to a sample of adults two to
three months after they had experienced some form of guidance intervention. The emphasis
was on obtaining background information about their personal characteristics, education and
training experience, occupation, job satisfaction and their exposure to some form of guidance
activity. A matched sample of employed people who has not received guidance was also
interviewed, as the control group. Both groups were then followed up some 12 to 15 months
later and information fathered about education and training, job satisfaction, earnings and
progression. A further follow up was conducted eight to ten months later. This meant that
there was a longitudinal element to the study which enabled the impact of guidance
interventions, in terms of both learning and employment outcomes and shifts in aspirations
and attitudes to be assessed.
In addition it adds – mainly because of attrition in the in the research group – at some point
research findings are reported as significant at a 90% confidence level, less than the 95%
‘gold standard’ in statistical analysis. However, the report added that:
publicly funded careers guidance in 1997;
the sample group constituted a large fraction of all the adult employed people receiving
the methods of matching (against non-users) provide a robust basis for evaluation;
overall, these considerations should increase confidence in the research findings.
10
help with job search from a Personal Adviser.
The UK’s New Deal policy includes a 4-month ‘Gateway’ period during which young people receive extensive
The economic benefits of career development services
25
The research indicated that conclusive research on issues such as earnings would need
research with larger samples than were available for this study.
It indicated that there is a ‘chicken and egg’ problem here, for only when there are larger
scale guidance services in place, will the necessary sample sizes be available to assess the
relative economic effectiveness of different models of provision.
McLeman, P., and Smith, P.,
Buckinghamshire Chilterns University College
(1998)
The Career Management Initiative at, in Yorke, M., and Stephenson, J.,Capability and Quality in Higher Education, London: Kogan Page
The Career Management Initiative was introduced to help graduates maximise their chances
of success in the employment market. A Steering Group was established including
representatives from the faculties, careers guidance staff and employers.
The Teaching Quality Assessment demonstrated that students had gained valuable
transferable skills as well as subject knowledge through their degree course, but many were
not aware that they had done so and were therefore not in a position to make best use of
these skills in their subsequent careers.
There was therefore a clear rationale for the introduction of the Career Management Initiative
to raise skills awareness, awareness of opportunities, and to help to develop job searching
skills including those related to the application and selection process. 35 final year social
sciences students participated in the pilot. The pilot consisted of 4 workshop sessions held
on Wednesday afternoons throughout the first semester during the 1996-97 academic year.
MORI (2001)
Council: Winchester.
Demand for Information, Advice and Guidance. The Guidance
This research was commissioned by the Guidance Council to explore the expectations of,
and demand for, information, advice and guidance (IAG) about opportunities for learning and
work. Following a literature review and pilot study, the researchers interviewed 1,000 general
population working-age adults aged 16-65 in 61 enumeration districts in September and
October 2000. 300 users of guidance were subsequently interviewed by telephone in
October 2000.
The study canvassed the issues of attitudes towards IAG among the sample population. It
also investigated the propensity to seek IAG about education, training and work opportunities
during the past year. It also assessed which were the most and least common sources of
IAG for the sample. Finally, the satisfaction of the respondent with the IAG they had
received over the past year was recorded.
MORI (1996)
Sheffield: DFEE.
Evaluation of ESF Vocational Guidance and Counselling Schemes.
This research project undertook evaluation research with 300 providers of ‘Choices and
Access’ Schemes which were co-funded by the European Social Fund (ESF) in 1994.
Projects which secured funding were managed by a range of public, and some private sector
bodies, including Training and Enterprise Companies (TECs), voluntary bodies,
The economic benefits of career development services
26
further/higher education institutions, local authorities, and provided guidance, counselling
and/or job-search support which was aimed to help recipients enter jobs and/or training.
The evidence in the report was primarily obtained on a self-report basis with some validation
from other sources. However, the report does provide some evidence about the stated
effectiveness of these projects with challenging client groups.
Park, A. (1994)
on the quantitative survey
Individual Commitment to Learning: Individuals’ Attitudes. Report. Research Series No. 32. Employment Department.
The report contains the findings of the SCPR ‘Survey of Individual Attitudes to Lifetime
Learning’, which sought to increase understanding of different attitudes towards learning, to
identify barriers to learning, and to examine the impact which the removal of these barriers
would have upon take up of learning. The research included a range of questions about
awareness of sources of information/advice, about experience of advice/guidance services.
The survey was based on 1403 interviews with respondents aged between 16 and 54, with a
net response rate of some 67%. The larger age groups in the sample were as follows: 14%,
25-29; 26%, 30-39; 27%, 40-49.
Over 51% of those respondents who had completed full-time education stated that it was
unlikely that they would do any vocational learning in the next two or three years. 73% of
likely future learners were either learning at the time of learning, or had done some
vocational learning in the three years prior to the interview.
The potential role of enhanced information, advice and guidance services (including
addressing perceived barriers such as cost) in addressing this issue was not explored by the
research.
Quality and Performance Improvement Dissemination
People,
(2001) Training OlderSheffield: DfEE
This QPID study aimed to investigate the use and experience of Work Based Learning for
Adults (WBLA), Programme Centres and Work Trials by people aged over 50, and the
factors associated with participation, achievement and successful placement. Alongside a
review of statistical and management information, the qualitative research included
interviews with 180 programme participants over 50, as well as with 104 staff in seven TEC
areas.
Staff interviewed at training providers, Jobcentres, and Programme Centres regarded
‘success’ as a job or qualification, and/or qualitative improvements in regard to clients’
increased motivation/confidence, coping skills, access to a network of support, or broadening
of occupational horizons.
The research recommends that Employment Service consider undertaking further research
into the costs and benefits of providing a limited follow-up support service for Programme
Centre leavers who may need some help at first to stay in employment.
Sims, D. Nelson, J., Golden, S. and Spielhofer, T. (2001)
experiences of the Learning Gateway.
Department for Education and Skills.
Young people’sResearch Report RR277. London:
The economic benefits of career development services
27
This is study investigated young people’s experiences of the UK’s Learning Gateway.
Gateway clients are supported by a Personal Adviser (PA) and progress to Life Skills
courses or mainstream learning and employment.
Data was collected using qualitative interviews/discussions with 152 young people aged 16-
18, and interviews with eight careers service managers and 17 Personal Advisers.
Findings reflect other studies of the role of PAs in government initiatives. It may not be
appropriate to compare this level of support and provided to this particular group with
guidance afforded to other groups and at different levels of intensity. It is difficult to assess
how many young people identified the benefits listed in the absence of quantitative data and
limited qualitative descriptors (e.g. many, some, a few) are included.
Van Reenen, J., (2001)
and the British New Deal for the young unemployed in context
London: The Institute for Fiscal Studies
No more skivvy schemes? Active labour market policies. WP01/09.
This quantitative study explores the success of the UK’s New Deal for Young People in
moving participants into employment. Economic benefits of the programme are highlighted.
During the pilot period young people on the New Deal were compared with those who were
not and thereafter New Deal participants were compared with 25-30 year-olds who had been
unemployed an equivalent period. Data on the flow into employment of 5% of those claiming
employment-related benefits were used as the basis of the study.
The New Deal includes a 4-month ‘Gateway’ period during which young people receive
extensive help with job search from a Personal Adviser. Overall participants in New Deal
were estimated as 20% more likely to find jobs each month. The job assistance element (as
opposed to the job subsidy element) accounted for between 5.3% and 8.15% of flow into
employment. Social benefits were estimated at between £25m and £50m, excluding more
indirect benefits such as social inclusion effects, the redistribution of wealth from older
taxpayers to young unemployed, and enhanced employability and productivity. Job
assistance was identified as the most cost effective element of the programme and was
estimated as increasing steady state employment by about 8,000.
Studies of similar schemes are reviewed in this paper. This detailed, rigorous study includes
an examination of methodological and analytical flaws. An extensive bibliography covers US,
European and UK studies.
ADDITIONAL STUDIES
This section lists a further series of studies which have not been examined as part of this
scoping study, but have been suggested as potentially of use for a future research project.
These studies include:
Killeen, J., White, M. & Watts, A.G. (1992). The Economic Value of Careers Guidance.
London: Policy Studies Institute.
Windfalls for Governments.
Jarvis, P.S. (2003). Career Management Paradigm Shift: Prosperity for Citizens,Memramcook, Canada: National Life/Work Centre.
Government.
Hughes, D.M. (2004). Investing in Career: Prosperity for Citizens, Windfalls forLeicester: The Guidance Council.
The economic benefits of career development services
28
London: Department for Education and Skills.
Tyers, C. & Sinclair, A. (2005). Intermediate Impacts of Advice and Guidance. RR638.
conducted by Marion Morris and others at the National Foundation for Educational
Research.
The series of evaluation studies of careers education and guidance in schools
Walsh, W.B. & Osipow, S.H. (eds.):
136. Hillsdale, NJ: Erlbaum.
Spokane, A.R. & Oliver, L.W. (1983). The outcomes of vocational intervention. InHandbook of Vocational Psychology, Vol. 2, 99-
to client gain?
Oliver, L.W. & Spokane, A.R. (1988). Career-intervention outcomes: what contributesJournal of Counseling Psychology, 35(4), 447-462.
academic achievement: a meta-analysis.
Evans, J.H. & Burck, H.D. (1992). The effects of career education interventions onJournal of Counseling and Development, 71,
63-68.
replication and extension of Oliver and Spokane.
150-165.
Whiston, S.C., Sexton, T.L. & Lasoff, D.L. (1998). Career-intervention outcome: aJournal of Counseling Pychology, 45,
assumptions and new observations about career counseling. In Brown, S.D. & Lent,
R.W. (eds.):
Wiley.
Brown, S.D. & Ryan Krane, N.E. (2000). Four (or five) sessions and a cloud of dust: oldHandbook of Counseling Psychology (3rd edition), 740-766. New York:
Whiston, S.C. (2002). Application of the principles: career counseling and interventions.
The Counseling Psychologist
, 30, 218-237.
career counseling effectiveness?
Whiston, S.C., Brecheisen, B.K. & Stephens, J. (2003). Does treatment modality affectJournal of Vocational Behavior, 62, 390-410. |
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