2. What constitutes effective career guidance for mid-career adults?

Abstract

This chapter elaborates on what constitutes high-quality career guidance for mid-career adults. Taking into account their unique needs, the chapter considers how career guidance services for mid-career adults should be delivered, how to motivate mid-career adults to seek out career guidance, who should provide the services, and how to fund them.

In Brief

Effective career guidance for mid-career adults takes into account their specific needs and challenges

Mid-career adults have specific needs when it comes to career guidance and these should be taken into account when designing career guidance services. The key findings from this chapter are:

Mid-career adults have acquired skills through informal learning over many years of work experience. A first step in guidance for this group should be to make their skills visible and identify their transferable skills. Only 20% of mid-career adults in Australia reported having their skills assessed via a test. Much more common was to have their skills assessed during an interview (70%).
Once their skills are assessed, career guidance should outline the gap between the skills that mid-career adults have and those needed to perform their desired role. Clear career and training pathways are needed. The final outcome should be a personalised career development roadmap that outlines the training and career development activities required to achieve their objectives. In Australia, a high share of mid-career adult users of career guidance report having received a personalised career development roadmap (75% relative to 55% in other surveyed countries).
Mid-career adults report different reasons for not accessing career guidance. In Australia, 56% of mid-career adults reported not needing the service, while 20% did not know such services existed. There is also a time constraint, with 10% of women reporting they did not have time due to family responsibilities (compared to 4% of men), and 13% of men reporting time constraints due to work (compared to 4% of women).
A high share of mid-career adults in Australia seek career guidance to progress in their current job (43%), for which career guidance provided by their employer or by an employer group is well suited and more frequently used than in other countries (16% and 11%, respectively). As in other countries, publicly funded employment services are a commonly used provider of career services in Australia (24%), though these mainly entail job matching services. Private career guidance providers are used considerably less in Australia than elsewhere (12% versus 23%) despite the potential to support mid-career adults who wish to change job or industry.
Mid-career adults in Australia are more likely to report paying for career services out-of-pocket than are those in other countries: 57% of mid-career users of career guidance paid out-of-pocket, compared to the country average of 33%. As few adults use privately provided career guidance, it is likely that these users paid for other services that indirectly included a career guidance component, such as training courses. Australia does not offer financial incentives to support co-funding of private career guidance. International examples include career vouchers in Belgium or subsidised career guidance in the Netherlands and France.

Introduction

Chapter 1 highlighted the particular challenges faced by mid-career adults in the labour market. Survey evidence from Australia shows that, compared with younger adults, mid-career adults are less likely to change jobs or to train. Greater family responsibilities than younger adults means that they may be less geographically mobile when it comes to considering potential job opportunities, and have less time for training and career development. For most mid-career adults, it would be many years since they were in initial education, and they would likely be unfamiliar with the education and training system and available training opportunities. Finally, mid-career adults would have acquired skills through work experience that have not been formally validated. Finding ways to make these skills visible will facilitate their job transitions, shorten training pathways and improve the matching of skill supply and demand.

Taking these challenges into account, this chapter elaborates on what constitutes high-quality career guidance for mid-career adults by looking at how career guidance services should be delivered, how to motivate mid-career adults to seek out career guidance, who should provide the services, and how to fund them.

2.1. How should career guidance services be delivered to mid-career adults?

Career guidance services need to be delivered in a way that takes into account the particular challenges and needs of mid-career adults.

An important component of career guidance for mid-career adults is making their skills visible and identifying their transferable skills. Having spent many years in the labour market, mid-career adults have acquired skills through informal learning (i.e. non-institutionalised learning activities that are unstructured and can take place anywhere), including learning by doing and learning from others. Indeed, this type of job-related learning at work is much more common than either non-formal learning (i.e. institutionalised learning activities which are either of short duration or not recognised by the relevant education or equivalent authorities) or training towards a formal qualification (Fialho, Quintini and Vandeweyer, 2019[1]). High-quality career guidance for mid-career adults entails making these informally acquired skills visible. Doing so ensures a better assessment of skills gaps associated with potential employment or training goals, and enables shorter training pathways. As is the case in other countries, the most common method used by career guidance advisors in Australia to assess adults’ skills is simply asking about a person’s experience and qualifications during an interview (Figure 2.1). Nearly 70% of mid-career adults who used career guidance reported that this is how their skills were assessed. Only 20% of mid-career adults reported completing a test to have their skills assessed. Tests with a skills focus are both less subjective than interviews, and also more likely to capture a more comprehensive picture of what mid-career adults can do, because they place less emphasis on formal qualifications or work experience. Australia has introduced several career guidance programmes for mid-career adults that incorporate psychometric, skills and/or employment testing (Box 2.1) but the scale of these programmes is very limited.

Figure 2.1. Methods for assessing skills

Box 2.1. Federal level career guidance programmes for mid-career adults in Australia that emphasise skills assessments and personalised career development roadmaps

Skills Checkpoint for Older Workers

Operating across all Australian states and territories, and administered by the Department of Education, Skills and Employment (DESE), this programme targets Australians aged 40+ who are either recently unemployed or working but at risk of becoming unemployed. To avoid service duplication, only adults who are not registered for assistance through an Australian Government employment services programme, e.g. jobactive or Disability Employment Services, are eligible. The programme provides free, tailored advice and guidance on transitioning into new roles within their current industry or finding pathways to a new career. Participants can receive skills and employment assessment services, career advice and coaching sessions, including development of an individual Career Plan. The programme tests participants’ foundation skills, identifies gaps in skills and measures the participants’ aptitude for a variety of training pathways and occupations. If the programme identifies a need for training to upskill or reskill, participants may be eligible for support for training costs: up to 75% of costs for occupations in national shortage or 50% of costs for training not related to occupations in shortage (max. AUD 2 200).

On 1 January 2022, the number of places available under the programme was doubled from 5 000 per year to 10 000 per year, though the cap has never been hit. Between December 2018 (when the programme started) and December 2021, 11 630 Australians completed the programme. Around 63% of these participants accessed training funding through the Skills and Training incentive (also administered by DESE). Data is not collected about training starts, completions or employment outcomes related to the programme.

Mid-Career Checkpoint

The Mid-Career Checkpoint programme targets working-age people who have taken time out of the workforce to care for their families and are looking to return to paid employment or advance their careers. The programme is in a pilot phase, operating in New South Wales, Victoria and Queensland, and is delivered as a hybrid model with face-to-face and online sessions. The programme was recently expanded to include support for workers in female-dominated, COVID-19 affected industries. It provides participants with a free skills and employment assessment, tailored career advice and coaching sessions. The programme focuses on matching the participants’ employment goals with their skills and qualifications, and where applicable, can measure aptitude through psychometric, skills and/or employment testing.

All participants receive a customised Skills, Training and Employment Plan (STEP) that identifies their attributes, skills and qualifications, as well as any skills gaps and details their employment goals. Each participant’s STEP provides information on local employment and training opportunities in line with the participant’s employment goals. Where a participant’s STEP recommends specific accredited training to upskill or reskill, up to AUD 3 000 is available to support that training. Between July 2020 and December 2021, 363 participants participated in the pilot. Data is not collected about training starts, completions or employment outcomes related to the programme.

Source: Department of Education, Skills and Employment.

The recognition of prior learning (RPL) is a more formal way of assessing and validating an adult’s skills. It is particularly useful in supporting upskilling and reskilling pathways of mid-career adults who lack formal qualifications. These processes are often offered by education and training institutions and lead to formal certification of skills acquired outside of formal training. The process involves demonstrating achievement of competencies, often by preparing a portfolio of relevant work or demonstrating one’s ability to carry out tasks in practice. Recognition of prior learning can shorten retraining pathways by giving adults credit for skills they already have, and thus accelerating their transition to new jobs or sectors. These processes are often complex and demanding, and guidance that supports adults in these processes of having their skills recognised can be valuable to mid-career adults. Finland’s competency-based vocational education and training (VET) programmes are examples of career guidance that supports the adult in completing an RPL process (Box 2.2). Tasmania’s Rapid Response Skills Initiative is another example (Box 2.4).

Personalised career development roadmaps are another important component of quality career guidance, particularly for mid-career adults. Such roadmaps spell out the sequence of activities that an adult should take to achieve their employment and/or training objectives. They start from a thorough assessment of the adult’s skills, aspirations and background. They can be particularly helpful to support mid-career adults considering job or occupation transitions, by providing a clear action plan for the training and other career development activities they would need to carry out. Use of personalised career development roadmaps is quite high in Australia, with 75% of mid-career adults who used career guidance reporting that they received one (Figure 2.2). This is well above the survey average (55%). Both the Skills Checkpoint and the Mid-Career Checkpoint feature a personalised career development roadmap as a component of their career guidance programmes.

Figure 2.2. Personalised career development roadmap

Career guidance for mid-career adults should clarify career and training pathways. To support progression within one’s firm, workers need to understand which skills are needed to perform the different roles within the firm and employers should make this information transparent. Encouraging the use of mentoring, career conversations with HR professionals, and job rotation within firms can help adults become familiar with the skills required in different roles. In some countries, the government supports the development of career pathways which map the skills and training needed to perform different roles within a given occupation or sector. In Japan, for example, the Ministry of Health, Labour and Welfare has developed career maps for a range of fields and industries, showing different possible career pathways. In the United States, the so-called career pathways model has been applied in several sectors, including health care, manufacturing, information technology, construction and shipping/logistics/transportation (Box 2.3). Interactions with employers, through site visits or information interviews, can be valuable for mid-career jobseekers or those facing employment transitions. The Career Transition Assistance programme in Australia, which targets mid-career jobseekers age 45+, emphasises employer visits for unemployed workers looking to transition into new sectors or occupations as a way to clarify which skills the employer is looking for (Box 2.6).

Mid-career adults may also benefit from certain types of labour market information. Given their greater family and financial responsibilities, mid-career adults may be less geographically mobile than younger adults. For them, information about local labour market and training opportunities will be crucial, as they will have less scope to travel or relocate for work or training. Career advisors need to have strong linkages with local employers and industry groups to understand their skill needs. Furthermore, having been in the labour market and away from initial education for many years, mid-career adults are distanced from the formal education and training system and could benefit from impartial information about training opportunities. Nearly a quarter (23%) of mid-career adult users of career guidance in Australia received guidance from an education or training provider, which is a higher share than observed across other countries in the survey (14%) (Figure 2.6). Guidance provided directly by an education and training institution is likely to be well-informed about training opportunities at that given institution. The risk is that the adult is not made aware of training opportunities at other institutions which might be a better fit for their particular training and career trajectory. Finally, with their complex family and work responsibilities, mid-career adults would benefit from information about flexible options for upskilling and reskilling, including training offered online, part-time or in micro-credential formats.

Effective career guidance for mid-career adults also needs to be responsive to their adult level concerns, including family and work responsibilities. Offering services during flexible hours or at community centres where childcare is available is helpful. Career guidance services for mid-career adults should also be well-linked to support services related to physical and mental health, financial advice, family and childcare support, and education and training guidance.

Box 2.2. Support for recognition of prior learning processes within career guidance in Finland

Adults who want to complete a competence-based qualification (CBQ) or a preparatory training for a competence-based qualification, can have their skills validated and receive support from a career guidance advisor in navigating the process. In order to complete a CBQ, candidates must demonstrate certain skills and competences required in the profession, outlined in the Requirements of Competence-based Qualifications defined by the Finnish National Board of Education. Education providers are responsible for providing personalised guidance and support to students as they carry out the validation process, and help them plan the next steps of their career. Adults receive a personalised learning plan that charts and recognises the skills they already have, those they need, and in which learning environments they can be acquired. Certificates are awarded by Qualification Committees (Näyttötutkintotoimikunta), which are sector-specific tripartite bodies that oversee the quality of the provision of CBQs.

Finally, how career guidance is delivered – whether face-to-face, by telephone or online, individually or in a group – deserves consideration when thinking about how mid-career adults could best be served. Face-to-face is the most common delivery method for career guidance in Australia (55% of mid-career adult users) (Figure 2.3). It might be thought that meeting with someone in person would be preferable for mid-career adults who may be less comfortable with digital channels (videoconference and online chat/portals). However, a significant share of mid-career adults declare that they would actually prefer to access career guidance via videoconference and online portals (Figure 2.3). From interviews, the OECD team heard that demand for career guidance programmes directed at mid-career adults (Skills Checkpoint for Older Workers) actually increased during the pandemic, despite having to switch from face-to-face to remote alternatives. Perhaps this reflects the greater flexibility these alternative channels afford to mid-career adults who have time constraints due to family and work responsibilities. The Career Transition Assistance programme in Australia places strong emphasis on group delivery. Group delivery is seen to be an important element in combatting potential shame that mid-career jobseekers may feel in looking for sustainable employment at an older age, by reminding them that they are not alone.

Figure 2.3. Actual and preferred channels of service delivery

Box 2.3. Testing the United States’ “Career Pathways” model in Ontario, Canada

The Career Pathways model developed in the United States offers post-secondary education and training delivery through a series of modular steps, with each step leading to higher credentials and employment opportunities. This model aligns education, workforce development and support services to support learners to attain high quality and sustainable employment. The components of a Career Pathway include accelerated and accessible credentials and placement, support services, employer engagement and subsidised training programmes. A unique feature of this model is that the pathway has multiple entry and exit points, allowing individuals to enter at the most appropriate skill level and/or transition easily between participating in the labour market and pursuing further training. A review commissioned by the Department of Labor found that the health care sector most frequently implemented the Career Pathways model. Health care may be well suited to the Career Pathways model because there are clear occupational progressions, from entry-level (e.g. nursing aides, personal care aides), to mid-level (e.g. licensed and vocational nurses) to higher-level occupations (e.g. registered nurses, diagnostic-related technicians).

In Ontario, many lower-skilled adults find it difficult to access high quality jobs and employers struggle to find workers with the right skills. Recognising that the Career Pathways model has not been widely adopted outside the United States, the Ontario Centre for Workforce Innovation (OCWI) funded four projects focused on building the evidence base in Ontario. While none of the projects tested a fully developed Career Pathway, each project explored the development of some key features of the model.

The conclusion was that Career Pathways have the potential to meet skill needs in target sectors provided there is a deep understanding of the sector’s skills needs. Strategic partnerships between employers, workforce development services, and education institutions are crucial for successful implementation. The assessment report concluded that future projects should focus on deepening partnerships with employers and labour market experts to identify sectors where the Career Pathways model could be effective.

Source: OCWI (2019[2]), “Career Pathways Demonstration Project: Final Report”; https://ocwi-coie.ca/wp-content/uploads/2019/03/Career-Pathways-Demonstration-Project-Final-Report-March-11.pdf, Palamar, M. and K. Pasolli (2018[3]), “Career Pathways” a promising model for skills training, Institute for Research on Public Policy; https://policyoptions.irpp.org/magazines/november-2018/career-pathways-promising-model-skills-training/, Sarna, M. and J. Strawn (2018[4]), “Career Pathways Implementation Synthesis: Career Pathways Design Study”, https://www.dol.gov/sites/dolgov/files/OASP/legacy/files/3-Career-Pathways-Implementation-Synthesis.pdf.

2.2. What motivates mid-career adults to participate in career support?

Mid-career adults seek career guidance for different reasons, depending on where they are in their career or personal life, their employment status, and job ambitions. They may be looking for a new job, returning to the labour market after an absence, choosing a training or education programme, or consulting career guidance as part of receiving unemployment benefits or subsidised training. Chapter 1 reported that a relatively high share of mid-career adults in Australia use career guidance. However, some mid-career groups use career guidance much less than their counterparts, including low-educated adults, women, and foreign-born adults. This section looks at the reasons that adults pursue career guidance, the barriers that prevent some from consulting these services and why they choose one provider over another, with an aim to better understand how to motivate mid-career adults to use career support.

Compared to other countries in the SCGA, mid-career adults in Australia are more likely to seek career guidance to progress in their current job (43% vs. 30% in other countries) or to choose a study or training programme (37% vs. 25%) (Figure 2.4). This is consistent with the finding that Australian mid-career adults are more likely than those in other countries to receive guidance from their employer or from an education and training institution (Figure 2.6). Other reported reasons include looking for a job (33%), wanting to change jobs (32%), being required to (28%) or because one is uncertain about one’s future labour market prospects (14%).

Figure 2.4. Mid-career adults’ reasons for speaking with a career guidance advisor

Motivating mid-career adults to use career guidance starts with an understanding of why they do not use these services more. Figure 2.5 shows that among mid-career adults who did not speak with a career guidance advisor over the past five years, 50% of men and 60% of women did not feel the need to. These adults may already be established in their careers, not planning a change in their working lives or not interested in education and training opportunities. Another explanation is that they are not fully aware of or informed about the benefits of receiving professional career guidance. The higher incidence of women not feeling the need to see a career guidance advisor could be linked to traditional gender roles where women are encouraged to focus on family related responsibilities rather than career progression. About 21% of men and 19% of women non-users did not speak to a career guidance advisor because they did not know such services existed. This suggests either a lack of information about career guidance services (and a need for more efforts to promote these services), or that these services are not easily accessible.

Time constraints are a barrier for both men and women, but for different reasons. Ten percent of women reported not accessing career guidance due to time constraints related to family or childcare responsibilities, compared to only 4% of men. Offering career guidance in community centres or other places with childcare options is one way to tackle this barrier. Thirteen percent of mid-career men reported being too busy at work to access career guidance, compared to 4% of women. Supporting employer-provided career guidance can help tackle this barrier, especially for those who wish to progress within the same job. Another possible policy response to address time constraints could include career guidance in training vouchers that entitle adults to time off from work to pursue these activities. Both Denmark and the Netherlands allow individuals to use paid leave for education and training purposes towards career guidance visits.

Other barriers were more minor and similar for men and women: cost (4%), inconvenient time or place (2%), or poor quality (1%).

Figure 2.5. Reasons for not speaking with a career guidance advisor

Efforts are needed to reach out to adults who may not be aware that they could benefit from career guidance, or that such services exist. During interviews, stakeholders reported that the publicly funded employment service(PES) in most Australian states could do a better job of referring vulnerable adults to career guidance services. In addition to strong referral systems, the programmes which have experienced most success in connecting vulnerable adults with career guidance tend to have a strong link to the PES and enjoy strong state support, such as the Rapid Response Skills Initiative in Tasmania (Box 2.4) and Jobs Victoria Advocates (Box 2.7). Conducting outreach in hard-to-reach rural and remote communities is an important way to engage vulnerable adults in these communities, where services tend to be recommended via word of mouth.

Box 2.4. Career guidance services with outreach to vulnerable groups in Tasmania

The Rapid Response Skills Initiative in Tasmania is a career guidance programme that involves actively reaching out to individuals who are about to lose their jobs in situations of mass layoffs. Originally designed to provide financial support for training people who have lost their jobs because of retrenchment due to company closure, the programme was extended to include co-operation with businesses where there are redundancies of 15 or more people. The Australian Government requires businesses to notify them when there are expected redundancies of this size.

In cases of known business closure or downsizing, a Skills Response Unit assembles relevant government, industry, training and employment service providers to provide guidance to individuals through assessing their skills and connecting them with employment and training opportunities, including literacy and numeracy training where appropriate. The initiative provides up to AUD 3 000 towards the cost of training for eligible applicants or their spouse. Being a professional career development practitioner is not a requirement to deliver the programme. For mid-career adults, recognition of prior learning assessments may be undertaken by relevant training authorities and covered by the initiative. Providing career guidance early, before at-risk adults are laid off, allows them to think through their careers and make training and employment choices without the financial and mental pressure of unemployment. They also reap the benefits of more continuous income, as well as putting less pressure on jobactive and the unemployment insurance system.

2.3. Who is best placed to deliver career guidance services to mid-career adults?

In addition to how services are delivered, who delivers services is another important consideration in designing effective career guidance for mid-career adults. This section briefly discusses the role of the Career Industry Council of Australia (CICA) in establishing standards for the skills and qualifications of professional career development practitioners. It then reviews the types of providers currently delivering career guidance to adults in Australia, their strengths and weaknesses, and which group of mid-career adults could most benefit from their services.

Given their specialised knowledge and skills, professional career development practitioners may be best placed to deliver career guidance to mid-career adults. CICA has developed professional standards for career development practitioners (Box 2.5). Most public career guidance programmes in Australia do not have to be delivered by professional career development practitioners. The exceptions are Jobs Victoria Career Counsellors Service, Careers NSW, and the NCI (National Careers Institute) School Leavers Information Service. Given the complex needs of mid-career adults detailed above, there is a strong case for establishing quality standards for the qualifications and skills of career guidance professionals who deliver public services. While the professional standards developed by CICA are recognised as the benchmark for career development in Australia, the career guidance industry is not regulated on a federal level and there is limited use of CICA-registered career development practitioners in the publicly funded employment services or other public career guidance programmes. According to stakeholder interviews, private career guidance providers often employ professional career development practitioners, and employer-provided career guidance also often enlists the services of professional career development practitioners.

The rest of this section reviews the types of providers currently delivering career guidance to adults in Australia.

Box 2.5. Career Industry Council of Australia

The Career Industry Council of Australia (CICA) is a national peak body for the career industry in Australia. Its vision is to enhance transitions and productivity by advocating the individual, social and economic benefits of quality career development for all Australians. The organisation is a focal point for government and other stakeholders concerned for and interested in promoting quality career development services in Australia. CICA supports its member associations, develops guidance practice for professional career development practitioners, informs national and state-level policies and engages with key stakeholders.

CICA manages the Australian Register of Professional Career Development Practitioners. The Register, which has been operational since April 2022, is the single national point of reference for ensuring and promoting professional career development practitioners across the whole industry in Australia.

CICA has developed the Professional Standards for Australian Career Development Practitioners, which provides the foundation for industry standards. To enter the industry as a professional career development practitioner, advisors need a post-graduation qualification offered through a university or registered training organisation. CICA provides the opportunity for training providers to have their programmes endorsed. CICA endorsement ensures that programmes submitted by providers meet the need of the career development industry both from a quality assurance and skill development perspective. The content being delivered in the programme is mapped to the core competencies of the CICA Profession Standards.

CICA-registered career development professionals need to stay current about labour market developments to provide quality career guidance and maintain their membership with the organisation. The organisation provides ongoing professional learning linked to the core competencies of the Professional Standards.

The largest provider of career services for mid-career adults in Australia is the publicly funded employment service (PES), though for the most part these tend to offer job matching rather than career guidance. Nearly a quarter (24%) of mid-career adults who spoke with a career guidance advisor in the past five years did so through a publicly funded employment service (Figure 2.6). This is very close to the survey average (22%). PES services are well-suited to unemployed mid-career adults who need job matching support, where the aim is to get them quickly back into work. A focus on getting people back into work quickly has a number of advantages: it shortens the period they are without income, reduces their need for state-provided financial support, avoids scarring effects from unemployment, and may counter negative impacts on motivation and confidence from being idle. However, it runs the risk of matching people with unsustainable employment that is either of poor quality or a bad match with their skills and interests.

Figure 2.6. Providers of career guidance services for mid-career adults

Government-funded career guidance for unemployed adults who are referred by the PES is rare in Australia, with two notable exceptions: the federal Career Transition Assistance programme, and the Jobs Victoria Career Counsellors programme. To avoid duplication of services, unemployed adults participating in jobactive or another public service are not eligible for the Skills Checkpoint for Older Workers programme mentioned above. Australia’s Career Transition Assistance (CTA) programme offers career guidance to jobseekers age 45+ who have been referred by jobactive. Participants in the 8-week programme have an initial meeting with a career guidance advisor who conducts an assessment of experience and skills, and at the end creates a career pathway plan to address the gaps. The client can choose to execute the plan themselves, or bring it to a PES counsellor for further assistance and follow-up. The programme relies on co-operation with local employers who share information on skills needs, and organise job visits. The CTA programme is delivered by third-party employment providers, and there is no requirement that it be delivered by professional career development practitioners. It also faces capacity constraints and not all mid-career jobseekers who need career guidance can receive it. In Victoria, the state-funded employment service recently launched a programme that refers jobseekers to certified career guidance service when needed (Box 2.7). Victoria stands out as a best practice in Australia, both in offering state-funded career guidance to all adults provided by professional career development practitioners, and in its efforts to actively reach out to adults who need support through the Jobs Victoria Mentors and Advocates programmes.

Box 2.6. Federal-level Career Transition Assistance programme

Australia’s Career Transition Assistance (CTA) programme offers career guidance to jobseekers age 45 and over. Participants in the 8-week programme have an initial meeting with a facilitator (a career guidance advisor) who conducts a Career Pathway Assessment of experience and skills, and at the end creates a Career Pathway Plan (CPP) to address gaps. Following completion of CTA, providers conduct a handover meeting with the participant and their referring provider to discuss next steps as outlined in the CPP.

The group setting is central to CTA service delivery, and provides participants with the opportunity for networking and peer support. The programme also relies on co-operation with local employers who share information on skills needs and organise job visits. Part of the course involves identifying transferable skills, understanding the labour market needs of the local area, and tailoring applications to local job opportunities.

CTA is closely connected to jobactive and some providers offer jobactive services as well. There is no requirement that CTA services be delivered by professional career development practitioners. Providers have some independence in designing the assessment format for the programme they deliver, though improving digital literacy is a common focus.

During the pandemic, providers had to pivot to a hybrid delivery, which combined in-person and digital delivery. Digital literacy is a core component of the course, and transitioning to digital delivery was a challenge for many clients who did not possess these skills, and needed a basic level of digital literacy to access the service. Providers who utilised a range of delivery methods were most successful at reaching mature clients with low digital skills. The programme resumed face-to-face delivery where local COVID-19 restrictions were lifted.

Box 2.7. Career guidance programmes offered in Victoria

Started in August 2021, the Jobs Victoria Career Counsellors Service (JVCCS) is delivered by the Career Education Association of Victoria (CEAV) on behalf of the Victorian Government. Personalised guidance sessions are offered free of charge on an appointment basis, and all career counsellors must be professionally endorsed by the Career Industry Council of Australia (CICA). The offer is open to all adults regardless of their employment status, and jobseekers can be referred to the service by Jobs Victoria (state-funded employment service). The programme employs 36 professional career development practitioners, as well as counsellors specialised in working with Aboriginal communities and those with disabilities. Services may be delivered face-to-face, via phone or video platform, depending on the needs and preferences of the clients. CEAV-trained counsellors hold post-secondary graduate qualifications in career development, and must maintain professional membership with a career industry association and participate in ongoing professional development.

CEAV-trained career guidance counsellors are also located in Skills and Jobs Centres. Skills and Jobs Centres are one-stop-shops that are based in technical and further education institutions (TAFEs) and provide free expert advice on training and employment opportunities, including career guidance, training, referrals to welfare support and financial advice, assistance in recognition of prior learning and information on employment trends and skills shortages. The Centres also engage with a broad range of local industries.

Jobs Victoria Advocates perform active outreach at the local level to anyone who needs assistance to identify and access services related to employment, and currently employs 108 advocates across Victoria. The outreach model is particularly valuable in engaging hard-to-reach and vulnerable groups in Victoria including long-term job seekers, unemployed people with labour market barriers, refugees, and asylum seekers. Advocates connect with people in everyday locations: libraries, community centres, public housing foyers, shopping centres and other community services. Many Advocates are multilingual, further enabling them to connect with diverse community members. They provide referrals to employment, training and related services in Victoria, including career guidance.

The Jobs Victoria Mentor service targets jobseekers facing barriers to employment. There are more than 50 services funded across the state, targeting locations with high labour market needs. Core services include job-seeking and training assistance, assistance with personal needs and connection to other community service. The programme targets ex-offenders, refugees and asylum seekers, migrants with professional qualifications, Aboriginal jobseekers and young people with complex barriers to employment.

Jobs Victoria Advocates, Career Counsellors and the Mentor service are managed by Jobs Victoria, an initiative of the Victorian State Government Department of Jobs, Precincts and Regions. Skills and Jobs Centres are managed by the Department of Education and Training Victoria. Both departments collaborate to ensure inclusive coverage and services in Victoria.

Education or training institutions are well placed to offer career guidance to mid-career adults who are already aware they need training. Some 23% of mid-career adults receive career guidance through an education or training institution in Australia, which is above the overall survey average (15%). A possible risk with career guidance provided by such institutions is that the advice they provide is biased by which training courses are available at their particular institution. Given that most mid-career adults have been out of formal education for many years, they could benefit from impartial information and advice about available training courses across institutions and which would be the best fit given their career aspirations. Education or training institutions might also have difficulty reaching adults who are not motivated to train, or who need career guidance to better conceptualise what career transitions they want to make prior to selecting a training course.

Career guidance provided by employers and employer groups is well suited to mid-career adults who wish to progress in their current occupation and company. In Australia, 16% of mid-career adults accessed career guidance services through their employer and 11% through an employer group (13% and 7% of mid-career adults in the countries covered by the SCGA used these providers, respectively). Generally, employers can provide guidance to workers about their career development opportunities within the company, and employer groups tend to be well informed about sectoral skills needs. They can assist employees to reflect on their career goals and find suitable training options in order to develop their skills. In addition to having good knowledge of the skill demands in their company and sector, employers often have good processes for recognising the employees’ skills, as they have observed their performance. In Japan, the government encourages employers to provide career counselling services to their workers. This allows the employer to retain workers who might wish to change occupation, while allowing workers to better align their role and tasks to their career ambition, and to avoid disruptions in income that might occur if they attempted to retrain for a different role at a different company (OECD, 2021[5]). Two limitations with employer-provided guidance are that it tends to favour high-performing employees, and does not support job transitions, as the employer has an incentive to retain the employee. Some exceptions do apply in Australia: in case of large-scale industry-specific closures, such as in the automotive sector, job transition centres have been set up inside the company to support transitions for workers. Career guidance has been a key element of this service (OECD, 2019[6]).

For mid-career adults seeking to change firm or sector, a private career guidance provider may be the option best suited to their needs. In comparison to other countries covered by the SCGA, Australian adults use private career guidance providers much less. Only 12% of mid-career adults in Australia used career guidance services offered by a private career guidance provider, compared to an average of 23% of mid-career adults in other countries covered by the survey. There is no centralised register for private professional career development practitioners, though CICA plans to develop one in April 2022. To date, practitioners have relied on self-promotion and outreach to attract clients. Private career guidance providers are more impartial than employers or education and training institutions, and they have an overview of labour market information for a variety of sectors. As private career guidance advisors have to compete for their clients, they have a strong incentive to complete the qualification and training requirements to attain and maintain professional certification through CICA, as this is a mark of quality. An important aspect to consider is that private career services are commonly paid for by the individual. Unless subsidised, career guidance from private providers may be costly and out of reach for mid-career adults with financial constraints or in precarious employment.

Some OECD countries have dedicated public career guidance services that are specialised in delivering career guidance and are at least partly government funded. Relative to the PES which has many roles other than providing career guidance, this is the sole mission of dedicated public career guidance services. They are also more independent than the PES, as their service is not motivated by the individual entering a job quickly. In France, the Conseil en Evolution Professionelle (CEP) is a dedicated public career guidance provider open to all individuals regardless of their employment status. The CEP is a career guidance hub: adults can browse the CEP webpage to find a qualified career guidance advisor who meets their needs and all career guidance offered through CEP is free of charge for all individuals. The 10% of mid-career adults who reported accessing career guidance services through a dedicated public career guidance service may have been referring to either the state-level Jobs Victoria Career Counselling Service, the Tasmania Rapid Response Skills Initiative, or the federal-level Skills Checkpoint for Older Workers, Career Transition Assistance or the Mid-Career Checkpoint programmes (Box 2.1).

Finally, some associations or community organisations offer career guidance to unemployed or low-skilled individuals, often free of charge as part of public programmes. In Australia, only 3% of mid-career adults received services this way.

2.3. How should career guidance for mid-career adults be funded?

Given the shared private and public benefits to career guidance for mid-career adults, a case can be made to share the cost between individuals, employers and government. Adults are the direct beneficiaries of career guidance services, making their individual contributions justified. However, there are also public benefits to career guidance – including better skills matching and more productive and resilient economies – that justify public investment. While employers may be reluctant to provide career guidance out of fear of losing productive employees to possible new roles outside of their company, they can benefit from better skills matching within their firm, as well as lower turnover.

Mid-career adults in Australia are more likely to report paying for career services out-of-pocket than are those in other surveyed countries. In Australia, 57% of mid-career users of career guidance paid out-of-pocket for the services they received, compared to the overall average of 33% (Figure 2.7). Australia is also one of only a few countries where mid-career adults are more likely to pay out-of-pocket than the total adult population. Since relatively few mid-career adults consult private career guidance services (only 12% of users), it is not clear why the out-of-pocket rate is so high. Perhaps respondents interpreted “paying for career guidance” as paying for related services. For instance, if they paid an education or training provider for a training programme, perhaps they understand this to mean paying indirectly for the career guidance they received through their education or training provider. Even though mid-career adults in Australia are more likely to pay out-of-pocket for the services they received, cost appears to be a negligible barrier to accessing career guidance services (only 4% of non-users reported cost to be a barrier, Figure 2.5).

Figure 2.7. Mid-career adults’ out of pocket contribution to career guidance

Adults in more precarious employment situations are much less likely to pay out-of-pocket for career guidance than those who are employed full-time. Survey results show that 78% of full-time employed mid-career adults in Australia who received career guidance report paying (fully or partially) for it, while only (2%) of unemployed adults, retired adults, and other adults who are out of the labour force and who received career guidance report paying for it. That said, since unemployed adults largely report receiving career guidance through the publicly funded employment service (whether federally funded or state-funded), they tend to receive job matching rather than career guidance services.

Currently, there are no schemes to promote co-funding of private career guidance between individuals and the government in Australia. The full cost of private career guidance services is thus borne by the individual, which hinders access for those who cannot afford it. This concerns not only the direct cost of the guidance services, but also the opportunity cost associated with taking time away from work to speak with a career guidance advisor. Career vouchers, used in Belgium and Germany, are one way to support co-funding (Box 2.1). In Germany, only unemployed adults are eligible for the career voucher, while in Belgium any employed adult is eligible after having worked a minimum number of hours with a given employer. In the Netherlands, workers age 45+ were temporarily eligible for subsidised career guidance as part of a pilot initiative (Box 2.9).

Schemes to encourage employers to contribute to the cost of career guidance services for adults are rare. Japan is one example, where until 2018 employers who implemented the “self-career dock system” could receive government subsidies to offer individual and group counselling.

The Australian Government should consider introducing financial incentives to promote co-funding of private career guidance services. Such financial incentives could be directed at all adults, or restricted to those who have the strongest need for career guidance or for whom financial barriers are highest, such as those in more precarious employment situations.

Box 2.8. Career guidance vouchers in Flanders and Germany

Flanders

In the Flanders and Brussels region of Belgium, employed adults have access to career guidance vouchers (loopbaancheques) to consult accredited career counsellors. Every six years, adults can request vouchers for seven hours of counselling (one voucher of four hours and one of three hours). The second voucher can only be used if the first four hours of guidance have been completed, and can be used with the same or a different provider. Only adults who are employed (employees and self-employed) at the time of the request and have at least seven years of work experience can access the vouchers. The full voucher amount (expressed in hours) needs to be used within a period of 12 months. The vouchers are managed by the public employment service. In 2018, 24 741 adults used a career guidance voucher. To be eligible, one must have worked a minimum number of hours with a one’s current employer.

Adults pay EUR 40 per voucher (i.e. EUR 40 for the first four hours and EUR 40 for the last three hours). As the vouchers have a value of EUR 169 per hour, the government subsidises a large share of the costs. Before adults decide which accredited guidance counsellor to use, they can get a free introduction session with the counsellor. This can help the individual make informed choices about which provider to choose. Once the adult has selected their counsellor, the counselling consists of i) an assessment of strengths, weaknesses, interest and aspirations, ii) analysis of career objectives, iii) development of a personalised career plan, and ii) advice and guidance on how to implement the career plan. The participants can get a free follow-up session (in addition to the sessions paid by their vouchers) with their counsellor up to 12 months after the end of their counselling sessions.

Germany

The German Federal Employment Agency (Bundesagentur für Arbeit) grants jobseekers an “activation and placement voucher” (Aktivierungs- und Vermittlungsgutschein) when they meet minimum eligibility requirements. The placement officer defines the objective of the voucher and attaches a funding commitment. The jobseeker can then choose between guidance counselling and training courses and use the voucher to pay the provider directly.

Source: OECD 2020 Policy Questionnaire, ‘Career Guidance for Adults’; www.arbeitsagentur.de/aktivierungs-vermittlungsgutschein-avgs;

Box 2.9. Subsidised career guidance for mid-career adults in the Netherlands

In the Netherlands, workers aged 45+ who work at least 12 hours per week temporarily had access to free personalised career guidance (Ontwikkeladvies). The programme was developed as a temporary measure, starting from December 2017 until July 2020. During that period, 25 800 requests for subsidies were submitted.

The goal of the programme was to help mid-career workers assess their personal strengths, needs, and opportunities in order to develop a better understanding of what they want, can do and the opportunities available to ensure that they can stay in employment until retirement age.

To participate in the subsidised guidance programme, workers needed to find a suitable guidance counsellor. The selected counsellor was in charge of requesting the subsidy (EUR 600) from the government. The sessions were confidential, and the employer was not informed of the worker’s participation in the programme. The counsellor developed a personalised development plan for the participant, based on their interests, skills, needs and aspirations. Guidance could be provided by private career counselling providers or by trade unions.

Source: OECD (2021[5]), Creating Responsive Adult Learning Opportunities in Japan, https://dx.doi.org/10.1787/cfe1ccd2-en.

References

[1] Fialho, P., G. Quintini and M. Vandeweyer (2019), “Returns to different forms of job related training: Factoring in informal learning”, OECD Social, Employment and Migration Working Papers, No. 231, OECD Publishing, Paris, https://doi.org/10.1787/b21807e9-en.

[2] OCWI (2019), Career Pathways Demonstration Project: Final Report, Ontario Centre for Workplace Innovation, https://ocwi-coie.ca/wp-content/uploads/2019/03/Career-Pathways-Demonstration-Project-Final-Report-March-11.pdf.

[5] OECD (2021), Creating Responsive Adult Learning Opportunities in Japan, Getting Skills Right, OECD Publishing, Paris, https://doi.org/10.1787/cfe1ccd2-en.

[6] OECD (2019), Financial Incentives to Promote Adult Learning in Australia, Getting Skills Right, OECD Publishing, Paris, https://doi.org/10.1787/c79badcc-en.

[3] Palamar, M. and K. Pasolli (2018), ““Career Pathways” a promising model for skills training, Institute for Research on Public Policy”, https://policyoptions.irpp.org/magazines/november-2018/career-pathways-promising-model-skills-training/.

[4] Sarna, M. and J. Strawn (2018), Career Pathways Implementation Synthesis: Career Pathways Design Study, https://www.dol.gov/sites/dolgov/files/OASP/legacy/files/3-Career-Pathways-Implementation-Synthesis.pdf.

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