At a recent outing, a tempting visit to a donut stall offered an unexpectedly profound insight into economic illusions. The stall advertised its doughnuts as “100% calorie-free… at the centre”—a clever jest, as the centre of a doughnut is, of course, empty. This clever marketing trick mirrors a common misconception in the aged care industry about the cost-effectiveness of “free” labour provided by student Personal Care Assistants (PCAs) from Registered Training Organisations (RTOs). As a consultant with over a decade of experience in training and recruitment strategies, I aim to unpack the true costs these “free” services impose on aged care facilities.
For a deeper understanding and insight into these challenges, I encourage you to watch our detailed video analysis. It further elucidates the economic and operational impacts of RTO partnerships in the aged care industry. Watch the video here.
The Economics of RTOs:
There's No Such Thing as a Free Lunch
RTOs generate their revenue from various sources: international fee-paying students (6% of the market), domestic fee-paying students (34%), government unemployment funding (56%), and the smallest segment, government traineeship funding (4%). Despite the appealing offer of no-cost student labour from these organisations, the reality places a significant and often overlooked financial burden on aged care facilities.
The Aged Care & RTO Dilemma
The arrangement between aged care facilities and RTOs, while mutually beneficial on the surface, harbors deeper complexities that can undermine the efficacy and financial stability of care facilities. The perception of receiving free labour masks the administrative and operational costs associated with training and supervising RTO students. These students often require significant support and supervision, which diverts existing staff from their primary responsibilities, thereby impacting the overall quality of care and operational efficiency. This section aims to dissect these intertwined dynamics and provide a clearer picture of the real costs involved.
1) The Empty Promise of 'Free' Labour
The primary selling point for RTOs is their provision of student labour at no cost to the aged care facilities. This arrangement is meant to fulfil the RTOs’ obligation to provide 120 hours of practical placement for their students. However, this often results in aged care facilities shouldering the bulk of the training and assessment load. Not only do facilities train these students in practical skills, but they also carry out their formal assessment processes, completing extensive logbooks required by the RTOs.
2) The Quality of Training and Its Impact
The level of training that students receive before their placements varies greatly. Those who enrol through discounted courses may not receive the rigorous training necessary for high-quality care. Conversely, while more expensive courses might offer better initial training, the responsibility still falls on aged care facilities to provide practical training, effectively doing the RTOs’ work.
3) Motivations and Outcomes
The motivations of students entering these programmes are varied. International students, for example, may be primarily motivated by visa prospects rather than a long-term career in aged care. Similarly, domestic students attracted by low fees may not be fully committed to the caregiving profession. As a result, only about 35% of students complete their courses, and even fewer remain in the industry, reflecting a poor return on investment for the aged care sector in terms of skilled and committed workforce development.
The Real Cost to Aged Care Facilities
The operational strain of training and assessing RTO students is substantial. Staff and resources are diverted from their primary care duties, affecting overall facility operations and the quality of care provided to residents. This arrangement subsidises what should ideally be an RTO expense, misleadingly packaged as a free service.
Rethinking Strategies: A Call to Action
At the forthcoming Aged Care Week, I will explore further case studies and strategic solutions that align training with genuine industry needs. Our focus should shift towards models like government-funded traineeships where both the employer and RTO receive funding, aligning incentives and potentially transforming recruitment and training practices in aged care.
The current system, with its heavy reliance on “free” labour, is unsustainable and counterproductive. As in other industries, there are more effective ways to integrate training with operational needs, ensuring that investments in training deliver genuine value to both aged care facilities and the populations they serve.
I look forward to sharing more insights and practical strategies during my presentation at Aged Care Week. For those interested in advancing this conversation, I am available for discussions on how we can collaboratively improve workforce training and recruitment strategies in our industry.
Let’s redefine our approach to training and integration of labour in the aged care sector, moving beyond the alluring but deceptive promise of cost-free solutions. The goal is to foster a robust, skilled workforce committed to the long-term needs of our ageing population.
Have a terrific day, and see you at Aged Care Week!