Lessons learned

Over the last six years, training delivered by the private sector in partnership with Sudokkho has helped over 71,000 young people into work at the cost of GBP 216.00 per head in the Ready Made Garment (RMG) and Construction Sectors.
PTPs offer a cost-effective model to reach the extreme poor at scale

Sudokkho did not set out to explicitly reach the extreme poor but it did focus on occupations where industry reported unmet demand for skills, and which were accessible for those who had not completed lower secondary education. 93% of graduates were classified as ‘extreme poor’ and 32% were from ‘disadvantaged groups’.

It would be advisable for the donor community and government to agree on a common strategy for the provision of training subsidie

Throughout implementation, Sudokkho was under pressure from the PTPs and the Department of Technical Education (DTE) to increase the subsidies paid to the PTPs and for the trainees. While Sudokkho maintained its private sector approach and continued limiting the amount of subsidies provided, it was resulted in difficulties in attracting PTPs to its programmes.

Payment for Results mechanisms can also incentivise misreporting and required a strong system for monitoring and verification

The business case for Sudokkho proposed using payment for results (P4R) to incenvitise the PTPs to actively assist the graduates finding employment or self-employment. In the Bangladesh training market, which has been flooded with donor-driven, subsidised skills development programmes, it was very difficult to implement the P4R system due to the high risk of fraud. While PTPs showed interest in job placements where they benefitted financially, many did not have the required capacity or systems in place to secure genuine job opportunities for their graduates. Instead, there was temptation to produce fake certificates in order to secure high results payment. In order to reduce the risk of fraud, Sudokkho had to put in place resource-intensive monitoring systems and administration and dropped the idea of financially incentivising PTPs for job placement services.

Training Providers can better align training graduation with the recruitment windows for RMG factories

Establishing effective linkages and partnerships between PTPs and RMG factories has proven more difficult than anticipated, mainly due to lack of knowledge on both sides of each other’s business model and a reluctance on the part of the factories to enter into binding agreements. While there are problems with the ability of the PTPs to deliver the quality of graduates required, due to a number of shortcomings in equipment, facilities and trainer capacity, one of the key limiting factors proved to be the misalignment of graduation and recruitment periods for the factories. Sudokkho learned that it could improve the employment ratio for the PTP graduates if the graduation would be aligned with the narrow time gap for recruitment by the factories. This will require more flexibility in the course planning by the PTPs.

PTPs were receptive to formally registering as Registered Training Organisations and the associated quality assurance syste

Sudokkho was successful in convincing training providers of the benefits of obtaining formal registration as RTOs. It is possible for donor programmes to support GoB and BTEB market the revised quality assurance system and articulate the benefits of the system to the PTPs.

It would be advisable for the donor community and the government to agree on a common strategy for the development of occupational standards, curriculum and training materials through the official channels (BTEB)

By working with and building the capacity of the Bangladesh Technical Education Board (BTEB), the products delivered by Sucokkho have the potential to reach a much wider audience than the programme could reach on their own. As the Occupational standards, curriculum and training materials became national standards they are now available to all training institutions in Bangladesh private and public training institutions.

In addition to supporting trainees into employment, the Sudokkho IBT training model offered demonstrable benefits to factories

An independent impact review undertaken by John Winter found the following key verifiable messages to employers. The Sudokkho IBT model is:

• Shorter than other routes to skilling up workers (15 days)

• Cheaper per trainee than current systems (20-60% savings in unit cost per trainee)

• Produces reliable work-ready operations (Performance on transfer > 50%)

• Support factories to resolved labour supply problems.

Sudokkho demonstrated that industry-led, workplace-based training could offer business benefits to employers and allows them to flexibly meet the requirements of their production floor. Factories were often already investing in training, but not very cost-effectively. Aspects of this model might be replicable in other formal manufacturing sectors and Economic Zones seeking investment and with job creation objectives.

Factories should commit up-front that all workers who successfully complete training secure a higher grade and training

Factories payroll and grading systems do not always automatically provide for a pay increase on graduation from the training centre. This happens routinely for new entrants, but for existing workers who improve their skills, pay increases often come later at their annual grade and salary review. A few factories were reluctant to increase salaries after training. Donor programmes that support in-factory training should require that the factory commits to automatically increase the pay of workers once they are assessed of having reached a higher skills level. Factories have an incentive to adapt their human resource systems to reflect the evolving skills and productivity of their workforce, to help them retain skilled staff.

While Sudokkho have achieved the agreed targets for the support to the ISCs, their sustainability is still uncertain

Despite strong government support for the establishment of ISCs, the industries have been very slow to react and support the ISCs. To ensure ownership of the ISCs by the parent industries the main strategy is that the various industry associations should own and fund the ISCs. However, despite serious and sustained efforts by Sudokkho to involve the associations and to facilitate establishment of ownership and funding of the ISC by the associations, progress is slow.

Industry Skills Councils struggle with funding and sustainability and realistically need extended support to develop their services and generate revenue

Even in those countries in which Governments have set-up Industry Skills Councils and have given them initial funding, a major challenge has been to make the Councils financially viable and sustainable. Sudokkho’s experience in Bangladesh showed that whilst other ISCs saw the CISC as a role model, they would require substantial technical and financial support to copy this model.