Benefits of becoming an enterprise RTO

Recently I was asked about the benefits of being an Enterprise RTO. The company concerned was powering ahead with their business and training their staff, but they wanted to improve their operations and become an RTO. They asked my advice on pros and cons of becoming an RTO and the amount of effort involved.  Following this conversation I thought it would be interesting to have this on my blog to let other people know the answers. So here are my thoughts.

Enterprise RTOs (ERTOs) are defined by the following characteristics;

• The core business of the registered enterprise is not the provision of training
• The training function supports their staff only and doesn’t train outside staff 
• The enterprise RTO provides accredited training for the employees of the enterprise
• The enterprise RTO is embedded or integrated within the standard business processes of the enterprise

Enterprise RTOs are typically within a business to enhance the capacity of staff through training to a national standard. 

The development of enterprise RTOs within the Australian VET sector is relatively recent and sometimes considered to be a smaller sector. Having Managed an enterprise RTO I know that they are sometimes forgotten by the government. Having said that there is an excellent organization called  Enterprise RTO Association (ERTOA) who are most helpful. Link here. They also have some interesting reports on their website.

Why become an Enterprise RTO?

The benefits of being an Enterprise RTO include:

• they can train their staff at convenient times
• you know the quality of the training
• customise training to meet your specific company/industry needs
• reduce recruitment costs by increasing retention of staff
• increase employee esteem through provision of nationally recognized qualifications

The benefits also include many of the benefits for other RTO’s (Public or Private) such as access to government funding. 

Due to the nature of a business needs to Enterprise RTO often has clearly defined training pathways.  (This makes it easier to manage the RTO as opposed to one that is dealing with many clients with diverse requirements). 

When trying to establish a business case for becoming an enterprise RTO you may consider discussing the economic option for meeting externally mandated financial compliance  or contract compliance specific to a customer.  

The size and application of roles and responsibilities varies depending on the organisation. In my experience the RTO’s that have a clearly integrated training function with their HR function are more effective and viable. There are many benefits for becoming an enterprise RTO.

If you require any further questions answered please call or email me and will be more than happy to respond. enjoy.

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Online course

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