Competency-based training (CBT) is an approach to education and training that focuses on developing specific skills, knowledge and attitudes required to perform a job role or task to defined standards, rather than simply acquiring theoretical knowledge. Learners progress at their own pace and are assessed when they can demonstrate competence in real-world applications.

What is competency-based training?

Competency-based training (CBT) is an outcomes-focused approach to education that emphasises what a person can do in the workplace as a result of training. Unlike traditional time-based learning models, CBT is centred on demonstrable competencies such as measurable skills, knowledge, and behaviours required to perform specific job functions effectively.

In Australia, CBT forms the foundation of the national Vocational Education and Training (VET) system and is aligned with the Australian Qualifications Framework (AQF).

Key Characteristics

Performance-oriented

Competency-Based Training:

• Direct Job Application: Emphasizes skills and knowledge vital for immediate workplace use.
• Demonstrable Abilities: Focuses on proven skills rather than theoretical comprehension.
• Industry-Driven Benchmarks: Competencies are set and verified by specific industry requirements.

Learner-centred

• Self-paced progression: Learners advance based on mastery, not time spent
• Recognition of prior learning: Existing skills and knowledge formally acknowledged
• Flexible delivery: Multiple pathways to achieve competence (classroom, workplace, online)

Assessment-driven

Competency-Based Training Key Elements

• Criterion-Referenced Assessment: Evaluation based on established benchmarks.
• Evidence-Based Judgments: Competence determined through diverse forms of supporting material.
• Continuous Feedback: Assessment integrated throughout the learning journey.

Implementation in Australian VET system

National training packages

Training packages are sets of nationally endorsed standards and qualifications used to recognise and assess skills needed for particular industries or sectors. Each package includes:

• Units of competency: Specific workplace skills and knowledge requirements
• Qualifications framework: How units cluster into recognised qualification levels
• Assessment guidelines: Standards for evaluating competence

Australian Qualifications Framework (AQF)

The AQF provides a hierarchy of qualification levels (Certificates I-IV, Diplomas, Advanced Diplomas) that integrate with competency-based training approaches.

Registered Training Organisations (RTOs)

RTOs are authorised to deliver nationally recognised training and issue qualifications. They:

• Develop training and assessment strategies based on training packages
• Customise learning materials to suit industry and learner needs
• Conduct assessments in line with competency standards

Benefits of competency-based training

For learners

• Clear expectations: Transparent understanding of what must be achieved
• Individualised learning: Progress at own pace based on capability
• Practical outcomes: Development of job-ready skills
• Portable recognition: Nationally recognised qualifications and statements of attainment

For employers

• Workforce relevance: Training aligned with actual workplace requirements
• Skills verification: Confidence in graduates’ abilities
• Targeted development: Addressing specific skills gaps
• Return on investment: Efficient training focused on essential competencies

For training providers

• Industry alignment: Clear framework for meeting workplace needs
• Standardised outcomes: Consistent quality across training delivery
• Assessment validity: Robust framework for judging competence
• Training flexibility: Adaptable approaches to suit different contexts

Challenges and considerations

Quality assurance

• Maintaining consistency in assessment practices
• Ensuring sufficient evidence collection
• Balancing workplace requirements with educational rigour

Implementation issues

• Resource intensity of individualised approaches
• Currency of competency standards in rapidly changing industries
• Balancing generic and specific skill development

Educational perspectives

• Integration of theoretical knowledge with practical application
• Development of higher-order thinking alongside technical skills
• Addressing emerging skills and future workplace needs

Evolution and future directions

Digital Transformation

• Micro-credentials and skill sets for targeted training
• Online and blended delivery models
• Digital assessment technologies and e-portfolios

Integration with other approaches

• Incorporating elements of capability frameworks
• Blending with strengths-based approaches
• Integration with continuous professional development models