What a franchisor should look for in a registered training organisation

You want to train your employees but need to outsource this task. How can you best find a registered training organisation? The education sector has seen an explosion in the number of registered training organisations (RTOs) looking to capitalise on opportunities in the industry.

This is due to the availability of government funding as well as the sheer volume of qualifications individuals are seeking. In particular, a lot of RTOs are looking to list on the Australian Stock Exchange (ASX) or merge with other RTOs to seek further capital and growth.
With reduced overheads made possible by providing on-the-job training, as opposed to external training facilities, RTOs can be very competitive when it comes to price. This is appealing to franchisors who are looking to reduce training costs for employees.

Warwick Spargo, director, RSM Bird Cameron, says “RTOs that do not set up financial and quality processes and procedures in the race to capitalise quickly face a very real risk of collapse, as we have already seen in the market. This puts businesses that have signed on at risk of losing money long-term if the RTO they have employed goes bust. It also leaves them with under-skilled employees unable to finish their qualifications.”

Four things businesses should look for in an RTO

  1. Review their track record including how long they have been in operation and how many customers they have
  2. Shop around for not just the best price but the best value
  3. Speak to other employers that have used an RTO and request current references from the RTO
  4. Request to see financial records to ascertain long-term sustainability