Every apprenticeship and traineeship is competency-based, which places primary emphasis on what a person can do as a result of their training and experience. This means that the time it takes to complete a competency-based apprenticeship or traineeship is flexible.

A competency is defined in terms of what a person is required to do (performance), under what conditions it is to be done (conditions) and how well it is to be done (standards). These standards are expressed as the performance criteria. A person is deemed to be competent if they have developed the knowledge and skill within an occupation or industry level necessary to perform a job to the appropriate standard in set conditions.

Competency based training places primary emphasis on what a person can actually do as a result of training. It is outcome based. It is about assisting individuals to acquire skills so they are able to perform a task to a specified standard under certain conditions. In competency based training, the outcomes to be achieved are clearly stated so that trainees know exactly what they have to be able to do, trainers know what training is to be provided and employers know the skill levels required of their employees. The emphasis in competency based training is on "doing" rather than just "knowing".

A National Training Package is a set of nationally endorsed standards and developed with/by industry bodies for recognising and assessing worker's skills. The Training Package describes what skills and knowledge are needed to perform effectively in the workplace but does not prescribe how workers should be trained.

Training Packages set out the standards, assessment guidelines and qualifications, which are recognised nationally. A recognized qualification is therefore a guarantee that the skills of an individual are:

• formally recognised
• consistent nationally across the industry
• flexible as they give people the choice on how, when and where the training is undertaken
• specifically suited to industry needs.

Skills, knowledge and attributes applied to complete a job are called "Competencies". The level at which the competency is performed is called the "Standard". Together they comprise Competency Standards. Competency standards reflect actual work requirements. They define the outcomes that may be achieved through training, rather than the method of training. National Competency Standards are designed to be relevant across organisations in an industry, flexible enough to address varying services and program needs, and cover units of skill and knowledge required by all levels of staff in certain industry roles.

In a competency-based system, assessment is not a test. Rather, it is the process of collecting evidence and making judgements about whether a person’s performance meets the criteria in the standard. This involves collecting evidence about their ability to not only carry out workplace tasks, but to also manage its different aspects, such as organising priorities, working with others and responding appropriately when things go wrong.

A competency assessment system to comply with four key principles of assessment:

• Validity;
• Reliability;
• Fairness; and
• Flexibility.

Assessment evidence must also be authentic, current and the assessment conducted in a way which is cost and time effective.

Assessments are valid when they assess what they claim to assess. This can be improved by:

• interpreting the criteria accurately and making sure the evidence relates to the competency standards
• selecting evidence methods appropriate to the task
• collecting sufficient evidence from a range of activities and over time
• ensuring all areas of competency are assessed

Assessments are reliable when the methods used and outcomes are consistent, over time, and between different assessors. Reliability can be improved by:

• ensuring assessors have the appropriate technical and assessing skills
• applying the same process and approach for each candidate
• providing consistent, clear instructions
• ensuring the use of well developed assessment guides
• comparing the results of different assessors
• evaluating assessment tools and results for future improvements

Assessments are fair when they are equally accessible and the procedures or methods ensure no one is unfairly disadvantaged, eg by requiring higher literacy skills to do the assessment than what is actually needed to do the task. Fairness may be enhanced by:

• ensuring the process is transparent, available and clearly explained to everyone involved
• applying processes or methods that don’t create artificial barriers for some candidates and not others
• consulting with candidates about the process and methods
• providing informative feedback to all candidates
• ensuring all candidates have fair access to an appeals procedure

Flexibility is achieved when assessment events are appropriate to the competencies and consider the individual needs of each candidate and the work or training environment. Flexibility may be promoted when:

• a variety of approaches and sources are used
• adjustments are made to cater for individual needs and situations
• assessors make judgements in regard to allowable adjustments.

The evidence collected must be the participant’s work. This is particularly important when you rely on others to collect the evidence on your behalf.

With changes in technology and work practices, it is important to check the evidence being presented is current and up to date.

Assessment needs to be both time and cost effective. That is one of the main reasons for using on the job observation and oral questions for assessment.