Workshop in the Slovak Republic

What are the key pillars of a successful VET strategy in the 21st century?

That's an important question because, in the 21st century, digital transformation is reshaping education systems and labor markets worldwide. The key challenge is the rapid shift in qualification requirements, forcing industries to adapt quickly. Traditional full-time schools may struggle to keep up with this pace of change, making it essential to rethink how skills are developed and updated.The solution is to establish strong cooperation with the organized industry, e.g. employer associations, allowing the workplace to be a significant learning environment. The advantage of that is that you can use the best available technology in companies. You also will have role models with good soft skills, and these are kind of main drivers. Students gain work experience, which the data shows is crucial.   The rapid changes expected over the next 10–20 years, unlike anything seen before, mean that companies increasingly seek employees with transferable skills, e.g. soft skills. Research shows that these skills are best learned in the workplace. Countries that collaborate closely with industry and businesses will gain a competitive advantage, while those that fail to do so will struggle to keep up.

What strategies can help SME enterprises, which often struggle with resources, to participate effectively in the dual education system?

We need to understand that a dual education approach - that means working and learning in the company - is for company an investment that can pay off. A well-balanced curriculum that aligns with industry needs encourages company investment. If a learner's productivity over time exceeds the investment cost, the company gains a return on investment. Training alliances can also motivate SMEs to participate in parts of vocational education and training. A lead company, a chamber of commerce, or an NGO is needed to coordinate workplace education along a  dual VET program.

The key takeaway from my work across 30 countries or states—including a pilot project in Nepal—is that even low-income nations can successfully implement a training model that is financially beneficial for companies. This proves that the best incentive for businesses to invest in training is demonstrating its profitability.

Can the return on investment of VET be quantified in terms of GDP growth?

This is a complex question. In theory, the fiscal multiplier effect applies, and studies show how much one euro of state investment can generate. However, many unobservable factors and a long time lag between implementing a dual VET system and its impact on GDP make it difficult to establish a clear causal link.

Which economic indicators might be more specific?

I would take a microeconomic approach by analyzing whether a training program provides tangible benefits to individual companies within a specific occupational field, such as manufacturing. The key is to calculate the investment and training costs, then compare them to the learner's productive contribution over time. While this approach involves many assumptions, it has been successfully applied in many countries.

What lessons can be learned from countries with strong VET system, such as Switzerland?

Companies serve as both learning environments and industry forecasters. Industry forecasters are companies that can predict future trends, technologies, and changes in their field. They know what new products, innovations, and skills will be needed in the coming years better than researchers who analyze past data. Including employers, especially those with in-house research, helps shape the next generation of curricula. Research from the University of Zurich (Prof. Dr. Uschi Backes-Gellner and team) highlights a "spillover effect," where companies integrating new technologies (e.g., drones, robotics) into dual education programs benefit the entire country. Even small businesses without these technologies gain exposure, helping to future-proof the workforce. This dynamic system keeps vocational education relevant and aligned with technological advancements.

If we wanted to define the emerging trends which will shape the future of VET, which ones would they be?

The key trends are clear: digital transformation, digital workflows, and artificial intelligence are shaping all industries. Companies are always the first to adopt new technologies, while governments take longer to update curricula. This creates a gap between education and industry needs. However, - as already mentioned - a strong partnership with businesses allows students to learn in the workplace using the best available technology, ensuring they stay ahead.

This is particularly important for Slovakia. By involving leading companies in shaping training programs and particularly curricula, the country can prepare workers for future jobs. The economy is more stable than government policies, which can change every four years. Businesses, however, hopefully remain and drive long-term economic growth. For a country with many small and medium-sized enterprises (SMEs), dual vocational education and training is essential, as these businesses often rely more on practically skilled workers than university graduates. If too many people graduate from university without work experience, they struggle to find jobs, and companies struggle to find skilled workers. This leads to a mismatch between education and labor market needs. To support economic growth, Slovakia must focus on dual VET to provide more practically skilled workers rather than just academic graduates.  

When students are deciding whether to choose vocational it is essential that vocational education is sufficiently attractive for them. Why some countries fail in the attractivity of VET system?

Most of the countries fail because they have developed an education system with dead ends. If vocational education and training at the secondary level does not provide clear pathways for further education and career progression, students perceive it as a disadvantage. The distribution of abilities within a generation is fairly consistent across countries. Academically gifted individuals tend to pursue university education, while more than half of the cohort is often more practically inclined or excels in soft skills. If this majority lacks opportunities for career advancement, they may perceive vocational education as a dead end, making it less attractive. Young people want to enter fields with clear pathways for growth. The key missing piece is advanced professional education and training (PET) beyond vocational education but outside the university system. Strong non-university programs provide a way forward, ensuring career progression and making vocational education and training a more appealing choice. This is particularly important in a world that is being severely challenged by digital transformation. All workers will need to re-skill multiple times over the course of their lives and few will do so with a bachelor's or master's degree from a university.

Can adult learning be a sufficient alternative?

What is adult education? I understand that in Slovakia it is non-formal further education. That is not enough in my view. Employees need second or third opportunity to earn an additional formal diploma. Formal credentials are important because the labor market rewards them with higher salaries compared to non-formal continuing education. The quality of non-formal courses can be inconsistent, making it difficult for companies to assess their true value. This challenge exists not only in Slovakia but also in many other countries.  

What does the PET system look like in practice?

The standards for Professional Education and Training (PET) are set and quality-controlled by the National Authority such as the Ministry of Education, ensuring consistency and recognition over time. This means that if someone earns a level 7 PET diploma e.g. in HR management, employers immediately understand its value because it follows a standardized framework on national level.

Companies don’t need to retest candidates, as they can rely on the Ministry of Education’s quality assurance. PET programs can be formally accredited and undergo quality checks, which is feasible when dealing with a limited number of structured programs. In contrast, assessing the quality of thousands of non-formal continuing education courses would be nearly impossible and will lead to high transaction costs.

If you had to outline a roadmap for the future of VET over the next decade, what would be the main milestones?

I would start by addressing the gap. My approach would be to collaborate with industry employer associations to design a strong Professional Education and Training (PET) system. The advantage is that if a national qualification framework allows for levels six, seven, and eight outside the university system, it can greatly stimulate the entire sector. This approach also creates industry role models—specialists and managers who have progressed through VET to PET, demonstrating that this pathway leads to higher earnings and career growth. Encouraging such permeability is essential.

The second key step is employer engagement, which must go hand in hand with PET development. Employer associations play a crucial role and should be given a formal say in legislation—not just in shaping the content of qualifications from levels three to eight, but also in committing to providing workplace training opportunities. This means companies must take responsibility by preparing trainers, equipping workplaces for young learners, and even investing in training as discussed in a previous question. Supporting the upskilling of their workforce is in their best interest, especially as many European countries face labor shortages due to demographic shifts. The best strategy is to “find” and retain talent—investing in their skills so they stay, grow, and become more productive within the company.

How can companies retain skilled workers? Especially young workers?

A company’s survival and growth depend on having skilled employees—this is a core aspect of strategic leadership. Businesses must understand that without a well-trained workforce, they cannot increase productivity, which is essential for efficiency, competitiveness, and long-term success. To achieve this, companies need to carefully plan their workforce strategy, especially when hiring young employees. Many young professionals tend to leave after just two or three years, so businesses must find ways to retain top talent. This is where a strong human resources strategy comes into play.

Retention efforts often involve offering incentives. Companies can support employees by allowing time off for further education, covering tuition fees, or providing other benefits to encourage professional development. Another effective approach is implementing agreements for second formal diploma. For example, a company can invest in an employee’s formal education, with the expectation that they will stay for a set period (e.g., two or three years) after completing the program. If they leave early, they may be required to repay the costs. This type of agreement is a standard practice in many countries and helps companies secure a skilled, committed workforce.

And when we want to make some kind of helicopter view on VET, what is the overall direction of VET development?

Countries that quickly embrace industry as a partner in education are the ones that thrive—especially in the era of digital transformation. The pace of technological change is so rapid that schools alone cannot keep up. By involving industry early and recognizing workplaces as valuable learning environments, countries can equip students with skills that are difficult to teach in a classroom, such as soft skills and hands-on experience with cutting-edge technology. Schools simply cannot afford to constantly invest in the latest advancements, but companies already use them in their daily operations. Data clearly shows that countries that integrate industry into education gain a competitive advantage. In Slovakia, you already have strong foundations: a national qualification framework, relevant laws, and a dual VET system. The key missing element is giving industry a stronger role. This requires formal recognition in legislation, along with clear expectations and responsibilities.

Additionally, companies need guidance. Employers should understand the economic principles behind a substantial workplace training—why some businesses invest in training while others do not. This is a well-documented area of economic theory, and Slovak companies, like those in other European countries, ultimately aim to generate profit. If training is seen as an internal investment—one that requires upfront costs but delivers long-term returns—there is no reason not to engage.

Interview by Sylvia Hamadejova
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