Dual Training System (DTS) Cost and Benefit Study

The DTS program outweigh the cost of training the student/trainee.

TESDA and Philippine Chamber of Commerce and Industry (PCCI) – Human Resources Development Foundation conducted a study about the Cost and benefit Analysis of the Dual Training System in The Philippines. Dualtech and its partner companies were among the DTS stakeholders that provided empirical data.

Key Findings

• DTS trainees provide long term benefits that includes recruitment costs (ads, personnel), productivity difference, and orientation cost.
• Combined short and long term benefits is bigger than the overall costs by Php 3,500 per trainee.
• For firms in the DTS program lasting for more than 12 months, the short term benefit accounts for about 51% of the average cost per trainee per month.
• It is beneficial for firms to engage in training programs that are a bit longer than the usual three months because of relatively higher benefits
• The non-monetary benefits include the positive image for the firm for helping young members of society, potential increase in the welfare of the trainees (higher salary and higher probability of being employed)
• DTS program produces substantial positive spillover effects on the DTS-trained workers – the trainees become more productive.

Short Term benefits include the productivity and seasonal benefits derived by the firms.
Long Term benefits include the savings of the company in hiring new employees.

COVERAGE
The study covers four (4) regions: NCR, CALABARZON, Central Luzon, and Northern Mindanao. There were 201 out of 706 firms and 21 out of 82 technical schools participated in the study. This also covered the 112 trainees interviewed to determine the perception of the trainees on the DTS program.

The study is also in partnership with the Federal Institute for Vocational Education and Training (BIBB) and University of the Philippines Statistical Center Research Foundation.

Source: A Cost Benefit Study on Dual Training System, www.bibb.de/en/55660.php