Challenges in RTO

Understanding Challenges in Training Organisations: Factors Affecting Success

Training organisations play a crucial role in skill development and education, but not all achieve success. Understanding the reasons behind the struggles of some training organisations can provide valuable insights for those looking to establish or improve such institutions.

1. Lack of Clear Focus or Goals:

A training organisation without a defined mission or objectives may struggle to develop effective programs. This lack of direction can lead to a mismatch between the courses offered and market demand or learner needs.

2. Failure to Keep Up with Industry Trends:

The rapidly changing nature of many industries means that training content can quickly become outdated. Organisations that don't regularly update their curriculum to reflect current industry practices and technologies risk becoming irrelevant.

3.Difficulty in Attracting and Retaining Talent:

Success in training largely depends on the quality of the instructors and staff. Organisations that fail to attract and retain skilled professionals may see a decline in the quality of their training programs.

4. Financial Challenges:

High operating costs and inadequate revenue streams can lead to financial instability. This issue is often compounded if the courses offered don't align with market demand, leading to low enrolment rates.

5. Offering Courses with Low Demand:

Training organisations must offer courses that are in demand to ensure sufficient enrolment numbers. Without market research and a strategic approach to course development, they might end up offering programs with little to no demand.

6. Poor Quality Training:

The quality of training is crucial. Poorly designed courses, inadequate teaching methods, or insufficient practical exposure can lead to dissatisfaction among learners and harm the institution's reputation.

7. Inadequate Resources:

A lack of resources, such as experienced trainers, modern equipment, or appropriate learning materials, can significantly hamper the effectiveness of training programs.

8. Learner Motivation and Application:

The success of training also depends on the learners' motivation and ability to apply new skills. If the training doesn't resonate with learners or fails to provide applicable skills, its effectiveness is diminished.

9. Inability to Adapt to Market Changes:

Organisations must be agile and responsive to changes in market needs and industry advancements. Those who fail to adapt their offerings to new technologies or emerging skills quickly fall behind.


1. What are some common reasons why training organisations may not be successful?

Common reasons include lack of clear focus, inability to keep up with industry trends, challenges in attracting skilled professionals, financial struggles, offering low-demand courses, poor training quality, inadequate resources, lack of learner motivation, and inability to adapt to market changes.

2. How does a lack of focus or clear goals impact the success of a training organisation?

Without a clear focus or goals, an organisation might fail to develop targeted and effective training programs, leading to a disconnect between what is taught and what is needed in the market.

3. How can financial struggles impact the success of a training organisation?

Financial difficulties can limit the resources available for quality training delivery, impact the ability to hire and retain skilled staff, and restrict the development of new and relevant courses.

4. Why is staying updated with industry trends crucial for training organisations?

Keeping pace with industry trends ensures that training programs remain relevant, meet current market demands, and equip learners with the skills necessary for contemporary professional environments.

For training organisations to thrive, they must continuously evaluate and adapt their strategies to align with the changing educational landscape, market demands, and learner expectations.

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Sukh Sandhu

Executive Director

Sukh has been working in the VET and Higher Education Industry for over 25 years. In this time, he has held several roles with RTO's and Higher Education Providers (HEP) including CEO roles for International Colleges and National Compliance and Quality Assurance Manager roles for several RTO's, TAFE's and Universities. Sukh has also worked for the Australian Skills Quality Authority (ASQA) as a Business Systems Project Official. Sukh is a Canadian permanent resident and Australian citizen.

Sukh has had extensive project management experience in risk management, compliance, administration and as a training consultant. He has extensive knowledge in government compliance standards and has participated in nearly one hundred audits across Australia and provided consultancy advice regarding ASQA/VRQA, TEQSA, ACPET, DET-HESG, VQF/Higher Education, ELICOS, NEAS, ANMAC, AHPRA, CRICOS, ESOS and ISO.

Sukh is a member of several independent professional organisations and government bodies including, ACPET, VELG, ACS, AITD, MARA, MIA, ISANA, APEX, IEEE, The Internet Society (Global Member), AISIP, IAMOT, ACM, OISV, APACALL, IWA, Eta Kappa Nu, EDSIG and several others.

Sukh's qualifications include two MBAs, three masters in IT and systems, a Graduate diploma of management learning, Diploma in training design and development, Diploma in vocational education training, Diploma of work, health and safety, Diploma of Quality Auditing, Advanced diploma of management, Advanced diploma in marketing, human resources, information technology, and a number of other courses and qualifications. He has been working as a lecturer and as a trainer and assessor since 1998, Sukh has been a vocal advocate of audit reforms and system centred auditing practices rather than auditor centred auditing practices for many years.