A critical analysis of the links between Occupational Classification Systems, Occupational Qualifications and the regulation of occupations: Case studies in the Financial Sector

Abstract

The primary focus of the research was to obtain an understanding of how professional bodies in the financial sector use the Organising Framework for Occupations (OFO) to develop occupational qualifications against which they could register professional designations with SAQA. By mapping the relationship between Occupational Qualifications and Occupational Regulations, this research explores the role of professional bodies in the South African skills development ecosystem by focusing on the relationship between occupational qualifications and their use in regulating occupations by professional bodies in the finance sector. The research seeks to explore transitions from legacy qualifications and provider- based qualifications (also commonly called pre-2009 qualifications as they were developed prior to 2009) to the replacement occupational qualifications developed under the auspices of the Quality Council for Trades and Occupations (QCTO). During the process of developing occupational qualifications, tensions emerged between professional bodies (in this case, in the financial sector) regarding what should or should not be included in occupational qualifications. The tensions referred to above emanate from the different professional bodies using the Organising Framework of Occupations (OFO) to develop qualifications against which to map the designations awarded by the professional bodies. These “tensions” are also related to debates on the definition of an occupation and the relationship (mapping) between occupations and qualifications. The QCTO has witnessed these contestations play out when professional bodies are consulted in developing national occupational qualifications to replace the legacy qualifications. This study, therefore, seeks to critically analyse the relationship between the OFO, the development of occupational qualifications, and how professional designations are then mapped against these qualifications. In this qualitative study, a case study methodology was adopted within the financial sector using four professional bodies. Data was gathered using semi-structured iv interviews with six (6) professional body executives. Grounded theory relying on thematic analysis was used as the primary tool to analyse the data. A critical finding was the view strongly expressed by professional bodies that they are responsible for linking all the elements of the skills development process. Professional bodies also hold the view that the OFO is applicable to trade and trade-related occupations and is not user-friendly for professional bodies higher up in the financial sector hierarchy. The research findings, however, concur more strongly with the argument that qualifications seem to be diminishing and are being replaced by a weaker and more fluid relationship between qualifications and the labour market. The research shows that professional designations have become the mechanism for regulating the labour market and that different bodies have different pathways leading to attaining a designation. The research also showed that the relationship between the OFO and the development of occupational qualifications in the professional body space, particularly in the financial sector, is not well established. The research also reveals that professional bodies do not directly use qualifications for occupational regulation but use them as the basis or entry towards the attainment of a professional designation (as a form of regulation). The research strongly indicates the need for further research into how professional bodies may contribute to the establishment of a skills development ecosystem.