International competition, global production and the increasing pace of change have brought new challenges that require the establishment of a National Skills Recognition System to accelerate the implementation of work performance standards, identification of job competencies and acquisition of skills.

International Competition
Competition has grown to an unprecedented intensity. It is no longer just national but also international. With the free flow of capital and technology world-wide, companies all over the globe are competing head-to-head for the same investment, production and customers. Organisations need to increase the competitiveness of their goods and services in the international market. To compete successfully in the global market, companies have to establish work performance standards, identify job competencies and ensure that staff on the job have the requisite skills.

Global Production
The globalisation of manufacturing and services has meant that goods and services are no longer produced in one country. Different parts are produced in different countries and by a diverse workforce. Even within organisations, the different components are produced by different people. To ensure that the different parts fit perfectly and are consistently delivered at the required quality, work performance standards are necessary. Job competencies need to be identified so that staff can be trained to meet the specific delivery standards.

Pace of Change
The pace of change is accelerating. The production of goods and services is characterised by shortening cycle time. Work performance standards are critical for ensuring the quality delivery of products and services during a state of flux. To perform well, staff need to have a clear idea of expectations, delivery standards and the required job competencies. To determine job competencies, many organisations use formal education qualifications, which being broad-based, do not define specific work performance. To better meet customer requirements, specific work performance standards and job competencies need to be established for all critical tasks.