Better conditions, better outcomes: New report reveals critical link between ECEC workforce conditions and quality in low-SES communities

A new report from The Front Project has found strong links between improved educator conditions and service quality in early childhood education and care (ECEC) settings, particularly in communities experiencing disadvantage.

Titled The Hidden Lever, the report focuses on services operating in areas ranked in the lowest socio-economic band (SEIFA 1) and compares workforce conditions across high- and low-quality providers. It presents clear evidence that professional pay, adequate time for planning and professional development, and supportive leave entitlements correlate with higher quality ratings and, by extension, better developmental outcomes for children.

The workforce-quality connection

Drawing on National Quality Standard (NQS) ratings, The Front Project analysed 350 long day care and preschool services in SEIFA 1 areas rated as Exceeding or Excellent. It found that 66 per cent of these services were covered by enterprise bargaining agreements (EBAs) more than double the sector average of 29.7 per cent.

By contrast, in lower-rated SEIFA 1 services (those Working Towards the NQS), only 32.6 per cent were covered by EBAs.

“High quality and better conditions travel together as do lower quality and poorer conditions,” the report notes.

Not-for-profits lead on quality

The research found that not-for-profit and government-managed services significantly outperformed their for-profit counterparts in low-SES areas. While for-profit providers made up 42 per cent of SEIFA 1 services, they accounted for just 15 per cent of those rated Exceeding or Excellent.

Meanwhile, not-for-profit providers made up 37 per cent of the market, but represented over half of all high-quality services. Government-managed services accounted for 31 per cent of Exceeding or Excellent rated services in these areas, with 100 per cent EBA coverage.

Conditions that support quality practice

The report details several key staffing conditions that distinguished high-quality services from others:

• Non-contact time (NCT): Two-thirds of analysed services provided more than the Award standard of 2 hours per week, with some not-for-profits offering up to 10 hours.
• Paid parental leave: 62 per cent of services provided paid parental leave, with some extending benefits to 16 or even 20 weeks.
• Professional development: 64 per cent supported PD access with paid time for attendance and/or payment for the course of study or conference.
• Personal leave: Over half offered more than the Award minimum, covering a range of 15-25 days annually.

State-level incentives make a difference

The report highlights the role of state governments in lifting conditions through targeted funding and industrial instruments. For example, Victoria’s VECTEA and EEEA agreements provide generous conditions, including 12.5 hours of planning time per week for early childhood teachers.

In South Australia, funding arrangements now require preschools to provide additional planning time and engage in professional development networks policy changes aimed at lifting quality in both LDCs and preschools.

What can the government do?

With the 2024 Wage Justice Bill already providing a 15 per cent pay rise across the sector, The Front Project argues this is a crucial step but not a complete solution.

Instead, the report calls for a more integrated approach. At a state level, governments can leverage funding arrangements to incentivise quality. At the Commonwealth level, the report suggests the $14 billion Child Care Subsidy could be used to strengthen workforce conditions tied to improved outcomes for children.

Looking forward

The findings from The Hidden Lever send a clear message: if Australia wants to realise the full benefits of universal access to ECEC, it must invest not only in access but in the workforce that drives quality.

For services supporting children in the most disadvantaged communities, fair pay, proper planning time, and professional respect aren’t luxuries. They are prerequisites for delivering the kind of care and education that every child deserves.

Access the full report here.