The ISTD recently published an article answering exactly this!
They say that:
Research shows that dancing can be brilliant for our mental and physical health. Dance Exams can be hugely rewarding for your child and can help to develop a range of personal, social, physical, and mental well-being and transferable skills such as:
Personal Skills
Ability to analyse
Application of knowledge
Commitment
Confidence
Concentration
Conviction
Cooperation and teamwork
Technical Skills
Accuracy
Application of feedback
Application of technique
Coordination
Creative engagement with movement material
Fitness
Flexibility
Kinaesthetic awareness
Mastery
Memory and recall
Movement intensity appropriate to the style
Placement
Rhythm
Sensitivity to the cultural framework and/or stylistic influences of the technique
Stamina
Strength
Timing
Understanding of anatomy and physiology
Progression
Provide a measure of achievement of technical ability, musicality, and performance-based skills from a beginner to professional level.
Provide the highest quality of constructive feedback, supported by a tested marking framework.
Exam certification acknowledges achievement, which is important for those who wish to pursue a career in dance.
90% of Dance Exams offered are regulated through Ofqual, so meet a high standard of technical content and delivery and have UCAS points attached suggesting further progression in higher education if desired.
For Dance Exams, the Grades and Vocational Exams produce dancers who go onto vocational training and into the dance industry on a wide scale and the transferable skills learnt allow people to go into teaching and the creative industries.
Following a syllabus ensures training that is based on accumulated professional teaching experiences from many great teachers. Syllabi have and continue to evolve to offer in-depth safe and age-appropriate foundational training with attainable yet exciting goals and challenges.
Giving students achievable goals can instil increased work ethic and focus.
Teachers who belong to the ISTD have undertaken rigorous teaching qualifications and will continually be challenged to upgrade their skills and knowledge with various Continued Professional Development courses.
Many students love to be challenged, achieve, and progress, and take great pride in exam success.
Performance
Exams enable students to optimise opportunities to realise their potential
A chance to gain a qualification/medal which recognises dance excellence
Exams also help to develop a student’s:
Creativity
Critical self-reflection
Discipline
Individuality
Mental and physical wellbeing
Perseverance
Problem solving
Respect
Response to feedback
Self-challenge
Self-management
Self-motivation
Setting and achieving goals
Understanding and appreciation of cultural framework, style and genre
Most importantly - it's fun!
Making friends
A huge sense of achievement
And many more!
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