His proposals build on a consultation from last year which set out plans to open up rehabilitation services to the private and voluntary sector to drive innovation through the criminal justice system.
Mr Grayling says that opening up rehabilitation services to a much wider range of providers will allow them to innovate and "do the things that work to turn offenders' lives around".
It is the biggest change in a generation, and for Tina Parker it potentially means a whole new range of organisations looking for guidance and support to develop new services that will meet the Government's ambition to reduce re-offending. .
She is an Employment Relationship Manager for Community Justice at Skills for Justice, the Sector Skills Council for the Justice, Community Safety and Legal Services sectors.
It works with key employers, governments of the UK and agencies within the skills system, to better equip workforces with the right skills.
The government's plans for probation, as well as tightening budgets in law enforcement and the introduction of Police and Crime Commissioners, have meant the "the pace of change is very fast".
"Our focus is always on the impact on staff and the skills agenda," she tells Central Lobby.
"People need the right skills to do the job and also commissioners need tools which will help them to effectively benchmark the wide range of organisations that will be bidding to provide services.
"The government's intention is to reduce reoffending rates, increase public confidence in the justice system, increase value for taxpayer and ensure the victims come first.
"Tied in with that is the wish for swifter justice.
"At the moment under the existing structures there are mandatory qualifications in the prisons and probation service.
"It is being proposed that probation will continue to manage serious offenders with low and medium risk offenders."
As the Government sets out its changes for probation, Ms Parker says she is hoping for "a clear articulation of the sort of skills that staff at new organisations taking up probation roles will need.
"At the moment, the current framework clearly states which qualification are required for staff dealing with the various levels of offending; with a level three diploma being the minimum for those working with low risk offenders.
Skills for Justice has worked with the National Offender Management Service to develop the current qualifications structure based on nationally agreed standards of competence, National Occupational Standards or NOS. In the interests of public safety and the rehabilitation of offenders, Skills for Justice is keen to ensure that all organisations delivering probation services deploy staff who can work in line with these performance benchmarks.
"We're also working with Serco to develop a qualification for their community payback supervisors, those working with offenders on community projects. This will ensure that staff supporting offenders in the community will, for the first time, in England and Wales, have a bespoke offender management qualification."
Other plans set out in the Government's 'Transforming Rehabilitation' consultation paper include a greater use of mentors to meet offenders at the prison gate and support them in the community.
Mr Grayling says it is "madness" to carry on with the current system, where offenders are "sent out of prison with £46 in their pocket, and no support at all".
Skills for Justice has already developed occupational standards in collaboration with the Mentoring and Befriending Foundation.
"Mentoring is a voluntary arrangement between two individuals, which is time limited and goal focussed. Ms Parker says.
"It can be a very powerful tool in supporting people when they are released from prison, met at the gates by people who will help them to find accommodation, training or employment all factors which can positively impact on reducing reoffending
"Many people who are discharged from prison have no family support whatsoever and the only networks they have any contact with, is their former criminal one. "
"If Mr Grayling wants everyone leaving prison to have a mentor, it would create huge capacity and training issues, so effective benchmarking by commissioners will be crucial. In addition to the NOS we're also in the process of developing a qualification for mentoring offenders which will be available from April."
Volunteers are a crucial resource for the justice sector requiring effective management to maximise the value of their contribution.
"We're currently developing a competence framework for those who manage volunteers across our sector in order to meet this demand. We're in the fortunate position of being able to build on our existing relationships within the sector and so work closely with employers and key stakeholders to ensure that the workforce has the appropriate knowledge and skills to effectively supervise offenders and reduce the risk of re-offending says Ms Parker.