Small and Medium Enterprises do not have the money to spend on luxuries such as training. Fact or Fiction. It is a myth that small or medium sized companies cannot afford the luxury of training. Last year saw the introduction of the Skills Development Levy at a cost of half a percent to all companies registered with SARS and with a payroll in excess of R250 000 per annum. This year the levy doubles as of April when it becomes one percent. Clearly government is serious about ongoing training. It is about time that SME`s wake up to this important aspect as well, or will the levy be paid and never claimed back?
Though the introduction appeared to be a cause of complaints amongst many small to medium sized companies the necessity for training was recognized by government. Government was quite diplomatic when it announced the introduction of the levy as a measure to cater for the shortages of skilled workers. It might as well have said that it was a measure that was introduced because businesses fail to invest in the workers through training.
Speaking to the director of a training company that specializes in training operators of lifting equipment, it became clear that it is as a result of the Occupational Health and Safety Act, that they are in business. One would have thought that the safety and skills of workers would be paramount to any business, however it is clearly not the case.
Returning to the idea of training as a luxury as far as SME`s are concerned, it can be argued that these companies cannot afford a full time training department or training manager. This may indeed be true, but it can surely be outsourced in a cost effective way or managed by management themselves. It is after all an investment in the Intellectual Capital of the organization. Time, money and resources are all issues that impact on training but unless management makes a serious commitment to a training program it is wasted effort.
Support has to come from board level or any training program is doomed to fail. Once the required support has been obtained the buy in must be obtained from the rest of the organization. Managers and project leaders who are under pressure to deliver projects tend to fail to plan for time to allow their resources to attend training courses. The result is projects that continue to slip, less time for training and a turn over in terms of disgruntled employees leaving for greener pastures where training is an option. I am yet to meet a knowledge worker who does not like to exploit the opportunity of increasing his or her own skills.
Granted that some SME`s do not have training departments or sufficient skill to develop and run with training courses. However, self directed learning is not uncommon amongst IT professionals and companies can institute schemes to allow for self study, be that grants to buy books or E-Learning material and time off to pursue this, the only limitation is the ability to think and act outside the box.
Another option is the collaboration of efforts between a number of SME`s. Collaborative learning is an effective way of getting groups of learners to teach one another. SME`s may wish to work together in transferring skills, this can take the form of user groups or sharing resources to develop and run training courses. Innovation should know no boundaries especially where business partners are concerned.
How many SME`s will neglect to invest in the maintenance of the tools of their trade? To illustrate this point one can only look at a business that focuses on delivering goods to the customer`s address. Would a business which relies on delivery vans fail to perform (or let someone else perform) maintenance services on these vehicles? A vehicle which is left and which never gets an oil change or major service is set to run into trouble at some stage or another. Employers who fail to invest in the development of their organization`s Intellectual Capital will reap the results of a poor investment sooner or later when the organization runs out of its fuel i.e. Intellectual Capital.
Not training one`s staff is the same as not taking care of your customers. How many receptionists are trained on Customer Relationship Management? How many drivers and delivery personnel are capable of Customer Relationship Management? These employees are facing customers everyday and the damage that may be caused by untrained personnel facing customers be that directly or on the phone cannot be rectified by a means of hiring and firing. Training is a measure that can be preventative rather than reactive.
We are part of the global economy and we are living the Information Revolution. The tools of our trade are no longer machines only, it is all about people and their complex make up of ability, skill, knowledge and attitude. Tom Peters has been shouting it from his podium for years, it is time to innovate or die. Employees need to be equipped (and empowered) to contribute to the growth and development of the business. Training them is one way of getting there.
More and more SME`s are realizing that it is difficult to find suitably qualified individuals not to mention retaining their services. Training individuals is often regarded as a luxury and a time waster for a number of reasons. Employers feel that if they foot the bill to train someone the person may jump ship before a return on investment has been realized. This is a fear that is justifiable in an industry where employee loyalty lasts on average about 18 months (or less sometimes). Questions pertaining to the return on investment as far as training is concerned may be justifiable but who has bothered to calculate the cost of not training someone?
Employees who were polled in a poll hosted by TechRepublic (www.techrepublic.com) were in agreement that training is a perk that they consider to be a differentiating factor when considering an offer from different employers. Although this site is mostly an American site, the basic premise of training being an important aspect still holds water locally. IT people in general want to have the opportunity to increase their skills and to remain marketable as such. It is not as much a question as wanting to jump ship at the first opportunity but the knowledge that they remain attractive in the job market. Technology changes rapidly and employees have to keep abreast of these changes.
SME`s may not have the financial or human resources required to do training. However, if the cost of not doing the required training is calculated and opposed to the cost of actually doing the training it may be an actual surprise to see that the difference is not as big as anticipated. Trained staff generally are happier, more productive and can take preventative measures when facing problems requiring decisions to be made.
How can employers ensure that they retain staff and collect a return on the investment made in terms of training? They are, after all running a business and they have to recoup the expenses. An option is to put a contract in place that will retain the services of the employee for a reasonable period of time. The questionable parts come into play as far as what is perceived as reasonable. An employer once made the mistake of sending a group of employees on training and trying to force them to sign contracts upon completion of the training. It was never a condition beforehand and the fact that the were forced to sign these contracts a week after concluding their training cost the employer 5 highly skilled employees.
Is a training reimbursement agreement really worth it? Diane Tunick Morello, a vice president of the Gartner Group, warns that using reimbursement agreements to deter employee defection may hurt your chances of attracting new talent.
SME`s may find themselves caught between the devil and the deep blue sea. How can one protect one`s investment without a contract? Maybe one needs to look at the concept of trust and reasonable contracts that reward employees for their loyalty, based on the number of years commitment the contracts may be reduced or even discarded.
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