Training improves staff retention and attracts skilled workers
“The best performing Australian companies have a sustained commitment to training and to the knowledge and skill of their people as an essential part of their strategy.” Return to Enterprises on Training Investment: Rod MacDonald and Jacqui Fyffe, Australian National Training Authority
Return on investment
Deakin University researched over 50 international studies in a variety of industries, including manufacturing and financial services in a report to be known as “Training Culture in Australia: A review of National and International Literature and Research”.
Some of their findings were that investment in training resulted in:
- increased productivity,
- reduction of production costs,
- positive impacts on absenteeism and operations and a
- variety of measurable returns on investment up to 3000%.
The future of Australia: What skills do we need?
According to Employability Skills for the Future; Commonwealth of Australia 2002, Australia is the 14 th largest economy in the world. It has 10.4 million economically active people between 16 - 64. That’s a lot of people to forge a strong economy.
The Allen Report, “Training to compete: a report to the Australian Industry group”, Allen Consulting Group, 2000 surveyed 350 enterprises and listed the following generic skills required for competitive enterprises:
- Literacy
- Numeracy
- Information technology capability
- Understanding of systems relationships
- Communication
- Team work
- Customer focus
- Project and personal management
- Capacity to learn
- Willingness to embrace change
- Independent problem solving and reasoning capacity
- Practicality and a business orientation
What skills can you identify with? Where do you or your organsiation require strengthening?
The importance of training to innovation
The Commonwealth has acknowledged the importance of innovation and has released an innovation strategy document called “Backing Australia’s ability: An Innovation action plan for the future”. It argues that “success in the 21 st century will depend predominantly on the innovative capacity of nations, their industries and their research and educational structures” (Commonwealth of Australia 2001, p.4) and acknowledges the importance of skills development in this process.
People value organisations who invest in their development. Training clearly contributes to creating and retaining talent whilst fostering better enterprise performance.