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Industry support for training is an important contributor to national investment in human resources. In many countries, governments do not regulate enterprise training expenditure. In countries with well-developed employer commitment to human resources development (HRD), there may be no need for such regulation. In countries with so-called voluntarist systems of skills development, however, the neutral role of governments commonly results in employer under-investment in training. This paper explores three broad categories of government-employer financing arrangements designed to encourage greater levels of industry training. These arrangements vary from fiscal incentives to enterprises to strict regulations imposed on levels of enterprise training expenditures and supervisory involvement of national authorities in their implementation. The nature, advantages and disadvantages of three broad types of such arrangements are discussed in the paper: (1) Government-enterprise co-financing of training; (2) Industry voluntary training funds; and (3) Training levies.

Published abstract reprinted by permission of the copyright owner.

The collection of papers is indexed at TD/TNC 71.486; individual papers are indexed from TD/TNC 71.487 to TD/TNC 71.494. Show less

The author's study provides the answers to the following questions: How much do enterprises invest in training activities and what are the objectives? What economic and company-specific factors must be taken into account? How are the needs of employees considered? The author presents an analysis of the bases of decision-making in the area of training expenditures and examines the extent to which there is a correlation between the level of investment in training, the performance of employees and company earnings. Show less

This guide is intended to help business owners and trainers understand and implement Return on Training Investment (ROTI) principles and practice. It suggests ways of conducting a ROTI analysis, gives the qualities of a good ROTI plan, offers suggestions for readying the organisation for implementation of ROTI, provides an example of a cost-benefit analysis and includes sample ROTI worksheets for a business.

A companion publication, 'Return on Training Investment: an environmental scan and literature review', may be found at TD/TNC 68.470. Show less

This report provides a summary of data on workplace learning from over 550 organisations in 42 countries from nine regions (Asia, Australia/New Zealand, Canada, China, Europe, Japan, Latin America, the Middle East and the US). The 2001 Measurement Kit was used to collect the data. Key findings include: training expenditure per employee continued to grow; use of learning technologies almost doubled in Asia and Latin America; every region projected substantial increases in expenditures in coming years; in total training hours per eligible employee in 2000, the highest number of hours was reported in the Middle East and the lowest in Canada and the US; the US had the highest number of employees per trainer; the region with the highest percentage of employees receiving training was Australia/New Zealand and the lowest was Asia; and training expenditure as a percentage of payroll was highest in Asia and the lowest in the US. The contents of the report are: Introduction; Key findings and highlights; Methodology; Total investment in training among organizations; The ways in which organizations deliver training; Putting it in context: what other workplace policies and practices do organizations use?; Next steps; Glossary.

The Measurement Kit is indexed at TD/TNC 72.500. Show less

This report was commissioned to review the existing evidence on the returns to employer investment in training. What follows provides is probably the most detailed and comprehensive, and certainly the most up to date, overview of the research base in this area. From a policy maker’s perspective, this research could serve two functions. First, it might be used to justify state expenditure (or other forms of intervention) to rectify identified market failures. Second, it might be used to try and convince employers of the benefits of increasing their investment in skills. This review finds that the evidence base, at least as it relates to the UK, is generally patchy and in some cases either thin or wholly non-existent. In terms of its ability to fulfil either of the two functions identified above, it is of, at best, limited utility.

Published abstract reprinted by permission of the copyright holder. Show less

This chapter reports on research designed to survey discernible trends in training demand that employers want, and training providers are preparing for, in the next three years. Contacts in the printing and book publishing sector were surveyed on the following five questions: Who is meeting your training needs well and with what? What are the emerging training needs? How might they be met? What do you think the characteristics of well-trained workers will be from an industry, or from your, point of view? Which skills will be most portable and useful in any emerging business models? The author divides the survey findings into two sections: book publishing; and printing. In the book publishing industry, significant issues related to training were the need to update skills where technological change affected publishing functions, the need for training to improve staff business skills, and that editing skills were those most commonly mentioned in relation to training. Training for the retail aspect of the publishing supply chain, the link between training and remuneration, and employment prospects, are also covered. The skill needs of the printing industry and the structure of its businesses have also been transformed by technological change. Both printing and publishing recognise the need for senior level management skills and a gap is evident in the financial, forecasting and strategic planning skills area. Better forecasting and management skills are needed to improve process and profitability. The industry has suffered from low investment in training, poor wages and limited graduate and postgraduate study support. Training and education need re-design in consultation and conjunction with industry.

The volume of chapters is indexed at TD/TNC 74.195. Show less

International comparisons indicate that, on average, Belgian companies spend less on training than their French, German and Dutch counterparts. Encouraging companies to commit to training has consequently been an important policy goal over the last few years. One notable aspect of the policy to encourage training efforts by companies is that the effort is always represented in terms of the resources invested (input), not in terms of the learning achieved (output) or the quality of training programs (throughput). Government policy is aimed at increasing the level of investment in company training. One of the questions we wish to investigate is whether this input-oriented approach to the training issue is actually effective. Whether companies will succeed in raising human capital to ever-increasing levels may depend not only (and maybe not even chiefly) on the extent of financial investment in training. The investment level does not necessarily determine the quality of the training processes developed by companies. Therefore, this paper focuses on the following research questions: (1) To what extent do companies monitor the systematic development of sufficiently effective training processes? In other words, is qualitative under-investment an issue, alongside financial under-investment? (2) Is the level of financial investment in company training correlated to the quality of training processes? The empirical data confirm that a kind of 'qualitative' under-investment can be reported and that the relationship between the level of investment in training and the quality of the training programs is weak.

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Policy debates across advanced industrial economies are stressing the centrality of skills and training to compete in the new 'knowledge economy'. In the UK [United Kingdom], increasing importance is being placed on improving workplace learning, yet policy has so far failed to confront the issue of employers' lack of investment in training and development. This article examines whether the high skill sectors that exist within the UK can provide a model of workplace learning for other such sectors to emulate. By using case study research from the aerospace and pharmaceutical industries, training and development practices are examined in relation to the requirements of the business and individual employees. This article will argue that the companies in question, despite their favourable product market position, remain constrained by the broader institutional environment.

Published abstract reprinted by permission of the copyright owner. Show less

In this article, the authors demonstrate the importance of investing in training for organisations that have high employee turnover. They discuss the rationale for training employees whether they become long-term employees or not. Some of the reasons for investment in training are: attracting and retaining customers; maintaining a competitive edge; the availability of company-sponsored training as a recruitment tool; the benefits of learning for both the individual and the organisation; training provides a common language to facilitate the recovery to effective operations after a merger; the development of committed and innovative employees; and the proven link between increased training budgets and increased productivity and profits. A sample case study of the benefits of training investment in a non-sales environment is also included. Show less

This inquiry into small business employment in Australia was referred to the Employment, Workplace Relations and Education References Committee by the Senate in March 2002. The report was made in February 2003. A major focus of this inquiry is on the factors that determine employment in the small business sector and strategies that governments can put into place to assist small business to employ more people. The inquiry also examined the impact of government regulation on small business. The Committee drew on research by the Productivity Commission and the OECD, and evidence to the inquiry from small business owners, their representatives and advisers, and academics and service providers, to make its recommendations. The inquiry found that employment growth in small business depends on business growth. However, it also found that many small business owners lack business management skills and that this results in under-performance, business failure and untapped potential in the sector. Two other themes to emerge in the inquiry were the challenge of effective communication in such a large and diverse sector, and the need for a more coordinated approach to policy and program development and delivery. The chapters are: Introduction and background to the inquiry; Understanding small business; Small business and employment; Government policies and programs; Skills development for small business; Reducing the burden of regulation. The report also contains: Membership of the Committee; Terms of reference; Abbreviations/acronyms; Recommendations; Government Senators' reservations [about the report's findings and recommendations]. Appendices contain: List of submissions; Hearings and witnesses; Documents tabled at the hearings; Further information.

Chapter five, entitled 'Skills development for small business', identifies strategies to improve the business management skills of small business owners and the skill level of the small business workforce as one of the most important measures the government could take to enhance the capacity of the small business sector to employ more people. The inquiry found that government investment in training and information for small business has been uneven and is yet to provide an effective framework for business management development. Drawing on evidence from the inquiry, the chapter examines a number of issues associated with skills development for small business. These are: the importance of business management skills; current arrangements for business skills training; skills training for new businesses; the program of business incubators to assist new and growing businesses to become established and profitable; training and management support for established businesses; current training programs; and developing a training culture in small business. Recommendations based on inquiry evidence are made for each of these areas of concern. Show less