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Workforce & Industry

Now Is Not a Good Time to Skimp on Worker Training

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“This is an interesting article. With the number of skilled workers available continuing to present a challenge, we are seeing a slight uptick in investment in some of the skilled trades. I expect that 2019 will see this trend increase.

Combined with optimistic projections of increased enterprise investment in VR/AR technologies, we can expect to see sustained positive shifts in workforce development, training initiatives, and education for 2019.” – Matthew Wallace, CEO & President

Now Is Not a Good Time to Skimp on Worker Training

With unemployment near a record low, many businesses have no choice but to spend to upgrade employee skills.

Economists love worker training, but companies are often reluctant to provide it. The benefits of training can walk out the door if newly skilled workers are poached by a competitor. “I call it the ‘I drink your milkshake’ problem,” says Jake Schwartz, chief executive officer and co-founder of General Assembly, a computer-coding boot camp acquired this year by Switzerland-based staffing firm Adecco Group AG. In the years before the global financial crisis, companies steadily decreased training. The U.S. Census Bureau found that just 11 percent of workers received employer-sponsored training in 2008, down from 19 percent in 1996. When the financial crisis hit, throwing millions out of work, training seemed less important than ever: Why spend the money when you can pick up the skills you need from the bountiful ranks of the jobless?

Now, though, corporate attitudes appear to be shifting, albeit gradually.

 

Read more at Bloomberg