TRAINING, THE SMART WAY FORWARD

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TRAINING, THE SMART WAY FORWARD
National Training Providers Competency Skillnet
Conference

• Mark Fielding
• Chief Executive, ISME.
• September 25th 2009.

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Adding Value to Business Performance with Strong
Leadership
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To improve PRODUCTIVITY we must do three things

• Raise the amount of PRODUCTIVE PHYSICAL
  INVESTMENT.
• Increase INVESTMENT IN HUMAN CAPITAL and enhance
  its EFFICIENT USE.
• Improve TOTAL FACTOR PRODUCTIVITY. (stability,
  technical change, adoption and diffusion of
  modern technologies, infrastructure, efficient
  allocation of resources)

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LEADERSHIP

• Lets start with those investments that can make
  America more competitive in the global economy
  investments in education, science and technology,
  and energy independence. B. Obama

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GLOBAL IRISH ECONOMIC FORUM

• The Irish Brand has distinct and intrinsic
  value, we must connect with that brand now,
  renovate it, use it, in order to give us a
  competitive advantage in a globalised world. The
  Ireland we envisage for the future is a smart,
  high-value, export-led economy. It will have some
  of the worlds leading research-intensive
  multinationals, a number of which will be
  Irish-owned.
• An Taoiseach, Brian Cowen.

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The 7 Advantages of EMPLOYEE TRAINING

• Increased Employee Confidence
• Increased Job Satisfaction
• Increased Employee Motivation
• Increased Efficiency and Productivity
• Reduced Employee Turnover
• Increased Company Image/Profile
• Increased Attraction for more talented/suitable
  employees

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FACTS OF LIFE

• Larger companies train more than small companies
• Foreign enterprises train more than indigenous
  companies
• Training of the workforce tends to be
  concentrated on those already highly qualified.

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SMEs face substantial obstacles

• Cost of training is relatively high as percentage
  of payroll.
• Difficult to release workers for training without
  disrupting performance.
• When trained, employees tend to move to better
  paid jobs.

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ECONOMIC BACKDROP

• The cake gets smaller.
• Our piece is smaller still.
• In fact we may be scrambling for crumbs.

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He who pays the piper

• The National Training Fund is funded solely by
  Employers.
• 0.7 of Reckonable Earnings in respect of
  employees. (Employers PRSI)

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ECONOMIC BACKDROP

• OUR NATIONAL TRAINING FUND EXPENDITURE.
• 2008 192m
• 2009(f) 122m
• A reduction of 36
• 2010 ???

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OUR NATIONAL TRAINING FUND EXPENDITURE.

• Employed Unemployed
• 2008 48 49
• 2009(f) 32 65
• A reduction of 33
• 2010 ???

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OUR NATIONAL TRAINING FUND.

• TRAINING FUND SURPLUS
• 2008 181m
• 2009(f) 205m

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ENTERPRISE STRATEGY GROUP

• Knowledge creation and diffusion are at the core
  of economic activity. Knowledge is embodied in
  people, and it is the quality of the human
  resource that will determine the success or
  otherwise of firms and economies in the years
  ahead. It is people who create knowledge and it
  is people who disseminate adapt and use data,
  insights, intuition and experience to create
  distinctive value

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GLOBAL IRISH ECONOMIC FORUM

• There has been a slippage in standards at the
  higher levels of education and training. There is
  a view that our education doesnt have the
  standing that it had quite a number of years ago
  and that there is a need to look at exactly how
  we teach our subjects.
• With our limited resources we have to prioritise.
  We need to have the education system, the
  R D system and the Government policies
  crystalised about a few areas to focus on and we
  would be world leaders in those areas.
• Craig Barrett. Former CEO Intel.

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AN BORD SNIP

• The Group was not convinced by the argument that
  the funding of 27million provided through FAS
  Services to Business and Skillnets is a necessary
  catalyst in the provision of training by
  businesses to their own employees. The Group is
  not convinced that any market failure exists and
  recommends these activities be stopped as
  employers can provide for their own requirements
• Recommendation funding for FAS services to
  business and Skillnets be ceased.

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THE FUTURE
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• FAS Services to Business
• Skillnets

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CALL TO ARMS
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