OECD research shows SMEs value training
Labour Minister Kate Wilkinson has welcomed OECD research findings that Canterbury businesses recognise the importance of training to their productivity and competitiveness, irrespective of the economic climate.
The research is the first completed in an OECD project aimed at identifying ways of overcoming barriers to workforce development in small to medium-sized enterprises (SMEs). Similar research is being undertaken in the UK, Poland and Belgium, with the findings to be synthesised once all are completed.
The Canterbury research, conducted in mid-2009, involved 72 businesses, most of them with fewer than 20 employees.
"A significant proportion of the participating businesses said they had continued to invest in both formal and informal training as planned, despite the recession," Ms Wilkinson says.
"Firms who invest in their staff are more productive, so it is great to see that most employers recognise the long-term benefits training provides even when times are tough."
Ms Wilkinson says key findings from the Canterbury research include:
- The large number of qualifications recognised in New Zealand presents difficulties to firms navigating their way through the system to determine training opportunities;
- There is scope for Industry Training Organisations to further expand their industry "reach" to include SMEs;
- Highly innovative firms invest more in training than those less innovative; and
- Both formal and informal training are important for developing skills that boost productivity - informal training includes everyday staff interaction with clients, consultants, co-workers and others associated with the business.
In other areas - such as the importance of raising skills in the labour force - the research reinforces the findings of previous studies.
Ms Wilkinson says the Government has noted the research conclusions and will use them to inform current work programmes within the Department of Labour.
The report is available at http://dol.govt.nz/publications/research/oecd/.
It was overseen by a steering group chaired by the Department of Labour with representatives from Business New Zealand, the Industry Training Federation, the Ministry of Economic Development and the Tertiary Education Commission.