Human Resources Training In association with FÁS

HIRE, TRAIN AND RETAIN

John McGrath, Manager, FÁS

John McGrath outlines the enormous value that human resource training provides SMEs,

With Irish SMEs witnessing a gradual shift from labor and capital-intensive production towards knowledge-intensive production, the focus is now on lifelong learning. This means that SMEs need to constantly evolve and work upon their manpower structure to survive and grow in this competitive environment. The increase in lack of technical skills is the most significant barrier to the growth of SMEs in industry and services. And, with ethnic diversity and an aging workforce, the role of employing and, more importantly, retaining qualified and skilled workers is central to the smooth running of business. In such an environment, it is imprudent to underestimate the value of human resource (HR) training within SMEs. By overcoming the training challenge, owner/managers and human resource personnel will be able to look for fresh, practical ideas to get the best out of their staff.

TRAIN TO TRAIN

If looked at from a broad angle, training HR management, in essence, leads to better hiring and retention of staff. Research undertaken by Cambridge University revealed that company HR practices were also influential in affecting the impact of overall training in that a greater impact was found in companies where other policies such as total quality management, quality circles, job rotation and performancere lated pay were also in place. Most small firms get new recruits from other small firms, school leavers and the pool of unemployed. At the same time, the small size of their enterprises and the high rate of employee turnover make it difficult for SME owner/managers to improve the quality of their human resources. Thus, it is crucial for SMEs to invest in HR training which, in turn, enhances the training and development of basic skills of staff. If SMEs are to make a significant contribution to boosting Ireland’s economy, they need to strengthen their staff cultivation.

TECHNOLOGY USE

With information technology (IT) fast-growing to be one of the essentials that companies, big or small, implement in order to keep up a sustainable measure of growth, skilled workers are in demand. As the shift towards knowledge-intensive production continues, the use of, and dependency on, IT will only get heavier.

A new report by the Economist Intelligence Unit, a flagship white paper in the midsize companies series, says that IT can help these companies retain speed and flexibility while they grow. Executives are particularly keen to use IT to help improve customer service, supplier and partner interaction, operational management and innovation. The ability to find and retain good people able, among other things, to manage and use IT skillfully is another prerequisite to easing the strains of growth.

CAUSE AND EFFECT

Simply put then, the best way for SMEs to be successful is to have a strategy that helps employees do well in their individual assignments, and then recognise their progress. The easiest way to achieve this is to provide HR training to the concerned people, be it an owner/manager who wears the HR hat or the HR personnel themselves.

This, in turn, will bring out the best in your staff and also find and keep the right people. Remember, good people are always in demand. So uncover, hire and retain the best people and make sure that all employees feel appreciated. Invest in their training and this will guarantee to keep you on the track to growing your business strongly and steadily.