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IMPROVED PRODUCTIVITY

The employed workforce is growing and much of Ireland’s future growth must come from improved productivity. There needs to be an increased focus on those at work and FÁS has been allocated €27 million in extra funding in 2005 to address these needs. This funding will continue into 2006. FÁS will work closely with employers and their representatives and make a major contribution towards supporting Ireland’s development as a highskills economy. FÁS will continue to monitor changing needs and be responsive to the needs of all its clients.

 


TRAINING FOR THE FUTURE
In association with FÁS

Training For The Future

John McGrath,
Services to Business Manager, FÁS

John McGrath outlines the training and skills required for a growing and diverse workforce.

Continued economic growth has serious implications on the training needs of today’s diverse labour force. The highest rates of growth will be in professional and technical jobs, which will require a third level qualification or technical training.

There will also be growth in many service sector occupations and labour turnover is expected to lead to an on going ‘replacement’ demand for recruits across all occupations. Immigration will remain an important source of new labour into Ireland over the coming years.

If Ireland is to continue to grow economically it is essential that the work force is highly skilled. To achieve this objective a high level of education and skills, lifelong learning and up-skilling are required.

Productivity and Employability

There has been significant progress in the creation of a single, coherent qualifications system for all levels of education and training in the State. FÁS welcomes and actively supports this move towards more transparency in qualifications and are equally proud of their own training programmes. ESRI research has also shown that all FÁS training programmes have a positive impact on unemployed jobseekers and on employee progression prospects. However, 70% of the Irish workforce do not have a third level qualification. This means that apprenticeships will continue to be a very important entry route to skilled employment for young people.

Influencing Labour Policy

It is essential that all labour market policies incorporate those without third level qualifications, while addressing the many social inclusion issues facing the country as a whole. Identifying and gaining the skills needed to obtain employment is an important factor in reducing poverty and deprivation. Employers have an urgent need to promote and encourage a smooth flow of entrants and re-entrants back into the work force.

Quality and Relevance of Training

A major task for industries will be to ensure that its training programmes comply with the requirements of the National Framework of Qualifications, and are approved and certified by the national awarding councils. Significant progress in this area has been made but the amount of further work required cannot be under estimated.

Ireland’s future economic prosperity will be based on the development of the skills of the workforce. It will be through a process of continuous development of the skills that Irish businesses will be able to secure a sustainable competitive advantage. While the leading Irish companies have long recognised the requirement for training of its work force, most Irish companies are operating with skills levels, which could be improved against their international counterparts.

Irish businesses only spend 1% on training compared to 3 to 4% in Europe. This indicates a failure by entrepreneurs to recognise the importance of continual training and the positive impact that it can have on their business. Small to medium sized businesses should not underestimate the importance of training among employees and the benefits it can have on a company. Businesses can avail of various training services in the areas of curriculum development and up-skilling. These optimum training programmes can improve productivity and encourage staff motivation and reduce labour turnover.

ADVICE FOR ENTREPRENEURS

Recognise the benefits of training to staff retention and business success.

  • Identify the training needs of employees.
  • Establish the best training programmes available.
  • Encourage employees to avail of training opportunities.
  • Remember that as a business owner you too will need training and up-skilling.

LIFE LONG LEARNING IN BUSINESS

Training within SME s is important for the continued growth of the economy. The potential benefits of training within SMEs can be identified as follows:

INDIVIDUAL EMPLOYEES
Training can benefit individual employees by enhancing their future earning potential, career progression and employability. Training targeted at the lower skilled, those working in occupations undergoing restructuring or other groups perceived to be at a disadvantage on the labour market can improve their position.

ENTERPRISE LEVEL
At the enterprise level, there is evidence to suggest that investment in training impacts positively on, inter alia, company productivity, profitability and product or service quality. This may help ensure business competitiveness and survival and success.

EFFECTS ON THE ECONOMY
Training has positive effects on the economy local, regional and national. Training which enhances individual and enterprise capability and competitiveness creates better chances for survival against competition, both domestic and international. In the long term this may lead to economic growth and further employment and flexibility.


Author: John McGrath is the Manager of FÁS, which is Ireland's national training and employment authority. For more info log onto www.fas.ie