Training aims to develop skills, knowledge and attitudes that lead to superior work performance. Training is critical in Australia today, as businesses report significant labour market problems, including a shortage of skilled labour, and a mismatch between what skills are needed and what is available. These problems act as a brake on investment, but can be overcome by business commitment to ongoing training.
Development is focused on enhancing the skills of the employee in line with the changing and future needs of the business. It also encourages employees to take advantage of opportunities to develop a career with the business. The business benefits by retaining the employee’s experience and knowledge of the business, and by helping it maintain competitiveness.
The shift to a largely service-based economy has seen many traditional skills, particularly those in manufacturing, become obsolete. Businesses need to consider the mix of skills they can develop internally and those for which they need to recruit. Businesses will need to consider these options:
• Invest in further in-house training and development
• Recruit staff for specific skills
• Retain experts who retire on a part-time basis
• Retain women through flexible work structures such as part-time work
• Share staff with other firms, or do work for other firms (insourcing)
• Outsource functions to specialist firms or agencies, even overseas
• Sponsor overseas migrants for areas of major shortages
• Build networks or alliances with other firms with specialist skills or skills needed in the future