Training in tough economic times
By Josh Williams
The current economic climate is undoubtedly challenging for households and businesses alike, requiring difficult decisions to be made.
Skills Group, a company that has been developing skilled and qualified graduates for various industries through apprenticeship training and specialist providers like Ignite, ICE, and ETCO for over 30 years. Skills Group is deeply committed to securing the future of the industries it serves and the communities where it operates, including Wiri, where its Ignite Colleges campus trains for a wide range of industries, including healthcare, hospitality, business, and more.
For Skills, its success is intrinsically tied to the industries it supports, as it is an integral part of those industries. For instance, ETCO, the Electrical Training Group, also part of the Skills Group, trains 60 percent of all the electricians in New Zealand but is itself the country’s largest employer of apprentices through its Group Employment scheme.
Having weathered several economic cycles, Skills Group understands the cyclical nature of booms and busts. Many of the employers it works with share that understanding that circumstances will eventually improve, and preparedness is crucial. Continuing to invest in people and capabilities is essential, as the simple truth is that training must continue. Failing to supply the skilled workers that businesses rely on will hinder progress when the economic situation turns around.
There is no shortage of work, and quite the opposite, there is an urgent need for action. A group of Construction Industry Associations has recently written to the government seeking to expedite consents and approvals to address a significant infrastructure deficit, which the Infrastructure Commission has estimated to be $210 Billion and growing. Unlocking such economic activity will not only benefit those industries but also have spillover effects into other industries and contribute to the vibrant communities desired by all.
While inflation may tempt businesses to reduce training budgets as a “nice to have,” research both in New Zealand and globally consistently finds that investing in employees’ skills is second only to pay in retaining talent. If a company has good people it wants to retain, investing in their skills is crucial.
New Zealand, like many other countries, has many small and medium-sized enterprises (SMEs). These businesses often lack the time and infrastructure to develop and offer high-quality training and upskilling for their employees, which is another area where Skills Group are specialists, providing high-quality training programs, linked to industry and national qualifications.
Skills has also observed over the years, like Business New Zealand’s annual ‘Mood of the Boardroom’ surveys find year after year, that finding the right number skilled and talented staff is businesses’ number one issue. International research bears this out too, in a megatrend towards skills-based organisations, many businesses will admit they are not confident in their own ability to train people effectively.
This is where Skills Group really shines, as a learning partner to businesses. It offers programmes tailored to customers’ needs, that fit in with the day-to-day of the business, not insisting on a one-size-fits-all approach. A significant focus for Skills is on benchmarking and diagnostics, helping businesses identify their actual skills and capability needs and then develop plans to address gaps and grow capability and productivity, with measurable differences addressing real business needs.
It supports on-job, online, and work-based models, ranging from foundation skills and literacy and numeracy training, through to C-Suite, project management and leadership consulting. In tough times, the training budget can be one of the first things to go. In fact, the opposite needs to apply. Tough times is when businesses need to double down on training, to secure the future for their firm, and their industry.
To talk about how your business can navigate these times and up-skill your people get in touch with Skills Ignite on 98 Kerrs Road or by email [email protected]