Senior executives report drop in professional development

Slightly more than one-quarter (26%) of senior executives report reductions in their company’s professional development programs in the past 12 months, according to a new survey.

Though many companies are cutting training out of the budget, another 28% of the 150 senior executives surveyed by Accountemps said their company has expanded their training initiatives.
When asked, “Compared to 12 months ago, how, if at all, have your company’s professional development programs changed?” Their responses were:

• Expanded significantly – 9%
• Expanded somewhat – 19%
• No change – 45%
• Been reduced somewhat – 17%
• Been reduced significantly – 9%
• Don’t know – 1%

"While employers may be tempted to eliminate or scale back training in challenging times, they should think twice before making these cuts," said Max Messmer, chairman of Accountemps. "Skimping on employee education can dull your firm's competitive edge and undermine your recruitment and retention efforts."

"Providing targeted training enables staff, particularly those who have taken on new or expanded roles, to become more versatile and increase their contributions to the firm. In addition, employees who feel their company is invested in their careers will be more motivated to perform at a high level and less likely to resign when an improving economy spurs new job opportunities," he added.

Has your company been able to hang onto employee training during the past 12 months? How have your professional development programs changed?

Companies restructure faster by firing and hiring, not retraining

As many of the country’s largest employers eliminate thousands of jobs, they’re simultaneously hiring workers for new positions to adapt to the market’s changing needs, according to a Wall Street Journal article published yesterday.

U.S. employers eliminated 539,000 jobs in April alone, said the Labor Department on Friday. However, the government also estimates that employers hired roughly 4.4 million workers in February, the most recent numbers available.

"It's not just routine turnover," says Lori Kletzer, an economics professor at the University of California, Santa Cruz. "Quite often the people being laid off don't have the requisite set of skills or experience to move into the growth areas."

Some experts say the churn also shows changes in workplace policies. In past decades, many employers retrained and relocated underused workers, says Peter Cappelli, director of the Center for Human Resources at the University of Pennsylvania's Wharton School. “Now they've discovered that you can restructure even faster by laying off and hiring.” (WSJ)

Microsoft, IBM, AT&T, Yahoo and Time Warner are among the companies laying off thousands, while hiring new workers to fill positions in different business units, other places or to fill a need for new skills.

These latest employment numbers support a belief that many Americans currently share -- without continued training and skills development, their current workplace skills will be outdated within the next few years.

Workers across all generations depend on training and development to stay competitive in the changing labor market, but more than three-quarters of Americans believe the training provided by their employers will fail to meet their future career needs.

Has your company decided to fire and hire, instead of training existing employees for new positions? Is it the employer’s responsibility to develop workers’ skills for their future career needs?

Leave a comment and let us know what you think.

Skills training failing to meet employee needs

Without continued training and skills development many Americans believe their current workplace skills will be outdated within the next five years, according to a recent global workplace survey by Kelly Services.

The survey found that more than three-quarters of Americans surveyed predict that their job skills will be outdated within five years and believe the training currently provided by their employers will fail to meet their future career needs.

“Many organizations in an effort to cut expenses may eliminate or reduce training opportunities, but this will cause businesses to become less innovative and without the capacity to compete,” says Mike Webster, Kelly Services Executive Vice President and General Manager.

As revealed in the survey, people across all generations in the workforce depend on training and development to stay competitive in the changing labor market.

People’s views regarding their workplace skills varied in different regions of the U.S., according to the survey:

• Workers in the West are most concerned about their skill sets, with 82% worried that they are becoming outdated.
• People living in the Northeast are the most confident that their current skill levels are sustainable.
• Gen Y workers (18 to 29 years old) living in the West and Midwest are the most worried about their workplace skills.
• Gen X workers (30 to 47 years old) are more concerned about the adequacy of their skills than any other age group in the U.S.
• Workers in the South are the most satisfied with the quality of training provided by their employers.
• More than half of the Baby Boomer generation (aged 48 to 65) feel they have been let down by their employer’s human resources departments in managing their careers. Workers in the Northeast are the most critical in this area.

The majority of those surveyed (77%) believe that training should be a joint responsibility between employers and employees. The workers surveyed said they most prefer on-the-job training (42%), followed by professional development courses (26%), self-initiated learning (20%) and formal university or college courses (12%).

“The current economic environment has made people very aware of their skills and whether they will be sufficient to survive the recession and beyond, into a period of economic recovery,” Webster says.

Do you think our current economic situation has put an added significance on employee training and skills development? Are you concerned that your current workplace skills will become outdated in the coming years?

Leave a comment and let us know.