Paul Gill, managing director of Hansatech EMS, talks to Electronics Weekly about the value of in-house training, how you measure RoI on training and its impact on morale and absenteeism.
1. How do you measure RoI on training?
In our case, returns in the way of increased production, waste reduction, higher quality output and cost efficiencies are reflected in key performance indicators and can be measured against the time and salaries of the individuals.
Over the period of the training course the wages came to approximately £25,000. The improvement projects selected by the teams were targeted to recover this very quickly.
2. How well does the National Vocational Qualification (NVQ) programme address business needs?
It works by using the real working environment as a learning canvas so that newly acquired skills can be put into practice immediately. Its effectiveness in terms of team motivation and productivity is proving itself every day.
3. To what extent does an investment in training offer business a differentiator in the market?
EMS providers have to demonstrate a certain "X Factor" to attract new customers as well as retain existing ones. Sometimes it may be a technical competence, but increasingly it is down to how quickly a level of trust can be developed between the parties.
While this is difficult to quantify, having a structured NVQ programme, supported by an in-house training school and an external provider, demonstrates a commitment by the business to providing continuous improvement, quality and long-term growth.
4. What should the government do to encourage business investment in training?
We embarked on our NVQ programme because we identified a need to broaden staff experience and skills. What we did not appreciate at first was how easy it would be to set up, maintain and deliver. I don't think the simplicity of it is advertised adequately and the improvement to the bottom line might not be obvious to some company boards. I believe tax incentives targeted at active participation will provide a real and significant stimulus to many companies.
5. Do you think training has an impact on staff morale, retention and absenteeism?
While staff absenteeism and retention were not a problem, morale and, more importantly, succession planning, were. The company had to quickly demonstrate to staff that it was prepared to make a commitment to them as individuals. Doing this through training was considered a personal commitment that can be traced back through the history of the business.
Many staff had only experienced manufacturing within the confines of the business and it was obvious some had reached a skills ceiling. Bringing in outside experience could have helped strengthen the team or it could have damaged the fabric of the embedded team spirit. We believed that we had the talent, but they needed the tools to perform at a higher level. The NVQ programme helps bring the real stars to the surface.
We have since made senior manager appointments within the company from the individuals attending the NVQ programme, where previously we would have recruited externally.
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