Training & Development: Building a Future-Ready Workforce

Introduction: The Case for Training and Development

This memo presents a vision for training and development along with specific recommendations for how best to implement that vision and philosophy. While training and development may seem like a bland or unimportant topic to many, it is a vital part of improving and sustaining the workforce. It can also fill many of the gaps left behind by high schools and colleges. This approach is necessary to prepare workers — especially younger ones — for the careers and jobs of the future.

Shifts in the U.S. Economy and Workforce

Over recent decades, there has been a seismic shift in the United States economy. At the founding of the nation — and well before — the United States was an agrarian society. The first major shift in the foundations of the economy was the Industrial Revolution. Since then, however, another transformation has occurred: manufacturing jobs that long served as the staple of American economic life, particularly the production of simpler goods like clothing and shoes, have moved overseas to countries such as China, Taiwan, Mexico, and nations throughout South America. Many have lamented this trend, but it is ongoing and will not reverse. There is a clear financial incentive for businesses to pursue this path, as it keeps costs down and maintains competitiveness.

The current paradigm is best described as a knowledge and service economy. While manufacturing and other job types remain part of the mix, the workforce now divides primarily into two dimensions: the service sector and the knowledge sector. Examples of the former include food service, retail, and warehouse package handling. The latter encompasses jobs that typically require a degree, certification, or advanced credential — such as lawyers, doctors, and accountants. Those who lack the advanced skills needed to secure a well-paying knowledge-sector position are generally relegated to service-sector roles. Because service-sector jobs tend to be low-skill in nature, replacing employees who leave is relatively straightforward for employers.

A persistent problem is that many workers are not keeping pace with evolving skill demands. The competencies needed to thrive in today's economy have grown more sophisticated, yet schools and colleges have not adequately met that need. Part of this may stem from a lack of motivation and the failure to instill core values in the rising generation. Young people need to understand that a lack of marketable skills leads to a harder life with lower pay, while gaining education and credentials — in fields such as accounting, for example — can lead to greater income, security, and quality of life.

The use of organized labor and unions has provided some benefit to the working class. However, even committed union advocates recognize the limitations of that model, as individual merit and performance are minimized within a collective structure where seniority tends to reign. Meritocracies, though often criticized, can do a great deal for a person's income and career trajectory when implemented thoughtfully (Hamel, 2015).

Why Employers Must Invest in Employees

This brings us to the central assertion: employers must invest in their employees. There are several important reasons for this. First, many employees did not receive adequate schooling or life skills during their upbringing, and those deficits cannot be ignored. Even foundational habits — attention to detail, dedication to one's work, and doing things right the first time — distinguish employees who are serious about growth from those who are not. Many people assume that businesses are inherently self-serving, but a robust learning and development program directly challenges that perception. It signals to employees that they are valued and demonstrates that businesses and workers can share a genuinely symbiotic relationship in which everyone benefits.

A second reason a strong training and development plan is so important is that it improves both the overall performance and the happiness of employees. Workers who feel valued and empowered consistently outperform those who perceive themselves as just another cog in the machine (Freifeld, 2013).

References

Freifeld, L. (2013). Training increases employee retention. Training Magazine. Retrieved December 17, 2015, from https://trainingmag.com/content/training-increases-employee-retention

Graser, M. (2013). Epic fail: How Blockbuster could have owned Netflix. Variety. Retrieved December 17, 2015, from http://variety.com/2013/biz/news/epic-fail-how-blockbuster-could-have-owned-netflix

Hamel, G. (2015). How is seniority important to a union? Small Business — Chron.com. Retrieved December 17, 2015, from http://smallbusiness.chron.com/seniority-important-union-13338.html

Wagner, D. (2015). Google, Amazon, Apple dominate most desirable companies list. InformationWeek. Retrieved December 17, 2015, from http://www.informationweek.com/it-life/google-amazon-apple-dominate-most-desirable-companies-list/a/d-id/1319587