Basic
Workplace Skills: The Foundation For Productivity Improvement
The competitive pressures of our increasingly global economy
are forcing American firms to change the way they operate in
order to be more productive. These changes in the ways firms
do business frequently require more from workers than was needed
in the past. According to Terri Bergman of the National Alliance
of Business, in Workplace Brief #4 of the National Alliance
of Business, today's firms need workers who not only are able
to read, write, speak, and understand English, but who also
have mathematics, problem solving, and interpersonal skills,
which form the foundation for almost all productive work as
well as all productivity improvement efforts.
Investing in the development of employees' basic workplace skills
does not have to be difficult. There are many programs and resources
companies can tap into for assistance.
Deficient Skills and the Bottom Line
The cost of not training employees in basic workplace skills
can be high indeed, the Brief from the NAB suggests. Located
at the National Workforce Assistance Collaborative website (www.psu.edu/institutes/nwac),
the Brief notes how employers have confirmed that poor reading
skills have caused everything from workplace deaths to costly
errors. The danger of correspondence being misread and employees
unable to follow instruction manuals have meant that employees
have to be taught how to operate machines in a mentoring fashion.
In addition to affecting a company's financial performance,
deficient skills impair productivity improvement programs. New
technologies and equipment require workers who can read and
follow complex instructions. Statistical process controls call
for a basic command of statistics and probability. Self-managed
teams require employees who can communicate clearly and effectively.
For example:
* One manufacturing company reported that one employee who didn't
know how to read a ruler mismeasured yards of steel sheet wasted
almost $700 worth of material in one morning.
* The same company invested heavily in equipment to regulate
inventories and production schedules. Unfortunately, workers
entered numbers inaccurately, which destroyed inventory records
and resulted in production orders for the wrong products. Correcting
the errors cost the company millions of dollars and wiped out
anticipated savings from the new equipment.
* A Central Florida microchip manufacturer reported that 85
of every 100 applicants for production jobs were rejected because
they could not read and follow directions.
Benefits of Basic Skills Programs
A 1993 study by the W.E. Upjohn Institute revealed that basic
workplace skills programs may raise employee productivity between
10 and 20 percent. A 1992 Southport Institute for Policy Analysis
study found that such programs improve attitudes, behaviors,
and (not surprisingly) profits. Other research and actual company
experience have shown additional benefits, including:
* Greater willingness to use reading and writing at work
* Greater willingness to use reading and writing at work
* Higher employee participation in meetings
* A greater willingness to ask more questions and make suggestions
* Improved attendance and workplace safety
* Less scrap, fewer production errors, and improved communications
(including better production reports)
Increased sales volume, work flow, and on-time deliveries
* Higher performance ratings from supervisors
* As the NAB Brief observes, there is little doubt that basic
workplace skills training is a sound investment for both employers
and employees. Most companies involved in research studies report
that the programs' benefits outweighed their costs.
Where Can You Start?
You don't have to develop and deliver workplace skills programs
yourself. Here are several organizations that are skilled in
developing, customizing, and delivering such programs. Some
may be able to do so at little or no charge, depending on available
federal, state, and local government funding:
* Community colleges
Adult education centers in your school districts
* Non-profit, community-based adult literacy organizations
* For-profit training firms
* Volunteer basic skills programs
The better the quality of a basic workplace skills program,
the greater its benefits. Companies that are thinking of launching
an in-house program should make sure that it:
* Links training goals to your company's goals
* Teaches and relates basic skills to workplace requirements
and other workforce initiatives
* Encourages employees to transfer and apply the skills they
learned in the classroom to their daily jobs
* Tailors training to employee needs and encourages employee
participation
* Employs highly skilled instructors
Basic workplace skills programs aren't expensive. For many small
and mid-sized companies, there may be little expense beyond
the time involved to plan the program and release employees
from work to attend classes. There are many ways that companies
can keep the costs of their basic skills programs low:
* The federal government and many state governments offer grants
to subsidize the cost of basic workplace skills programs.
* Some states offer tax credits for basic workplace skills programs.
* Many community colleges charge only the delivery costs associated
with their basic skills programs, essentially underwriting all
the development costs.
* Some unions will share the costs of basic skills programs
with employers.
* Some volunteer basic skills programs charge companies only
for designing and supervising the activities. Their volunteers
provide delivery.
This article content is Copyright 1997, American Management
Association. All rights reserved.