Changes in the labor market are posing increasing challenges not only for employees, but also for employers. We asked József Nyisztor, a workforce development expert and CEO of Training360 Kft., about the importance of corporate training.
You have been working in the field of adult education for two decades. What do you see as the main processes of changes in the labor market in recent years?
An employee no longer spends as much time with a company as before: this is the most important change. While lifelong commitment was not uncommon in the past, nowadays we can also find segments, typically in multinational companies, where employers can plan for a maximum period of two years with each employee. So there is no time for the employee to learn a job over several years. The decrease in the time spent with companies also means that the market is characterized by quite strong fluctuation. The current generation enters the labor market with a completely different framework and expectations and starts looking for a job. For example, members of generations Y and Z expect the workplace to provide development opportunities, supplemented by flexible working hours and continuous feedback, but at the same time they are happy to work on short-term projects and utilize their new knowledge in practice. Today, a significant number of companies have realized that if they want to keep employees, they must train them.
What is more typical: that employees apply for certain positions with a much broader spectrum of knowledge than before, or that they expect employers to train them?
In recent decades, we have observed that there are many more different types of jobs than there were 5 years ago, and their number is increasing year by year. This also means that there are far fewer people who fit exactly into one job. The fact that every new job creates two others is also a general trend. In addition, we must also take into account that the practical, company-specific further training of recent graduates is the employer's responsibility. At school, you can learn the basics of a profession and the ability to learn, but this is often not enough. The spread of dual training can improve this a lot within individual segments, but even then only if the employee is working for a company that is closely related to their field of expertise. In general, it can be said that a company is unable to train first-class employees coming from higher education if it does not have a stable and well-functioning in-house training system. This is a multi-level learning process that involves not only learning additional information related to the given job, but also everyday things like where the cafeteria is located, how the organization is structured, who to call for what issues. A newly graduated employee has to learn a lot in a very short time, and this is almost impossible without a training and mentoring system.
Are there areas where the existence of a training and mentoring system is more noticeable, or has it become a general expectation?
The spread of mentoring programs can be said to be general, but it is also important to emphasize that the more value a sector generates, the more training is needed. IT is clearly such an area, as it interweaves everything, but industries such as automotive manufacturing are also facing significant and explosive transformation, just think of the growing popularity of electric cars.
Apart from specifically specific training courses, can we talk about more general, comprehensive, skill-development programs in the field of adult education?
The value of the speed of knowledge transfer has greatly increased due to the previously mentioned aspects. This means that it is essential for companies to have a live mentoring system. However, this requires continuous training of the internal workforce, since no matter how experienced a professional is, they may not have the skills to effectively transfer knowledge. From now on, it is also important to make senior colleagues aware that by mastering these skills, they can create a win-win situation within the workplace that is beneficial for everyone. Juniors will thus master new tasks much sooner, freeing up the capacity of seniors, who can thus perform much better in their own field. This creates an ideal knowledge pyramid that allows the company to operate optimally. And the cheapest thing for the company is for the newcomer to gradually move up this pyramid, while becoming a mentor themselves within a year or two. This situation is a bit similar to the old student pairs, and the method can be successfully applied in all industries and fields.
What are the short- and long-term benefits of this effectively functioning knowledge pyramid?
One of the tools for reducing turnover can be in-company training. It can be clearly demonstrated that where there is a well-functioning, structured training system, turnover decreases. If employers do not build their own knowledge transfer network, they cannot effectively integrate new entrants into the company's operations. We cannot forget that, and this is the long-term effect, thanks to training, the brand of the given employer is clearly strengthened among members of the Y and Z generations. In the current labor market situation, it is not at all the same whether employees want to join a company or leave it as quickly as possible. Learning opportunities are clearly a decisive aspect when choosing a job. It is worth just running through job advertisements: what is the first sentence in them? Come and develop with us!
What challenges does this situation pose for human resources professionals?
Two career paths need to be planned for the employee at the same time. On the one hand, the individual side, why it is worth choosing that particular company, and on the other hand, the company also needs to plan with the individual, since they are also interested in where and at what speed the employee's career path is progressing. Ideally, the two processes take place in parallel and in harmony with each other. Therefore, it is essential to deal with workforce training in the short and medium term, as both parties benefit from it and a win-win situation is created again.
Do you think such training systems will bring the problems caused by fluctuation to a "common denominator" and ensure that the younger generation can also find their way?
For companies that respond to these changes in a timely manner, yes. Of course, many have already recognized the need to apply them, but business processes change at a tremendous speed, especially when we are talking about high added value. If the company does not have such an internal system, it is not flexible enough, i.e. it cannot produce more value from less, and it can easily find itself at a competitive disadvantage. Thus, it is forced to put its internal training system and mentoring program in order, tailoring it to its processes and the industry in order to be able to “stay in the game” in the market.
What is the general experience here? How quickly do companies react to these changes?
Very differently, and there is a significant difference between the individual levels. Those multinational companies that suddenly hire a lot of people, feel the problem and act against it. But in the case of smaller SMEs, this is not yet the case. In these companies – with respect to the exception – they do not yet understand why it is not enough to provide a job and why it is necessary to invest in the employee in addition. However, with the increase in mobility, it is becoming increasingly urgent for these companies to develop their own training system. Of course, in all cases – in the case of multinationals as well as SMEs – this requires a separate resource allocated for this purpose. However, in my experience, this investment pays off very quickly, we only need to think about the shortage resulting from the departure of employees and the cost of training new ones. Of course, these trainings can only be effective if they fit the profile of the given company.
What is the guarantee that after the employee has mastered the new skills, they will stay with the company in the long term?
In any case, the first step is to clarify what we want. The existence of a training system within a company does not yet guarantee good working conditions or a competitive salary. However, if employees experience that there is an opportunity for continuous development and that their knowledge can grow in an area that, if applicable, also meets their personal goals, then they will have a good chance of staying. If the company builds its training system wisely and other aspects of the working conditions are also in order, then it clearly and greatly improves its own competitiveness, i.e. it has a greater chance of retaining its employees. I have come across several examples where a company facing a profile change was saved by providing training for employees, thus being able to retain their colleagues even in an uncertain period. Equally important – in every sector – is the preparedness and adequate support of the immediate superior, as this also has a great impact on whether the employee stays or not.
Can we say that providing training is now part of the company strategy?
A good strategist knows where he wants to go from where he wants to go within a given time. And this always has training implications. Due to the continuous change and new challenges, a training strategy should be a mandatory element of a corporate strategy. If a company decides that although it has manufactured cars so far, it wants to manufacture airplanes from now on, it is first necessary to teach its employees how to assemble airplanes. Until this happens, they can still manufacture cars. Thus, it is essential to first define the goals of a company and build the training structure accordingly, whether it is training that promotes the development of so-called soft skills or special IT training.
How long can a person be trained? Is there any limit to this?
A person, if they are open enough, can develop almost to any extent. Truly open people really learn for the rest of their lives, and here I am not using the term lifelong learning, because it has become quite trite in recent decades. Everyone has emphasized its importance in the past 10 years, but unfortunately little of it has been realized. The great responsibility of the company, but even more so of the training company, is to develop its colleagues in a way that strengthens their desire for knowledge: although they have already mastered a lot of things, they can still develop in many areas - if they want to. The latter is key, because if this desire is not there, then learning does not bring joy.
HVG BrandLab
hvg.hu June 3, 2019