Later On

A blog written for those whose interests more or less match mine.

Hypercompetitive corporations cut costs by not training workers

leave a comment »

Because corporations focus totally on growing profits, they have an equally intense focus on cutting costs: every dollar cut from costs drops straight to the bottom line as pure profit. Thus corporations try to avoid clean-up costs (thus the Superfund sites: corporations put those costs on taxpayers), no longer care much about the communities around them, and have stripped training from their budgets, in effect demanding that training costs be borne by others—the taxpayers, most often, through community college training programs, but also their own employees, who must pay out of their own pockets for training. The corporation wants all the benefits, but none of the costs.

Lauren Weber writes in the Wall Street Journal:

Hu-Friedy, a manufacturer of dental instruments in Chicago, says its future hinges on four employees. So, it is paying them to leave their jobs for two years.

While their colleagues bend and grind cylinders of steel on the factory floor, the four workers since March have been mastering the fundamentals of metal composition and heat-treating, among other things. The hope, managers say, is that the two years of full-time training will help keep the 106-year-old dental-instruments maker competitive in a mature industry crowded with rivals.

What’s happening at Hu-Friedy Mfg. Co. LLC is a rare exception to decades of corporate disinvestment in skills development, and gets at the heart of the debate playing out in the hiring market over whose job it is to train workers.

Companies complain that they can’t find skilled hires, but they aren’t doing much to impart those skills, economists and workforce experts say. U.S. companies have been cutting money for training programs for decades, expecting schools and workers to pick up the slack. Economists say that reluctance to develop workers in-house has made it hard for workers to launch or sustain careers, resulting in a stalemate in the labor market: Companies won’t look at job candidates who lack a specific skill set, so openings go unfilled even as millions linger on the unemployment rolls.

The government hasn’t tracked spending on corporate training since the mid-1990s, but one rough measure, the percentage of staffers at U.S. manufacturers dedicated to training and development, has fallen by about half from 2006 to 2013, according to research group Bersin by Deloitte.

Employers’ expectations for new hires have shifted since the recessions of the early 1980s, when companies laid off masses of workers and slashed training programs. Where bosses once hired for potential, viewing workers as lumps of clay to be molded to the company’s needs, they now want hires to arrive with all or most of the skills needed for the job—another symptom of how the employer-employee relationship has become reduced to a transaction, said Peter Cappelli, a management professor at the University of Pennsylvania’s Wharton School.

If employers “want only people who can step in immediately because they are currently doing the job, [they] narrow the pool to almost no one,” said Mr. Cappelli. He added that today’s novices are more likely to briefly shadow an experienced worker or log a few hours of on-the-job training than participate in a weekslong learning program. . . .

Continue reading.

Written by LeisureGuy

18 July 2014 at 8:49 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.