5 Reasons why industry must insist on skilled workforce


It is true that every industry needs skilled force. But, we also get to hear that the same industry is willing to compromise on this aspect by going for unskilled or semi-skilled workforce.  Let’s look back at the question – why industry needs skilled workforce and whether training is a cost or an investment? To answer this question it is critical to know the relationship between education, training and skills that helps us understand why skilled employees are an asset even if they demand better pay. According to a report from ILO:

Basic education gives each individual a basis for the development of their potential, laying the foundation for employability.

Initial training provides the core work skills, general knowledge, and industry based and professional competencies that facilitate the transition from education into the world of work.

Lifelong learning maintains individuals’ skills and competencies as work, technology and skill requirements change.

Today, every industry is globally competitive and it cannot afford to ignore the potential of skilled workforce to perform, innovate and sustain profitability. Either recruiting skilled workforce or putting them through on-the-job training, your business stands to gain in many aspects. Here are 5 key  benefits skilled employees bring to your business:


Enhanced productivity: Economic growth is directly affected by productivity and quality. Imagine the plight of employees when they are expected to perform tasks for which they don’t have right knowledge or skills! It not only brings down productivity levels, it also affects quality, turnaround time and customer satisfaction.

Change management: To catch up with changes in your industry, employees need to be updated with new knowledge and skills. You can’t be operating with obsolete practices and outdated technology. Upskilling your employees is the only way to be in sync with new developments in the industry and satisfying ever changing customer demands.

Employee retention: The opportunity cost of retaining employees is highly invaluable. Your competitors would be waiting to have them on board with lucrative packages that include on-the-job training and other perks. Timely training interventions helps greatly in controlling attrition and motivating people to perform better.

Improved self-esteem: The humane aspect of skilling has a direct aspect of confidence, enthusiasm, energy levels that add up to higher self-esteem. This positive impact of training is absolutely essential for employee satisfaction, loyalty and long term commitment.

R&D and Innovation:  Basic skilling, upskilling and reskilling – all of them have those moments where employees not only learn to perform at present but also think about the future. This can trigger creative ideas and new ways of solving problems that impact your margins and quality of products and services.

It would be rather shortsighted to constrain your training budget or recruitment decisions by compromising the skill levels of your employees. Since skill development cannot be done in isolation, it is even more important that the industry drives it to match their expectations and maintain a healthy ratio between the demand and supply of skilled and quality workforce.


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