low levels employee training for u.s. worker skills might foster outsourcing
DESCRIPTION
The lack of a workforce with adequate skill sets coupled with the reluctance of companies to invest in employee training is encouraging the practice of outsourcing in USA.TRANSCRIPT
Low Levels Employee training for U.S. Worker
Skills might Foster Outsourcing
There is rising concern about the low levels of skills among American workers.
Experts point out that it is necessary to implement on-the-job training and more
education as these workers lack the sophisticated computer and other skills
compared to workers in other countries.
The main downside of the lack of local skills is that it fostering IT and business
process outsourcing. The reason why American companies are hiring overseas is
because of the talent available there. As far back as 2006, a joint study by Duke
University’s Fuqua School of Business and consulting firm Booz Allen Hamilton
reported that several companies said they were hiring overseas as it provided access
to qualified personnel and that the number of firms that outsourced had increased
75% over the previous two years.
An international survey of workers conducted in two dozen developed countries
shows that U.S. workers trailed behind many of their foreign counterparts in literacy,
mathematics, and problem-solving skills. Conducted by the Organization for
Economic Cooperation and Development, the survey covered 166,000 workers
between the ages of 16 and 65 years and revealed the skill set ranking of workforces
in various countries. Japan and four European countries topped in adult skills, with
Japan in first position, Finland in second and Netherlands, Sweden and Norway:
sharing the third position. Compared to this, the U.S. ranked in the middle for
literacy and near the bottom of the 23 countries for math and technological skills.
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While European nations like Finland have a homogeneous population in contrast to
the U.S. which has a heterogeneous one, the results of the study underline the need
for American companies to come up with measures to address the skill gap issue.
However, there are several reasons why most are unwilling to invest in worker
education.
Reasons Why Investment in Worker Education is Neglected
• Companies fear that they will lose the workers they train to their competitors.
Equipped with better skills, the workers will usually look out for better
employment opportunities with higher pay, amenities, and perks
• Companies don't want to spend money training employees. Training cost
usually includes development costs and implementation costs. In addition,
they would also they have to compensate for participants and lost
productivity
• Training usually requires the services of skilled professionals who have to be
paid handsomely
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• Smaller firms would not even have the necessary infrastructure
Measures to Address the Skills Gap
• Online worker training can be an effective alternative to traditional
government job training programs
• With the advancements in technology, anyone can acquire higher education
for free online from some of the best professors in America.
Where Outsourcing Stands
It is clear that in the present scenario, hiring the services of a BPO company offers a
distinct competitive advantage. A professional firm can offer a wide range of services
under one roof – medical, legal and business transcription, medical billing and
coding, at affordable costs. Countries with global workforces are benefiting ewith
high quality skilled labor, lower hiring costs and services delivered in custom
turnaround time.
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