| Introduction | | | | industry. This creates not just problems of paying more |
| In the past decade, we have experienced a steady | | | | for available skills or overtime, but the fact that a |
| erosion of skills amongst people working in various | | | | wrong operation because of lack of skills and / or |
| industries, professions and businesses. This includes | | | | training can result in a disaster, in case of a chemical |
| many large industries like chemicals, petrochemicals, oil | | | | company, affecting entire communities, not just |
| refining and the like. This is a very provocative | | | | individuals or companies. Wrong operations in other |
| statement which will, no doubt be hotly contested by | | | | professions like the IT industry can have also serious |
| some people, but nevertheless it is true, like it or not. | | | | undesirable consequences, which may also be |
| This is the reason why one often hears a cry | | | | catastrophic (imagine a software code with many |
| amongst HR professionals, business leaders and | | | | bugs in your banking application software). |
| management gurus of a "worldwide talent crunch". A | | | | The solution to the problem |
| side effect of this skill erosion has been an increase in | | | | The only solution to the problem, is by spending more |
| salaries and benefits in many companies to those | | | | time, attention and money on training programs that |
| employees who have retained or enhanced their skills ( | | | | enhance the skills of the workforce in general, refresh |
| as contrasted with the pay cuts seen everywhere not | | | | old skills that workers have and bring up the skills of |
| so long ago), as well as concrete steps to stem | | | | the freshers or semi skilled workers who join the |
| attrition at all levels. This paper attempts to provide an | | | | workforce, all in a short time. This can be achieved, |
| insight into the issue as well as provide a solution for | | | | only by employing innovative training solutions. The old |
| companies and businesses that are suffering from this | | | | training technique (which is hundreds of years old, by |
| problem. | | | | the way), can no longer be used effectively in todays' |
| History of the problem | | | | situation. |
| The problem of the skills shortage can be directly | | | | We are talking about classroom based training here. |
| attributed to three reasons. The first and primary | | | | When somebody says "training" to a manager, the first |
| reason is the "Downsizing " effect. The second reason | | | | thing that comes to his/her mind is "Oh! My God! Not |
| is Demographics. The third reason is that not enough | | | | again! I am already short of xx workers and they ask |
| young workers are entering the workforce in some | | | | me to spare somebody for training!!". This is because |
| sectors. We will study these one by one and also | | | | many of us still associate the word "training" with |
| attempt to provide a solution. | | | | "classroom training". |
| Downsize 'em all! | | | | This is of course not correct. The world has moved |
| In the mid to late nineties, there was a wave of a new | | | | ahead and training can now be imparted online, at |
| management fad that cut across all sectors, industries | | | | home, in the garden or on the beach. It is now ON |
| and professions. This fad was the concept of | | | | DEMAND learning, thanks to the proliferation of the |
| "downsizing" and "rightsizing". Coupled with its cousin of | | | | Internet, easy availability of PCs/laptops and mobile |
| "outsourcing", it played a dominant role in creating | | | | phones. |
| todays' problem. Like many other temporary quick | | | | We are talking of e-learning and m-learning here. |
| fixes, it only proved the old adage , that the solution to | | | | Besides being flexible, it can be imparted in bite sized |
| a problem can create a bigger problem. | | | | chunks, easily digestable, over a period of time. |
| Until the nineties, typically employees in most | | | | Repeating it hardly costs anything, whereas a |
| companies, shared between them, a vast body of | | | | classroom refresher training directly doubles the cost. |
| knowledge, that was the real driver of the growth and | | | | An added benefit is that, for young entrants to the |
| profitability of the business. This was never | | | | workforce, it gives them learning on platforms that |
| acknowledged or measured as such by top | | | | they are already used to and comfortable with (i.e on |
| management seriously. Thus this "intellectual property" | | | | laptops, PDAs and Mobile phones). It somehow |
| of the business was never cared for properly. Merely | | | | enhances the "cool" factor and removes the image of |
| having a physical location (like an office or a factory) | | | | the industry as staid, conventional and old-world. |
| and machines (or plants or computers or other | | | | Topics for learning |
| physical assets) and money in the bank, does not | | | | Previously there were not many courses with ready |
| make a business. The business requires skilled people, | | | | made topics with e-learning providers. Typically, most |
| in various functions, having diverse skills, to glue it all | | | | e-learning service providers used to provide |
| together. They co-ordinate the people and assets, use | | | | custom-made, bespoke learning packages to individual |
| the money productively and thus create value. This | | | | companies. While this approach had its benefits, the |
| key insight was lost on the swashbuckling managers | | | | downside is, that the courses are suitable only for the |
| and cost-focussed bean counters of the "cutting | | | | company for which they were designed, leading to a |
| nineties" (a term similar to the swinging sixties, but | | | | very high cost per user, nullifying the low cost |
| more sinister), who looked askance at people, mocked | | | | advantages of e-learning. |
| them as mere "cost centers" and concentrated on | | | | However, now newer companies like Abhisam |
| cutting them out of the business. | | | | Software have e-learning titles on topics that are |
| No doubt that every business does acquire some flab | | | | suitable to many process industries. Examples include |
| and bureaucracy as it grows older, but this wave of | | | | Hazardous Area Instrumentation and Gas Monitors. |
| downsizing threw out the baby along with the | | | | Since these are standard courses, they can be |
| bathwater. This scored the managers of those days | | | | offered at a much lower cost than the earlier custom |
| some brownie points and lifted the bottom lines of | | | | designed courses. Besides, if the number of learners is |
| those companies during the recessionary times by | | | | sufficiently large (say about 50 or more) then some |
| some percentage points. Not to speak of the increase | | | | degree of customization of these courses is also |
| in their own bottom lines because of the bonuses and | | | | possible, again at a low cost. |
| stock options. But then, when the economy picked up | | | | Summary |
| again, this downsizing process left the companies with | | | | Due to historical reasons, there has been a skill |
| gaping skills shortages. This left companies with little or | | | | shortage in the industries and businesses, all over the |
| no resources to again expand capacities, regain their | | | | world. |
| market positions, introduce new products or even to | | | | This skill shortage will only worsen, as seniors retire |
| take care of existing products. | | | | and not enough youngsters enter the workforce in |
| This opportunity cost has been never seriously | | | | large numbers. |
| measured by any of the management gurus, to my | | | | If somehow more youngsters do enter the workforce |
| knowledge. | | | | in large numbers, the cost of training them, using the |
| Demographics | | | | traditional training methods will be prohibitively |
| In Europe the average age of the population has now | | | | expensive and unviable. Also not enough technical |
| increased. This fact is well known and publicized often. | | | | training personnel are available, to offer one-on one |
| However, what is not emphasized enough, is that the | | | | training. |
| aging is far from uniform. In some industries, like | | | | Using newer education technologies like e-learning and |
| chemicals manufacturing, the average age of a typical | | | | m-learning, knowledge and expertise, can be imparted |
| plant operator is more than 50! Besides, because of | | | | quickly and precisely, to those people whose skills |
| the decrease of retirement age by the industry (in its | | | | need to be developed. This can be done at a fraction |
| cost-cutting era), it means hundreds of these | | | | of the cost of traditional learning. Thus new recruits |
| operators would retire at the same time, permanently | | | | can be trained effectively. |
| cutting off their knowledge of so many years of | | | | Using standard topics and templates for learning, |
| industries and processes. There won't be enough | | | | reduces the cost of the training further. Customization |
| operators to go around since this age profile cuts | | | | if required, however is always possible. In most cases, |
| across many chemical companies in the western | | | | even with the cost of customization added, the total |
| world. Hence, once these operators exit the | | | | cost of training using these modern methods is lower |
| workforce, finding replacements won't be easy. Ditto | | | | than the cost of traditional training. |
| for other large manufacturing sectors. | | | | Additionally, e-learning provides managers with a way |
| Bad PR and "Uncool" industries & sectors | | | | to track training remotely, because most e-learning |
| Professional PR managers say, that there is no such | | | | systems will provide test scores, record time spent on |
| thing as "bad PR", any publicity is good, if it generates | | | | each module or page, log the students activity and |
| interest amongst a community to discuss it. While this | | | | provide very detailed measurements, that can be used |
| may be true for businesses like software or mobile | | | | to improve the training. Traditional methods hardly |
| phones, bad PR has badly affected the chemical | | | | provided any data, save for a feedback form at the |
| industry, by painting it as eco-unfriendly, polluting and | | | | end which students themselves filled in, which then lies |
| bad smelling. This is simply untrue with respect to many | | | | forgotten in some dusty file, forever. |
| chemical industries today, who have far less pollution | | | | E-learning and m-learning does not mean merely |
| & environmental problems today. In fact most of | | | | reproduction of classroom training materials into 'soft' |
| the problems of pollution and warming in cities can be | | | | copies and viewing them on a PC or a mobile. |
| attributed to vehicular pollution rather than industrial | | | | Companies like Abhisam Software provide e-learning |
| pollution. However, who's listening? To the youngsters | | | | that is media rich, with lots of pictures, Flash based |
| graduating out of college the "chemical industry" is | | | | animations (that simulate a process or show the |
| simply "uncool". There also do not seem to be many | | | | working of a machine or a phenomenon), interactive |
| efforts at correcting this view from the manufacturers | | | | simulations (that include the learner in the Flash |
| of chemicals. Besides, the memory of the downsizing | | | | exercises), real-life video clippings of events or |
| campaigns is still fresh and nobody wants to join the | | | | procedures and online assessments. This kind of |
| chemical industry, IT industry or other manufacturing | | | | "rich-media" training is simply not comparable with the |
| industries, to make a career. They would rather join a | | | | traditional classroom based training. The courses are |
| TV channel, become a Radio Jockey, or go into the | | | | designed with the help of several subject matter |
| hospitality business or perhaps even try stock broking | | | | experts, Instructional designers, animation and |
| or merchant banking. This "bad PR" has also hit the IT | | | | user-interface experts. |
| industry in the US, where not many young people are | | | | Thus the worldwide shortage of skills can be |
| enrolling in Computer Science courses in universities, | | | | addressed by using training to enhance workers' skills, |
| because of the fear of not getting jobs due to | | | | cross train workers, enhance the skills of semi skilled |
| outsourcing. Thus this leads to further shortages from | | | | workers or freshers. This is possible only if company |
| the IT businesses point of view. | | | | managements focus their attention on effective |
| The effect of combined factors | | | | e-learning and m-learning philosophies. It is by far the |
| The effect of all the factors in combination above, has | | | | best solution to bridge the skills shortage and gain |
| been a dramatic shortage of skilled people in the | | | | competitive advantage. |