SMEs must place much importance on the learning and development of their employees

Your employees are your biggest asset, so make sure to continually upskill them.

“SKILLS are a foundation of decent work”, states an International Labour Organisation report on how equipping the workforce with the right skills is a priority for G20 countries. The same priority applies for small and medium-sized businesses (SMEs).

Fact 1: A massive 96% of employers in Asia believe skill shortages have the potential to impact the effective operation of their business or department this year.

Fact 2: SMEs’ main areas of concern include employee attraction and retention, and getting the right talent on board.

Fact 3: Fresh graduates usually prefer to seek employment in bigger organisations rather than SMEs.

Fact 4: 60% of the unemployed in Malaysia are youth.

The fact of the matter is that the top 10 reasons for fresh graduate unemployment include poor attitude or character (59%), poor command of English (64%) and poor communication skills (60%).

Employers also feel that graduates lack adaptability, multitasking skills, decision-making skills and problem-solving skills.

From the above list of facts, a few things immediately jump out.

One, there is a general lack of skills, knowledge and right attitude in the workforce.

Two, SMEs are at a disadvantage when it comes to attracting talented people.

Three, there is a huge pool of unemployed graduates, which a bit of development could help polish into gems that SMEs would love to have under their payroll.

Finally, having the right skill set, mindset and knowledge in an organisation can directly and positively impact its growth.

And that is why SMEs should be placing much importance on the learning and development of their own people.

Analysis by McKinsey shows that high growth rates for various strategies in organisations are often associated with excellence in a range of leadership competencies.

Such competencies include customer impact, results orientation, change leadership, market insight, team leadership, collaboration and influencing, and strategic orientation. It is surprising that many organisations do not prioritise the structured development of these competencies.

A major challenge for many companies is how to make this training easily accessible and systematic.

That is the reason bigger organisations have been implementing yearly training calendars and training maps for their entire workforce as well as e-learning initiatives.

In a world where even the bigger organisations are engaging in this “war for talent”, and a world where it is so evident that workforce lacks specific skills necessary for the various roles that need to be filled, SMEs have to compete in order to attract the right talent. But what if there is a better way?

Looking at the GEs of the world, the Shells and Johnson & Johnsons, one might ask: How did they get it so right?

Perhaps they can attract the best candidates, but is it just that?

The reason they have the right kind of people to facilitate the growth of their organisation is the importance they placed early on building a learning organisation, one who actually trains its people in the skills and knowledge required rather than just expect them to know it on their own.

This is also one of the reasons they attract the best candidates in the first place, as research has shown that access to training makes employees six times more likely to classify their company as a great place to work.

SMEs, with all the struggles they face in terms of access to finance, retaining and attracting the right workforce, and scaling their business, could take the initiative to establish a learning system in their company.

Learning is the mother of innovation, bright ideas and growth for the learner and the organisation he or she works for.

Learning is one of those areas not often prioritised amidst the myriad issues SME management has to face daily. However, there must be a way to take ownership of their own growth and development.

And that will happen through a systematic, yet cost-effective learning mechanism that allows everyone in the organisation to learn the right skills, engage in discussions and apply their learning together, for the benefit of the organisation.

To find out how your organisation can get started on this learning journey, email [e-mail]