Value of Training
Background
FITEC Council has been considering other training measures besides those used by TEC to better measure and illustrate the value of training to industry.
Introduction
FITEC offers technical training at four levels, (NZQA Levels 2-5). Each level provides a different value for the trainee and his/her employer.
Level 2
Level 2 training is targeted at entry level employees. It generally addresses Health and Safety requirements, provides an overview of the industry and work area that the employee is working in, and provides training on individual productivity measures such as nutrition, hydration etc.
Level 3
Level 3 training is focussed at the operator level. The objective of training at this level is to create competent operators who can work without supervision. The training is designed to give them the necessary technical skills to do the job together with some problem solving skills. Value add from this training relates to improved efficiencies of machine operation.
Embedded in our level two and three qualifications are our Literacy and Numeracy tools. Initial results of the impact of these tools is that they are improving literacy and numeracy by 5-7%. Intuitively this should lead to increases in productivity and more efficient use of resources within a business.
Level 4
Level 4 training is targeted at the Advanced Operator. The objective of training at this level is to create technically very competent operators in their own work area and who have broad competency across a range of areas in the business. At this level first line management and supervision skills are beginning to be developed. The value add from this level of training is seen through the ability to troubleshoot and to undertake process improvements.
Level 5
Level 5 training is targeted at management level. It focuses on planning and systems analysis and enables the trainee to make business decisions that take account of the entire business.
Competitive Manufacturing also runs from level 2 to level 5 within our qualifications, and is learning that is focused around continuous process improvement and minimising waste. There are a number of detailed studies that have been produced by the CMI consortium that show large returns from introducing this sort of training.
Measuring Value
Given the range of objectives of training at the different levels it is difficult to find a single measure that can be used to monitor or measure the value of the training. Measures under consideration include:
1. Industry Penetration
Industry penetration measures the proportion of the industry’s employees that are engaged in training with an ITO. In the Forest sector, a very high 75% of employees are engaged in training. Wood Processing on the other hand has a 35% participation level, with a much higher off-job training component requiring higher levels of training investment.
2. Level of Pay
Level of pay is another measure that has been mooted. In some wood processing sites there are collective agreements that link training levels to pay. In forestry, unlike traditional trades where the training provides a ticket to operate in a sector (eg electrician or plumber) and there is a significant increase in earning power upon completing the training, there does not appear to be a strong link between training leading to more pay.
3. Trainee Responsibility Progression
This is not simply whether they receive more pay or are promoted, but whether they become skilled on multiple machines or in multiple areas as a result of core training skills. While appealing in terms of zeroing in on the purpose for the training, the difficulty here is in collecting data on this measure.
4. Productivity
Productivity improvements in the forestry sector come from the safe and efficient production of better quality logs. Training affects a number of factors in forestry production.
- Productivity
- References found by FITEC showed increases in productivity from 26% to 40%
- Accidents (1-5 days lost for most accidents)
- Studies showed that the main reason for absence was work accidents which reduce with training.
- Reduced Employee Turnover
- Training has also been associated with reduced turnover. In one study the reduction was 40%.
- Improved log quality
- reduction in breakage during falling and hauling of 1.2% – 2.4% from trained crews.
- reduction of out of spec logs and optimisation of value through log making.
To date, no single study appears to have integrated these measures and give a holistic measure of the value of training.
5. Skill Retention
Skill retention involves looking at whether a trainee can still pass the competency test say 6, 12 or 18 months after completion. However, there are substantial costs involved in re-testing everyone post completion.
6. Non ITO/ITO Training
Non ITO/ITO training percentage could be used to determine what level of training is delivered through the ITO model. It would also enable those who are not using the ITO system to provide feedback as to why they are not using the ITO. This could be used to review the training offer and align it better with industry needs.
Conclusion
The conclusion is that there is no simple measure that enables us to measure the value of training. This has lead FITEC to develop an approach that will potentially allow us to measure the value of a training intervention on a trainee by trainee basis. This will be undertaken using the HIPPI Tool, which is a piece of software that we have developed that captures key performance metrics for a trainee before and after training, which then enables us to calculate the improvement in productivity and performance attributed to that training. It will effectively combine the outcome of a number of the above measures.
