A SHRM&P Case Study why Training & Workforce Investment, is Good Business Investment

It took us one year to convince management of the bottom line impact our Productivity Team could have.

Arguments against training

The SHRM&P Philosophy

  • Training is too expensive and not an investment worth making
  • Training is critical to diversification and moving up the value chain; it pays for itself.
  • Our job is just to make garments,  workers should be trained before we hire them.
  • Ongoing investment in the workforce creates a shared vision of excellence and success while creating the skills to maximize flexibility, competitiveness and profitability.
  • I tried training and nothing changed.  It has no impact.
  • Our results matter as do our clients.  We are a long term partner, not a hit-and-run provider
  • There is no loyalty; If I invest in training the workers leave my factory and the money is wasted.
  • Workforce development demands better HR and Strategic Management, not just training the workers.  You invest, you gain.  You retain, you gain even more.  Incentives to recognize development are important.
  • Business is not good, we probably need to shut down operations
  • If it’s not for lack of orders, then it’s possible make an investment in people that brings you back on track.

The impact of the training programs was remarkable – both for the client and the workforce.

Year

The Factory

The Employees

2006

  • CMT manufacturer and subcontractor to bigger factories
  • Facing possible closure of the factory due to a variety of constraints

700 workers, average pay $70/month:

2007

  • Management decided to purchase approximately $5000 in training services; gained 40 000 (forty thousand) pieces per month within 2 months.
  • Management purchased additional training/consulting
  • 10 employees went for training
  • Employees benefited from large incentive increases
  • Employees began competing for more training

2008

  • FOB producer, profitable, attracting new buyers,
  • Continued investment in training and consulting
  • 1,200 workers, average pay $85/month
  • Second investment in training?

2009-2010

  • Expanding client base including more demanding clients such as Japanese buyers
  • Higher and diversified skills needed for the new products
  • 1,800 workers, aver. pay $120.00.

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