The Learning Business, L.L.C.
	Where learning becomes business

The Business of Learning
Copyright 2006, The Learning Business, LLC

David Ellwood, a professor at Harvard’s Kennedy School of Management, noted that the US born work force will grow by just 15% over the next 20 years. This is a significant reduction from the 50% growth rate over the previous two decades (Grow Faster Together, or Grow Slowly Apart, Aspen Institute, 2000). Anthony Carnevale, Vice President of the Educational Testing Service, predicts that we will experience a 15 million worker shortage by 2020, with 2/3 of that shortage in occupations that require education and training beyond high school. (New Economy Information Service E-Bulletin, June 2003). Ellwood goes on to say that the share of workers with levels of education beyond that of their parents will slow significantly over the next 20 years and that most of this workforce has already completed their education.

The implication for US business and industry is sobering. The increasing gap between the demand for workers and the supply will create pressure to send jobs overseas or bring in workers of all skill levels from abroad. With basically zero growth forecast for the 25-54 age group in the coming years, there will be pressure to delay retirements and encourage retirees to return to work. Even so, there will still be a shortage of qualified domestic workers.

To leverage employee assets, companies will need to increase training and education, especially in skilled occupations, regardless of where they get their workforce. Companies will find themselves competing for a limited pool of skilled workers. Workers will gravitate towards those companies that offer competitive salaries, benefits and working conditions. And one of these competitive enticements will be the level of training and education a company offers. Many companies today are defensive about providing training for their employees. In times of cost cutting, this is usually the first thing to go. They are also afraid that if they train their employees, they will be lured away by another company. It’s kind of a “keep ‘em barefoot” approach to employee development. There is a retort to this approach in the training community. What if you don’t train them and they stay!

If you step back from the trees and take a look at the forest, it should become clear that the key to greater innovation and productivity is through the training and education of your workforce. If you don’t do it, someone else will, and that’s where the quality workforce will be attracted and stay.

It is probably not a reliable strategy to look to the government or traditional education alone to develop skilled workers. Government funding is fickle by its very nature. Traditional education is, in many places, still debating whether relevance to the workplace is appropriate for the classroom. Where there is a connection, it is usually generic to a profession and not adaptable to the needs of any particular company. Simply put, if you want your workforce trained quickly and to your specifications, you will have to get your hands dirty – business will need to take and maintain the lead in the business of workforce training and education.

This means that companies will have to beef up their training and education staffs with qualified individuals who are not only outstanding subject matter experts in their technical and professional fields but also credentialed in the business of learning. Trainers and their managers alike will need to know how to design, develop, select, deliver and properly evaluate training and education. In addition, they will need to be skilled in project and business planning, budgeting, execution and follow-up and be able to demonstrate a solid return for the company’s investment. To interface effectively with management, they will need strong communication skills that include writing, presenting and listening. To work with others effectively, they will need good team and problem solving skills.

Training and education in business and industry is not your father’s automobile anymore. The business of learning is a business – and it is fast becoming a serious business. Is your company ready to meet the challenge?

Comments? Contact The Learning Business: info@learningbiz.bz