The Need for Basic Skills Training A number of factors have occurred in the workplace and economy in recent years that have prompted changes in the preparation workers must have to be productive employees. In short, workers of today and the future must function at a higher level, be more engaged in their work, and adapt to constant changes in technology and work processes. Global competition and rapidly advancing technology have resulted in high-performance workplaces that demand more and more of the worker. These changes have resulted in a ³raising of the bar² for basic workforce competence. Workers must then be able to think, problem-solve, work in teams, and become life-long learners. Literacy of adults in the American workplace has been a growing concern for approximately 20 years. Technology and high-performance work practices have required employees to use more brain and less brawn. Employers and employees who are unable to adjust to these changes experience serious competitive and economic problems. For example, the National Institute for Literacy (NIFL) reports that businesses lose more than 60 billion dollars each year in productivity due to lack of employee basic skills (NIFL Fact Sheet, 11/6/99). A number of studies have addressed the need for improved basic skills training in the workplace. The NIFL study of 300 executives, for example, also cited 71% of employers indicated their employees needed training in basic communications. Also, 47% of employers in the same study reported employees needing remedial training in basic math. Employers are also finding that low-functioning employees inhibit the ability of a company to compete, adapt to technology and respond to change. Human resources in a company are becoming part of the economic/competitive equation. Education and training are an integral part of a company¹s capacity to grow and develop. Training in basic skills is the foundation for that capacity for growth. Benefits of Basic Skills Training Employers cite a wide assortment of gains received from basic skills training. Even employers who do not conduct basic skills training recognize that benefits do exist. Employer gains appear to revolve around two primary areas: productivity and employee development. Numerous studies in recent years attest to the impact basic skills training has on organizational productivity. Increased operating efficiency, reduced labor costs, lower turnover rates, reduced waste, lower accident rates, reduced workman¹s compensation costs, and down-time rates all translate into improved productivity and profitability. Workers change, as they become more educated. Companies report improvements in worker self-esteem, motivation, teaming, problem solving, communications and willingness to accept responsibility. Basic skills training also builds the employee¹s, and thus the organization¹s capacity to support high-performance workforce practices such as TQM, JIT Inventory, Open-Book Management, Statistical Process Control, and Lean Manufacturing. Also, raising the educational foundation of employees enables companies to obtain industry quality certifications such as ISO and QS 9000. Many of the quantitative and qualitative benefits for employers also transfer to employees. Quantitative gains for the employer result in improved job security and advancement opportunities for employees. Also, many employers are offering profit and gain sharing programs as part of their employee benefit packages. As organizational productivity and profitability improve so does the employee¹s paycheck. Employees also gain from improved safety records by working in a safer environment. A major qualitative benefit to employees is that their own capacity to learn, think and grow as both employees and individuals is enhanced through basic skills training. Employees benefit at work as well as at home from basic skills training, thus improving the employee¹s overall quality of life. Project Description The Work in Northeast Ohio Council (WINOC) partnered with North Coast Education Services (NCES) to pilot a project that would determine the impact of basic skills training on organizational and employee effectiveness. The pilot project was funded by the Greater Cleveland Growth Association and the Cleveland Foundation. The project was conducted in two primary phases. Project Design WINOC and NCES personnel selected eight companies in the greater Cleveland area to participate in the pilot project. All companies were in various types of manufacturing ranging in size from 20 to 350 employees. The companies agreed to participate in basic skills training and evaluate the impact of training on employee and organizational effectiveness. Each company agreed to have the basic skill levels of employees determined through an interview process conducted by NCES personnel. The interview process is private and individualized for each employee. The interview determines the employee¹s ability to recognize words or math situations. The results of the interview indicated the employee¹s ability level and training recommendations were made. The project was evaluated using qualitative and quantitative methods. A project team was assembled to guide the implementation and evaluation of the project. The project team consisted of one representative from each company, WINOC and NCES personnel. This group met periodically to monitor the progress of the project. During the initial meeting, the group identified a number of outcomes they expected to see at the conclusion of the project. The outcomes related to improvements in employee performance and organizational effectiveness. The outcomes also became the framework for evaluating the project. Four data sources were used to evaluate the impact of training. The data sources were monitored before and after the training when possible. The four sources were employee self-assessments, supervisor assessments, trainer feedback, and organizational effectiveness factors such as absenteeism, accident rates, workman¹s compensation claims and scrap/waste data. Results of the Project The NCES personnel interviewed 409 employees from the eight pilot companies. Of those interviewed 64% (256) were recommended for training in basic math. More than half of the employees, approximately 51% (208), were recommended for training in communications (reading/writing). The following results are reported for all employees participating in the pilot project. Employee Self -Assessments The primary gains identified for employees before and after the training were in their confidence, thinking skills, interest in learning and ability to work and communicate together. For example, 83% of employees surveyed indicated their interest in learning had increased after the training. Also, 69% of employees reported improvements in their reading ability. In communications, employees reported improved accuracy in spelling and writing which reduced the number of mistakes. In math, 63% of employees reported improvement. Supervisor Assessments Fifteen supervisors participated in evaluating employees. Twelve of those provided pre/post-training surveys of employee competence in basic work performance. Overall, the supervisors agreed that the employee¹s basic skills had improved. For example, 13 of 15 supervisors agreed that their employees were more accurate in their job duties after the training. Trainer Feedback Seven trainers observed numerous changes in employee behavior during the training period. The most noticeable changes occurred in the following four areas. Trainers observed changes in the employee¹s ability to think. A second area of improvement was the employee¹s interpersonal and teaming skills. Third, trainers observed numerous changes in employee behavior that indicated improved self-esteem. Finally, trainers reported that the employee¹s interest and ability to learn had increased. Employee and Organizational Effectiveness The project team identified a number of factors that would be monitored during the project to indicate improvements in employee and organizational effectiveness. Improvements were noted in employee attendance, tardiness, disciplinary action, and customer complaints. At the organizational level, a number of factors indicated that effectiveness was realized. For example, workman¹s compensation and accidents rates were down in one company. This company also had the best safety record in the nation for companies in its industry. Two companies reported reductions in scrap/waste. Profitability in one company had almost doubled while productivity indicators in three other companies were positive. In one of these companies, productivity indicators were positive even though sales had declined during the study period. Conclusion Training in basic skills lays the foundation for employees to be successful in the high-performance workforce. This will enable employees and organizations in Northeast Ohio to adapt to future changes in competition, technology and work process. In effect, employees and the human resource function can become part of the competitive equation for a company. The results indicate employees and their behavior, at work and at home, change as a result of basic skills training. In short, it is just good business to train employees in basic skills. If you would like more information about this study or about starting a basic skills training project at your facility, please call Bob Meyer at 216-520-0770 ext. 225.