Learn the value of training

Most employers understand the need for job-specific training and can make the link between investment in technical skills development and business performance. But what about the value to the business of seemingly unrelated training and development: fostering leadership, creativity and employees' personal development, for example? Lifelong learning may be a hackneyed concept but, arguably, it is vital in today's rapidly changing world. Can supporting - and encouraging - employees' learning activities outside work pay dividends by contributing to a learning culture within, and maximising employee potential? Ford is one organisation that believes it can. Ford set up its Employee Development and Assistance Programme (EDAP) in 1988 and the scheme is flourishing today. Jointly managed by the company, blue-collar and white-collar unions, EDAP provides easy access to advice and guidance on non work-related training and personal development to Ford's employees and allocates up to £200 per person per year towards this. Independent advisers are based at each site whose sole job is to advise employees, in confidence, on their development and operate the scheme within the policies set by the joint committee. A range of learning opportunities is available at different levels, including academic courses that lead to qualifications and recreational and health-orientated activities. EDAP funding, for example, has supported employees on Open University courses, those who want to learn conversational French for holiday use and has paid for gym membership. "We don't put value judgements on courses," says EDAP's joint national co-ordinator, Rob Brittle. "A science course leading to a qualification holds the same value to us as a cookery class and we're keen to encourage employees to embrace a healthier lifestyle." EDAP has even invested in on-site facilities - a gym and a digital photographic darkroom, for example - and arranged classes to fit in with shift patterns. The rationale behind EDAP is two-fold: it encourages employees to learn and it is good for industrial relations. "If you look over the last nearly 20 years since the programme was conceived, the business has changed significantly," says Brittle. "EDAP helps employees learn how to learn, and get used to change, new ideas, new thinking." In the late 1980s, an adversarial relationship between unions and employers prevailed throughout the industry. EDAP was introduced as part of the 1987 pay and conditions negotiations with a view to fostering a collaborative relationship with the unions to manage employee development. "It's easy to unite behind a common purpose and the trade unions fully support the objectives," says Brittle. "With funding tied in with pay, terms and conditions, and local and national committees set up to encourage participation and manage the programme, the unions had a genuine stake." Participation in the scheme has increased markedly. Over a five- to six-year period, 70-80% of employees will participate in some way and in any given year participation stands at just under 50%. EDAP costs £1.35m per annum to run: a significant outlay, yet it's a fraction of the training budget for Ford's 14,000 workforce. While the policy is not to measure an individual's performance on an EDAP-funded course or the impact on their job, the company is convinced the benefits justify the cost. "Testimonials from participants and local managers show the contribution the programme makes to employees' motivation to learn. Although it's not quantified, qualitative data shows that EDAP has a positive impact on the business," Brittle says. "It's also helped change industrial relations. We have far more positive industrial relations now with managers and white collar and blue collar trade union reps, who would traditionally have been separate, getting to know each other on a personal level as they work together." Valuable skills Brittle cites examples where, through EDAP, individuals have gone on to do other things - sometimes directly related to their work, otherwise related to what they do outside that can transfer back into the company in other roles. One employee with no previous experience of teaching offered to show others how to use the EDAP digital photographic darkroom; he went on to teach on an EDAP weekend at an adult residential college. It was so successful that the centre asked him to teach on public courses several weekends a year, giving him a new and rewarding dimension to his life - and a valuable skill he can bring to the workplace. Sector Skills Council SEMTA has a similar scheme. Learning Is For Everyone (LIFE) offers employees £150 a year to pursue a learning activity of their choice. Stated aims of the scheme are to enhance staff potential and capability; to encourage a culture of continuous improvement, self-development and learning; and to make learning an everyday and fun experience. A parallel Personal Health Development scheme provides £100 a year for health-related activities. "The whole premise behind it is to demonstrate that the company is interested in employees' welfare and what they do outside work, and to make people feel appreciated and valued," says HR manager, Polly Maslen. "It's a very small amount of money but it has a big impact on people's motivation. You get lots of enthusiasm from people talking about courses they've done and it helps switch people on to work-related learning. It's good for work-life balance, it's confidence boosting and it broadens skills which can have a knock-on effect in the workplace." Flower arranging, cookery, driving lessons, a range of language and music classes, hypnotherapy training, reiki training, a law course, counselling workshops and an MA in communications are among the array of learning activities funded by LIFE. All 'LIFERS' completing a recent evaluation said they would do another course in the future, some had gained formal qualifications and many said they could transfer skills to the workplace. While manufacturing employers may be ready to back technical workforce training, their record in developing softer skills such as management and leadership is poor. And when funds are scarce that sort of activity is often the first to disappear from the agenda. Yet commercial printer and sole UK manufacturer of playing cards Richard Edward was careful to include management training in a major business improvement campaign that was to turn the company around. Although the Thamesmead, south London based company was making a loss, it had the foresight to develop seven managers out of a total workforce of 54 through formal courses and other activities. Among them is operations manager John Slayford. "People had been promoted or put in positions because they were good at their job, but it didn't mean they had the skills to manage, so we decided we needed to invest in these people," he says. Slayford attended a three-day course and has had one-to-one coaching and mentoring through the London Manufacturing Advisory Service, which he describes as "a massive benefit". Training need "Over the space of two years, I went from managing a department of three to managing a company of 54. You can probably get away with not being the best manager in the world if you've only got two or three people under you, but when you make that sort of jump you need some training." Four years of losses at Richard Edward prompted the improvement programme which has training and development at its heart. Over a three-year period, the company has seen a return to apprentice training and engaged 100% of its workforce in training activities spanning lean manufacturing, technical skills improvement, IT and management development. All its machine minders have achieved an NVQ Level 3 in machine printing and next year Slayford will look at introducing NVQs into the studio and finishing departments. The company is currently working with the Lean Learning Academy on a company-wide lean techniques course that will result in the majority of employees achieving the Business Improvement Techniques NVQ at Level 2 or 3. "Whereas people were individuals, now everyone is part of a team with a greater understanding of the bigger picture," Slayford says. Last year, Richard Edward returned to profit and achieved sales growth of £1.7m year on year. "Training has certainly been good for us," he adds. "You only have to look at the benefits in increased turnover, now £5m-plus, and profit. Less tangible benefits are the general atmosphere on the floor, increased team working and wider participation in business development and strategy." When FMCG manufacturer, PZ Cussons, wanted to develop its business it looked at its customer relationships and realised it needed to boost creativity. The company brought in Think, a consultancy which aims to help organisations become more effective by enabling their people to be more creative - in this case, to help explore different ways of working with major retailers for mutual benefit. Think ran workshops where staff from PZ Cussons and key retail outlets worked alongside each other to come up with fresh ideas. "The team pushed individuals and made us think originally. They had a spark that created something different and that was what we needed," says business development controller Frank Whalley. "We were able to draw up action plans and create a real platform to build on and move forward. The exercise got us into different areas, opened doors and achieved things we'd never have been able to do otherwise. We now have sustainable programmes in place and the buy-in from major customers to continue developing them." Innovation focus Mark Davies, co-founder of Think, believes that manufacturers are lagging behind when it comes to building effective relationships. "Manufacturers are very efficiency-driven in terms of production, but many of them have got into a rut when it comes to driving innovation through their customer relations. Leading retailers are forcing manufacturers to be very dynamic in a traditionally non-dynamic industry," he says. "With good production skills, being able to deliver on time to the correct quality and all those things that you'd expect of any manufacturer, the point of difference is in relationship building." But innovation is not limited to customer relations. As we move rapidly from a knowledge economy - where everyone has access to the same knowledge through the internet - to a creative economy, it is those organisations that can think creatively and innovatively across the piece that will prosper. The beauty of it is that the techniques PZ Cussons benefited from lend themselves to a range of applications, including process improvements within a lean context or where a particular problem needs solving. "Innovation, creativity and originality are very generic concepts that can be adapted across the spectrum of the manufacturing base," Davies suggests. "Yet there's a big difference between innovation and creativity. The origin of the word innovation means making a return on your investment - making a return on creativity. That's our bull's-eye." Davies reminds us of the saying: if you keep on doing what you've always done you'll keep on getting what you've always got. Investment in training and development has to be the catalyst to moving forward. Perhaps companies should make a solid return on that investment their bull's-eye.