Tan Kin Lian's Blog: Low takeup rate of training places

Friday, February 12, 2010

Low takeup rate of training places

According to the Straits Times, there is a low take up rate of training places. Small businesses are not sending their workers for training and skill upgrading.

The government leaders and planners should not continue to live in their own world. Their policies and strategies for the past decades have not worked. To get better results, they have to understand the real issues facing the small businesses and the workers.

Business conditions are difficult. Small businesses are not able to get a decent margin, due to excessive competition and wasteful activities. The cost of running a business is high, compounded by unnecessary activities such as compliance with GST and other requirements.

The workers have to work long hours and do not have the time, energy or attention to be upgraded.

Tan Kin Lian

15 comments:

Anonymous said...: The govt need to understand that it is ineffective and unproductive to 'over-train'. Whatever knowledge and skills a worker learnt could be 'forgotten' within 6 months, sometimes shorter. To be cost-effective, workers should only be trained on what is relevant to them, and 'just-in-time'. And yes, small businesses are mostly struggling to make ends meet.; February 12, 2010 9:44 AM
Parka said...: Maybe it's because those training and skill upgrading programs are not returning value?

If they do return value, then small businesses might to even be aware of such programs.; February 12, 2010 10:37 AM
Anonymous said...: All these Spur, WSQ, re-skilling, re-training etc etc are all just wayang exercise. Objective is to (1) massage figures by keeping unemployment numbers low by subsidising company's wage costs and not counting trainees as unemployed, and (2) PR exercise to show people that govt is doing something to help.

Some critical thinking here: Can anyone be trained overnight to suddenly double or triple his productivity? 1 person can now do 2 or 3 persons' jobs? At most it will require great automation and change of business process, all of which does not make sense to companies when they can simply employ extra cheap FWs. Cheaper and faster.

As for re-training into another new industry? Well, if the new jobs are really so good and value-added, it will take at least 1-2 years of full-time training. You think companies will suck thumb and wait for 2 years? If the training is those 1-week 2-week type, then those new jobs are not valuable and have very low barriers to entry. Again much easier to get cheaper FWs to do them.

As for the real man-in-the-street, how would such training bring him a better paying job? Real world test of the value is to receive pay increase willingly by companies. Most people go for the training because kenna arrowed by companies, who in turn only want to be subsidised by govt for wages. The workers then go to take a break from work.

I challenge MOM and WDA to provide statistically significant evidence of meaningful pay increases.; February 12, 2010 4:33 PM
Anonymous said...: Training is NOT the solution if ignorance is NOT the problem.; February 12, 2010 4:54 PM
Anonymous said...: I know of acquaintance who is unemployed and recently took up a WDA Spur training programme related to SAP (enterprise resource planning system). This training is for 3 months and the training provider supposed to strongly assist the trainees to find employment in relevant industry. Seems this is a condition set by WDA on the training provider, as WDA pays for 90% of the course fees which are like $9,000 for just a 3-month programme. The trainee pays 10%, and furthermore receives $1000 a month allowance during the training period. My friend and many trainees were attracted to this "good deal".

After training, trainees need to show evidence to MOM or WDA that they are working in the relevant industry for at least 1 year, otherwise they have to pay back the training fees and allowances plus penalty (10% I think).

The training provider needs to show WDA that its trainees are able to be employed, in order to enjoy the cash-cow of being an official Spur training partner. So the training provider whacks the trainees with low-paying jobs like call centre and Sim Lim Square sales jobs --- and label them as trouble-makers and attitude problem if they protest. Even make official complaint to WDA about them.

In fact, 2 of the trainees found their own employment due to skills they previously had, not because of the Spur training. My friend is now working as an unpaid intern for a global IT & business consultancy --- which I think is blatant exploitation and maybe illegal, as the company can claim $1000 / month from WDA for 6 months to offset the wages.

This global consultancy is just screwing the trainees and the training provider goes along with it, as those unpaid interns will be reported to WDA/MOM as being employed. My friend doesn't care anymore; just wants to clear the 1-year bondage and do some moonlighting on the side to earn money.

This is an example of the "success" of Spur and training.; February 12, 2010 5:12 PM
Anonymous said...: REX comments as follows,

The revelation by anon. @5.12 pm is shocking. I had always suspected that this training strategy is rubbish, but i didn't know it is poison! And the Trainers laugh all the way to the bank.

REX; February 12, 2010 6:51 PM
Anonymous said...: REX comments as follows,

Is there any other govt in the world who lead the citizens to a wild goose chase via "retraining" when Unemployment looms? This strategy is "uniquely singapore"?

I think if the govt can;t find new way to get people employed, they should swallow humble pie and admit it instead of playing "Training" card. Secondly if they can't find new way to get people employed, they should not look at expanding the population to 5 or 6 million. The recent report by the ex Chief Statistician also makes one worry a lot. It is going against common sense. how to survive?

REX; February 12, 2010 7:26 PM
Anonymous said...: Training and those SPUR schemes is the most convenient excuse the govt is using to show that they have schemes and plans to help the unemployed.

Frankly, besides training, what other options can the govt have which is easy and convenient to implement? Give unemployment allowance for you to idle? Hahaha.; February 12, 2010 8:28 PM
Anonymous said...: Other options which are easy and convenient to implement? Easy, start by turning off the tap on FWs and PR applicants who are coming in for jobs in service industry or average PMET positions like admin staff, executive, sales, technicians, IT etc.

The only people who will find it inconvenient will be those who like to employ plenty of cheap FWs. And also maybe the ministers becoz getting lower salary and bonuses due to dip in GDP.

After a couple of years, start phasing in a minimum wage -- doesn't need to be extravagant, can be $7.50/hr. At this wage scale, 8 working hours a day for 22 working days a month gives you $1320.

If you think $1320/month is too high for cleaning aunty and rubbish collector, then maybe easier for govt to pass law decreeing everyone carry their own rubbish to Senoko incinerator, wash & clean food court after use, wash & clean public toilet after piss-poo, etc or else fine $1000.; February 13, 2010 12:04 AM
Anonymous said...: """"The recent report by the ex Chief Statistician also makes one worry a lot. It is going against common sense. how to survive? """"

A way to help HK compete against spore???; February 13, 2010 6:02 AM
Anonymous said...: REX comments as follows,

Recently, I started to think a bit more about the minimum wage concept. The problem is that most of us like to champion the cause of Labour and say please be fair, please pay minimum wage, we act like lau hero.

Now do not forget that many many of us are employers - do you know that? You have a maid, yes? If minimum wage is $7.50 per hour as proposed above, then please pay maid $1,500 per month *based on 25 day month and 6 day workings only. No? Can I afford a maid now? Yes?
No doubt such policy, this wage will attract local singaporeans to find a job as a maid. But you, my friend, do you have $1,500 to pay your maid any more?

I am really stuck. On the one hand i think minimum wage is good. But i look at the example above, honestly i really need a maid but uh..$1,500... ..? When it pinch your own pocket, we will throw our own favourite theories to the winds... Yes?

REX; February 13, 2010 11:14 AM
Ron said...: Retraining is good, provided it meets the employment market.

What has happened here is that many companies abuse the system and send any employee to these courses.. just to qualify for SPUR funding.

And for those who sign up for Professional Conversion Programmes (PCP) they were attracted by the monthly stipend of $1000. They did not think beyond: will this conversion meet my values and passion? It was purely economic.

Since then the economic situation has turned and has rebounded. Jobs are abundant. Imagine if the economy was to remain weak and jobs scarce?.. the $1000 seems a godsend.

Retraining must be viewed with focus: what do you hope to achieve?
and would you like doing what is required? If the answer is "see how" then, one should step back and review your values.

Ron; February 13, 2010 11:43 AM
Anonymous said...: To Rex's comment about minimum wage and the $1500 maid:

Exactly. We will then be forced to live more like the Australians, New Zealanders, Canadians, Americans, British etc. How do they ever get by with ultra-expensive maids and rubbish that gets collected only once-a-week? Think about it more. Change is never going to be easy.

What is more important is whether you believe such changes will lead to better lives for your children and your children's children beyond the next 20, 30 and 50 years?

I can guarantee you that those in the top 20% of the population will want the current system and status quo to carry on, as they and their children are enjoying the fruits of the system. All my rich relatives will be in this boat; they stay in bungalows, own hotels, blocks of service apartments in SG, HK, London. Why will they ever want the party to end?

As for the rest of us, our generation is the one that is stuck in this situation and circumstances, and need to make the decisions. What to do? Blame our karma ... and then focus on making wise (hopefully) decisions, calculated decisions, act on them, and vote wisely!; February 14, 2010 1:35 PM
Anonymous said...: REX comments as follows,
To anonymous 1.35 pm
I am not able to understand your post after reading it twice.. do you or do you not support minimum wage or not, knowing that you have to pay for a $1500 maid if you support minimum wage policy?

Today, an average family can still afford a maid (about $500 a month- not too cheap but struggle here and there still can tahan), it is considered necessity in many cases not luxury. Aging parents, young children, both parents busy, no suitable relatives to help take care, sick parents. Hence, a maid may not necessarily be considered as a luxury in Singapore. But... if we have a overall min wage policy, it will affect us too. I am caught in a dilemma of championing the cause of Labour to lobby for minimum wage, against the correspoinding issue of unaffordibility of maids for families that really need them out of necessity. How ah? Kin Lian.. help!!

REX; February 15, 2010 8:56 AM
jamesneo said...: We can deduct the minimum wage of say 1200 by say 200 for accommodation, 100 for transport and (1+ 2+2)*30=150 for food which the maid do not have to pay because all these are paid by you. so actually we can pay the maid about 1200- 450=750 which is only slightly larger than the $500-600 we are paying now.
This is of course if the government abolish the maid levy.; February 17, 2010 4:57 PM