Who Should Pay For Worker Training?
Who should pay for worker training?
The word training in and of itself can have a wide meaning. However, in the context of workforce training it is defined as the training undergone by workers that allows the worker to carry out a job or increase work efficiency (Carliner and William, 2015). The cost incurred when training that is usually considered is the money it costs. There are however other costs that are not considered. It can be suggested that the time taken to undergo training and the potential earnings lost while training are other possible costs to consider.
There is debate as to what constitutes as training. Training is traditionally thought of as on the job vocational training however there are many other forms. It can be argued …show more content…
Human capital is the collective productive skills and knowledge of the workforce. Human capital is indispensible as it is the key factor that raises the total factor productivity of a business entity. Total factor productivity is the portion of output of a business that is not explained by the direct input. It is mostly attributed to the efficiency of workers. According to Erosa et.al, (2010) the growth of human capital sharply increases total factor productivity in countries across the world. Because of this it can be suggested that human capital is the key to economic growth and the importance of training to better the quality of human capital cannot be stressed …show more content…
It is also notable that general training allows for a faster and higher wage increase over time, as compared to specific training (Frazis and Spencer, 2005). This further indicates that training is more in the interest of the worker than the employer.
The abundant availability of human capital leads to a more competitive job market. In 2008 the unemployment rate in the United Kingdom was almost 8%. And underemployment was above 13%, which is estimated at over a million individuals (Walling and Clancy, 2010). This indicates that the job market is very competitive and there is a shortage of jobs. This further implies that it is in the best interest of workers to undergo training before entering the job market.
In the grand scheme of things it cannot be as simple as weather or not workers should pay for training. It should be questioned as to in what instances should workers pay for training. In most cases it is beneficial for the worker to pay, however there are some situations where it is not. For example, if a worker has to operate machinery that is unique to a company. In such instances it is appropriate for the employer to pay. Although in the case of the example above, it would not cost the company a monetary value to train the worker, it would cost
The word training in and of itself can have a wide meaning. However, in the context of workforce training it is defined as the training undergone by workers that allows the worker to carry out a job or increase work efficiency (Carliner and William, 2015). The cost incurred when training that is usually considered is the money it costs. There are however other costs that are not considered. It can be suggested that the time taken to undergo training and the potential earnings lost while training are other possible costs to consider.
There is debate as to what constitutes as training. Training is traditionally thought of as on the job vocational training however there are many other forms. It can be argued …show more content…
Human capital is the collective productive skills and knowledge of the workforce. Human capital is indispensible as it is the key factor that raises the total factor productivity of a business entity. Total factor productivity is the portion of output of a business that is not explained by the direct input. It is mostly attributed to the efficiency of workers. According to Erosa et.al, (2010) the growth of human capital sharply increases total factor productivity in countries across the world. Because of this it can be suggested that human capital is the key to economic growth and the importance of training to better the quality of human capital cannot be stressed …show more content…
It is also notable that general training allows for a faster and higher wage increase over time, as compared to specific training (Frazis and Spencer, 2005). This further indicates that training is more in the interest of the worker than the employer.
The abundant availability of human capital leads to a more competitive job market. In 2008 the unemployment rate in the United Kingdom was almost 8%. And underemployment was above 13%, which is estimated at over a million individuals (Walling and Clancy, 2010). This indicates that the job market is very competitive and there is a shortage of jobs. This further implies that it is in the best interest of workers to undergo training before entering the job market.
In the grand scheme of things it cannot be as simple as weather or not workers should pay for training. It should be questioned as to in what instances should workers pay for training. In most cases it is beneficial for the worker to pay, however there are some situations where it is not. For example, if a worker has to operate machinery that is unique to a company. In such instances it is appropriate for the employer to pay. Although in the case of the example above, it would not cost the company a monetary value to train the worker, it would cost