skills development for smes and informality
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Post on 24-Dec-2014
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DESCRIPTION
This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.TRANSCRIPT
Skills development for SMEs and Informality
Anil Verma, Ph.D.Professor & Director
Centre for Industrial Relations & Human Resourcesand
Rotman School of Management
University of Toronto
September 2014
Traditional Approaches to Skill Development in SMEs
Hire opportunisticallyEmployee referralFamily memberHelp wanted sign in the windowHelp wanted sign in the local media
Hire for minimum qualificationsTrain on the jobLearn by doing – work experience
Innovative Approaches
• Hire from schools/colleges• Hire for skills relevant to firm’ s
growth• Provide incentives to employees to
learn new skills• Provide opportunities to learn new
skills• Connect with schools/colleges to
access ongoing training and skill development
• Connect with industry associations and community organizations
Source: http://siteresources.worldbank.org/INTLM/214578-1103128720951/22795057/EPPNoteNo16_Eng.pdf
Industry Shared Approaches
Classroom-Education- Training
InternshipsJob shadowingCo-op LearningJoint Projects
Essential Job Skills
Matching Education to Skills
• Bring industry closer to education• Industry-college linkages• Mentorship• Internships• Special training• Job shadowing
Source: http://www.essentialskillsontario.ca/sites/www.essentialskillsontario.ca/files/Industry_Shared_Final_0.pdf
Source: http://www.essentialskillsontario.ca/sites/www.essentialskillsontario.ca/files/Industry_Shared_Final_0.pdf
Source: http://siteresources.worldbank.org/INTLM/214578-1103128720951/22795057/EPPNoteNo16_Eng.pdf
Source: http://siteresources.worldbank.org/INTLM/214578-1103128720951/22795057/EPPNoteNo16_Eng.pdf
Source: http://siteresources.worldbank.org/INTLM/214578-1103128720951/22795057/EPPNoteNo16_Eng.pdf
Informality & Skill Development
• Sources of Informality– Lack of literacy and numeracy skills– Poor communication between SMEs and
regulatory authorities– Complex regulatory requirements– Poor enforcement of regulations– Deliberate fraud to “save” costs
• The true cost of informality is persistent cycle of poverty
Skill Development and Informal SMEs
• Simplify registration and regulations for SMEs
• Promote industry and community associations that can foster best practice
• Create incentives for becoming formal even as the cost of being informal is raised through enforcement and missed opportunities