Revenue, productivity gains for firms with workers reskilling
Businesses that sent their workers for reskilling and training have reaped revenue benefits, according to a new study by SkillsFuture Singapore (SSG) and the Ministry of Trade and Industry.
The study found that for every 10 per cent of the local workforce that companies supported for training, the company's revenue was about 0.7 per cent higher on average each year for up to three years after training.
The labour productivity of the firms was also 2.2 per cent higher on average per year for two years.
The study looked at the benefits enjoyed by firms that sponsored their local workers for SSG-supported training between 2010 and 2018.
This lifelong learning is vital to building stronger businesses and a more agile workforce, said Minister of State for Manpower and Education Gan Siow Huang at a forum to launch the SkillsFuture Month yesterday.
The event, which will end on Aug 22, features more than 50 virtual, hybrid and physical events catered to different segments of the workforce.
Over 90 community, education and industry partners are participating in the event, which is expected to draw more than 50,000 learners.
Ms Gan said: "Based on the study, when enterprises actively support and invest in the upskilling of employees, they can better attract and retain talent, as well as increase their revenue.
"The results of this study are encouraging and provide evidence that investment in workforce training leads to positive business outcomes. Clearly, it is a win-win proposition for companies to invest in developing their employees."
She added that the Covid-19 pandemic has been a harsh wake-up call and has forced nations, firms and individuals to transform the way they live and work.
"More than ever, it is imperative for our workforce to continually upskill and reskill in order to remain competitive and capture future opportunities in the new normal," she said.
"The path to recovery may well be long and challenging for many companies as well as individuals affected by Covid-19, but we are starting to see the light at the end of the tunnel," Ms Gan said.