Yet Another Reason Structured On-The-Job Training Should Be Part of Any Company’s Business Model – New ISO 30414 Standards for Human Capital Metrics
by Dean Prigelmeier, President of Proactive Technologies, Inc.
A new reason has come to town to support why structured on the job training – at least the
PROTECH™ system of managed human resource development approach – can be an important component of an organization’s business strategy and model: ISO 30414 – Human Capital Metrics and Reporting.
For far too long, critics have been vocal that decisions on how to reduce costs to protect “shareholder value” were heavily weighted against workers, undercounting the firm’s cumulative investment in each worker’s development and aggregate value of the firm’s worker expertise. It was easy to erase labor wages off the books without considering the loss of value to the company when that value was never measured and counted in the first place. While the benefits of such cuts can provide a short-term lift to earnings per share, the long-term impact on organizational capacity, quality and effectiveness is often not known to shareholders until problems arise.
click here to expandThere has been an extensive global effort to create standards for the voluntary gathering and reporting of human capital metrics, organized by the International Organization for Standardization (ISO), which have been released. And there seems to be a case to be made why companies should not ignore their importance.
Many quality professionals were exposed to the new requirements for a systematic approach to human resources in ISO 9001:2015. These new requirements are based on the principles considered by ISO to be essential to quality management success. But some quality professionals may not be aware of new ways that they can bring added value to their organizations by implementing the spirit and intention of these new requirements.
“If the firm has not defined the job classifications of workers in clear, procedural terms, they have little to measure, report on and use to improve performance.”
In a recent article in CFO.com entitled, “Human Capital Reporting Standards Finally Arrive,” David McCann writes, “Depending on the extent to which companies voluntarily adopt the new standards, stakeholders – investors, analysts, customers, and current and prospective employees – would have a new category of data with which to assess organizational value and the prospects for financial and non-financial returns from investments in human capital.”
Conversations regarding ISO 30414 human capital reporting have changed in the last few years, perhaps related to the awareness that the public is asking more and more that corporations be good corporate “citizens” since given that standing in recent Supreme Court rulings such as Citizen’s United.
The institutional investor community, including the Human Capital Management Coalition with aggregate assets of $3 trillion dollars and is lead by the UAW Retiree Medical Benefits Trust, has expressed strong support. They went as far as petitioning the U.S. Securities and Exchange Commission in 2017 to require public companies to disclose information on their human capital management. The Commission accepted the petition and is currently considering it. Read More
A “Pay-for-Value” Worker Development Program – Fair to Management and Workers, and Effective Too!
by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.
A conundrum for many employers – those who are allowed to consider the wage-value relationship in their business strategy – is “what is the right pay rate for work performed.” An often used strategy is to establish a competitive wage range for a job classification based on area surveys of similar job classification in the industry, adjusted for the uniqueness of work requirements for the employer’s job classification. Once hired, an employee progresses through the wage range measured by time in the job classification, in some cases with wage adjustments based on merit. While consistent, this approach may limit the employer to paying, in many cases, more for labor than the value derived. And here is why.
If an employer purchases a new, technologically advanced, piece of machinery that is advertised to increase the output of a process from 100 units per hour to 300 units per hour, the employer would be disappointed if it only received 150 units per hour. That employer would, most likely, challenge the manufacturer and perhaps request a refund if not satisfied.
click here to expand“How would one determine the proper wage rate for the value derived if there is no effort to hire workers accurately to today’s job needs, train workers to all of the required tasks and measure workers for the work they were hired and trained to perform?”
Why doesn’t that same sentiment apply to hiring workers? In a hypothetical, but typical, example an employer has an opening for a job classification that consists of 50 critical tasks that the employer expects the person filling that job classification to perform. Why shouldn’t the employer expect that person to master all 50 tasks? What might happen instead, after what is considered to be the “training period” is completed, the employer notices through anecdotal evidence and whispers that the output from that hired individual is below expectation. As time goes by and dissatisfaction grows, the decision to terminate the employee is made, often not measured against the investment in the employee thus far. If retained, the employee progresses through the wage range with no guarantee that the employee’s output increases. Where is the concern to correct this? Read More
Proactive Technologies Discount Program Ends, But…”Low-Risk” Pilot Approach Option Remains in Effect
by Proactive Technologies, Inc. Staff
The Proactive Technologies, Inc.’s Fall Discount Offer expired November 30th. However, discounts are still offered for “economies of scale” (the larger the project, the larger the savings due to coordinated travel, production costs and labor). PLUS, Proactive Technologies has continued the “low-risk” project pilot approach offer for those employers who need to make the case to management before rolling out a larger project.
This accelerated transfer of expertise™ approach is a tremendous offer without the discount. This approach can help any employer quickly and completely train the skilled workers they need AND realize an increase in worker capacity, work quantity/quality and compliance (ISO9001:2015/ TS16949/AS9100D), engineering specifications and safety) while reducing the internal costs of training. New-hires and incumbent workers are driven to full job mastery and higher levels of return on worker investment (ROWI). The task-based, structured on-the-job training infrastructure is perfect for apprenticeships (registered or not); instead of marking the calendar for “time-in-job,” job-relevant tasks are mastered and documented. AND, unlike classroom or online training, the cost per trainee decreases with each added trainee once set up.
click here to expandThis approach makes a worker’s mastery of the job the focus, incorporating the company’s existing systems, documents and standards by building structure around the loosely arranged worker development activities already in place – structuring the unstructured worker training to make it work effectively and efficiently.
Proactive Technologies offers two ways to help prospective clients be absolutely certain that this strategic approach to worker development is right for them. First, Proactive Technologies is offering a free, no obligation, up-to-three-hours session offsite by videoconference, or onsite (by appointment), to develop a Job Hierarchy (detailed task listing) of the prospective client’s targeted job classification. This involves the prospective client’s designated incumbent “subject matter expert” and will illustrate for the prospective management the direction and detail of this approach’s methodology. It will, also, reveal whether the subject matter expert’s coworkers have mastered all of the tasks required of the job for which they were hired. Read More
Grow Your Own Multi-Craft Maintenance Technicians – Using a “Systems Approach” to Training
by Dr. Dave Just, former Dean of Corporate and Continuing Education at Community Colleges in MA, OH, PA, SC. Currently President of K&D Consulting
Since partnering with Proactive Technologies, Inc. in 1994, together we have advocated the use of a “systems approach” to training that includes a combination of related technical instruction and structured on-the-job training to develop multi-craft maintenance technicians. This approach works equally as well with other job classifications within a organization. This is a viable option to paying tens of thousands of dollars per year to employment recruiters to locate these technicians on a nationwide basis…who still need to be trained once hired. Plus, once the investment is made to setup the infrastructure, you can train as many workers as you need – with a declining cost per trainee.
click here to expandThe systems approach to training, if built correctly for your company, forms the infrastructure of a highly effective, low cost apprenticeship (registered or not) model. This model can quickly and cost-effectively produce the multi-craft maintenance technicians you need, who will be qualified to perform the tasks required at your facility. Based on detailed job/task analysis data – collected by Proactive Technologies’ experts using your internal subject matter experts who have the final review – worker development materials are generated by Proactive Technologies’ PROTECH™ software system for immediate use. Most importantly, technical support to the project includes project implementation management, so you can focus on running your business.
This “systems approach to worker development” is effective. To establish the foundation: Read More
Replicating Your Best Performers
by Dean Prigelmeier, President of Proactive Technologies, Inc.
One project I was involved with sought to establish a structured on-the-job training program for a “CNC Operator” position and establish an apprenticeship. It consisted of around 40 different machines; manual and NC-operated of several brands, controller types and purposes. When I analyze a job – task by task – I first contact the resident “subject matter expert.” It is my experience that in lieu of accurate standard process documents that everyone can use when assigned a machine, each operator keeps their own setup and operation notes. They are usually reluctant to share them.
As analysts, we assume that if the subject matter expert is assigned to us, it is a reflection of management’s confidence in the operator’s consistently high level of performance. We also learn a lot about the sub-culture that has arisen at the organization, bordering on “work performance anarchy.” Despite the connotations, this is a useful revelation. This lack of vital information sharing that has been going on can be eliminated. The collective wealth of task-specific information can be screened, validated, standardized and revision-controlled to be shared with all who are asked to perform the tasks.
click here to expandThis highlights several other preexisting issues in addition to the obvious. First, if the company is ISO/AS/TS certified, an auditor would be appalled and likely “gig” the company for the use of uncontrolled “process documents.” Notes in toolboxes and lunchboxes are not revision controlled. If the company has even questionable process documents that they claim drive their “high level of quality performance” the existence of operator notes are a strong contradiction. A client visiting the site may have serious doubts about the practices, as well. Read More
Read the full January, 2019 Proactive Technologies Report newsletter, including linked industry articles and online presentation schedules.
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