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.
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
Skills development for SMEs and Informality
1. Skills development for
SMEs and Informality
Anil Verma, Ph.D.
Professor & Director
Centre for Industrial Relations & Human Resources
and
Rotman School of Management
University of Toronto
September 2014
2. Traditional Approaches to Skill
Development in SMEs
Hire opportunistically
Employee referral
Family member
Help wanted sign in the window
Help wanted sign in the local media
Hire for minimum qualifications
Train on the job
Learn by doing – work experience
3. 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
5. Industry Shared Approaches
Classroom
-Education
- Training
Internships
Job shadowing
Co-op Learning
Joint Projects
Essential
Job Skills
6. Matching Education to Skills
• Bring industry closer to education
• Industry-college linkages
• Mentorship
• Internships
• Special training
• Job shadowing
12. 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
13. 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