Training and development : an analysis of the policies and trends aimed at enhancing competitiveness in the manufacturing sector with reference to initiatives in the EU and Malta

Abstract

This document explores the importance of employee training and development in improving the competitiveness of companies and in turn countries. As traditional forms of competitiveness like cost and technology become table stakes, the focus shifts towards a unique resource that has been much neglected in the past - people. The different elements that are attributed to competitiveness are detailed whilst the specific competitive challenges faced by the European Union and Malta are explored. An overview of the various advantages and disadvantages of the manufacturing sector in both Malta and the EU are also discussed. This is followed by a gradual build-up of the wide-ranging components that make employee training and development a crucial element for both company and country competitiveness. This is explored with an emphasis on the role of the manufacturing sector which despite its dwindling direct contribution to employment and growth, gives a crucial indirect contribution to the services sector. Furthermore studies have shown that the manufacturing sector tends to invest proportionally more in employee training and development than the services sector. The reader is then guided through important concepts in individual development like knowledge transfer, human capital, lifelong learning and learning organisations. With a solid foundation in place the various work-linked structures in the different Member States are discussed. This is followed by an overview of the most worthy EU initiatives directed towards the development and training of individuals. The current state of play in Malta is then explored. With this background a number of recommendations that could be implemented on a national scale are proposed. These focus on the development of a partnership approach to training within an industry-led strategy, portable and relevant qualifications, the strengthening of links between education/training and business and diversity of educational pathways. Questions of funding are also addressed.