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IALS

89F0096XIE

Highlights from employee training: An international perspective

Developing skills is a lifelong process. People enter the labour force with a "stock" of knowledge acquired through their formal education; then over their working lives, they maintain and upgrade their initial stock with a "flow" of training, reinforced by practical experience. In the same way that continuous investment is needed to replace depreciated plant and equipment and meet new production requirements, continuous investment in training is needed to maintain and upgrade human capital.

Using the 1994 International Adult Literacy Survey (IALS), this report provides new insights into training issues in seven countries: Canada, the United States, Switzerland, the Netherlands, Poland, Germany and Sweden. The study examines full-time paid workers between the ages of 25 and 60, who had been employed for at least 42 weeks in the 12 months preceding the survey (about nine months in the previous year).

Caution is needed in interpreting the results because training practices or institutional arrangements can differ between countries. Comparisons between Canada and the United States are more accurate because the two countries have relatively similar arrangements for institutional training, but comparisons of Canada to other countries should be treated as broad indicators.

Measuring training

Two common measures of the level of training in a country’s work force are the incidence rate (percentage of workers receiving training) and the average hours of training per trainee. But these statistics may not be the most accurate measures of training being undertaken by the country, and in this study, emphasis is placed on average training hours per employee because it measures both the extent (incidence) and intensity (hours) of training. For example, if the incidence rate were 25% and the average hours of training per trainee were 400, the average hours of training per employee would be 100.

Main findings

How much training?

In 1994, the number of hours of training received by Canadian employees averaged 44 hours. As such, Canada’s position is very close to that of most other countries participating in the IALS project. The average hours of training reported per employee in Switzerland (50), the United States (45) and Germany (42) were very similar to Canada’s. Nevertheless, Canada’s training effort was considerably less than that of the Netherlands (74 hours per employee).

Who pays?

In all the countries participating in the survey, the two most common sources of financial support for training courses were employers and employees themselves. (N.B. there are no data on financial support for Sweden and Germany.)

Employer-supported training was most common in Canada, accounting for 27 of 44 hours of training per employee (61%), while own-support paid for 18 hours of training (41%). The financial picture was similar in the United States, although American workers tended to receive somewhat more training from their employers (29 of 45 hours, or 69%) and paid for less training themselves (13 hours, or 29%). In Europe, Dutch employers provided financial support for 70% of their workers’ training (52 of 74 hours of training).

Who gets training?

An important policy issue is whether employees have equal access to training regardless of age, gender, industry, occupation or other characteristics. The findings here provide an initial impression, but future research should account for differences in training needs.

In all six countries (information is not available for Sweden), workers aged 45 and over received the least amount of training. In Canada, average hours of training per employee was 29 hours for workers aged 45–60, while workers aged 25–34 (55 hours) and 35–44 (49 hours) got almost twice as much training time. The fact that Canadian workers aged 35–44 reported almost as many training hours as younger workers is uncommon. Other IALS countries were much more like the United States, where the training intensity for workers aged 25–34 (average 72 hours per employee) was much greater than that for workers aged 35 and over.

Women received less training than men, except in the Netherlands and Poland. In Canada, training for women averaged 10 hours less per employee – 38 hours versus 48 hours per male employee. The gender gap was even wider in the United States, where women received about 14 hours less training (37 hours versus 51 hours for men). In the Netherlands, however, it was men whose training lagged behind, at 67 hours per male employee compared with 100 hours per female.

In all the IALS countries, a strong positive relationship exists between a worker’s level of education and literacy, on the one hand, and the intensity of training, on the other. In Canada, training averaged 63 hours of training for employees with high educational attainment, double the training hours reported by workers with lower levels of schooling (29 hours). Training averages were almost identical in the United States, at 64 and 29 hours.

More training was also received by workers with higher levels of literacy (Levels 35). The relationship between literacy and training is complex, but can be described as a "virtuous" cycle of education-literacy-work, in which education and literacy lead to better employment opportunities in higher-wage jobs with more access to training. In Canada, workers with high levels of document literacy received an average 50 hours of training, compared with 32 hours for workers with low levels (Levels 12). The size of the gap was about the same in the United States, where workers received an average of 53 and 34 training hours, depending on their literacy skills. In Europe, however, employees with high document literacy reported almost twice as many training hours; for example, Dutch workers with high literacy skills received an average 87 hours of training, compared with 44 hours for their colleagues with lower-level skills.

Which jobs offer the most training?

In all the reporting IALS countries except Germany, professionals and managers received more hours of training per employee than workers in the other major occupational groups. In Canada, they received only a few hours more than workers in clerical, service and sales occupations – 49 hours versus 44 hour per employee, respectively – but they received 40% more training hours than craftsmen, operators and assemblers (35 hours per employee). At the same time, however, Canada reported the lowest number of training hours for employees in white-collar occupations. In the United States and Europe, managers and professionals averaged a minimum of 60 training hours (excludes Germany, since high sampling variability is associated with this estimate.)

Goods-producing industries had the lowest incidence of training in all the IALS countries except Germany (caution is advised since the German estimate is subject to wide sampling variability). In Canada, employees in goods-producing industries averaged 38 hours of training, compared with 47 hours in the highest-training industries in the community and personal services sector. The gap between these two sectors was almost 20 hours in the United States – 35 hours in goods-producing and 56 hours in community and personal services.

On the whole, workers in small firms (fewer than 100 employees) did not receive as much training as those in large firms (100 or more employees). In Canada, however, the gap was quite small, at 42 hours per employee compared with 46 hours in larger firms; at 15 hours, the United States had the largest gap of the IALS countries (35 hours versus 50 training hours per employee).

Although small firms do less training, small Canadian firms have a better training record (average 42 hours per employee) than those in any other IALS country except Switzerland (46 hours per employee).

Why do workers take training?

Most full-time employees who took training did so for career or job-related reasons. In Canada and the United States, 90% and 94% of trainees, respectively, took at least one course to improve their job skills; these proportions are slightly higher than in Europe, where job-related training accounted for 71% (Switzerland) to 88% (Germany) of training. For the most part, these newly-learned skills were put to work: in Canada, the United States and the Netherlands, at least 90% of employees who received employer-supported training subsequently used their training on the job.

Who asks for training?

An important finding is the fact that employees commonly suggest to their employers that they take training. In Canada, 29% of employer-supported courses were taken by employees who had asked themselves for the training; another 15% of courses were taken by workers who had jointly suggested with their employer that they take the training.

It is also important to note that, for the most part, the characteristics associated with a higher intensity of training – younger age group, managerial and professional occupations, high level of education and so on – are also associated with a desire for job-related or career training. These results suggest that employees have more influence on employer-supported training decisions than is generally believed, and that promoting employer-supported training is the joint responsibility of employer and employees.

Conclusion

Compared with other countries, Canada’s training effort is only average. However, the Canadian work force stands out for its high level of education, providing the essential prerequisite for promoting training and strengthening competitiveness. The fact that a high proportion of workers want more job-related training is evidence that Canadian employees understand the value of training.





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Date Modified: 2001-04-17 Important Notices