Skills development is the best form of unemployment insurance
28-APR-09
“Despite massive retrenchments worldwide as a result of the meltdown in financial markets, skills development remains the best form of unemployment insurance,” says Fasset CEO, Cheryl James.
James says while there will always be exceptions to the rule, employees with the greatest job security are skilled employees and those who have ensured that their skills have remained current.
Although South Africa is not facing a recession, the global meltdown has impacted on many South African companies and many companies in South Africa are “tightening their belts”.
"Training is always one of the first areas that is affected. Recognising that their employer may have a reduced capacity to fund training in the year ahead, employees employed by Seta member organisations should strongly motivate attending as many free lifelong learning interventions as possible.
"Employees should remind their employer that there is a strong correlation between skills levels and increased productivity," James explains.
A number of Setas, including Fasset (the Seta for Finance, Accounting, Management Consulting and Other Financial Services), offer free lifelong learning interventions.
"Offered by experts in the field, these training interventions are highly relevant and enable Fasset employees at all levels to remain abreast of legislative changes and developments pertinent to the sector," she says.
James says employees should bolster their CVs by recording their attendance of lifelong learning events.
"A CV is a living document. CVs should be updated on a regular basis to ensure that candidates are able to demonstrate the relevance and currency of their skills," she explains.
James believes educators should “sell the notion that skills development is unemployment insurance,” to the youth in South Africa, starting at school-level.
"We need to inculcate a notion that the greater the learning, the greater the prospect that the youth will be earning," James observes.
Statistics indicate that someone in the 15-24 year age group who has not completed their secondary education has a 75% chance of being unemployed, matriculants have a 66% chance of being unemployed, those with a tertiary qualification a 50% chance of being unemployed, and those who are degreed, a 17% chance of being unemployed.
"These statistics clearly reinforce the fact that the higher the skills level, the greater the prospects of employment," James informs.
James concedes, however, that there is a caveat: "Learners need to acquire skills for which there is a demand".
She says it is also critical to ensure that "one’s piece of paper stands up to the greatest scrutiny."
"What stands up in hard times is the credibility of your qualification. Fasset Learnerships Certificates have proved incredibly credible. Fasset’s decision nine years ago to continuously push the quality barrier, to ensure that the product that is coming out at the end can stand up to all scrutiny has paid off.
"Fasset Learnerships have proved an outstanding form of unemployment insurance: 100% of learners who have completed Fasset learnerships are employed, and over 70% of learners who have completed Fasset-funded Development Projects are employed,” James concludes.
