Importance of Skilled Workforce in Contemporary People Management

CONTEMPORARY PEOPLE MANAGEMENT 0
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CONTEMPORARY PEOPLE MANAGEMENT 1
Contemporary People Management
Learning and Development is one of the key areas of contemporary people management. It
relates to providing the required learning and development opportunities by enhancing the skills,
knowledge and expertise of the employees in order to improve their performance which helps
them in achieving their goals and objectives (Green & Hopwood, 2016). It is also known as
training and development. There are various training and development programs run by the
organizations which deliver the effective workforce for the organization. There is a huge
importance of skilled workforce in the organization as well trained employees enables an
organization to get high level of performance. This is an important part of human resource
management where company makes investment in the training and development of employees
(Torraco, 2016). Weather the training and development is cost or investment for the company
and the importance of skilled workforce in contemporary people management is discussed in the
following paths.
Due to emergence of new technologies and new ways to doing business has led to the growing
need of learning and development. When employees are creatively and innovatively trained then
they are more likely to give better results in future. Further, training of employees is an
investment rather than cost to an organization. It is not wrong to say that the organizations have
to spend a reasonable cost for training and development but the same cost is investment in the
long run (Hassan, 2016). The training and the learning that the employees get from different
programs helps them to be confident and loyal towards the managers and overall organization.
The cost incurred in training of the employees proves to be investment and gives a higher rate of
return in future when the skilled workforce gives positive outcomes for the organization. If the
learning through training and development add to improvement in performance then it is not a
cost for the organization, it is an investment made for gaining profits (Kadiresan et al., 2015).
In many cases, organizations avoid reskilling their employees as they find skill enhancement
programs expensive. But it is considered as long term future investment where the activities of
employees help in achieving the goals of the organization. When an organization adopts training
and development programs then they are more likely to give better results as they feel motivated
and engaged through these programs (Larsen, 2017). If an organization invests in the training

CONTEMPORARY PEOPLE MANAGEMENT 2
and development of the employees it gives many benefits to the organization. If the employees
are not trained and do not have enough knowledge to perform a task then it can harm the
organization. As a result the organization has to bear the losses which can increase their
expenses. Rather than bearing those losses, the organization can invest in their training and
development so that it can keep the employees engaged and also reduces the labor turnover
which can be a major issue for the organization. If the organizations are focused towards making
their employees motivated and keeping them up to date with the technologies and the new
procedures then it will help in retaining customers and will ultimately improve the customer
experience. These activities can improve the productivity and will bring long-term benefit for the
organization. The organizations should focus on the perspective of long term gain rather than
looking at the cost of training (Manresa et al., 2018).
Employees are regarded as assets for the organizations and therefore investing on the
enhancement of the skills and talent of the employees is not an expense. When the employees are
treated in a better they pursue themselves part of the organization and they work with dedication
by utilizing their full potential into the organization. The organization tends to see a double
growth in sales when employees are trained as compared to the organizations that did not
provide training to the employees. Thus, the training and development is an investment made by
the organizations which provides opportunity for the employees to enhance their career and also
helps an organization to improve the financial performance (Vetrakova & Benova, 2017).
Skilled workforces are an important component of an organization as the success and failure of
the organization depends upon how skilled and quality labor that an organization is having.
There is growing importance of skilled workforce in contemporary people management. Skilled
employees can benefit the organizations in many ways. It is the necessity of an organization that
they improve the skills of their employees in order to remain competitive. Well trained and
skilled employees are more productive and loyal to the organization. Hence, it can be said that
these employees are more loyal than the talent acquired from outside which involves cost and is
time-consuming process as well. Skilled employees are able to bring innovation and creativity in
the task (Ortiz, 2017). As a result when employees are skilled and trained, they are more likely
to come up with new and creative ideas for the solving of the problem as they have experience
and have confidence of the knowledge they have got from the training.