Vocational education and training and employer engagement: an industry‐led sectoral system in the Netherlands

The overall objective of this paper is to determine, through a qualitative case study of the Dutch sectoral training system, factors associated with successful employer engagement. As well as examining the key features of the Dutch approach to vocational education and training (VET), the article makes a number of specific arguments: (1) employer ‘buy‐in’ is crucial to the success of the sectoral approach to VET; (2) simply establishing a system of sector‐based training bodies (e.g. skills councils) does not guarantee effective employer engagement; and (3) to make sectoral training work, especially in countries where a ‘supply‐led’ system dominates, a fundamental reform is required in areas such as funding, qualification structure, leadership and system support.     

Employer training in Australia: current practices and concerns

This paper presents and analyses results from a research project on current trends in employer training in Australia. While the formal vocational education and training (VET) system is well‐researched, the everyday training that happens in workplaces is relatively under‐researched in Australia. Using some of the results of an employer survey undertaken in 2015, the paper describes and analyses employer‐based training across a range of industry areas. The survey included groups of questions on a range of matters, including the reasons why employers train, and how these relate to employers’ perceptions of their operating environment, and the structures they have in place to manage and organize training. Detailed data are provided about three specific forms of training: in‐house training and learning; the use that employers make of external providers of training; and employers’ use of nationally recognised training – training from the VET system. Finally the paper reports what managers said about the barriers to providing more training. The paper analyses the findings in relation to the literature and also identified changes over time in training practices in Australian companies. Implications for training policy and practice, as well as for future research, are identified.     

Legislative protection from discrimination in access to employer‐provided training

This article provides an analysis of laws across all 193 United Nations countries that protect workers from discrimination in access to employer‐provided training. We assessed the overall level of protection and the characteristics most commonly protected, as well as the extent of variation across geographic regions and country income. Overall, 60% of countries were found to offer specific protections from discrimination in access to training for at least one of the seven protected characteristics, which was significantly less than the percentage of countries offering protections from discriminatory hiring or terminations. Gender was the most commonly protected characteristic, whereas sexual orientation was least commonly protected. These findings suggest that employer‐provided training is less well‐protected from discrimination when compared with other aspects of employment and that there is variation in protection across socio‐demographic characteristics and geographic regions. Additional legislation may be needed to ensure equitable access to training for all workers.     

Do collective bargaining institutions crowd out discussion and implementation of firm‐related training programs? Evidence from Japan

The paper empirically examines labor‐management communication concerning in‐house training programs and its relation to the actual on‐ and off‐the‐job training policy and wage structure. Using governmental datasets from Japan, we study how different labor‐management communication institutions may affect the training interests of employers and employees differently. We classify these institutions in terms of whether they have a legal (i.e. statutory) foundation (‘de jure’) or not (‘de facto’). We find that collective bargaining, with legal grounds, may crowd out employees’ willingness to communicate about training. However, the existence of ‘de facto’ communication channels such as joint labor‐management councils or shop floor committees is positively correlated with both on‐ and off‐the‐job of training. At the same time, the existence of unions is positively correlated with the steepness of wage profiles for mid‐career workers, which is consistent with the fact that employers and employees assume a long‐term relationship. Thus, we show that a multi‐tiered structure of labor‐management communication, together with a long‐term orientation toward the employment relationship, contributes to strengthen employees’ voice in training matters.     

Participation in industrial training programs

Two questions suggested by the recent literature on the matching of workers and firms are examined. The first relates to differences in the proportion of workers that participate in industrial training programs in large and small firms. The second relates to the characteristics of workers who participate in such programs. The major finding of this study is that workers in large firms are more likely to participate in industrial training programs than similar workers in small firms; the large-small firm training program participation rate differential is less, however, among low productivity workers than among high productivity workers. Additionaly, workers with vocational training received outside of a work setting are just as likely to find employment in small firms as in large ones.This research was supported by the Office of Advocacy, U.S. Small Business Administration under SBA award number 8487-AER-84. The findings and conclusions are the sole responsibility of the author.     

Drivers of training participation in low skilled jobs: the role of ‘voice’, technology,innovation and labor shortages in German companies

This article investigates the role of ‘voice’, technology, innovation (of products, services, or processes) and labor shortages in the training participation of low skilled workers in German companies. By building on the key findings of previous research, hypotheses on drivers of training participation are derived from filter theory and the concept of social embeddedness. Regression and cluster analysis based on the German IAB Establishment Panel (wave 2011) show evidence that training participation is shaped by ‘voice’‐related institutional company characteristics such as employee representation or formalized HR practices. Both characteristics often cluster together. Regression analyses confirm that companies in this cluster train a higher share of their low‐skilled workforce. The share is particularly high when companies in this cluster face labor shortages. Apart from that, advanced technology and recent innovations at the company level are not related to higher rates of training participation among low skilled workers.     

Electronic human resource management: organizational responses to role conflicts created by e‐learning

Could enthusiasm for e‐learning be dampened because it is detrimental to the relationships between those undergoing e‐training and their direct managers or colleagues? Interviews conducted in four French banks provide material to explore this question. We see that e‐learning has increasingly been adopted because it goes beyond the role limitations imposed by traditional training formats. Initially, however, the uptake of e‐learning was hampered because it imposed a role on trainees which did not correspond to their socialization needs. The companies in question responded to this problem by proposing ‘blended learning’ (that is, alternate sessions of e‐learning and in class face‐to‐face sessions). Nevertheless, the development of e‐learning remains limited today partly because of the role conflict it creates in the workplace: should an employee engaged in e‐learning in his office workstation be considered ‘at work’ or ‘in training’? This role conflict is detrimental to the relationships between the e‐learners, their colleagues and the direct manager. Solutions offered by companies may address this particular problem, but all of these reduce the efficiency of e‐learning sessions, and thus contribute to limiting its future development.     

Human capital investments in asymmetric corporate tournaments

We consider a tournament between two workers of different abilities who choose both human capital investment and effort. The employer can influence the workers’ behavior by determining the sequence of human capital investments, i.e. the training design. The workers can either invest simultaneously or sequentially with the favorite being the first mover or sequentially with the underdog as first mover. The results show that the outcome of the tournament crucially depends on the employer’s choice of training design and on the ability difference between the workers. If the two workers clearly differ in their abilities the employer will prefer simultaneous human capital accumulation. However, if the abilities of the two workers are rather similar the employer optimally chooses sequential human capital accumulation with the underdog being the first mover.     

Supporting worklife learning at work to sustain employability

The concept of employability extends beyond initial occupational preparation into the ability to remain employable as, inevitably, occupational capacities and workplace requirements change frequently across working lives. Hence, the need to continually learn to remain occupationally current and respond to changing workplace requirements becomes paramount. The evidence suggests that much of that learning arises through individual efforts and the support of co-workers through work activities. So, there is a need to understand how that learning can be supported to sustain employability across lengthening working lives. Drawing on an Australian study, reported here are perspectives from managers and workers in diverse workplaces about current modes of continuing education and training and about how workers are assisted with their learning to meet personal needs and qthose of employers. Employers want an occupationally current workforce that can meet specific workplace needs; workers want the capacities to remain employable, which may extend to advancing their careers elsewhere. The data indicate differences in perceptions about what is being provided, how frequently the provisions are used, and the worth of its certification. Whilst the findings indicate shared concerns about the importance of learning, there were clear differences in views about the models and processes used to support that learning. Across both sets of informants can be seen distinctions between ‘training solutions’ and ‘learning solutions’. A more nuanced analysis suggests that the training solution is appropriate and effective at some point in workers' worklife trajectories but in other circumstances, learning through practice is proposed as being more efficacious.     

The effect of the ‘evoking freedom’ technique on sales in a computer-mediated field setting

The ‘evoking freedom’ technique is a verbal compliance procedure which solicits someone to comply with a request by simply telling a person that he/she is free to accept or to refuse the request. However, the effect of this technique has never been tested in a selling context. Previous customers (N = 900) of an extreme sports store were solicited by email to participate in a campaign where they were offered a gift voucher if they persuaded someone to become a new customer of the store. According to the case, the email contained a sentence that stated that they were free to participate or not in the operation. It was found that the ‘evoking freedom’ condition was associated with a higher number of new customers (+8.4%) than the control condition (+4.7%).     

Restaurant employees and food safety compliance: motivation comes from within

The purpose of this study was to investigate the impact of restaurant employee internal belief systems on their motivation to comply with food safety guidelines in restaurants. Food safety training programs and those offered by third-party vendors are commonplace in the industry, yet despite the expectations of employees to engage in safe food handling, not all are motivated to do so. To date, research has yet to be conducted on the impact of employees’ individual belief systems and their motivations to comply with safe food-handling practices expected by both their employer and local health agencies. This study posits that individuals either possess an internal values system committed to food safety compliance or they do not; and, that individually oriented beliefs and norms have a significant influence on organizational efforts to implement an effective food safety culture. Practical and academic implications are discussed in detail.     

Customer loyalty to food retailers in Northern Ireland: ‘devoted loyals’ or ‘promiscuous switchers’?

Store loyalty is a major challenge for food retailers, and the food retail market in Northern Ireland has been subject to considerable change in the past decade. Although shoppers will often patronize many stores, they typically have a primary affiliation to a ‘main’ food store that captures the majority of their food purchases. This study uses a unique approach to segmenting customers into groups based on loyalty in terms of both the type of data used to generate a loyalty score and the data collection techniques used. Innovative projective techniques have been used alongside traditional questioning techniques to reveal ‘behavioural’ and ‘emotional’ loyalty indicators, and in doing so create a holistic measure of customer loyalty to a main food store, allowing customers to be segmented into groups based on loyalty. A paper‐based questionnaire was administered to 152 food shoppers from throughout Northern Ireland. Responses to traditional questioning formats and projective techniques (cartoon friends and mini case studies) were analysed and used to generate a loyalty score for each respondent. The first group of customers nearly always visit the same store, are willing to recommend the store to others and are less likely to switch to a competitor, even when offered an incentive to do so. They also rate the ‘hard’ attributes of this store highly. As a result of these characteristics, customers in this segment were termed ‘devoted loyals’. The second group of customers may occasionally use a different supermarket for food shopping, some would consider switching to a competitor if offered an incentive, and they rate ‘hard’ store attributes at a slightly lower level than the ‘devoted loyals’. Based on their group profile, these customers were assigned the title of ‘susceptibles’. The third group of customers are less willing to actively encourage friends and family to shop at a specific store. Many in this group did not consider their current store as their number one choice in the next few years. An incentive to switch to a competitor store is more likely to trigger a transfer of loyalty by this group. These customers were termed ‘promiscuous switchers’.     

Liberty,equality and consumerism in state education: exploring liberal angst under New Labour

This paper aims to explore aspects of consumerism in state secondary education in England, the dilemmas posed by the educational market‐place for a category we describe as the ‘resourced liberal egalitarians’ and the resolution of these dilemmas offered by the actions of prominent Labour Party parents‐as‐consumers. Having outlined the individual and societal significance of education, the ideological and ‘economic’ dimensions of educational consumption are explored in order to locate the category ‘resourced liberal egalitarians’. This group's dilemmas are then explained in the context of the strengthening of the market principle and the polarizing of the market‐place within education. These together increase the stakes of protecting their own children's interests while simultaneously exacerbating the inegalitarian character of the education system, a situation which they find distasteful. The final section looks at how the actions of prominent Labour Party figures address this angst through their own actions as parent‐consumers of state education.     

Determinants of Success of Employer Branding in a Start‐up Firm in Nigeria

This article aims at providing an understanding of factors that determine the success and failure of employer branding. An African steel‐producing start‐up company developed an employer brand image, which enabled it to effectively attract and hire talent from the labor market and inspired high engagement and productivity. A few years later, the firm lost its attractive brand image and its employer brand loyalty also declined. The study is a longitudinal investigation, and data were collected from policies and through structured interviews with the employees, ex‐employees of the organization, and prospective employees. Findings show amazing success of the employer brand in the first six years in talent attraction, hiring, engagement, and retention. Thereafter, the brand lost its potency, and its dysfunctionality significantly impacted on the future of the firm—employee dissatisfaction, decline in productivity, and increase in turnover. The reasons include a toxic organizational environment, overbranding, failure to keep promises, disconnect between employer branding and human resource strategy, shift of emphasis by senior management from people to production, and lack of a dynamic and differentiated employee value proposition. The study offers practical lessons to managers. © 2017 Wiley Periodicals, Inc.     

Training Agreements: Resolving Under-Investment in Training?

Here the authors examine UK employers’ use of training agreements and their impact on training and development practice. In particular, they review the literature on training agreements and find this to be underdeveloped and based upon little empirical data. Drawing on postal survey and focus group evidence from management trainees and an interview survey of employers, they show that training agreements are relatively widespread, and that employers mainly use agreements as a filter mechanism to assess an employee’s commitment to the training requested. The evidence suggests that training agreements do little to improve, and may negatively effect, a trainee’s commitment to the employer.     

Mind the gap: line managers as effective or non‐effective talent spotters

Due to the centrality of line managers’ role in the talent identification process, this qualitative study aims to determine what effective and non‐effective talent spotters do differently from one another in relation with an ‘ideal’ talent identification model offered by the literature. A double‐blind design was applied to the sample designated by the Corporate Talent Management Director of a Latin American multinational firm. 20 senior and middle managers, some effective and some others non‐effective, who work in different countries, participated in the study. Findings show that effective talent spotters perform three key stages of the talent identification model and they do it extremely well: differentiation of potential from performance, matching process and design of developmental challenges. The clear differentiation of potential from performance constitutes the crucial stage since a fuzzy differentiation taints the following stages. Not only is it necessary to perform these key stages but they should be executed in line with the principles of the talent management literature. Recommendations for practice, including specific guidelines for Talent Managers are proposed.     

Factors affecting Modern Apprenticeship completion in Scotland

Completing an apprenticeship has been shown to be critical to an individual’s future employment, earnings and career development when compared with apprentices who do not complete. International research, notably in England, Australia and Germany, has identified factors specific to the apprentice, employer and training provision that are associated with a higher chance of completion. However, to date, there has been no comparable research in Scotland, which operates its own distinct and well‐established apprenticeship system. Based on the factors identified in other countries, logistic regression was conducted on records of apprenticeship leavers in Scotland, covering the period from 2007 to 2015. Data for a total of 78,952 leavers were analysed, consisting of 59,737 completers and 19,215 non‐completers. It was found that women are more likely to complete an apprenticeship than men, while those from deprived areas are less likely to complete. Apprentices employed by a large employer, those receiving training from public sector organizations and those studying for selected technical subjects are more likely to complete, as are apprentices living in an area with a high local unemployment rate. The paper considers the reasons why some apprentices are more likely to complete than others and discusses the implications for apprenticeship policy in Scotland and beyond.     

Trade‐related Job Loss,Wage Insurance and Externalities: An Ex Ante Efficiency Rationale for Wage Insurance

The extension of adjustment assistance to those who have suffered trade‐related job displacement is widely supported on both sides of the economics of globalisation debate. The form that such assistance should take, namely wage insurance, is also the subject of wide agreement. Nevertheless, the formal economic rationales offered for such a policy are varied, including political economy arguments, equity arguments and market failure/ex post efficiency arguments. This note proposes an ex ante efficiency‐based rationale for the provision of adjustment assistance in the specific form of wage insurance. Job displacement imposes pecuniary externalities on displaced workers, which, in a complete markets setting, induce only shifts along the ex ante Pareto‐efficient frontier. However, when markets are incomplete, pecuniary externalities become welfare‐relevant. Without the possibility of diversifying or hedging the risk of pecuniary external diseconomies of job displacement using contingent claims, welfare is reduced ex ante. Wage insurance – whether publicly underwritten, privately underwritten (as in Shiller's (2003 ) ‘livelihood insurance’), or supplied on a mixed public/private basis – completes the market for contingent claims, allowing workers to diversify or hedge the risk of trade‐related pecuniary external diseconomies. By facilitating risk sharing, wage insurance removes an impediment to ex ante Pareto efficiency. Moreover, wage insurance affects not only post‐displacement behaviour by increasing the incentive to reacquire employment quickly, but it also affects pre‐displacement consumption and investment behaviour, in particular, lowering the threshold at which workers will be willing to undertake irreversible investment in industry‐specific skills.     

Global Volatility and Forex Returns in East Asia*

During 2001–2010, increases in mature market volatility were associated with declines in forex returns for East Asian economies, consistent with an overall ‘flight to safety’ effect. Estimates from GARCH models suggest that a 10 percentage point increase in mature market equity volatility generated an exchange rate depreciation of up to 3/4 percent. This sensitivity rose during a more tranquil subsample for some countries, reflecting their greater integration with global financial markets. Long‐run forex volatility increased in Asian economies after 2008, reflecting the global reach of the financial crisis in mature markets. Unconditional standard deviations estimated from these models provide operational measures of ‘long‐term’ and ‘excess’ volatility in forex markets.     

An investigation into apprenticeship completion and retention in Northern Ireland: a social exchange perspective

This paper investigates effective strategies for enhancing completion rates of apprentices and their retention after completing their training. The study was cross sectional and qualitative, involving semi‐structured interviews with managers and four focus groups involving current and completed apprentices from within the engineering sector. The findings revealed that the factors that can enhance intentions of completing an apprenticeship were perceived organisation support (POS) factors such as apprentice pay, recognition and employer support. Leader Member Exchange (LMX) factors such as support from trainers and supervisors, would increase their intentions to complete an apprenticeship and stay on with an organisation after training. The key Percieved Organisational Support factors that would enhance intentions to stay with the organisation after completion were post apprenticeship pay, career progression and challenging and interesting work. Participants with high Perceived Organisational Support and Leader‐Member Exchange, had higher intentions of completing an apprenticeship and staying with the employer after completion and vice versa. This research added to the literature on apprenticeships as it analysed the factors influencing current and completed apprentices’ intentions to discontinue or complete an apprenticeship and stay with or leave their employer after completion through the lens of social exchange theory (SET) (Blau, 1964). This is unlike previous studies that emphasised motivation theory. Social Exchange Theory was supported as both employers and apprentices weighed the costs and benefits of their relationship which impacted on their completion and retention choices. The implication of this study is that employers should develop effective strategies for enhancing completion and retention rates to reap the full benefits from apprenticeships.