Employer reluctance on training the crux of HRD Corp problem

 

From Walter Sandosam

Following the recent HRD Corp (Human Resource Development Corporation) furore, with possibly corruption having reared its ugly head, one reads of some employers calling for levies to be stopped, at least temporarily, until matters are sorted out.

On the other extreme, given the excess of levies, there are calls that these should be refunded.

This reflects myopic thinking by employers putting self-interest at the forefront. Ask any HR specialist – the view among the fraternity is that training, especially focussed and contemporary, goes a long way in building 

human equity

, allowing resources to be 

on-tap

 as a company deals with new challenges.

It is to be noted that the levy is at most 1% of the employees’ salary.

The Federation of Malaysian Manufacturers president recently said halting contributions would be a 

drastic measure with significant implications

 in the perspective of Malaysia retaining its competitiveness and economic growth.

This reflects rational thinking as medium and small-sized enterprises are in their orbit. Those in other industries where there may be duplicative 

levies

, should work it out intra-industry.

So, where are we now? Is HRD Corp to be faulted for investing excess funds or are employers culpable for not drawing down on the levies they have remitted to HRD Corp?

There is much commentary on 

put

 options and 

call

 options which sadly detract from the root cause of the issue as to why HRD Corp indulged in investments. (What would the comment be, if funds were left idle – lack of business acumen?)

Are employers completely off the hook here? As employers, their ineptness and lassitude in not tapping into the funds to upskill workers has affected the industry, workers and nation.

As a past certified HRDF trainer, I fully appreciate the lament of many training providers when interest in training programmes is unenthusiastic and places go abegging. This is a monumental wastage with trainers equipped and ready to go and employers sitting back apathetic.

The key focus for the Public Accounts Committee (PAC) should be to drill down to the root cause of why HRD Corp 

indulged in investments

 when the core functionality is to use its levies for training.

This is the crux: not 

risky

 investments or 

confessions

 by disgruntled ex-employees. While conceding that there are issues of operational mismanagement, with a possible hint of corruption that needs urgent remediation, let’s not lose perspective on the big picture.

If there is corruption, bring the culprits to book speedily – not the entity.

What becomes important is the question of who has not kept to their side of the bargain. In HRD Corp’s case, it is obviously the employers.

The double-edged sword of training is that employers opine that employees may leave after being trained. Others, who are working on a lean force do not have the capacity to release staff for training.

Thinking is for the short run, be it for shop floor supervisors or CEOs who have financial targets to meet. Training is for the future and not all can count on the long run.

This is the root cause for the hesitancy about training. Until this is addressed, HRD Corp will perpetually have excess funds. The workforce and the country are the ultimate losers.

As a start, the PAC should perhaps direct all GLCs to ensure that sufficient training days are earmarked and staff are sent to HRDF certified courses. Progressively, the issue of excess funds will be no more. - FMT

Walter Sandosam served as a senior research fellow at a private university, specialising in economics and accounting.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.