The Voice of Business, Industry & the Professions Since 1942
North Carolina's largest business group proudly serves as the state chamber of commerce

   

Management


Learn more:
New Web Service Connects Employers, Consultants
Where to Find Help on the Internet

Learning & Earning
You know you need workforce training, so let's talk
about where to get it and how much you should pay


Left: Debra Simmons (left) learns how to operate a frame grade 
from Connie Gibson during a training session at Glen Raven Mills


By Laura Williams-Tracy

From a company that invented the first pair of pantyhose and made the fabric for the first American flag on the moon, you might expect innovation in the area of workforce training.

Glen Raven, a century-old maker of high-performance fabrics based in Alamance County, has always held fast to the philosophy that investing in workers’ knowledge helps the company. For years its in-house training programs have offered adult education programs, a mini-MBA, supervisory coaching and technical training to its 1,800 domestic employees in Glen Raven, Burnsville, Norlina and Anderson, S.C.

When it came time to update and automate its processes from order entry to shipping with a major systems conversion, those years of having employees hit the books paid off.

“We have been able to successfully go through this process because we spent years upping the education level of our associates,” says Sue Rich, Glen Raven’s vice president of strategic planning. “It has always been the philosophy of Glen Raven to invest in the education level of its employees, and here’s it’s been a win-win situation.”  

Glen Raven turned to its capable in-house training team to bring employees along with the conversion. But for many small businesses, creating and maintaining a skilled workforce is an every day challenge.

Most small businesses don’t have the resources to justify a dedicated training department — and even more don’t even have the numbers to justify a human resources manager.

“Many times a small business owner got into business to be the best printer, for example,” says Laura Hampton, director of member services and marketing for The Employers Association in Charlotte. “Now they’ve got 10 employees and are suddenly faced with training issues. They may not even be large enough to have an HR person but they’ve got to make decisions about where to go, how much to spend, and how to make sure they are getting a return on their investment.” 

Despite a weakened economy, companies are spending more on employee training, according to a 2002 report released by the American Society for Training & Development. Nationally, training expenditures grew 10 percent between 2000 and 2001.

While many large national firms cut training budgets, small and medium sized firms continued to invest in employee training. The study showed that total training expenditures increased from $677 per employee in 1999 to $704 in 2000. Industry sectors spending the most on training as a percentage of their payroll were finance, insurance and real estate, transportation and public utilities and technology. 

So where do small businesses turn for help when their workforce needs help to perform at optimum levels?

Sources for training are as broad as the types of businesses seeking help and the variety of training they require. Options range from government agencies and membership organizations to private training consultants.


Call Your Community College

When it comes to industrial training, North Carolina’s community college system is the workhorse of training institutions.

Numerous times North Carolina has been named State of the Year for workforce development by the National Alliance for Business and ranked as one of the nation’s leading customized training programs by national site selection consultants.

Even in the current economic downturn, the community college system’s New and Expanding Industry Training (NEIT) program continues to enroll large and small employers. Smaller employers tend to be pulled into the training program when they are vendors to larger employers who are expanding. The small business’s ability to assist in the supply chain helps them remain qualified to supply the larger company.

“Not only do we serve the big guys needs but those they rely on for incoming products and services,” says Larry Keen, vice president of economic and workforce development for the North Carolina Community College System.

NEIT tends to focus on training of front line manufacturing workers, so government dollars can make the biggest impact on jobs. To qualify for free training through the NEIT program, a company needs only to add 12 new employees over the course of a year that require training.

The community college system also offers such quality initiatives as ISO 9000 to businesses large and small, ensuring that quality is consistent across the supply chain. “In many respect it gives smaller companies the opportunity to provide service to a wide variety of companies,” says Keen.

Companies that aren’t necessarily growing but which are changing processes can find training assistance for front-line workers through the community college’s Focused Industrial Training program. Training for the incumbent workforce helps those industries become more competitive, says Keen.

“Size does not matter. The community colleges work with all different types of industries regardless of size, product or number of employees,” says Maureen Little, Charlotte region customized training director for the community college system. “We’re there for workforce development.” 

Enrollment at the state’s 58 community colleges is at its highest levels ever as many workers have returned to the classroom to retool and find new skills. Such continuing education courses, whether they be short-term focused courses to earn a certification or simply to learn new skills or long-term academic courses leading to a degree, are offered at minimal tuition rates for companies or individual employees.

For many employers, especially those seeking front-line manufacturing workers, basic skills are among the most critical ones needed among their pool of workers.

Don Mott, vice president of Wilson Mott & Associates in Greenville, works through Pitt Community College to help companies boost the skills of their front-line workers, including time spent on basic reading and math skills, learning to read measurements and other proficiencies. “Once they know that, we can teach them almost anything,” says Mott.

Language often creates a barrier for employees at this level, and the community colleges offer English as a Second Language courses to give potential employees the skills they need to communicate on the job.

“The training they get through the community college is the best bargain these companies are going to find,” says Mott.  

“There’s a great deal of emphasis on training in the workplace,” says Keen. “And as long as there are new processes and procedures there will be training. It’s the only way companies can become more efficient and effective.”

Specifically to meet the needs of small businesses, there’s a Small Business Center located on the campus of each of the state’s 58 community colleges. In any given year the small business centers serve some 70,000 people through workshops and seminars to gain skills in such areas as customer service training, telephone skills, training for child care and adult day care workers, OSHA safety training, real estate and notary training, says Gayle Harvey, state director of the Small Business Center Network. Programs are often free or offered at a nominal cost.

“In most cases small business owners know their product or service but they are also learning how to keep money coming in to pay their employees,” says Harvey. “It can be extremely frustrating to not have a trained workforce and have those employees turn over often.”


You May Need a Pro

Small business owners also face the daily frustration of requiring training in areas outside their line of business just to keep operations running smoothly.

Raleigh-based Alphanumeric Systems Inc., an information technology consulting company with satellite offices in Charlotte, Greenville and Greensboro, provides training to businesses big and small in such areas a software application training as well as network engineering.

Small businesses owners often gravitate to the systems administrator courses when they need to reduce the cost of maintaining their network for business to function smoothly, says Matt Benik, education center manager for Alphanumeric.

Maintaining a network is just one of the many duties of small business owners, and often the job can become a burdensome task.

“Many small business owners try to do it on their own and eventually their network goes down,” says Benik. Calling on an outside network engineer on a regular bases becomes an expensive proposition.

“We give them all the effective skills they need to maintain their network and the goal is always to maximize their return on investment,” says Benik.

Emmie Alexander, a business consultant and trainer with AlexanderHancock Associates in Charlotte, says smaller businesses are often the first to see how improved efficiency and training can help their bottom line.

“Smaller institutions have often done the math and seen the value proposition,” she says. “The payoff is certainly there over time.”

And the right kind of training can help take a small, entrepreneurial business from the start-up mode to one with basic systems in place that allow personnel to focus on the company’s core business.


Business Groups Can Help

Balancing the cost and the likely return on the investment is a calculation all small business owners must make. And for many small businesses, cost is a barrier to getting the training workers need.

“Cost is probably the major concern for small businesses,” says Hampton of The Employers Association, a membership organization for business and industry that provides services to create productive relations between employers and employees. “Usually their budgets are tight and they can’t afford to take a person out of a position for a week to get training. But it’s a Catch 22 because if they don’t they aren’t developing that employee to contribute to the company.”

Many private training consultants can help hold costs down for employers for whom cost is a major barrier.

In some cases, AlexanderHancock has paired up clients with each sending a handful of employees to a training program, thereby sharing the cost of the event. Other companies chose to pay for individual coaching for an employee, such as leadership coaching for the CEO, who can then filter that information to the lieutenants.

“There is a trend afoot to find creative ways to educate employees without the traditional classroom approach,” says Jerry Hancock, a partner with AlexanderHancock Associates. Distance learning and online courses work well for skills training, he says, but a cheap alternative is yet to be found for training of interpersonal skills.

The Employers Association offers training in the areas of human resources, leadership training and computer training, and through established relationships with training service providers they can make referrals for additional training needs. Likewise, its sister associations in Raleigh, called Capital Associated Industries; in Greensboro, called Piedmont Associated Industries; and Asheville, called Western Carolina Industries, those referrals can be valued resources for finding quality training in the private sector at a reasonable price.

When considering hiring an outside company to offer training to employees, Hampton recommends that companies investigate the companies they are considering hiring.

Always check the trainer’s references, and don’t just call the names provided by the trainer but ask those companies if they know of anyone else who used the trainer, says Hampton. Getting a broad range of feedback will help an employer know if the trainer will tailor the course to employee needs. 

Hampton recommends that employers audit a training class to get a preview of the trainer’s teaching style. Don’t contract with a training company that won’t let you sit in on a class, she says.

And finally, research the educational and work background of the trainer. Those that have management experience tend to have a wider depth of expertise to draw on.


Check With Local Officials

Among the workforce skills needed most urgently in North Carolina are for frontline workers in the field of biotechnology.

An example of the rapid pace of expansion for this industry is Novo Nordisk, a Danish biopharmaceutical firm with an insulin-making plant in Clayton that grew its workforce by 75 percent this past year.

With growth like that, Johnston County Commissioners have offered up $3 million to build a workforce development center on land owned by and adjacent to Novo Nordisk’s operations to train future workers.

“We believe the best incentive we have to offer business is a prepared workforce that needs less training,” says Linwood Parker, owner of White Swan Barbecue and chairman of the Johnston County Economic Development Advisory Board, which led area business leaders, government and education officials in making the funding request.

The facility, which is being built in cooperation with Johnston County Community College and Johnston County Public Schools, is expected to open in spring of 2004 and begin offering apprenticeship programs to school age students and targeting training to workers.

Mike Desherbinin, director of Johnston County Economic Development, says building the training center on land donated by Novo Nordisk sends the message to biotech companies that the county wants those employers to remain in the rapidly growing county outside of Raleigh. Yet the center’s curriculum will be flexible enough to provide training in such areas as distribution, electronics, and to the service sector, including healthcare and retail.

“It behooves us to be in a position to provide the best available workforce,” says Desherbinin.

“New technology is really driving the need for retraining,” says Desherbinin. “Standard operating procedures 10 years ago no longer exist. It’s a constant lifelong process for the workforce to be adaptable as possible. Retraining never goes away.”




New Web Service Connects Employers, Consultants


Left: Clifton Dunn (left) trains Kenneth Williams on an order picker 
at Glen Raven, a textiles company near Burlington


Jeff Groves, a 15-year-veteran of the training industry, saw a gap between businesses that need training consultants and the consultants looking for work, and found a way to fill it.

The time was three years ago, and Groves, then president of the Charlotte Chapter of the American Society of Trainers and Developers, heard many of his colleagues bemoan the lack of a good avenue to market their skills. Likewise, area employers had few options for finding training consultants other than by word-of-mouth. Often they looked out of town for training help.

Upon returning home from a consulting stint in Brussels on Sept. 9, 2001, the terrorist events of a few days later solidified the idea in Groves’ head. If he could link area companies and training consultants, Groves believed both would benefit from the introduction. At the same time, the chilling effect on business travel could be mitigated if both consultants and companies could find work resources closer to home.

The result is TrainCharlotte.com, a web site launched last August offering a localized solution for companies seeking training consultants in a variety of fields from computer software and hospitality training to real estate courses and sales strategies.

This month, Groves will launch TrainRaleigh.com, a similar localized web site providing the link between trainers and companies in the Research Triangle Park.

There are plenty of national directories, Groves says, but the advantages of a local connection are many. With training budgets among the first to be slashed in an economic downturn, companies are eager to find the training they need without the added expense of travel.

“I know as a training consultant, my hotel, airfare and other expenses often equaled my consulting fee,” says Groves, president of Charlotte-based City Train Inc., a firm specializing in organizational development, leadership development and performance management.

Making the local connection between companies and consultants also helps keep training dollars spent at home in the local economy.

Not only do the web sites provide search capabilities for trainers with expertise in a wide variety of fields, the sites also include the ancillary services they may require for training, such as conference meeting space, audio-visual equipment rentals and caterers.

Trainers and other affiliated businesses pay a fee to be included on the site. Then companies looking to hire those services are able to access the databases for free. The sites merely introduce the two parties, says Groves. Then the task of determining whether the fit will work is up to the hiring company.

If a company can’t find what it’s looking for, it can submit a request for a proposal, and Groves will circulate the work proposal to qualified training providers to respond directly to the request.

“The economy is making small businesses realize they can’t just do training for training’s sake,” says Groves. “Training has to prove a return on their investment. Sharing this information helps companies do that.”   — Laura Williams-Tracy




Where to Find Help on the Internet

Looking for qualified help with employee training? There are a number of sources for assistance with everything from basic skills to customized manufacturing training, leadership training and computer training to sales and customer service training, 

In addition to your local chamber of commerce, here are some of the places where you can go for help:

Small Business Center at your local community college

American Society for Training & Development; local chapters in Research Triangle Park; Charlotte; Greenville; and Greensboro.

The Employers Association in Charlotte.

Capital Associated Industries in Raleigh.

Piedmont Associated Industries in Greensboro.

Western Carolina Industries in Asheville.

TrainCharlotte, which provides a database for identifying local resources in training.

Society for Human Resource Management, where you can find your local chapter.

International Society of Performance Improvement, where you can find your local chapter.

Return to magazine index

Visit us at 225 Hillsborough Street, Suite 460, Raleigh, N.C.
Write to us at P.O. Box 2508, Raleigh, N.C. 27602
Call us at 919.836.1400 or fax us at 919.836.1425
e-mail:
info@nccbi.org

Copyright © 1998, All Rights Reserved
Last Modified: January 29, 2003
Web Design By The
NCCBI Staff
Let Us Help You With Your Web Site Needs!