Managing Workplace Skills Development during the COVID-19 Pandemic

Abstract

South Africa has a huge skills shortage and by 2021 unemployment rate was 34.9 percent with 66.5 percent thereof amongst the Black youth aged between 14 and 25 years. Thus, managing workplace skills development is essential to ensure the development of an adequate and appropriately skilled Youth can get employment, enter the mainstream of the economy, and benefit therefrom. Consequently, after discussions with various stakeholders, government set up the National Skills Fund aimed at addressing the structural mismatch between the demand and supply of skills and the low skills output. The chapter reviews research done by various researchers to determine reasons for the low skills output with focus on the strategy, skills transfer, communication, and job readiness processes used by business as determinants for the success of the skills training. Almost 23 years after the commencement of the NSDP, skills output remained lower than expected with no proof of formal discussions to find solution to the low output. The COVID-19 pandemic brought to the fore additional technological and remote learning challenges that presented a different type of dilemma. Thus, it may take even longer for skills output to increase compared to the period prior to the onset of the pandemic.

1. Introduction

It has been twenty-three (23) years since the democratic government set up a national skills development programme (NSDP) to increase the number of adequate, appropriate, and high-quality skilled individuals that contribute towards economic growth [1]. The programme was meant to address the current structural mismatch between labour demand and supply as the job market demanded high skills in an environment with low skills [2]. The priority of the democratic government has been to address the low skills level which contributed towards the current structural mismatch between labour demand and supply as the job market demands high skills in an environment with low skills. Thus, the NSDP was unique in that it was meant to increase the number of job ready Youth and enhance the skills supply to the job market and address the shortage of skills required to grow the economy [3, 4]. Thus, the government funded skills development programme was meant to improve the employability of the skilled workforce and support inclusive growth through employment equity [4]. After 23 years of government collaborating with trainers and billions of Rands spent on training, the skills output was reported to be lower-than- expected and the skills gap has not narrowed [5].

Thus, an attempt was made to explain the skills shortage experienced by business using various research results on skills development but the skills output was reported to be lower than expected [5]. Unemployment continued to rise, reaching 34.9 percent during the first quarter of 2022, compared to 34.5 percent estimated at the third quarter of 2021 which was the highest since 2008 [6]. The low output caused a serious training dilemma since billions of rands have been used to support and encourage business to partake in the skills development initiative using the workplace as a learning environment, providing employees (learners) opportunities to acquire new skills and providing the opportunity to gain experience needed to find employment [7].

The most disturbing fact about the youth unemployment statistics was that the majority of the unemployed was the youth between 15 and 24 years, at 63.9 percent of the total unemployment in the first Quarter of 2022 [8] when there was a demand for skills in the job market [9]. The scenario was indicative of a mismatch between the job demand by the market and skills supplied [10]. The mismatch has negative consequences and according to the ILO, job and life satisfaction can be affected, productivity and competitiveness can increase unemployment, and for countries and regions, competitiveness and attractiveness to investors can be affected, resulting in lost business opportunities to create more jobs and productive transformation [10].

Consequently, the chapter reviewed empirical research works by various researchers to explain the reasons for the low skills output by businesses that are partaking in the government funded NSDP before and after the beginning of the Covid 19 pandemic. The chapter highlighted possible gaps in the skills training that must be addressed to improve the low skills output challenges were being addressed before and after the COVID-19 pandemic to make a deduction about the future of skills development and skills output was made.

It must be noted that several assumptions were made to explain skills development, namely, that skills development automatically led to the employment of trainees and did not factor in issues of job discriminatory hiring based on race [11, 12]. Another assumption made was that business trainers would utilise the workplace as an investment contribution for training and were not primarily motivated by the tax incentives derived from participating in the NSDP, and the enhanced benefits and business standing in the Broad-Based Black Economic Empowerment (B-BBEE). Trainers can use training as a marketing tool by listing in the BEE directory which gave preference to training organisations as BEE-compliant suppliers [13].

2. Methodology

A desktop study was carried out to review online research done before and after the pandemic on skills development focusing on businesses trainers that are utilising the workplace to develop skills under the NSDP programme. The review covered the period before and after the between 2015 and 2022, and where literature was limited, the research study was extended to cover the period prior to 2015.

Online peer reviewed articles that focused mainly on skills development by business and the audited evaluation report of the Department of Education was used. In this study, it was the Department of Education and Training’s NSDP evaluation from 2011 to 2016 [5] was used, including the statistical data from Statistics South Africa(Stats SA). Stats SA was the lead and partner in producing systems for evidence-based decisions that enable government, citizens, articles by the International Organisations, and business to understand changes in society [14], including notices related to job availability. The trend of the research results prior to the pandemic and during the pandemic was used to deduce/predict future skills outcome and highlighted skills management areas that need improvement to increase skills output.

3. Study results prior to the pandemic

The skills training needs to follow the human development approach and improve the lives of people [15]. Literature reviewed showed that for the period prior to the pandemic, the skills training programme failed to produce sufficient skills to bridge the gap between demand and supply of skills. Thus the skills shortage continued to impact negatively on employment equity and the Broad-Based Black Economic Empowerment (B-BBEE) [16]. The evaluation report (NDSS 111) highlighted the following results [5]:

1. An estimated 50.2 percent of employers stated that the supply of skills was below expectation, 42.1 percent indicating that expectations were met,

2. About 51.1 percent indicated that the main motivation for training was to upskill employees in existing occupations, with only 17.9 percent providing young people with work experience through apprenticeships, learnerships and/or internships,

3. Between 2006 and 2016, the average profit margin for the South African formal business sector declined,

4. Surveyed members of organised labour indicated that training did not contribute towards equity,

5. There are mixed views on whether skills development has been effective in increasing employment equity. Employers believed that employment equity improved but trade unions and the evidence from the Department of Labour painted a less positive picture, and

6. Thirty-seven percent (37 percent) of graduates were unemployed after completing the programme.

Thus, the report [5] showed that employers were facing challenges when implementing the training programme which indicated that there was no maximum use of financial resources (investment) as shown a sizeable number of programme graduates remain unemployed.

With regards to the desktop results, the strategy used by trainers was noted, and a good strategy executed properly can result in improved performance [17]. However, communication was cited as crucial for human interaction during the development process and lack thereof has been a challenge [18]. It was argued that there was need for thought-out communication and information strategies in concurrent with an effective strategy which involved employees in the planning and implementing processes, including the engagement of the entire organisation improved the understanding and support by everyone [18, 19]. Regarding skills development, funding was essential for the execution of the plan, and government funding was expected to enable the execution of the plan and enhance the skills output [20, 21].

The training was expected to assist trainees acquire skills to be job ready and that involved participation during change, quality of change, commitment, attitude of top management towards change, support by supervisors and trust in leadership. Supervisory support, according to other studies, motivated trainees to learn and enhanced the training and skills transfer [22, 23]. Literature reviewed showed that the various studies carried out focused on business that did not partake in the NSDP and the results showed that the strategy remained a challenge in many industries, namely:

1. Government sectors [24, 25],

2. SMMEs [26]

3. The insurance industry [27],

4. The tourism industry [28],

5. Selected strategic leaders in the 2006 Financial Mail Top 200 companies [29], and

6. The banking industry [30].

Besides the audited report by the Department of Education, a recent study which focused on businesses that are participating in the skills training programme which provided evidence and gave insight on the possible reasons for the low skills output. The following were the possible reasons for the lower- than-expected skills output [31]:

1. Lack of appropriate strategies and focus,

2. Poor communication,

3. Poor feedback, and

4. Poor knowledge and skills transfer.

In South Africa, there exists a knowledge gap in terms of understanding the reasons why training consistently fail to increase skills output as expected and the recent study [31] partly closed the information gap by identifying processes that could be attributed to the low skills output. Further, a review of literature prior to the pandemic showed that there was limited research probing the reasons for the low skills output by business from the implementation implementation process viewpoint [31]. The review of literature covered a period when the skills training programme was being implemented [20, 21]. To understand the training processes, it was important to interrogate the knowledge and skills acquisition (transfer) through the strategy implementation. Ideally, the skills transfer process was expected to give a positive outcome of skilled individuals required for economic development. Another study [32] provided a reasonable explanation for a mechanism through which the knowledge transferred enhanced innovation and performance. Even though has no clear definition, it was a powerful concept [33].

The current chapter described knowledge as an operational concept and from a managerial sense, it was a strategic resource adequate for a business output [33]. Thus, the recent study showed that strategy, communication, the skills transfer, and the ultimate job readiness of the trainees influenced the expected positive economic advancement that knowledge brings, the expected and actual impact on economic development as the business environment changed when both the environment of learning and work changes [31, 34]. Changes in both the environment of learning and work required strategic management based on the analysis of three basic processes [34] which are environmental scanning, strategy formulation, and implementation [35]. Thus, theoretical models were used to explain known facts and enable predictions about expected outcomes or what should be observed if theories were evaluated as principles representing the reality on how the system behaved [36].

The audited government report [5] and the most recent study [31] recent study done prior to the commencement of the COVID-19 pandemic showed that there were challenges with the implementation of the government funded training programme than can be used to explain the lower-than-expected skills output prior to the pandemic. Although there were diverse types of trainers partaking in the government funded skills development programme, the paper focused primarily on the skills training contribution by business prior to the pandemic. Government funding continued to enable business to implement the skills training and increase the possibility of increasing employee (trainee) readiness and improve employment equity in the workplace [16, 30]. According to The Human Development Theory and the Human Capital Theory used for explanatory and prediction purposes, allowance was made for trainees to be viewed as a produced means of production [16] with the potential of producing surplus value [17]. In addition, the Social Capital Theory gave emphasis on social relations and the current relations between government, labour, and unions was an investment with skills acquired by trainees as the expected return on investment [17]. Thus, innovation, availability of funding and resource allocation were critical for increased skills output. Rich as South Africa was, in 2020 aggregated wealth was concentrated amongst 10 percent of the population who owned 86 percent [37] and continued to be characterised by extreme poverty levels, inadequate education and health services, high inequality, and unemployment [38]. Thus, human development attributes necessary for sustained economic growth did not adequately reinforce one another [39].

Since economic growth was currently weak, it undermined progress made in the poverty reduction [40]. The paper focused on the government funded training programme to enable business to participate in bridging the current skills gap to make Youth employable. Regarding the successful transfer of skills, two theories were used. The Human Resource Development Theory that assumed that training enhanced skills acquisition and The Capital Theory assumed that skills acquired by trainees were a form of investment that was used for development [18, 19] and enhanced economic growth [8] as unemployment reduced.

Unfortunately, unemployment remained high, and skills development continued to be a challenge almost 23 years after the Skills Development Act of 1998 and 13 years after the Global Crisis which resulted in the loss of about a million jobs in one day [41]. Consequently, high unemployment amongst Black youth [27], including high income inequality [42], continued unabated. Thus, having a well-articulated strategy does not necessarily translate to an increase in successful skills output of skilled trainees with commendable skills and job performance. The challenge was with both the formulation and implementation of the strategy and as such most strategic planning efforts did not achieve the desired outcome resulting in wasted investment expenditure or inefficient use of resources [43]. The programme funding and related resources were not being utilised efficiently as shown by the following challenges that were found to be affecting the skills development programme by business prior to the COVID-19 pandemic [5, 31]:

1. Strategy focus,

2. Communication,

3. Knowledge and skills transfer, and

4. Job readiness.

The challenges impacted negatively on the overall output of job ready youth. Therefore, it was concluded that there was need for business to be change agile as highlighted in other reports [44, 45, 46, 47, 48]. In general, the literature review showed that the strategy and implementation of the strategy remained a challenge and as such, most strategic planning efforts resulted in low return on investment [44, 45, 46, 47, 48].

4. Challenges after the onset of the COVID-19

The COVID-19 pandemic presented business with a different type of dilemma forcing change overnight with companies opted for offline-online working models [49]. Questions on whether remote working would fade and whether the containment phase of the crisis would gradually recede were not adequately answered. Currently, companies have the need to adapt employees’ skills and roles to build operating-model resilience [49]. The COVID-19 pandemic commenced at a time when discussions were inconclusive on the impact that automation would have on work, the possible scenarios for employment growth, whether there will be sufficient work in the future, and the impact of automation on skills and wages and how the workforce transitions will be managed [50].

It has been long time (23 years) since the the skills training programme started but skills demand and unemployment remain high (Figure 1) and job losses due to the pandemic presented a dilemma on top the of the already existing low skills output dilemma [51]. The report showed that 85.4 percent of businesses had a turnover below the normal range while 46.4 percent indicated temporary closure or pause in trading activity and an estimated decrease in the workforce size. About 30.6 percent of businesses reported that they could survive less than a month without any turnover, while 54.0 percent could survive between one (1) and three (3) months [51]. The COVID-19 lockdown and physical distancing measures were reported to have caused unprecedented disruption in the provision of education aimed at increasing the number of skilled workers (Youths) in the job market [52].

Figure 1.

Unemployment rates (2019-2021). Source: Statistics South Africa (2022).

However, there was limited insight on how the COVID-19 pandemic affected the skills training by business as compared to the information on Technical and Vocational Education and Training (TVET) trainers [52]. According to the report, TVET programmes were hard hit because of the focus on work-based learning and the acquisition of practical skills and recommendations on how to address the challenges brought by Covid-19 pandemic, brought to the fore the following [52]:

1. The need to expand the use of online and offline distance learning to meet the COVID-19 challenge,

2. The importance of mobilising human and financial resources to expand distance learning,

3. The importance of co-operation between TVET institutions and schools, telecommunication operators, technology providers and governments, and

4. The importance of remote learning, socio-emotional skills, and future crisis preparedness.

With regards to the training, it was important to emphasize that the trainees targeted by the training programme are unemployed Black youth from low-income households that have low access to online/remote learning because of pre-existing digital and social divides [53]. That may present a risk of not achieving the learning objectives. However, it has been reported that TVET providers that switched to online distance learning may risk leaving the disadvantaged learners behind [52].

5. The future of skills development training

The process of correcting the shortage of skills in the job market has been slow and understanding of factors inhibiting an increase in skills output an evaluation of the strategy and implementation to enhance the skills. Prior to the pandemic, serious challenges impacted on the output of the skills to the job market and ranged from the strategy, communication, skills transfer [6]. However, the limited information/discussions or debate on how business can address the identified training challenges, will result in lower-than-expected skills output and it will take a longer period to recover becaused the Covid-19 pandemic has caused an interruption in the structure of training [52].

The crisis caused by the pandemic was reported to be the worst global crisis since the second World War [52] and thus, the skills training challenge since the onset of the crisis presents another dilemma on top of the already existing dilemma of lower-than-expected skills output. Thus, the skills output since the onset of the pandemic will be the lowest because of challenges identified prior to the pandemic which were not addressed, and the structural changes brought about by the pandemic. Further, the costs related to the use of data and load-shedding will have a detrimental influence on education [54], including the training programme by business. Thus, load shedding remained a threat to the use of the basic technology meant to ease the disruptions caused by the COVID-19 pandemic.

A world report [52] predicted that it would take longer for economies to recover fully after the pandemic was over and to reach the employment rates like those achieved prior and South Africa was not different. In the case of South Africa, it is argued that the complexity of training challenges and the new technological challenges and loadshedding will result in even lower skills output because of inadequate technological infrastructure and data usage because Black learners (youth) may not afford the costs related to the use of data [52].

6. Conclusions

The paper introduces the reason for the government funded skills development programme and the rationale behind having such a programme that enable the disadvantaged and unemployed majority to access employment. The study showed that business was facing challenges with regards to the strategy and the implementation thereof. The theories used failed to fully explain the lower-than-expected skills output both prior and post to the pandemic. Literature reviewed to determine reasons for the low skills output, showed that business had challenges ranging from strategy focus, communication, knowledge, and skills transfer and ensuring trainee job readiness. Although challenges were identified and needed to be addressed urgently, there was no literature or documentation to indicate that there were discussions on how best how best to resolve the challenges and increase the skills output. However, the onset of the pandemic necessitated technological interventions to reduce its negative impact on the skills training. Thus, the challenges experienced by business were categorized under the before and after the COVID-19 pandemic. A comparison of the two sets of challenges showed that in addition to the strategy and implementation challenges, business faced technological challenges, making skills training more difficult. The conclusion reached was that the future of the managing the skills development programme was likely to be more challenging than prior to the pandemic. Thus, skills output may not increase anytime soon unless the challenges identified prior to the pandemic were addressed. The accumulation of unresolved challenges prior to the pandemic have complicated the implementation of the skills training programme and that will further impact negatively on the skills output. Thus, the future of managing the skills training will be unpredictable, making it difficult to predict how long it may take to increase the number of skilled Youth entering the job market. Although there are socio-economic and political factors that may impact on the success of the skills training, there are no known studies that have probed the impact of the socio-economic and political dynamics on the success of the National Skills Development Programme. Such a study may inform planners on the best strategy to adopt for maximizing the return on investment.

Acknowledgments

Special thanks to the Academic Editor, Diana Dias for editing the chapter.

Abbreviations

ILO	International Labour Organisation
NSDP	National Skills Development Programme
TVET	Technical and Vocational Education and Training