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Prospective Employees Lack Basic Skills

Mike Haberman

The AMA defines basic skills as functional literacy, i.e., the ability to read instructions, write reports and/or do arithmetic at a level adequate to perform common workplace tasks.

Of the companies participating in the survey, 43% test for basic skills. The lack of basic skills in many workers is compounding the problems companies are having in finding qualified candidates. This is causing many companies to rethink how they train new hires, focusing initially on developing basic skills. Thus companies have to shift from hiring workforces to developing workforces.

The AMA has developed a list of ‘best practices’ around this issue. First, strengthen training efforts. It is more cost effective to train an employee than to replace one. (Training is a very effective retention tool.) Second, establish a remedial training program either onsite or through an outside training provider. (Note: the Workforce Investment Act of 1998 has provided federal money for local level programs to help in worker training.) As the job market tightens it will be necessary for companies to adopt more elastic hiring standards, and invest more in developing employee skill levels on the job. Third, establish corporate citizenship programs that promote education. (Programs such as Partners-in-Education) These build awareness of the importance of basic work skills.