Study identifies strategies to address low workforce literacy and numeracy

With low levels of literacy and numeracy in the workplace holding back companies and individuals from reaching their potential, a major report by the Australian Industry Group provides more details on the depth of the problem and considers new and more effective strategies to address it.

Existing data from the Adult Literacy and Life Skills Survey 2006 demonstrates that almost four million people, or 40% of the workforce, do not have adequate literacy, numeracy or problem solving skills. The new study - 'When Words Fail, The National Workforce Literacy Project' - set out to further explore these issues, to determine the industry perspective on workplace literacy and numeracy and, importantly, to trial alternative strategies and solutions to tackle this problem in the workplace.

Ai Group Chief Executive designate, Innes Willox, said, "Improving literacy and numeracy levels of individuals in the workplace is a complex task that requires concerted effort and patient capital.

"Industry looks to its existing workforce to have the necessary skills to enable enterprises to be successful and compete in an increasingly global economy. The workforce needs to be able to achieve high levels of skill development to do this.

“The Ai Group project has demonstrated that with targeted strategies and intensive support, significant results can be achieved for the benefit of both workplaces and individuals.

”The study found that 75% of employers reported their business was affected by low levels of literacy and numeracy and this was not confined to low-skilled segments of the workforce. Only 8% of employers reported that they had adequate capacity to address the issue.

“Findings from the When Words Fail report demonstrate that, with appropriate support, employers are willing and able to improve the literacy skills of their workforce, but insufficient assistance is currently available. Although these foundation skills have received increased attention at a policy level over recent years, greater investment in literacy skill building initiatives is needed if the Australian workforce is to remain internationally competitive.

“Employers are also beginning to link literacy and numeracy training to productivity and Return on Investment. Evidence from this project indicates that enterprises are ready to apply Return on Investment measures to this area. More work is needed to further explore and formalise this.

"The project has identified a clear set of recommendations which Ai Group will use to inform the national dialogue on workforce development. Upskilling is a critical link in boosting our productivity at the enterprise level. Action to support this needs to be bold, comprehensive and properly resourced."

Recommendations:

• Position employers at the centre of the National Foundation Skills Strategy, due for commencement this year;
• Re-focus the strategic direction of workplace literacy and numeracy through the National Workforce and Productivity Agency;
• Expand resourcing for workplace literacy and numeracy training by increasing WELL (Workplace English Language & Literacy) funding and introducing new programs;
• Develop an intensive LLN (Literacy, Language and Numeracy) workplace learning program;
• Develop and implement the Foundation Skills Training Package to assist workplaces;
• Incorporate Return on Investment measures into literacy and numeracy training;
• Use the Australian Core Skills Framework more widely with workplaces, including developing an employer’s guide;
• Provide assistance to workplaces to raise their capacity; and
• Expand and resource the literacy and numeracy teaching workforce to assist industry to meet these needs.

Key findings:

• Employers are concerned about this issue, with more than 75% of respondents reporting that their business was affected by low levels of literacy and numeracy.
• Survey respondents reported a wide range of impacts resulting from a lack of literacy and numeracy skills, most frequently cited were: poor completion of workplace documents and timewasting through repeated work.
• A diversity of training approaches is required to match the diversity of workplace needs including the introduction of short, sharp and intensive programs.
• There is a need to link workplace literacy and numeracy training to productivity through the adoption of Return on Investment measures.
• There are benefits from the more widespread use of the Australian Core Skills Framework to assist employers to better understand the literacy and numeracy issues within their workforces.
• The involvement of managers is critical. Through exposure they see the benefits of this training. More needs to be done to raise their awareness and capacity in this arena.
• The participation of supervisors in literacy and numeracy programs provides improved outcomes for workplaces. The introduction of programs to increase their understanding of these issues would be a positive step.
• Participation in literacy and numeracy programs increases the capacity of enterprises to deal with these issues. There is a need for measures to raise the capacity of enterprises in this area.

This report also builds on earlier Ai Group research on this challenging aspect of Australian industry. The report 'World Class Skills for World Class Industries' in 2006 demonstrated that 85% of companies identified building the skills base of their existing workers as their number one strategy for competitiveness and growth. Then the report 'Skilling the Existing Workforce' in 2008 exposed that low levels of literacy and numeracy in the workforce were major impediments to upskilling. CEO surveys conducted in 2009 and 2010 reinforced the centrality of skilling the workforce as the key business strategy for success yet simultaneously confirmed that low skill levels, including literacy and numeracy, were major contributors to skill shortages.

The full report is available at www.aigroup.com.au/policy/reports.