Canadian Council on Learning | Conseil Canadien sur l'Apprentissage

Workplace Learning in Small and Medium-sized Enterprises: Effective Practices for Improving Productivity and Competitiveness

September 2009

Prepared by: The Conference Board of Canada

Close to 97% of registered businesses in Canada are small and medium-sized enterprises, i.e. having fewer than 500 employees. Small and medium-sized enterprises (SMEs) can improve labour productivity and performance through the wise use of training and learning development initiatives. This report highlights, with specific examples, SMEs who have exemplified effective workplace learning and training activities.

Effective Learning Practices in SMEs

Small and medium-sized enterprises (SMEs) are the backbone of most nations. Worldwide, SMEs represent over 95% of all enterprises, account for 80% of global economic activity, and are found in all sectors of the economy. In Canada, close to 97% of our estimated 2.4 million registered businesses are SMEs (having fewer than 500 employees) employing over 55% of the labour force.

Workplace learning activities within SMEs play an important role in maintaining or introducing the skills, knowledge and abilities needed to succeed.

To understand the context within which effective learning programs are designed, implemented and supported in order to improve the productivity and performance of employees and their organizations, the Conference Board of Canada interviewed owners, operators, managers and key personnel in 65 SMEs from 10 countries (including Australia, Canada, China, England, India, Ireland, New Zealand, Norway, Northern Ireland, Scotland, and the United States). A range of public, private and not-for-profit organizations were selected.

Successful SMEs Align their Learning Programs with their Organizational Goals

SMEs that do workplace learning (and training) activities well target and align their learning to address the most critical business issues that they are grappling with. They also match the scale and intensity of their learning response to the scope and importance of their needs—doing more doesn’t mean doing better. It is all about making sure that the learning offered, regardless of its size or scope, cost or duration, is meaningful and relevant.

Key findings include:

• Successful SMEs find an approach to learning that fits with their business model and organizational culture;
• Successful SMEs ensure that their learning activities are aligned with the needs of individual employees and current and future goals of the organization;
• Successful SMEs link workplace learning and training with performance management activities—which measure the effectiveness of performance, not the amount of learning or training completed;
• Successful SMEs leverage workplace learning providers and learning/training content that already exists in the market;
• Successful SMEs recognize the value of industry standards, credentials and certifications; and
• Successful SMEs always relate workplace learning and training activities back to the business issues that they are trying to address.