Home Transportation CostsAs Automotive Industry Rebuilds – Skills Development is a Key Contributor

As Automotive Industry Rebuilds – Skills Development is a Key Contributor

by jonckie@arrivealive.co.za

South Africa’s high level of unemployment is nothing new, but the cataclysmic effect Covid-19 has had on local industry has made skills development interventions even more imperative. Skills shortages are intensifying an already dire situation, and the mismatch between businesses’ evolving demands and the skills furnished by education systems, and/or insufficient numbers of people trained in the high-demand skills, are now clearly evident.

As the world tries to understand what skills and innovations would be required to successfully drive the Fourth Industrial Revolution (4IR), South Africa must make specialised technical skills in fields such as electronics, coding, robotics, artificial intelligence (AI) and cloud computing more appetising to youths. A rapid move towards a digital-first economy means that the majority of today’s students will one day work in a job that doesn’t yet exist, so it’s imperative that today’s education and training offer a head start for tomorrow.

It’s natural for companies to reduce expenditure in a severely depressed economy, and in so doing, employee training is often among the first to receive reduced allocation. While this is an understandable approach in the current environment, skills development should be at the top of the list for reintroduction as soon as business stability returns. Some pertinent reasons for continuing to invest in skills development are:

• Well trained and skilled employees are critical for the long-term success of a business;
• Employees tend to be more committed and inclined to stay with the business once the competition starts recruiting again; and
• Employees who believe that their personal development is valued results in higher employee morale, loyalty and increased productivity.

“Although the job market might be depressed for the moment, staff retention should be front of mind for all companies,” says the National Automobile Dealers’ Association (NADA) Director Gary McCraw. “Cyclical business trends mean opportunities are around the corner, and an already stunted business could be completely crippled by the loss of specialised employees as the economy improves, new opportunities open up and recruitment from competitors erodes the talent pool.”

Companies that continue with training in the current environment, should, however, strive to provide training that is closely aligned to the specific skills and competencies that are most critical to achieving its business goals. Training programmes should continually be evaluated, just as the company continually evaluates every other sector of the organisation’s operational functions, for ways to improve efficiencies, reduce costs and operate profitably. This translates into the right training, at the right time, to the right people.

NADA is a proud member of the RMI.

ABOUT NADA

The National Automobile Dealers’ Association (NADA) is a professional body representing the interests of business persons who own, operate and manage new passenger and commercial vehicle franchise motor dealerships and qualifying used vehicle only outlets in South Africa. There are currently 1,326 NADA members. NADA members make up 85% of all new franchise dealerships in South Africa.

South Africa currently has approximately 1,600 new franchised automotive dealerships comprising R48-billion worth of investment. It employs 60,000 personnel directly and a further 25,000 indirectly.

NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI) and has affiliations with a number of similar organisations world-wide. NADA is committed to enhancing the image of the retail motor business; facilitating the interface between dealers and the motor manufacturers and importers who supply them; building rewarding relationships between dealers and their customers; and bringing relevant issues facing its members to the attention of government at all levels.

As a major role player in the automotive industry, NADA and its members are strong supporters of complying with the Retail Motor Industry Organisation and the Consumer Protection Act’s Codes of Conduct for the Automotive Industry. In all forums, NADA is the fully representative and respected voice of the retail motor industry in South Africa.

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