When large companies provide free upskilling for SMEs, everyone gains

MORE than three decades ago, brothers Eric and Vincent Tan started a photo printing business, tapping technology to help Singaporeans preserve treasured memories. Since then, further advancements – in the form of digital photography and smartphones – have caused the decline of photo printing culture.

But technology also enables FotoHub to stay relevant and get ahead. FotoHub’s business turned around when they were given the chance to pick up new digital skills, pivot their business strategy and digitalise.

Soon after applying newly-acquired digital marketing skills, FotoHub’s website traffic grew 94 per cent and their online orders rose 40 per cent.

Many local small and medium-sized enterprises (SMEs) founded before the digital boom face similar challenges to FotoHub. Yet all businesses stand to benefit if SMEs – the backbone of Singapore’s economy – manage to thrive digitally.

Larger companies can, and should, support small local businesses to digitalise and thrive. In the process, they can gain insights into new markets, build a digitally-enabled supplier base to support their functions, and strengthen their organisation’s own value to society.

There is a need for initiatives that address the obstacles preventing SMEs from upskilling and effectively digitalising. By introducing low-barrier skilling initiatives for SMEs, and providing up-to-date flexible training courses, we increase the potential for a digital upskilling “flywheel” to be created.

The ideal outcome is a steady and accessible stream of opportunities for lifelong learning. This allows businesses and workers to continuously equip themselves with in-demand skills, in tandem with technological advancement.

Here are some considerations in narrowing the digital skills gaps among SMEs.

Reduce cost barriers for greater accessibility

In a survey by NTUC LearningHub, about half of SME respondents cited a lack of budget and disruptions to daily operations as crucial challenges in upskilling their workforce. This is where larger companies – across sectors from tech and manufacturing to consulting – can step in to offer subsidised tools or training resources.

For instance, technology companies can share their expertise by offering short online courses on in-demand tech and digital skills – such as artificial intelligence, data analytics or digital marketing – at low to no cost. These can help the workforce become job-ready quickly.

When developing such curricula, providers must have their finger on the pulse of the industry. Course contents must match the latest market needs and developments, if they are to truly address the talent and skills gap.

Public-private partnerships for greater impact

Strategic public-private partnerships are critical for providing solutions at scale. Six in 10 employees in Singapore rely on government awareness programmes to get information about which skills will be valuable in the future, according to the recent Economist Impact report supported by Google.

The National Trades Union Congress, for instance, has called on employers to work with them to set up company training committees. Through such collaboration, companies can stay relevant by planning, capitalising on key trends and transforming their business, amid the acceleration of the digital and green economy.

By pooling resources from government agencies and larger private enterprises, we can reach more SMEs and offer resources such as digital training scholarships for their employees.

This is especially useful for “digital starters” that are still in the early stage of going digital, with over six in 10 SMEs estimated to fall in this category.

Upskilling can boost employee satisfaction, retention

Providing accessible training resources is an enabling move, but it ultimately falls on SME leaders to take ownership of their digital transformation journey and see the value of upskilling their workforce.

One benefit is that providing meaningful career development gives employers an advantage in attracting and retaining talent. Employees primarily rely on workplace training to upskill, and more than half consider their employers responsible for providing financial incentives for training.

Initiatives such as the Google Career Certificate scholarships – where free online training is offered in partnership with Enterprise Singapore and SGTech – thus benefit both employers and employees.

When employers make upskilling part of the career cycle, they establish trust and show employees that the company is investing in their long-term growth.

Without providing opportunities for learning and development, businesses will likely lose out in the fight to acquire and retain tech talent, further shortening their runway for growth.

Digital training for different growth stages

While some SMEs are at earlier stages of digitalisation, others are already looking to expand beyond Singapore’s shores and reach overseas customers online.

The latter group of SMEs require advanced training programmes. Here, the private and public sectors can provide advanced certification in data analytics or business intelligence to identify new market opportunities, or even post-training support to help employees or SME leaders apply what they have learnt in real-life scenarios.

With the public and private sectors providing resources to drive greater digital uptake, SME leaders should be encouraged to seize these opportunities.

The writer is managing director of Google Singapore