Malaysian auto companies urged to invest in training

The Institute of the Motor Industry (IMI) has urged Malaysian automotive companies to future-proof their businesses by equipping their workforce with the right skills through training.

New research by the United Kingdom-based IMI breaks the myth that training costs companies money and overwhelmingly demonstrates that there is a clear and significant financial return.

In a statement today, the IMI said research showed that by the end of the third year, a well-recruited apprentice can generate between 150% and 300% of returns on investment (ROI).

Trained apprentices with no experience are able to generate profit within 18 to 24 months and much earlier than previously assumed.

Meanwhile, the study on apprenticeships shows that vocational training can generate up to 300% of ROI.

Another study revealed up to 212% of the ROI to be gained from management training interventions.

The study also highlighted that having managers undergo after-sales dealer network management development programmes can yield up to 118% of ROI for automotive businesses, and IMI accreditation in automotive management, up to 212% of the ROI.

IMI Southeast Asia Matthew Stuart senior manager said: "The IMI’s ROI study clearly demonstrates that management training in all areas will bear fruit for a company’s bottom line.

"Employers must not disregard management training if they wish their managers to reach their maximum potential.

"Both studies clearly show that training is one of the most important areas businesses should focus on, with the biggest possible gains achievable in terms of ensuring a business is competitive and profitable in a challenging market environment."

According to the IMI, the automotive sector is often guilty of promoting people on technical ability, rather than focusing on the skills that are critically important when they become leaders.