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PCCI sets up venue for teaching robotics, entrepreneurship

THE Philippine Chamber of Commerce and Industry (PCCI) on Thursday launched a center for technology education and entrepreneurship.

The business chamber partnered with Huawei Technologies Co. Ltd. for the innovation center, which will be the venue for teaching artificial intelligence, robotics, coding, big data analysis, Internet of Things, satellite internet connectivity, and blockchain.

The center is also a start-up incubator that connects local entrepreneurs to investors, along with giving them access to training and mentorship.

“Our center will facilitate knowledge-exchange among start-ups, established businesses, and local government units,” PCCI President Benedicto V. Yujuico said in his speech at the launch.

He said the potential partnerships could develop digital transformation and software solutions in smart cities, medical technology, security systems, and digital banking. The center will also launch its website innovate.com.ph.

The implementing rules and regulations (IRR) Innovative Startup Act or Republic Act No. 11337, which provides incentives for startups and enablers, was signed in 2019. — Jenina P. Ibañez

TV5 to air ABS-CBN show ASAP Natin ‘To, FPJ movie block

AFTER partnering with Zoe Broadcasting Network to create the A2Z channel to broadcast several of its shows, ABS-CBN is once again branching out and will start showing musical variety show ASAP Natin ‘To and the FPJ: Da King movie block on TV5 starting Jan. 24.

The announcement was made on Jan. 21 after months of speculation as TV5 executives including Manuel V. Pangilinan, chairman of the TV5 Network, Inc., confirmed that there were ongoing conversations with ABS-CBN talents while programming head Percival “Perci” M. Intalan said in August that there were “talks on several levels happening” when it came to ABS-CBN.

(Read more: TV5 to buy entertainment content, enter into block timing | BusinessWorld (bworldonline.com)

Cignal TV has also been carrying ABS-CBN channels (Kapamilya Channel, Jeepney, Cinemo, and Knowledge Channel) via its pay TV service.

“This collaboration between Cignal, TV5, Brightlight Productions, and ABS-CBN marks the start of greater cooperation among our various industry players and begins a new era of partnership,” Robert P. Galang, president and CEO of Cignal and TV, said in a statement, before adding that they are pleased to have both ASAP and the Fernando Poe, Jr. movies on TV5.

“The future of entertainment media is rapidly converging around a dynamic mix of traditional and digital platforms… we are committed to continuously explore more initiatives to provide the best of both worlds to all our stakeholders,” Mr. Galang explained.

Aside from various free TV partnerships, ABS-CBN has also expanded its digital content footprint by offering its shows on live streaming app Kumu, various social media networks including Facebook, YouTube, and its own streaming service iWantTFC.

ASAP Natin ‘To is considered the country’s longest running musical variety show, having been launched in 1995. It features some of the country’s biggest performers including Martin Nievera, Zsa Zsa Padilla, Gary Valenciano, Sarah Geronimo, Erik Santos, Ogie Alcasid, and Regine Velsaquez-Alcasid. The FPJ: Da King movie block features the movies of the popular late action star and a National Artist of the Philippines for Film Fernando Poe, Jr. He started acting in 1955 and his films included such classics of the action genre as Lo’ Waist Gang, Asedillo, and Aguila, and the fantasy action series Ang Panday.

ASAP Natin ‘To will air on TV5 every Sunday starting Jan. 24, 12 p.m., while the FPJ: Da King movie block will air every Sunday, also starting Jan. 24, at 2 p.m.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that owns and operates TV5 and CignalTV has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Zsarlene B. Chua

UK stars from Ed Sheeran to Elton John raise alarm over post-Brexit music tours

LONDON — More than 100 British musicians, from Ed Sheeran, Sting, and Pink Floyd’s Roger Waters to classical stars like conductor Simon Rattle, have said tours of Europe by British artists are in danger because of Brexit.

In a letter to The Times newspaper published on Wednesday, the musicians said the government had “shamefully” broken a promise to negotiate a deal allowing musicians to perform in the European Union (EU) without the need for visas or work permits.

They called for a reciprocal deal allowing paperwork-free travel for both British and European touring artists. “The deal done with the EU has a gaping hole where the promised free movement for musicians should be: everyone on a European music tour will now need costly work permits and a mountain of paperwork for their equipment,” they wrote.

One of the consequences of Brexit, which fully took effect on Dec. 31, is that British and EU citizens can no longer freely travel, work and live in each other’s territories.

The letter’s signatories ranged from The Sex Pistols and Iron Maiden to Joss Stone, Radiohead, Elton John, Bob Geldof, and Queen’s Brian May and Roger Taylor.

Roger Daltrey, lead singer of The Who and an outspoken Brexiteer who previously dismissed concerns about tours after Brexit, was also on the list.

On the classical side, cellist Sheku Kanneh-Mason, who performed at the wedding of Prince Harry and Meghan Markle, was joined by violinist Nicola Benedetti and composer Judith Weir, holder of the post of Master of the Queen’s Music.

“The extra costs will make many tours unviable, especially for young emerging musicians who are already struggling to keep their heads above water owing to the COVID ban on live music,” the musicians wrote.

Under the deal agreed by London and Brussels in December, British musicians will be able to tour in EU countries without a visa for up to 90 days in any 180-day period, but will need work permits to perform in some countries like Germany and Spain.

New rules on road haulage mean British trucks have to return to Britain after two laden journeys in the EU, making the standard touring model for British bands and ensembles impossible, according to the Association of British Orchestras.

The British and European executives blamed each other for the industry’s predicament, each saying their proposals during the Brexit talks had been rejected by the other side.

“If the EU reconsiders its stance our door remains open,” the culture ministry in London said.

In Brussels, the European Commission said Britain had chosen to end the free movement of EU citizens to the United Kingdom, which inevitably meant that travel, including for business purposes, would no longer be as easy as it was before Brexit. — Reuters

2GO launches supply chain solution

2GO GROUP, Inc. has launched a new supply chain solution called 2GO Connect that aims to remove supply chain inefficiencies amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement on Thursday, the logistics and transportation provider said 2GO Connect offers fast and direct service to modern trade points of sales across the country.

The company said the new service solution lets businesses deliver their inventories straight to malls and modern trade, avoiding several handling points and transportation costs.

2GO Chief Operating Officer Waldo C. Basilla said 2GO Connect leverages off its ROPAX (roll-on/roll-off passenger) service and its landside network to cater to malls in Cebu, Iloilo, Cagayan de Oro, and Bacolod four times a week.

Mr. Basilla said the cargoes are gathered at the origin and those heading to the same destination will be placed in a container and have a “train-like” schedule for regular deliveries straight to the malls.

“We integrate our broad multimodal transportation services to enable fast, reliable, and direct service to replenish goods at the malls, as the economy gradually reopens in 2021,” Mr. Basilla was quoted as saying.

“This gives customers from the Visayas and Mindanao regions access to the same catalogues available in Metro Manila, almost at the same time that it is launched,” he added.

Meanwhile, 2GO projects a growth for the new service solution as the Philippine economy continues its recovery from the pandemic.

“2GO is confident that with our continuous innovation, we will not only help businesses meet their needs, but more importantly, connect them to the ultimate consumer in a timely manner,” Mr. Basilla said.

For the third quarter of 2020, 2GO reduced its net loss to P311.66 million against the P627.67-million net loss it reported in the similar period the previous year. Its revenues for the quarter also fell 9.7% to P4.60 billion.

Shipping revenues declined 35.7% to P987.55 million, and logistics and other service revenues dropped 4.9% to P1.58 billion. Meanwhile, sale of goods improved 7.3% to P2.03 billion.

On Thursday, 2GO shares at the stock exchange fell 2.73% or 23 centavos to end at P8.20 each. — Revin Mikhael D. Ochave

Banks maintain stricter lending standards

MOST BANKS maintained strict lending standards last quarter and expect to continue to do so in the coming months due to sustained worries amid the pandemic, even as some economic indicators show signs of improvement, a survey by the Bangko Sentral ng Pilipinas (BSP) released Thursday showed.

The latest Senior Bank Loan Officers’ Survey released by the BSP showed most respondent banks maintained their credit standards for both enterprises and households during the October to December period, based on the modal approach.

“The latest survey results reflected a slight improvement compared to the Q3 2020 survey where almost half of the respondent banks stated that they tightened credit standards amid the continued economic and business disruptions caused by the ongoing COVID-19 pandemic,” the central bank said in a statement.

Meanwhile, based on the diffusion index (DI) approach, there was a net tightening of overall credit standards for both enterprises and households last quarter, similar to the previous three-month period.

“Banks tightened their lending standards anew on concerns of a further escalation in non-performing loans,” BSP Officer-in-Charge Francisco G. Dakila, Jr. said in an online briefing.

“Nonetheless, the BSP remains confident in the soundness and resilience of the banking sector, as capital adequacy ratios have stayed well above the mandatory standards,” he added.

Previous results of the survey showed banks have generally tightened credit standards since the second quarter of last year, reflecting worries over an increase in soured loans.

The Senior Bank Loan Officers’ Survey, which assesses banks’ lending decisions, reflected answers from 45 out of 64 banks surveyed from Nov. 25, 2020 to Jan. 11 for a response rate of 70.3%.

More than half or 63.4% of the respondent banks reported unchanged credit standards for loans to enterprises last quarter, based on the modal approach.

The DI approach meanwhile showed a net tightening of lending standards across borrower firms of all sizes.

“As indicated by respondent banks, the observed tightening of overall credit standards was largely due to less favorable economic outlook, deterioration in the profitability of bank’s portfolio and profiles of borrowers, and reduced tolerance for risk, among other factors,” the BSP said.

“On specific credit standards, the net tightening of overall credit standards was reflected in terms of reduced credit line sizes; stricter collateral requirements and loan covenants; and increased use of interest rate floors. Meanwhile, some form of easing was revealed in terms of narrower loan margins and longer loan maturities,” it added.

The modal approach showed banks expect their credit standards for enterprises to remain unchanged this quarter. However, DI-based results showed some banks continue to expect tighter standards “due to a more uncertain economic outlook” and a conservative risk appetite as firms continue to reel from the impact of the pandemic.

HOUSEHOLD LENDING
Majority or 77.8% of respondent banks likewise said they maintained their credit standards for household loans last quarter, based on the modal approach.

The DI-based results however showed a net tightening of overall standards for credit to households like housing and personal or salary loans due to dim economic prospects and reduced tolerance for risk. Meanwhile, standards for credit card and auto loans remained unchanged as equal portions of respondent banks said they tightened or eased their criteria for these.

“In terms of specific credit standards, the overall net tightening of credit standards for loans to households was revealed in reduced credit line sizes and stricter loan covenants,” the central bank said.

“Meanwhile, some easing of credit standards for loans to households was also observed in terms of narrower loan margins, less restrictive collateral requirements, longer loan maturities, and decreased use of interest rate floors,” it added.

For this quarter, majority of respondent banks said they expect to retain their credit standards, based on the modal approach.

Meanwhile, DI-based results showed an expected tightening in loan standards for households as the pandemic’s economic impact has affected borrowers’ capacity to pay.

Most of the respondent banks see unchanged loan demand from both enterprises and households this quarter, indicating an increase in confidence of firms and consumers amid the gradual rise of economic activities, the modal approach showed.

DI-based results meanwhile showed expectations of a net increase in overall loan demand from businesses as they seek financing. Consumers are also expected to borrow due to higher household consumption, lower income prospects, and lack of other sources of funds.

Amid tighter credit standards and weak borrower confidence, lending growth slumped to 0.3% year on year in November, the slowest since the 1.9% in September 2006.

Banks’ non-performing ratio stood at 3.81% as of end-November, rising from the 3.72% in October as well as the 2.19% a year earlier, based on BSP data, as bad loans surged 73.6% year on year to P404.687 billion in November. — L.W.T. Noble

Bayad Center rebrands as it ramps up online presence

BILLS PAYMENT firm CIS Bayad Center, Inc. had rebranded to Bayad as it boosts its digital presence.

“Expect a bigger Bayad as we continue to grow our network of partners as we navigate in this new normal,” CIS Bayad Center President and Chief Executive Officer Lawrence Y. Ferrer said during the online launch of the rebranded bills payment arm of Manila Electric. Co. on Thursday.

Mr. Ferrer said Bayad’s new look and identity “speaks to the younger generation of payers.”

Users can tap Bayad’s services at www.online.bayad.com or through its app.

The revamped Bayad Online include a bill reminder feature and a dashboard for payments where users can manage their transactions.

“The app carries an array of valuable features such as e-wallet and e-load, bills viewing and payment, personal financial manager, QR payments, rewards, insurance, savings accounts, personal loans, and credit scoring system,” the company said in a statement on Thursday.

Bayad said it had seen a decrease in transaction volumes amid restriction measures.

“[This is because the majority of our channels are brick and mortar,” Bayad Marketing Head Wendell P. Labre said.

He said they saw digital payments grow to make up 30% of total transactions from just 10% before the pandemic.

“In terms of volume, we’re normally processing 10 million transactions monthly. During lockdown, transactions went down to as low as 30%, but as of December [it has been] gradually growing at 80% of monthly volume,” Mr. Labre said.

More firms have been shifting to electronic transactions to adapt to the changes caused by the crisis.

The central bank wants to make the country a cash-lite society by 2023 where e-payments will make up 50% of total transactions both in volume and value. — L.W.T. Noble

Lopez Holdings cancels voluntary delisting plan

LOPEZ HOLDINGS Corp. withdrew its petition to voluntarily delist from the local market after First Philippine Holdings Corp. (FPH) amended its tender offer on Wednesday.

In a disclosure to the stock exchange on Thursday, Lopes Holdings said the petition to voluntarily delist was “conditional” and could only continue if FPH acquired 45.56% of the company’s total issued and outstanding common shares.

Lopez Holdings added that it recently disclosed the possibility of being involuntarily delisted if the minimum public ownership (MPO) drops below 10%, which is “conditional” on FPH acquiring a certain number of shares.

“The amendment of the tender offer means there is no longer such a risk and Lopez Holdings can remain listed even if FPH acquires the new maximum of 34.5%,” Lopez Holdings President Salvador G. Tirona was quoted as saying.

On Jan. 20, FPH changed its tender offer report to cover only up to a maximum of 34.5% or 1.57 billion common shares of the total issued and outstanding common shares of Lopez Holdings.

This is lower than FPH’s previous offer to acquire up to a maximum of 45.56% or 2.07 billion common shares, and a minimum of 20% or 908.46 million common shares of the total issued and outstanding common shares of Lopez Holdings, priced at P3.85 per common share.

“The amendment removes the risk of Lopez Holdings falling below the MPO required by the PSE and dispenses with the need for the company to pursue a petition for voluntary delisting,” the disclosure said.

The tender offer does not include the shares owned by Lopez, Inc. which has decided not to tender its shares.

FPH disclosed that it would also acquire shares of Lopez Holdings from the non-public shareholders, and estimated that 33.65% will come from the public.

“Deducting this figure from the present public float of 43.805%, this should leave Lopez Holdings with a minimum public ownership of at least 10.15%, assuming that the maximum limit is reached,” the disclosure said.

The company filed its petition to voluntarily delist 4.63 billion common shares from the main board of the PSE in December last year.

Lopez Holdings is the Lopez family’s holding firm for investments in major development sectors such as broadcasting and cable. FPH is the parent company of the family’s energy investments.

On Thursday, shares in Lopez Holdings at the stock exchange fell 0.27% or one centavo to end at P3.69 apiece, while FPH stocks were flat at P79.50 each. — Revin Mikhael D. Ochave

Employees working from home see loss of face-to-face time with colleagues as big issue

EMPLOYEES working from home have reported lack of workplace interaction and time management as among the biggest problems they face during the pandemic, the Philippine Institute for Development Studies (PIDS) said, citing the results of a study.

In a statement Monday, PIDS, a government think tank, said the issues were turned up by a research paper, “Towards a Sustainable Online Work in the Philippines: Learnings from the Online Survey of Market and Nonmarket Work during the Enhanced Community Quarantine.”

The study was written by PIDS Senior Research Fellows Connie Bayudan-Dacuycuy, Aniceto C. Orbeta, Jr., Ramonette B. Serafica, and Research Assistant Lora Kryz C. Baje.

“The study found that the ‘lack of interaction with other workers, and time management due to the workers’ housework responsibilities or full-time jobs” are linked to the “lack of collective organization and weak voice of platform workers in the Philippines,” PIDS said.

The study also noted the need for better social protections for workers in telecommuting arrangements in the area of compensation and benefits; and an assurance of gender equality. The authors added that “there is growing attention (being paid) to online work because it is associated with the absence of social protection.” — Gillian M. Cortez

Prada cuts ties with Chinese actress after surrogacy controversy

BEIJING — Italian luxury label Prada has ended all cooperation with Chinese actress Zheng Shuang, a week after appointing her as a brand ambassador, after she was engulfed in a surrogacy controversy that has enthralled the Chinese public.

Prada made the announcement late on Tuesday, after coming under heavy criticism on Chinese social media for cooperating with 30-year-old Ms. Zheng, whose former partner Zhang Heng has accused her of trying to abandon two young children the couple had through a US-based surrogate.

It is the latest global brand to succumb to public pressure in China, where customers have become increasingly vocal about their expectations for the behavior of companies and celebrities, especially foreign ones.

“The Prada Group has terminated all cooperation with Ms. Zheng Shuang,” the company said on its official Weibo account, without providing further details.

Prada did not respond to Reuters queries on Wednesday. Zheng and Zhang also did not answer Reuters’ requests for comment.

China has become an increasingly important market for luxury labels during the global pandemic and its shoppers are expected to account for around half of all global spending on high-end brands in 2020, up from 37% in 2019, according to McKinsey & Company.

Prada has said the group’s China sales jumped 60% in June and 66% in July.

“The hit to Prada’s image is huge,” said Huang Shengming, professor of the Communication University of China in Beijing. “Their decision to stop working with Zheng is an effort to cut their losses and it’s the right move.”

SURROGACY CONTROVERSY
The controversy erupted on Monday after Ms. Zheng’s former partner Zhang Heng said on social media that the couple had turned to a surrogate to birth two children in the United States and released voice recordings of a woman he said was Ms. Zheng lamenting that the children could not be aborted.

Mr. Zhang said he was stranded in the United States because he had to take care of the two children born in 2019 and 2020.

Ms. Zheng quickly became the target of public criticism, with Weibo users calling her “irresponsible” and “vicious.” The controversy has over the past three days been a top trending item on the Twitter-like site, with 600 million views and more than 100,000 comments.

Thousands of users also left comments on Prada’s Weibo account to question and ridicule the brand for hiring her.

On Tuesday, the actress said on her Weibo account that she had not violated laws in either China or the United States but did not comment on whether any of the accusations were true. “It’s a very sad and private matter for me,” she said.

Surrogacy is forbidden in China but going abroad to have surrogate children in countries such as the United States has increasingly become an option for some Chinese couples, especially wealthy ones.

Chinese state media have weighed in on the Zheng controversy. Changan Sword, an online media site backed by the Central Political and Legal Affairs Commission, criticized her for taking advantage of the law and “corrupting human ethics.” — Reuters

Globe says its 5G now covers 80% of Metro Manila

GLOBE TELECOM, Inc.’s fifth generation (5G) is now able to reach 80% of Metro Manila through its recent upgrades, with main business districts experiencing the most connectivity coverage, the company said.

The company said that it upgraded 884 Metro Manila locations into 5G-ready sites, with Bonifacio Global City, Makati and Ortigas commercial business districts now reaching a coverage of 97%, 95%, and 97%, respectively.

The top nine cities with 5G coverage are San Juan (91%), Pateros (91%), Mandaluyong (86%), Makati (84%), Caloocan (84%), Manila (83%), Marikina (83%), Pasig (81%), and Quezon City (80%), Globe said in a statement on Thursday.

The telecommunications firm is also installing more 5G ready sites to boost coverage in areas like Cebu and Davao. 5G reach in Cebu has 61% coverage, while Davao has 60% coverage, the company said. 

“We continue to invest on our network so our customers get to experience the many promises and opportunities of the most advanced technologies like 5G,” Globe President and Chief Executive Officer Ernest L. Cu said.

“With our aggressive roll outs, our network is getting closer to making the whole of Metro Manila 5G ready.”

Globe’s attributable net income as of September 2020 fell 10.15% to P15.89 billion from the previous year’s P17.68 billion.

The Philippines ranked 96th out of 139 countries in mobile internet speeds in December, according to the Speedtest Global Index run by American internet testing and analysis firm Ookla. The country ranked 100th out of 176 countries for fixed broadband download speeds.

Shares in Globe on Thursday were unchanged at P2,100 each. — Jenina P. Ibañez

Inflation concerns for ordinary savers

Prices of goods, services and assets must be corrected for the effects of inflation in order to make meaningful economic comparisons over time. To correct for the effects of inflation, economists distinguish between what they call nominal prices, or prices in terms of some currency, and real prices, or prices in terms of purchasing power over goods and services.

We also distinguish between nominal and real interest rates. The nominal interest rate on a savings  or investment instrument is the promised amount of money you receive per unit you deposit.  The real rate of return is defined as the nominal interest rate you earn corrected for the change in the purchasing power of money.

An investment is defined as the current  commitment of money or resources in the expectation of reaping future benefits. One of the key lessons in investment, or even simple savings for that matter, is that the rational investor or saver will always aim to earn a real return for the money or resource commitment. The first order of the investment objective is thus to maintain the purchasing power of one’s resources and that means beating inflation.

The simple and dirty formula for real interest rate is nominal interest rate minus the rate of inflation. MBA students know the more exact computation but for our purpose this will suffice. To beat inflation, one’s investment must thus at least be above the inflation rate.

BSP Governor Ben Diokno made the following statements about Philippine inflation. He said it averaged 2.6% in 2020 and will remain within the 2% to 4% range in 2021 and 2022. The question remains though whether this can be sustained. Inflation rates here and abroad are starting to rise. No less than the Department of Finance flagged inflation risks from higher prices of food particularly meat and vegetables. Domestic demand will expand if the pandemic is managed and growth perks up.

Following significant drops in early 2020 followed by a period of stability, crude oil costs have risen from approximately $49 per barrel in mid-December 2020 to average rate of $56 per barrel. The US Energy Information Administration estimates that while global consumption was down by 9.0 million barrels per day (mbd) in 2020 (around 10%), it will grow by 5.6 mbd in 2021. There are also output cuts led by Saudi allies in OPEC.

Even without the surge in inflation, millions of Filipino depositors whose main outlet for their excess funds are bank savings accounts now literally suffer from negative real returns in their savings. Banks today continue to cut their savings deposit rates amidst the low interest rate regime. Online research reveals that savings deposit rates are around .125% to .25% for the major banks.

Do the arithmetic. If inflation is 2.6% (per BSP), already our ordinary savings have a .125% less 2.6% or  -2.475% real rate of return. For emphasis, this is a negative return which means that every year the purchasing power of whatever funds we leave in our savings accounts plummets by more than 2%. Frankly, there is no incentive to save in banks except for liquidity, safety and convenience. But today we all pay a price for those qualitative benefits.

The problem of a looming inflation can have more negative effects on our savings. During periods of high unemployment which flattens wages and spending, policy makers typically cut interest rates which tempers inflation. Already, the BSP delivered five interest rate cuts totaling 200 basis points last year, with the benchmark overnight repurchase facility rate at a record low of 2%, one of the world’s most aggressive in policy easing. Bank’s reserve ratio’s have also been cut by 200 basis points, providing liquidity support.

But with the hope for bounce back in GDP growth of 6.5% to 7.5% in 2021, there will be additional inflation pressure.  The private sector beneficiary of stimulus programs will find itself with fresh cash as vaccinated economies reopen. Households and firms may remain cautious. But amid the joy of reopening they may instead go on a spending spree. That might result to a lot of money chasing goods and services that might not be in simple supply, resulting in a period of inflation. The typical policy response is increasing interest rates for it to tail off.

The Economist has written about warnings of a group of prophets of doom called “inflationistas.” Some predict a possibly high but transitory spike in prices as consumer spending bounce back from the pandemic. Another group warns of a more persistent inflationary pressure showing a fundamental shift in inflation dynamics. The more pessimistic group warns that complacent or distracted central bankers will allow such pressure to go unchecked, leading to a decade of stubbornly high inflation. The same article concludes, after discussing the arguments of the “inflationistas” and their dove counterparts, that a recovery from the pandemic that is untroubled by excessive inflation looks likely. However, it is not guaranteed.

There is palpable cause for concern. This piece is in behalf of the millions of Filipino savers who are not getting their fair share of economic benefits because of size and lack of access to better financial instruments. Hopefully, inflation will not make us all worse off.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Benel D. Lagua is  former Executive Vice President and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and a long-time advocate of risk-based lending for SMEs.

Training programs for busy workers and managers

I’m the training manager at a small corporation. We offer training programs to our employees and yet very few people attend. They claim they’re too busy at their jobs. Even their bosses don’t allow them to participate in training programs. Now that we’re in a pandemic, it has become doubly difficult for us to convince people. Do you have any suggestions? — Sunday Morning.

After two years of looking for a job after graduating from college, a young man felt lucky to have been called in for an interview with a major corporation. Agitated, he asked if he can attend the company’s training program. The extremely busy hiring manager, besieged with so many applications said: “It’s impossible for now. That can happen in maybe 10 years.”

The applicant replied: “Would that be in the morning or afternoon?”

Improving work performance through training involves the discovery and examination of many challenges, including their lack of ability to attract participants, despite the program’s short- and long-term benefits. Most of the time, workers, with the tacit approval of their bosses, are discouraged from attending these programs, which may sidetrack them from work.

It’s a no-win situation for any training manager. While we accept that improving employee skills will help increase productivity, you could also be blamed for not pushing harder for training programs. It’s important to make an effort to improve individual development by exploring various solutions.

SEVEN STRATEGIES
Always take time to discover areas for improvement when offering training programs. Rather than ignore the issues and adopting a take-it-or-leave-it attitude, find ways to figure out why the workers and their bosses’ resort to excuses about being too busy to participate, even in programs that are often designed to make their jobs easy and productive.

One, work with department managers on their training needs. This is too basic to be ignored. And yet, some training managers offer programs that are not on the radar of intended users. They select programs based on what other companies are using which are not geared towards the specific concerns of each department.

Two, strengthen the performance evaluation system. Some managers are not concerned about their workers’ career goals, while others are too eager to recommend unnecessary programs. Therefore, explore how you can independently assess the training needs by validating them against their appraisal ratings.

Three, offer the training programs via several online platforms. This has become understandable during the pandemic as much-preferred face-to-face programs are deemed risky. Choose programs that are self-paced so workers can attend them during their free time. When you allow this, ensure they don’t take it lightly.

Four, choose training programs with engaging methodologies. The programs may include trainers with an engaging style who can hold the attention of participants throughout the event. Require facilitators to put together highly interactive programs.

Five, coordinate with the resource speakers to give online tests. This should help both the training manager and the subject matter expert to understand how effective are teaching these online courses. Consider it one of the requirements before participants are entitled to certificates.

Six, include free online programs offered by various organizations. Some of these include the Asian Productivity Organization, Asian Overseas Technical Scholarship and the International Labor Organization. In the Philippines, you may explore courses offered by the Department of Trade and Industry and Department of Labor and Employment.

Last, establish, update, and maintain the skills matrix board. Every department should have this installed in their respective common areas. It must include the workers’ names, their job titles, their photographs, length of service, skills possessed, and other relevant information. The objective is to create a bandwagon effect and motivate everyone to join training programs.

LEARN, UNLEARN, AND RELEARN
Futurist Alvin Toffler (1928-2016) said: “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” Let this powerful quote be the centerpiece, if not a part of the training department’s vision, mission, and values.

This applies not only to you but to other departments as well. The strategies need not be elaborate but responsive to the individual needs of the workers and the general expectations of all department heads. This becomes tricky if some workers admit not having any career goals beyond receiving pay and perks, or if their managers don’t care.

If this happens, be conscious of other approaches like cross-training that could help change minds. Adjust and calibrate your programs to cater to specific needs, including those of workers in menial jobs. Chances are, you will be surprised to learn that they too can be motivated to look for meaningful and financially-rewarding work.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

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