KATHMANDU, Nepal – Firms, specially run under private ownerships, are not getting as much as their capacity, thanks to the apathy of such organization towards capacity building of their staffers that hampers the performance.
A study conducted recently by the National Banking Training Institute (NBTI) revealed that firms are spending too little on employee training ‘due to lack of awareness on the value of human capital’.
International firms, on average, spend around seven per cent to eight per cent of their total employee expenses, including salary, allowance and benefits, on training per year, NBTI CEO Sanjib Subba said during the conference titled Third National Human Resource Conference organized by the Human Resources Society Nepal in Kathmandu Monday.
One of the reasons for low spending on employee training, according to experts, was lack of awareness on the value of human capital and infancy of human resources (HR) departments at private firms.
“Many firms here do not have HR department and even those that have are busy doing works like preparing salary lists, which actually could be outsourced. So officials in these departments do not have time for innovation, which can add value and support the company’s growth,” Subba said.
“Also, firms are more concerned about cutting cost. And they do so without considering the value that trained staff members can bring to the organization,” experts at the programme said.
Improving the networking between top level management and employees besides developing technology to receive the maximum returns out of human capital, they urged.