Skills training – an advantage for ambitious
companies

Cardinal Logistics and Stevenson Group are two ambitious companies
taking advantage of literacy training for very different reasons.

Cardinal Logistics chief executive Tony Gorton

Cardinal Logistics is a specialist third party logistics and distribution service provider based in Auckland and Christchurch. More than 100 people work for Cardinal. They store, pick, pack and transport goods for 50 clients nationwide. Approximately 70% speak English as a foreign language, with many staff born in Samoa.

CEO Tony Gorton decided to invest more time and money into upskilling his people in 2009, as the 18-year-old company began a period of rapid growth. “I could see our people were hard-working and talented in many areas, but they were also making mistakes, their productivity was low, and many struggled with communication,” he says.

A part-time HR manager was hired who surveyed staff, assessed workers’ skills, and completely revamped the company’s vision and values. Together they implemented a programme called Fish! to build teamwork and inspire and motivate staff.

Next came onsite training in reading, writing, maths and communication, partly funded through the Tertiary Education Commission’s Workplace Literacy Fund and provided by Workbase. Last year a method for continuous improvement – lean manufacturing – was introduced. “We’d just won a significant contract,” Mr Gorton explains. “We needed a new warehouse and had to employ a lot of new people. I quickly saw the need to do things differently – and fast – to keep up.”

Best move ever made

Investing in training is one of the best business moves he’s made, Mr Gorton says – in less than two years, he’s seen a 50–70% decrease in picking, receipting and documentation errors. Health and safety compliance is up. Absenteeism is down.

Cardinal customers are happier too. Phone orders are handled better and orders processed more accurately. Productivity overall has increased.

Cardinal’s business outlook is very different today. Company data shows employees’ literacy skills have improved. Staff have the confidence and skills to do their jobs better. Many are going on to complete industry-based qualifications in warehousing, distribution and management. Staff morale and engagement are also up – managers say they are more willing to speak up in meetings and contribute their ideas.

“We’re giving training 100% – and we’re seeing the rewards,” Mr Gorton says. “Training gives you a triple dose of the good stuff. It’s good for me and my business, it’s good for my people, and it’s great for my customers.”

Boosting skills

Stevenson Group (Stevenson) ran its first-ever literacy programme in 2010. Stevenson provides a range of services and products to the quarrying, mining and related sectors. It has four main business units (quarrying, mining, concrete and engineering), as well as interests in the agriculture and property sectors.

The century-old company took up literacy training to boost the reading, writing, maths and oral communication skills of 53 workers. It also wanted to strengthen workers’ self and organisational awareness. Their training programme, Stepping Up Together, was provided by The Learning Wave.

Chief executive Mark Franklin explains: “We’re a large, well-established family company. Our strategy for the future is about remaining a family business, with family values and working together as a family – this has always been the company’s focus.

“But it was time to get back to basics. First and foremost, we felt it vital any workplace literacy programme should help us deliver on this strategy and articulate our company values.”

Second phase

A year on, Stevenson managers and supervisors say teamwork and communication have improved. Employees are more confident – they question and solve problems more readily, and relate better to their colleagues.

The company now wants to roll out the programme to more employees, as well as develop a second phase. “We can now clearly see literacy training has the potential to positively influence our bottom line,” Mr Franklin says.

“All our people need to know the basics well. They need the ability to communicate confidently with each other, work as part of a team and keep their mates safe on the job. They also need the skills to deal with the necessary paperwork and instructions required for their roles.

“With these things sorted, they can contribute to improving productivity, adapt to changes in the workplace, avoid potentially dangerous situations, and learn new skills and practices more easily,” he concludes.

Skills Highway Award

Both Cardinal Logistics and Stevenson Group are in the running for this year’s Skills Highway Award – an award for boosting workplace literacy and numeracy skills through training.

The winner will be announced at an awards dinner in Auckland on 25 August.

The Skills Highway Award is sponsored by the Department of Labour as part of the Equal Employment Opportunities Trust’s Work & Life Awards.

For further information on the Skills Highway, visit www.skillshighway. govt.nz; for further information on the EEO Trust Awards, visit www.eeotrust.org.nz/awards