As businesses continue to cope with an ever-changing marketplace, skills and training become increasingly important. The ability to upskill staff on short notice is no longer a luxury; it’s a necessity in order to stay competitive and drive long-term success.
To that end, many businesses are investing in training, certifications, and other programs as part of their talent development strategy. However, the costs associated with these initiatives can often be prohibitively high. As such, companies must find cost-effective ways to fund their training programs while still remaining profitable.
To get you started on your journey towards the right funding model for your company’s unique needs, we’ve compiled throughout this helpful article a list of potential options for your business.
Training and Development Funds
The purpose of the new draft labor law is to establish the principle of linking wages to production in order to balance and compensate the two parties’ interests, reassure national and foreign investors, and motivate workers to work as hard as they can. This was finally decided by the Senate.
The draft law describes the establishment of a fund for training and rehabilitation, its national scope, and its duties to finance the training process and develop human resources and skills. In addition to establishing, supporting, developing, and modernizing training centers, for example, the national infrastructure of the training process as a whole is developed by this law.
The training process is characterized by the establishment of training programs, etc., and the conditions and rules must be followed in the training process, whether the technology or infrastructure aspects of the training process are concerned, and follow-up and evaluation of the programs funded by the fund are required.
The National Commission for Human Resources and Skills Development is the coordinating entity.
Training and Qualification Fund’s resources program
The draft Labor Law, Article 19 defines the Training and Qualification Fund’s resources as follows:
One-quarter of the social insurance contributions for public sector establishments, public business enterprises, and private companies employing 30 or more employees (minimum five pounds, maximum 50 pounds per employee), will be collected by the company in exchange for the services provided in the preceding article.
The percentage is collected in accordance with the non-cash payment method law.
The fund’s board of directors may accept subsidies, donations, and gifts in accordance with the rules set forth in the articles of association in accordance with the law.
The Central Bank of Egypt keeps track of the fund’s resources and its investment returns, and the fund has a special account at one of the commercial banks.
Each year, the fund submits a financial statement to the Central Auditing Organization, which maintains control of the fund’s resources, and the money is carried over from one year to the next.
Workers employed in local administration units, public bodies, domestic service jobs, and other non-private sector companies are excluded from the provisions of the draft labor law.
Conclusion
It’s important to choose a funding model that works with your specific business model, as well as your company’s long-term goals. Only then will you be able to ensure the financial sustainability of your company’s training programs.
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