There is no need to doubt the quality and value of any product that is labelled as ‘Made in Germany’. German products, whether they are cars, equipment, medicine, or services, might have varying prices, but the one thing they have in common is that customer satisfaction is always guaranteed.
Such quality is established and maintained through many factors including technology, material, and, most importantly, skills of German people. The high quality of skills is keeping Germany’s unemployment rate at 6.0 percent and youth unemployment rate at 7.2 percent today. In comparison, the unemployment rate for those under 25 is 54 percent in Spain, 44 percent in Italy, and 24 percent in France as of 2014.
The high quality of skills also allows almost every German made product to be sold on global market. It shows that German companies are able to compete internationally. Although those companies manufacture their products abroad, a certain percentage of products are always made domestically, the secret of which lies in the particular set of skills a German worker possesses.
Talented German engineers and highly qualified assemblers are said to be irreplaceable. German workers are highly skilled and can guarantee quality execution. Therefore, they are paid handsomely and have an important place in society,
FOSTERING SKILLS
The manner Germans prepare their workforce is completely different than ours. In Germany, vocational education is provided by the government in cooperation with employers. Specialized universities offer classroom education and vocational trainings whereas employers provide on-the-job practice allowing the opportunity to work with their own equipment. The young students establish a contract with the employer that they will come and work for them after receiving trainings for 3-3.5 years and acquiring a professional license. The employer gives scholarship to the students during their school years.
In Mongolia, vocation education is provided by public universities and private institutions while there is no involvement whatsoever from economic entities. The students start seeking employment only after they are graduated. When public universities are required to find jobs for their graduates, it reduces the sense of responsibility of young people. It means that a German hunter aims before shooting while a Mongolian one shoots at the sky and hopes the bullet finds its target.
Mongolia’s 76 vocational education and training schools are referred to as ‘Vocational Training and Production Center (VTPC)’. One third of our VTPCs are private institutions and the rest are managed by the government. Also, 32 VTPCs are located in the capital city and the others are in the countryside. In 2014, the total number of VTPC students was around 42,000, 10,000 of which went to private institutions whereas the rest enrolled in public ones.
One third of the total of 38,000 university/college graduates and 40 percent of the total of 18,000 VTPC graduates found a job in their first year after finishing school.
Although thousands of young people with diplomas and certificates are added to the workforce every year, it is informed that Mongolia’s unemployment rate is 34,000. Also, it is reported that approximately 9,000 expatriates come to work in Mongolia each year. However, around 30,000 Chineses and North Koreans have been working here. Employers value them saying that they get paid less than Mongolians do and have better skills and discipline.
Germany has a special system where vocational education is provided by the cooperation between the government and the private sector. Every business is interested in turning their workplace into an environment where vocational training is practiced. Most businesses are small or medium enterprises and often are family businesses. Therefore, established companies pay special attention to their human resources and have a strong interest to foster skills from the beginning. One can complete the next stage of vocational education and become a master. A permit for business is only given to a master who has developed higher skills. Such permits are required because it is viewed that, if anyone can do any business they want, it will diminish the reputation of ‘Made in Germany’ brand. A loan for master’s program is provided by a development bank partly owned by the government. If a loanee establishes a business, creates jobs, and provides employment after graduation, one third of the loan is waived. This is a good, targeted education system.
Every business in Germany is required to be a member of a chamber, which gives all kinds of benefits. The chamber oversees the quality of vocation education offered by economic entities. As an outcome of this system that promotes vocational education and skills, the government involvement in business has been heavily reduced. It makes it implausible for government officials to do business and be in a situation where there is a conflict of interest.
PROMISING STARTS
In recent years, there have been certain initiatives implemented to improve the skills of graduates from public and private vocational education institutions. Also, some attention is directed to the lack of full vocational training curriculum for middle aged people with no profession looking for jobs. It is viewed that creating jobs is the best way to fight poverty.
It is a good foundation that a vocational education and training project based on partnership was commenced by Ministry of Labor with cooperation of the German government. Furthermore, initiatives for vocational training on areas such as electricity, construction, plumbing, heating and ventilation have started in western and southern provinces, Darkhan and Gobi Sumber aimags and Ulaanbaatar. It would be more efficient if this type of training is given through cooperation between the government and businesses.
This system where vocation training is jointly managed by the government and businesses is beneficial to both parties. The government does not need to invest in high cost equipment for training, but prepares highly skilled workforce. It creates a social group that receives good pay, stable income, and has strong purchasing power. As a result, customer satisfaction is increased and private businesses have better competitiveness and improved productivity. It expands the tax base for the government.
The private sector makes up for its spending on vocational education by improvement in productivity and ensures a skilled line of workforce. It contributes to strengthening corporate social responsibility and improving the quality of products. It is time that Mongolian government and the private sector cooperated to manage technical and vocational education.
2015.03.18