providing Labour Hire and Recruitment solutions
to find the right staff for your business
Let’s get people working together, together
Why numeracy and literacy testing is
good for everyone.
There are some basic skills that are critical for success – being able to read and write and count are
all core skills to get ahead in today’s world. But beyond being proficient, there are clearly some
people that are better with numbers than others.
According to recent research at Melbourne University, numeracy and literacy testing can be good for
your bank balance.
The latest Household, Income and Labour Dynamics in Australia (HILDA) survey was recently
released. The survey follows the same households since 2001.
Key findings
Though the HILDA survey is very comprehensive, results from the survey includes the following
interesting key findings:
•
Men and women who greatly improved their numeracy skills had a significant increase in
pay.
•
Improved literacy had a particular benefit in lifting the earnings for females by 14%.
•
Improved numeracy lifted the earnings for women by 15%.
•
For males moving from poor to excellent numeracy contributed to a substantial 39% increase
in earnings.
•
Interestingly, there was no significant impact of literacy evident for males.
Though many people often find testing a little threatening, it is only through regular testing that we
can establish those gaps in these core skills. The good news is that we can improve our numeracy
and literacy skills.
How do we define Literacy and Numeracy?
Literacy is the ability to understand use written
information. By assessing a person’s knowledge of the
language and their ability to communicate business
messages, it possible to determine their effectiveness and
likely job performance.
Numeracy is mathematical ability, and from a job
perspective it is the ability to apply basic math
knowledge.
Ph 0418 467 884 - Fax 02 8456 6051 - PO Box 286 MOSS VALE NSW 2577
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www.thinkrecruitment.com.au [email protected]
providing Labour Hire and Recruitment solutions
to find the right staff for your business
Let’s get people working together, together
Why is it impacting on earnings?
Strong and well-developed skills in numeracy and literacy are likely to positively impact on
employment and earnings outcomes. Let’s analyse this a bit further:
1. There is a direct correlation between employability and literacy and numeracy skills.
2. Increasingly a number of employers and recruiters are now using skills tests.
3. From an employment perspective those with higher literacy and numeracy skills are more
likely to be interviewed and employed.
4. Those with better literacy and numeracy skills are also likely to perform better, which may
result in further promotions and increased responsibility.
How literate are your employees?
According to a new Report (the National Workforce Literacy Project Report) by the Australian
Industry Group, based on a survey of 338 companies and roundtable discussions with another 58
employers, more than three in four employers in Australia are affected by low levels of literacy and
numeracy.
The consequences of this lack of skills are particularly concerning in two areas:
1. Impacting on workplace safety as poor skills are impacting on employees’ ability to read
standard operating procedures and follow safety instructions; and
2. Inability to perform some tasks to the necessary standard through poor email communication
and inappropriate language with other employees and customers.
Taking Action with Solutions
Nearly 40% of employers agreed they had a part to play in improving workplace literacy and
numeracy.
•
The first step is to identify those employees with development needs.
•
Skill development needs to be aligned with the specific needs of the individual.
•
Support needs to be provided by supervisors and other staff.
About one in three employers are addressing the problem with in-house training, such as short
courses on report and business writing, offering English as a second language training and rewriting
some materials to make them more accessible.
Ph 0418 467 884 - Fax 02 8456 6051 - PO Box 286 MOSS VALE NSW 2577
Page 2
www.thinkrecruitment.com.au [email protected]
providing Labour Hire and Recruitment solutions
to find the right staff for your business
Let’s get people working together, together
Recruitment Screening
There are significant consequences for companies in recruiting employees without adequate
numeracy and literacy skills. Only 8% of employers have adequate capacity to assist with the
improvement of literacy and numeracy skills.
The more likely solution for the majority employers will be to use literacy and numeracy tests to
assess the skills of prospective employees in the screening phase.
Job seekers will also benefit from improving their skills and not only improve their employment
opportunities, but also their earnings.
Ph 0418 467 884 - Fax 02 8456 6051 - PO Box 286 MOSS VALE NSW 2577
Page 3
www.thinkrecruitment.com.au [email protected]