Using Pay-for-Performance to Incentivize Manufacturing SMEs to Promote Active, Continuous Training (Pay-for-Performance IMPACT) - SRDC

Using Pay-for-Performance to Incentivize Manufacturing SMEs to Promote Active, Continuous Training (Pay-for-Performance IMPACT)

This project examines several key questions related to the effectiveness of a pay-for-performance (PFP) funding model in facilitating and incentivizing small- and medium-sized enterprise (SME) investment in workplace training. We use a mixed methods data collection approach to better understand how PFP funding could influence employer training decisions and supports, and resulting training outcomes. One key question is whether and how a PFP model could mitigate the risks, uncertainties, and opportunity costs associated with workplace training by providing SMEs with a structure to link their behaviour and decisions with tangible outcomes. Another important consideration is whether a PFP approach could help SMEs develop and implement more equitable and inclusive training strategies, suitable for employees from various backgrounds, learning preferences, and skill levels. Finally, we explore sustainability and scalability, by asking whether the PFP approach could be a viable long-term solution for encouraging SMEs to take a lead role in addressing Canada’s broader productivity challenges.

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