The Tourism Skills Center in Iceland was established in 2017 to provide vocational training to small and medium enterprises (SMEs) in the tourism sector. It is financed by the Ministry of Industries and Innovation and aims to increase skills, profitability, and the performance of frontline staff through targeted training programs. The Center works directly with companies to develop customized training plans based on each company's goals around metrics like customer satisfaction, revenues, and employee retention. It then works with external training providers to deliver the training and evaluates the impact on company performance. Since launching in 2018, the Center has worked with over 120 small companies, signing over 40 contracts involving over 2,100 employees. While measurement can be challenging, this holistic and

1. Training processes in SMEs in
Iceland:
A holistic approach
Sveinn Aðalsteinsson
María Guðmundsdóttir
Tourism Skills Center Iceland
26 Feb. 2019

2. Investment in employees skills
• The Tourism Skills Center established 2017
• Financed by the Ministry of Industries and
Innovation
• Steering group – two ministries, social partners,
ETSC and Vakinn Quality System
• Hæfni.is
Focus on:
 Vocational training policy
 Marketing training with company managers
 Measuring results of training both for the
employer and employees
 Skills and profitability
 Training of front line staff
The Tourism Skills Center – founded due to need
26 Feb. 2019

3. How we approach companies:
- Smarter people for smarter businesses
• A model from New
Zealand builds it‘s
arguments for ROI
(Return on Investment) in
investing in staff skills
• Tourism Skills Center
Iceland works with
similar arguments
• Evaluate effects of
learning on company
operational parameters
(ROI)
• Direct marketing to
companies
Company
resources
Customer
satisfaction
Service valueCompany
revenues
Staff Skills
Wages
Career
development
26 Feb. 2019

4. How?
• Focus on training outcome/results
• Examine what the company wants to focus on
• Increased customer satisfaction?
• Increased revenues pr. employee?
• Increased job satisfaction – keep employees?
• Less staff turn-over?
• Changed behaviour of staff and middle-managers?
• Back-track to training:
26 Feb. 2018
Efficient
training –
change
behavior
Training by
external trainers
Training by
internal trainers
Electronic training
Measurable
Training
Outcome
We start here!

5. Training process and company performance
T0
T1
Training Need
Analysis:
1) Focus groups $$$
or
2) Survey $$
or
3) Meeting $
Training
Plan
Increased customer satisfaction?
Increased revenues pr. employee?
Increased job satisfaction?
Less staff turn-over?
Changed behaviour of staff and
middle-managers?
Training
provider
Benchmarking
Tourism Skills Center: System design and tools
Training provider: Implementation and data collection
Contract
Evaluation of
company
performance
External
course(s)
on-site
Internal
training:
on-site
iteration
Electronic
training:
iteration
External
course(s)
on-site
Evaluation of
company
performance
Decreased customer satisfaction
Decreased revenues pr employee
Decreased job satisfaction
High staff turn-over
Undesired behaviour of staff and
middle-managers
- marketing!
26 Feb. 2019
Counselling?Counselling?Counselling?

6. Does this approach work?
• Proactive marketing works
• Skills Center and Training providers in alliance
• During 2018, around 120 small companies have been visited:
• >40 contracts signed
• 72 companies (sometimes more than one company pr. contract – clusters)
• 2.100 employees involved
• 5 Training providers (now expanded to 8) active, nation-wide
• Usually well-met by the companies
• Performance indicators (measurements) are not always easy to use
• Training the Training providers takes more time than anticipated
• This approach can probably be used for SMEs in all sectors – but specific
„language“ must be used for each sector with knowledgeable „sellers“
• Don‘t sell courses – sell performance and profitability (ROI)
26 Feb. 2019

7. Thank you!
sveinn@frae.is
maria@saf.is
26 Feb. 2019