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.
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:
- There is a direct correlation between employability and literacy and numeracy skills.
- Increasingly a number of employers and recruiters are now using skills tests.
- From an employment perspective those with higher literacy and numeracy skills are more likely to be interviewed and employed.
- 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:
Impacting on workplace safety as poor skills are impacting on employees’ ability to read standard operating procedures and follow safety instructions; and 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.
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 test and numeracy tests to assess the skills of prospective employees in the screening phase. Job seekers will also benefit from improving their literacy and not only improve their employment opportunities, but also their earnings.
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