Thailand Companies: How Investing in Staff Training Can Save You Money

2020/09/29
Category:Business

As the global COVID-19 pandemic shows few signs of disappearing or being beaten, businesses worldwide are suffering, and Thailand is no exception - indeed, with its large number of international companies and its reliance on tourism, the Land of Smiles is struggling more than most. 


Obviously, cutting costs is essential if businesses are going to survive this crisis and be ready for the ultimately inevitable recovery. And whilst this may seem somewhat counter-intuitive, one way companies can do this is by investing in staff training. But surely that means spending MORE money, right? Not necessarily! Here’s how businesses in Thailand can actually save money by investing in staff training, whilst simultaneously improving their workforce and making the most of their staff’s downtime. 



Tax Breaks with the Skills Development Fund

You may not know it, but if your company employs at least 100 people, then the Thai government’s Skills Development Promotion Act, which came into law in 2002, legally requires you to provide annual training for at least 50% of your workforce, and submit evidence to the Skills Development Fund. Companies failing to do so could be subject to fines - so by not investing in training, you could actually be losing money!


The Skills Development Fund gives companies plenty of flexibility when it comes to organising their training. You can do training in-house, using either your own company trainers or by hiring professionals to come to your office; or you can send your staff to public training organisations such as colleges or professional training centres. 



Make Sure Your Training Meets the Criteria

The Skills Development Fund gives companies plenty of flexibility when it comes to organising their training. You can do training in-house, using either your own company trainers or by hiring professionals to come to your office; or you can send your staff to public training organisations such as colleges or professional training centres. 


Whichever option you choose, the training should meet the following criteria:


- It should teach employees new ideas and skills, or enhance existing skills, to help them work more effectively in their respective fields.


- The content and purpose of the training should be relevant to the company’s field of business.


- The duration of the training should correspond to the content, and should be at least six hours.


- There should be a maximum of 50 attendees per session.


Once the training is completed, you need to submit the relevant information and documentation including course content, trainer profiles and attendee list, to the Skills Development Fund for their approval. 


The Benefits of Staff Training

The advantages of using the Skills Development Fund are twofold. Firstly, employers not only avoid fines for neglecting to train their workforce, but they can also make money by benefiting from the tax deductions associated with training investment. And secondly, they benefit from having a more capable workforce with new skills, and which is more motivated - free training is considered a benefit by most employees and helps drive motivation and loyalty. And of course with business very slow for many companies, now is the perfect time to train staff - ‘we’re too busy’ is no longer an excuse!



So even though times may be hard and budgets tight, it’s not only possible to still train your staff, in some cases it’s a legal obligation and one that could even make you money! If you don’t have in-house training professionals, contact a training company to discuss your requirements and goals. 


To find out how Pasona can help train your workforce, please contact us today