Why skilled Labor is Highly Priced?

The value of skilled labor is very high. Businessmen want professionals and those who have requisite skills to perform a particular task. A well-trained staff will perform well. Good performance means high profits.

An employee acquires necessary skills before taking up a job. He or she attends college or professional institutions to equip him or herself required skills. A prospective employer expects a job applicant to be well versed in his or her area of work.

Professional is the trademark of any work these days, except those which are routinely performed and do not require any specific skills. Most professions and jobs require skilled people.

Is skilled labor essential for an employer?

Any employer would like to recruit the best staff available in the market in case he so she wants a higher rate of production. Naturally, he or she would prefer a staff that is well qualified and possess requisite training.

Young people who are on the lookout for jobs ensure that they are trained in a specific task, be it engineering, medical, nursing or in case they work as stenographers. Even those who may have graduated with high qualifications tend to acquire more skills in order to make sure that they fit well into the job requirements. An engineering graduate, for example, prefers to do an MBA as his or her job market value is higher.

Parents send their children to the best of institutions to ensure that they are trained well in their respective fields. This allows the youngster to draw a higher pay package. Also since competition is stiff these days, it is necessary to ensure that one is well versed with all the necessary skills.

Advantages of skilled labor

• Higher turnover, in terms of production.
• Well educated staff.
• Higher profits.
• Greater initiative to perform well since professionalism is valued.
• Can handle specific tasks.
• Easy to deal with for manager as he or she can delegate work better.
• Can cope up with competition.

Disadvantages of skilled labor

• Very expensive for the employer as he or she has to pay more.
• An employee is limited to his or her area of work. Cannot be multi-tasking.
• Difficult to get trained staff.
• Substitution of staff maybe difficult, in case a particular staff member is absent.

Skilled labor is much valued in the job market. Entrepreneurs select candidates for various posts based on their qualifications and educational background. They prefer a well trained staff.