Vocational Skills Development and Organisational Productivity in Southwest Nigeria

Abstract

The study investigates the influence of vocational skills development on organisational productivity. Specifically, the study explores the influence of digital skill, hard skill, soft skill, and technical skill development on manufacturing companies’ productivity in Southwest, Nigeria. Using Structural Equation Modelling (SEM) and SMARTPLS 4, a quantitative research method was employed to determine and interpret the effects of Digital Skill Development, Hard Skill Development, Soft Skill Development, and Technical Skill Development on manufacturing companies’ Productivity as perceived by the respondents. The study surveyed three hundred and two employees (both junior and senior) from ten selected manufacturing companies in Southwest Nigeria, using a judgmental sampling technique to ensure that firms with significant backgrounds in manufacturing were selected. Four hypotheses were tested, and the results showed that Digital Skill Development, Hard Skill Development, Soft Skill Development, and Technical Skill Development had significant effect on manufacturing companies’ Productivity. The study concludes that vocational skills development (Digital Skill Development, Hard Skill Development, Soft Skill Development, and Technical Skill Development) significantly influenced organisational productivity in Southwest Nigeria. Therefore, manufacturing companies should invest heavily in vocational skills training programs to ensure employees remain competitive in an increasingly digitalized workplace. While digital skills hold the strongest impact, manufacturing companies should also emphasize hard, soft, and technical skills to achieve a comprehensive skillset among employees.