Training vital for success says British Chamber of Commerce

The British Chambers of Commerce (BCC) is calling on businesses of all sizes and in all sectors in the UK to invest in workforce training as a key driver for economic success and improved productivity performance.


By Seun Robert-Edomi

12 Nov 2014

Today the business group is publishing further findings from its 2014 Workforce Survey: Training and Skills, which show that an overwhelming majorityof firms (92 per cent) have identified a skills shortage among their workforce in at least one key competency. Results from the survey of nearly 3,000 businesses from across the UK suggest the most common skills shortages are leadership and management, planning and organisation, languages, computer literacy and creativity.

In order to address these skills gaps, most respondents (80 per cent) have indicated plans to invest in training their workforce over the next 12 months. The majority of businesses strongly agree (78 per cent) that training is worthy of investment as a driver for growth and improving productivity performance, with large businesses most likely to strongly agree (90 per cent). Four in ten firms (39 per cent) plan to invest more than £500 per employee in external training over the next year. However, the major barriers to training investment are: cost (50 per cent), freeing up staff to participate in training (31 per cent), and a lack of suitable courses (19 per cent).

Companies looking for guidance on appropriate training courses are turning to private training providers (71 per cent), sector based bodies (38 per cent) and further education colleges (35%) to source and deliver training.

Nora Senior, president of the BCC, said: “Businesses recognise that investing in training can drive higher productivity and increased profits. In addition to specialised training, however, our findings make it clear that investment in leadership and management skills are crucial to enhance strategic thinking, foster innovation and motivate a firm’s employees.

“It is good to see that most businesses are taking a proactive approach by investing in their existing workforce. Four in ten tell us they are planning to invest £500 or more per member of staff to address skills shortages. Yet we need far more companies to reach this level, which will only happen if we break down the barriers to investing in training.

“Long-standing complaints around the cost of training, a lack of suitable courses, and staff availability – since people are needed at the front line – remain important issues. To ensure that even more businesses can invest in training, which in turn will drive higher wages, we need to improve dialogue between firms and the organisations that offer training – so that companies find training that is relevant, cost-effective and a good fit with staff working hours.”

Companies report that communication skills (83 per cent), teamwork (82 per cent) and customer service (72 per cent) are important skills they look for when recruiting. Encouragingly, less than one in five firms report a shortage in these areas. Around a third (33 per cent) of businesses say they have a skills shortage in leadership and management and planning and organisation (26 per cent), which businesses recognise as core skills relating to commercial development. Firms also report a skills shortage in languages (35 per cent), computer literacy (23 per cent) and creativity (20 per cent).

The UK Commission for Employment and Skills (UKCES) welcomed the report. Lesley Giles, deputy director at UKCES, said: “Improving links between employers and providers of education and training can not only make sure that we address skills gaps and shortages; it can also ensure that the training on offer is exactly what’s needed.

“This issue is too important to be left to chance, and we join BCC in calling on employers, employer organisations, policy-makers and others to join forces and make sure we have the skilled workforce we need to compete, grow and prosper.”

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