In some instances, businesses have announced a freeze on recruitment, with increased emphasis being placed on the retention and development of core personnel. However, potential skills gaps created by limited recruitment cannot always be filled by existing employees, particularly where a specific project is concerned, such as new product development or technical innovation.
The benefits of tapping into the UK knowledge economy are becoming increasingly well recognised. Indeed, a new report, published by the Confederation of British Industry (CBI) last month, calls for closer links between businesses and further education (FE) colleges as a way of meeting future skills demands.
The Knowledge Transfer Partnership (KTP) programme is advising all businesses to consider higher education collaboration as a channel to workforce development and driving forward innovation.
Final reports from completed KTP partnerships reveal that 91% of companies feel they have benefited through development of existing staff, who often learn new skills by working with the Associate and university. Last year, as many as 1,450 new jobs were created (aside from the recruitment KTP Associates), and over 10,500 company staff were trained through the programme.
One company that has benefited through collaborating on a KTP project is Gower Business Systems Ltd (GBS). The company specialises in providing customer solutions to everyday business problems, whether that be the simple installation of a PC and word processor, or more sophisticated multi-user accounting systems.
The firm partnered with the Department of Innovation and Business Development at Gorseinon College on a KTP project to develop a detailed marketing function that would lead to the production and implementation of a company wide marketing strategy and campaign.
The benefits of tapping into the UK knowledge economy are becoming increasingly well recognised
Through the project the company received considerable market intelligence that allowed the firm to enter new markets, as well as develop new products and services for its traditional markets. As a result of the partnership, the company exceeded their expectations and gained additional commercial benefits above those originally anticipated.
In particular, they recognised a major opportunity to advance their software with the introduction of Digital Dictation and Voice Recognition services that are unique to South Wales. It was a direct result of the market research gathered through the project that initiated the product development and subsequently became a significant part of the company's portfolio.
However, product development and new market entry were far from the only outcomes of the project. The company's existing workforce benefitted through training and as such, the quality of customer service was significantly improved. This in turn led to an upsurge in referral sales and ultimately, revenue.
Mark Wyatt, Gower Business Managing Director, commented; "As a result of this specific project, the company has widened its sales portfolio and staff learned invaluable new skills. The fact that the company has recently started another Associate on a different project, shows how successful the KTP programme has been."
The project resulted in a significant increase in company turnover as a result of embedding a marketing function throughout the business. Furthermore, the lasting effects of the new marketing approach has helped build a strong workforce and enable existing staff to gain new knowledge and skills by working in collaboration with the Associate.
Such was the success of the project, that it received national recognition at the Knowledge Transfer Partnerships Awards in 2008. This year's Awards scheme, which takes place on 5th March, will once again recognise those partnerships which have benefited from particularly successful collaborations.
For further information visit www.ktponline.org.uk
