"The nation that shows it can bring out the best in all its people will be the great success story of the global age." These are the words of Gordon Brown, which demonstrate that bringing the best out of a nation is just as challenging as getting the best out of a business.
With so many different options to consider, such as the products and services you offer to the staff that run it, getting the best out of your company is an ongoing challenge for all business leaders and entrepreneurs.
Deciding on where to begin is often determined more by time and budget than by priority. However, training is vital for all businesses and can give small firms in particular a significant competitive advantage. Not only will a more highly skilled and motivated workforce assist in securing new business, but a reputation for offering a comprehensive training programme will also attract ambitious new staff.
Undeniably, a more skilful workforce helps improve productivity, innovation and competitiveness and ultimately fosters long-term prosperity. Training will help a company run more efficiently and employees will also have better skills and be able to work closer together. Training will also increase the whole company's morale, as it demonstrates that all employees are valued and part of the business' long-term goals.
As the government pushes skills higher up its agenda, there are many opportunities that help companies make training a long-term and impactful investment, regardless of the business' size and training budget.
Mind the skills gap
Taking advantage of the many training options available is vital for reducing skills gaps in the workforce, which remain an important issue for businesses across the country. Research undertaken by the Learning and Skills Council (LSC) into 79,000 employers indicated that 15% of employers were experiencing skills gaps in their teams.
Importantly, skills gaps in small businesses are currently above the overall average at 23%, although this number has fallen dramatically from 56% in 1999. This compares favourably with the largest employers (500 or more staff) who report that skills gaps have actually increased since 2005, from 41% to 48%. Training will ensure this number continues to fall for small companies, helping to create a better workforce.
Knowing where to begin with training can often be the hardest part, but investing in training that will make a difference can be made easy. Train to Gain, for example, offers employers access to advice from an impartial skills broker who aims to encourage businesses and individuals to value and understand the benefits that learning and skills can bring, and invest appropriately.
One company that benefited from such training was the London-based publishing firm The Hardy Group. The small company has always been firmly committed to training but was able to develop and streamline a new business strategy resulting in a 44% per cent increase in turnover through Train to Gain. It also encouraged The Hardy Group to reassess its training and recruitment strategy.
Local skills broker Fay Cannings visited the business and undertook a full skills analysis. She suggested a range of sales, marketing and management courses to help employees build on their skills.
First to benefit was marketing account manager Jennifer Allen, who opted to do a one-day project management course. Allen says the training she received increased her confidence, gave her new ideas and enabled her to pass on the knowledge she'd gained to other employees. She subsequently completed a post-graduate diploma with the Chartered Institute of Marketing, which helped her secure a recent promotion.
The importance of training to small businesses is further highlighted by a recent evaluation of Train to Gain undertaken by the LSC. The smallest employers were the most likely to note improvements in competitiveness, with 73% citing this as a benefit.
Learning the trade
Another way small businesses can really boost their skills levels is through apprenticeships, which offer employees the chance to gain new skills on the job.
When training budgets are limited, apprentices can provide a cost-effective approach, as well as a source of talented and motivated staff who can make a real impact on your business. Training your own staff can lead to substantial savings when compared to recruitment costs, which are often high.
Apprenticeships can be particularly valuable for small firms: in an independent survey of organisations that employ apprentices, conducted on behalf of the LSC, 80% felt their apprenticeship programme had made them more competitive.
Additionally, 70% believed apprenticeships led to higher productivity, while 86% of small company employers relied on their apprenticeship programme to provide the skilled workers they needed for the future.
An investment now can pay huge dividends in the future. The same survey reported that nearly two-thirds (63%) of respondents found that training apprentices was more cost-effective than hiring skilled staff, with 61% believing it led to lower overall training costs, and more than half feeling that using apprentices reduced recruitment costs.
Beyond this, there are a number of other ways in which leaders can make a commitment to training which is beneficial for their business. There are many viable solutions available that will provide long-term gains. From joining the relevant sector's National Skills Academy to making the Skills Pledge, training possibilities are available for all businesses.
We all need better skills, now more than ever before, and the opportunities to get involved are endless. Invest in training and drive your business forward to a brighter future.
Paul Holme is director of skills for employers at the Learning and Skills Council
