It is easy for businesses to blame the education system. It may even be accurate for them to do so. However, it does little to solve the problem. If UK businesses are to improve the skill levels of their employees then they need to be prepared to train them. The evidence is that at present they fail to do this.
Almost half of all small companies carry out no formal staff training, according to recent research carried out by the independent Small Business Research Trust. Furthermore, according to the report, the smaller the business is, the less likely it is to offer any formal training. The survey found that only 40% of companies with nine or fewer staff provided formal training, compared to 69% of those with between 10 and 49 staff.
There are many reasons why small businesses are unwilling to invest in staff training. Most say they lack the time needed to research the options available, let alone the money to invest in the training itself. However, training does not have to be expensive, especially with the many government initiatives currently available. It does not even have to eat into valuable work hours. However, if the small business manager is to take advantage of this inexpensive, flexible training, he or she does need to put in the time and effort to find out about it.
Kirstie Donnelly, director of products and marketing at learndirect business, claims small business owners that fail to invest in training are damaging their company’s business prospects. “Although investing in training can be perceived as a significant expense, research has shown many tangible business benefits, including direct bottom-line impact,” she says. “It can help improve customer service, reduce operating costs, boost staff performance and increase business productivity.
“It can help you adhere to new business legislation quickly, and where the training relates to qualifications or certification it can also be a highly effective way of demonstrating that your business meets national or even international standards,” she adds. “Many studies have shown that training and development is a key staff retention tool, and with the costs of hiring and re-hiring staff on the increase, employee training can help cut that cost.”
Mike Campbell, development director of the Sector Skills development agency, agrees. “Between 1996 and 2002 the University of Kent researched 2,000 small companies. In that time 11% of those that did some staff training went out of business and 27% of those that did no training went out of business. So, in short, you are more than twice as likely to go out of business if you do no training,” he says.
Identifying your needs
For those that have made the decision to invest in training, the first step must always be to identify your objectives. Decide what results you want to achieve from this investment and the key skills you and your employees need to meet targets. It is, however, far from easy to determine those needs.
‘Between 1996 and 2002 the University of Kent researched 2,000 small companies. In that time 11% of those that did some staff training went out of business and 27% of those that did no training went out of business’
According to Russell Ward, sales director of training firm Silent Edge, technology is one way of doing this. His firm uses an electronic scorecard to measure staff’s core competencies and benchmark them against best practice. “This allows budget-conscious small businesses to identify individual training needs without having to bring in expensive consultants,” he says.
But while this type of kit may be useful, it is rarely an adequate replacement for an experienced professional sitting down with staff to identify their needs. Recognising this, the government has recently launched Train to Gain, a major nationwide initiative designed to encourage more businesses to invest in training. A core element of Train to Gain is its free diagnostic service, which involves a training broker visiting your premises to identify training needs.
Once you have decided on the type of training, you need to consider how that training will be delivered. One of the most common methods is to hire an external training consultant. Law firm Powells, for example, has 25 staff and when it decided it needed some formal management training it brought in training provider PES. “We needed to bring in experts who could tailor a course to our specific needs,” says Ian Shipton, a partner at the firm.
However, this is by no means the only method. Susanna Simpson, managing director of PR agency Limelight, recently introduced a new policy of bringing in practical experts to conduct training on very specific topics. “Training is an absolutely necessity for our performance,” she explains. “So in the last six months, we’ve had the marketing director of a major record label and the creative director of a top advertising agency come in to talk to us.
“We also run a drop-in clinic with a national newspaper journalist,” she adds. “I’ve found that the best training doesn’t always come from the professional trainers. It often comes from those who are experts in their field; professionals who are walking the walk as opposed to talking the talk.”
Learning from experience
With this in mind, it’s worth considering using the expertise you already have within your company, suggests Ray Welsh, sales and marketing director at digital marketing solutions provider Mailtrack. “To survive in this industry you need to be at the top of your game in terms of new technology and customer service,” he says. “So training is important to us. However, when we bring in external suppliers they cost between £700 and £1,200 per day. So we try to deliver as much as possible internally. Our staff pass on their skills and experience, particularly regarding new marketing techniques or technology that they have researched.”
Another option is e-learning. Over the past few years this has been growing in popularity among small firms, says Matthew Seldon, business development manager at e-learning provider Ecordia. “E-learning gives employees access to learning materials, work portfolios and guidance anywhere and at any time,” he explains. “It can be tailored to the individual’s needs, and support can happen in real-time. It also puts a stop to expensive training days out of the office. Small business managers should look to harness this technology to reduce training costs and help staff reach their full potential.”
Yet even with all of this practical and financial assistance, any small business manager who decides to embark on a serious training programme will find it is a major undertaking. There are many options and it will take time to find the one that is right for you.
But those companies that evaluate what they need and have a clear idea of why they are investing in staff training – rather than doing it as a selling point for new employees or to tick a few HR boxes – will benefit from a more capable, motivated and productive workforce.
You may even benefit personally. A recent survey by FreshMinds on behalf of the Learning and Skills Council found that around one in five small business managers fails to use their annual holiday allowance because their staff lack the skills to cope in their absence. If that sounds familiar, investing in training could allow you a well-deserved break.
