Over the last year, the number of firms reporting that the level of skill in the workforce is problematic has increased by more than ten per cent to 90 per cent, according to research by the Chartered Insurance Institute Third Annual Skills Survey.
Yet despite 70 per cent of employers experiencing a shortage of staff with the desired expertise, one in five are planning to reduce their spend on education and training.
UK skills secretary John Denham has noted that cutbacks in this area could be dangerous, as research shows companies that do not train are 2.5 times more likely to fail than those that do.
"A failure to train now will mean that when the economy begins to grow again we will not have the skilled workers we need to seize those opportunities that growth presents," he commented.
Yet some may suggest Britain's workforce is over-qualified. A recent survey by the Work Foundation found 40 per cent of employees possess more skills than their position requires.
PA expert in people and organisational change, Jonathon Hogg, comments:
"Today's businesses have to be flexible and responsive in the face of the recession, but wholesale cuts to training should be avoided as they will lead to real problems in the future.
"A skilled workforce means greater productivity. Good news for the company; good news for employees, and good news for the battered economy. It is vital that measures to reduce costs in workforce development are considered in the context that the economy will recover – possibly sooner than we may have imagined. Now is not the time to sacrifice the skills and dynamism of your workforce."
To find out more about how PA can support training and reskilling in your business, contact us now.