Could you afford to lose 44% of your workforce?

31/07/2008

A new survey has revealed that 19% of people in work are actively looking for a new job and a further 25% are considering a change; making a staggering 44% who might be on the move*.

According to a study by recruitment consultants Angela Mortimer, the average cost of recruitment is £5,000 per employee. It therefore makes financial sense to develop a team of loyal, motivated and productive staff rather than accepting a high turnover of disengaged employees and having to invest heavily in recruitment, just to maintain basic staff levels.

Claire Lister is managing director of Pitman Training Group, one of the UK’s leading business and IT skills training companies; “There is strong evidence to show that training improves efficiency, productivity, staff morale and reliability – as well as increasing loyalty,” she says. “ We have 100 training centres across the UK and Ireland and our centre managers work with many businesses in their local areas. We carried out an online survey around the country to find out if people are happy and motivated by their current jobs.

Claire continues; “By finding out what ambitions staff have and demonstrating belief in their potential, employers are often rewarded with a far more loyal, motivated and effective work-force.”

As well as improving their efficiency and building their loyalty, training also helps people gain self confidence. Developing new skills often helps individuals to see that they can achieve far more than they thought possible. As well as whole raft of practical, work-focused skills which will be of value to their employer, they often take this new-found confidence and enthusiasm back to the work-place with them.

For many years, skills development has been acknowledged as a vital part of the UK’s economic strategy for remaining competitive. In 2004 the government commissioned Lord Leitch to examine the UK’s long-term skills needs and his report published in 2006, examined the UK's long-term skills needs and set out ambitious goals for skills development, to be achieved by 2020. But what about 2008? Is the skills gap really a significant issue for businesses when they have a potential recession to worry about?

“There is an unquestionable link between skills and economic success however when times are tough financially, the HR department is often the first area within a company which is looked to for proof that it is running efficiently,” Claire Lister continues.

But despite the obvious benefits, employers need to be sure that training offers tangible value to their business. Whilst many managers agree strongly that development of staff is important, very few organisations can afford to put money into training if they are not confident that it will have direct benefits for their business.

Claire Lister continues; “Today’s employers are looking for training solutions which are fit for purpose, flexible, professional and good value for money. Most importantly, at the end of the training course, the individual should have a multitude of new skills and the confidence to use these to add value in the workplace.”

“If the UK is to reach the targets set by Lord Leitch by 2020, we need to look at skills development in its widest sense – from individuals taking responsibility for their own development to organisations investing in their staff,” comments Claire. “If businesses and individuals in the UK want to thrive in the current economic climate then I believe that the importance of skills and training should not be overlooked.”

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