Business investment in skills
Employers recognise their role in developing the skills of their staff and in collaborating with schools to achieve better educational outcomes
The latest CBI/EDI skills survey shows that two-fifths (41%) of firms are increasing their investment in training over the next year, while two thirds (67%) have built links with secondary schools.
It is in an employer's own interest to help their employees learn new skills. Investing in people improves staff morale and retention, attracts the best people to the organisation, and boosts productivity and performance.
Within this debate, the government is looking at how businesses can take greater responsibility for skills development and has already taken welcome measures to support employers on training - for example by increasing funding for apprenticeships. But ministers are also looking at potentially extending regulatory measures on training - through the extension of training levies or licences to practice schemes.
Employers will choose the learning route that best delivers the skills they need - whether on or off-the-job, or qualifications or non-qualifications based training. Our recent report, Business investment in skillssets out the good practice of employers on training, and shows that official data will often under-estimate the employer commitment to skills as it does not capture the large amounts of informal learning that takes place.
The CBI believes a voluntary approach by government to working with employers would be the most effective way to build on the business commitment to training. Voluntary solutions work in partnership with employers - understanding how businesses operate and further embedding skills within business processes. Extending training levies or licence to practice schemes would be costly and counter-productive. Our report recommends:
- Employers supporting each other on skills development
- Improving levels of leadership and management capability
- Greater use of Investors in People as a people development tool
- Campaigns that make clear the benefits to the employer and employee of skills development
- Further simplification of the skills system.
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