Skills are even more important during tough economic times, according to a report published on 21 January by the Confederation of British Industry.
In a major report the Confederation has highlighted how one employer has saved £5 million a year in reduced staff turnover by boosting skills.
The Confederation calls for stronger links between employers and further education colleges to help firms plug future skills gaps, drive up productivity and improve the prospects of British businesses in the face of the global downturn.
Although unemployment has risen sharply in recent months in the UK, more than half of British employers lack confidence in there being enough skilled people to meet future demand, the CBI stated. The importance of raising skill levels among those in work today is ‘paramount’, said Richard Lambert, Director-General of the CBI. ‘We need to see more businesses considering what colleges can offer, and thinking clearly about their own training needs. But we also need to see more colleges upping their game to match the good practice already in evidence around the country.’
The report contains examples of how employers and further education colleges can work effectively together to boost the skills base. These case studies include:
• Unilever, which consolidated most of its 50 apprenticeships in one programme with West Cheshire College to raise standards, despite training each apprentice costing the company up to £100,000.
• FirstGroup, whose UK Bus Division worked with West Nottinghamshire College to embed literacy, numeracy and English for speakers of other languages into its NVQs for bus drivers across the UK, and has saved £5 million a year in staff turnover by offering its new recruits on-the-job training.
• Marshall Aerospace, which outsourced administration and sourcing of funding for its apprenticeships to West Suffolk College to save time and money on an increasingly complex process.
Human capital analysis, which reveals the savings and business benefits such as those made by FirstGroup, is still a rare discipline among employers.
Reaching Further: Workforce development through employer-FE college partnership is published by the CBI. www.cbi.org.uk