Finding the skills to profit

By Leslie Goodman
Employee Engagement Unit
Department for Education and Skills

Finding the right training could be vital for your business success. BBC News Online provides a few pointers for gaining access to government-sponsored training opportunities.

What are my training needs?

Research by the Institute of Fiscal Studies reveals that a 5% increase in training delivers a 4% increase in labour productivity.

The government sees increasing the nation's qualifications and skills as vital to sustainable development and wealth creation.

And small and medium enterprises (SMEs) are a key target because, in the words of the Confederation of British Industry, 'they form the backbone of the UK economy'.

But the increasing number of training courses and government initiatives can cause confusion for businesses looking to up-skill their workforce.

Here are some pointers to helping small firms find the training package they need to boost their profits.

What training is needed?

Small companies often know what skills their business needs.

Sometimes it is their bank manager, accountant or a similar business adviser who points out a training shortfall.

And if they don't, a good first step is to go back to your business plan and see what skills are needed to increase profitability.

Another way of finding out what is needed is the Investors in People standard, where professionals with a broad business background will assess your business for around £500 per day.

Help is also available both locally, regionally and sometimes nationally.

At a local level, Learning and Skills Councils will be happy to advise, as will the Regional Development Agencies.

The Skills Alliance and Regional Skills Partnerships will also be established shortly to provide businesses with further support.

They aim to help businesses find the training they need with the help of regional development agencies such as the Small Business Service, Jobcentre Plus and the Skills for Business Network.

The regional skills partnerships will be publishing training guides next year to ensure that people in business have clear information on the quality of training available in their area.

What training options are available?

Sending staff on a training course seems to be the easiest and simplest way of resolving a skills deficit.

However, there are other options:

• Using a consultant or training provider to train in-house, tailoring provision to your business' needs

• Sending one person for training and using them to cascade skills to remaining staff

• Using existing skills within the business to upgrade skills

• On-line learning or distance learning via, for example, the National Grid for Learning and Learndirect

• Secondment or loan to a business with the skills you require, which you can organise through your local Chamber of Commerce or Business Link

• Local Further or Higher Education courses tailored to your business needs

• Provision through business networks such as local Learning Skills Council, the Small Business Service, Trade Associations, Sector Skills Councils, Chambers of Commerce, or Business Link

• Advice from intermediaries such as bank managers and accountants.

For basic literacy, language and numeracy needs, employers can use the Department for Education and Skills' Employer Toolkit.

This can be ordered free and includes techniques for identifying literacy and numeracy needs and recommendations on developing the most appropriate training and resources for your workplace.

Choosing the best training option

Deciding exactly what you need is an obvious starting point, but it is important to assess the training available.

Points to consider when choosing the best option include:

• Is it fit for purpose?

• Is it cost effective, i.e. will it raise profitability in the long-term?

• Is it at a time and place that meets business needs; remembering that the business is the customer?

• Can you share training costs with other similar businesses?

• Is it free? (For example, Basic Skills training)

It could be helpful to ask advice on these matters from local trade associations, skills councils, or Business Link.

Available financial support

The UK government supports businesses financially across a range of issues.

Foremost is support for education and training, because delivering the skills and knowledge required for both the current and future workforce is key to the delivery of government polices not just in education and skills, but for the wider social and economic agenda.

Funding is an ever-changing area, as there are always new schemes or sources of funding being introduced for different sectors.

To get an up to date snapshot of what is on offer, the Department of Trade and Industry's small business service, local chambers of commerce, local learning skills councils, and the government's Business Link service can all be helpful.