Why investing in skills can help your business bank its growth potential

Most businesses admit to having significant problems with people – whether it is finding candidates with the right skills, attracting them to the business, or keeping hold of them once they have joined.

The battle for talent has proven to be one of the biggest brakes on business growth. Either momentum is stalled by key individuals leaving or the company’s capacity is constrained by not being able to hire the right people and grow.

Skills training plays a crucial role in an employer being and staying attractive.

Current employees can feel they are being invested in and can be being prepared for their next role with the company.

For potential employees, the opportunity for learning and development can be an attractive part of a job offer and provides a positive insight into the culture of a company.

“There is a direct link between skill shortages and staff retention,” said Rob Shaw, managing director of Sheffield-based Glu Recruitment.

“In some instances, you wouldn’t have skill shortages in your organisation had your best people not left.”

Speaking at a round table discussion on skills, sponsored by Sheffield City Region LEP’s Skills Bank programme and hosted by Doncaster Sheffield Airport, Shaw highlighted a common mistake employers make.

He said: “In a recruitment agency I see jobseekers every day who are unhappy and want to leave. Training is one of the reasons for them wanting to leave: ‘I don’t feel invested in, I don’t feel valued. I don’t know my progression path’.

“People change and their lives change. Maybe training wasn’t a thing for them when they first joined the organisation or perhaps 12 months in that is important now because they want to get to the next stage.

“Employers sometimes get it wrong in not closely speaking to that person and reviewing that person enough.”

Training can also be key in keeping people in the business, by tieing them in for a period of time and creating a clearer pay structure.

Melanie Oldham, chief executive of Bob’s Business, finds it to be a useful tool to provide more stability with her workforce.

She said: “We do have a process where we’re constantly looking at when they finish one qualification what can the next one be. That’s predominantly about retaining people, because we have a clause in our contract that if they finish with us before they complete the training, then they have to pay that back.

“It gives us the stability that we don’t get that hopping around that can happen.

“I’m also trying – and I wish I’d done it a bit in the early days before we’d grown – to tie in qualifications and experience to what we pay, rather than people coming in and saying ‘I want this’. Obviously very quickly, you’ve got pay all over the place and it’s not consistent.

“Instead, saying ‘if you come in and you do qualifications, and you meet your KPIs, and you’ve got the level of experience, then we can justify the higher pay’.”

The longer-term thinking is also important for management. Keepmoat Homes employs a significant number of apprentices but still needs to work hard throughout the business to ensure everyone delivers and appreciates the value.

Keepmoat’s HR project manager Aleksandar Stojkovic said: “Apprentices are a long term investment, and there can be a perception on the front line that they can be very high maintenance. They need a lot of support, which is important, around onboarding but ongoing support as well.

“It’s good if it’s on a structured programme, such as a five-year part-time apprenticeship degree. That’s great for the individual, we expect a return on investment as well.

“We have policies around clawbacks to focus the mind as well. But it’s still very challenging and some will inevitably move on.”

Natalie Buckley, left

Natalie Buckley, head of HR at Synetiq, spent eight years at First Direct earlier in her career and saw how successful that use of training was in creating a structure for retention and reward.

“They had a continuous training programme, which was bespoke depending on which role you were saying, they would reward you for the achievement of the completion of the training, and for performance in the role as well,” she said.

“They would also over-reward you for any over-and-above you did in terms of sales and achievements. That really seemed to work. I’d love to bring some of that best practice into our industry.”

The Skills Bank programme in Sheffield City Region wants to get more employers using best practice in their businesses.

It utilises skills advisors who go out and understand the whole organisation’s needs and ambitions – and how training can have a measurable impact.

Krysia Wooffinden, assistant director for skills and employment at the Sheffield City Region, said: “If it is that you’ve got high attrition rates in terms of staff leaving, it is understanding how can an investment in skills counteract that.

“And, if you want to move into a different market, do you have the skills in your business to move into that market? Or if your competitors are doing something that you can’t, who do you need to upskill? Skillsbank is available for you to do that.”

From the start, the Skills Bank programme is focused on the business growth it delivers and it will be measuring the impact and value of the investment.

Wooffinden added: “We are going back in two years to say, well, did you get that contract? Did your staff retention improve? Did you become more productive? Are you now competing with your competitors? But it is a long term game in terms of how that works.”

 

If upskilling your workforce could drive growth in your business, Skills Bank can help. Part of Sheffield City Region’s business support offer, Skills Bank provides a wealth of support for upskilling your workforce. This includes support from specialist skills advisors, access to a bank of quality training providers, and funding to contribute to the cost of training. Find out more about how skills training can help your business grow at skillsbankscr.co.uk or call 03330 00 00 39.

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