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Don’t Risk The Future By Cutting Back On Training Warns The Skills Academy

18 May 2009
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Manufacturing companies are risking their future prosperity by cutting back on training and laying off skilled staff in an effort to reduce costs during the current economic crisis.

That’s the view of the National Skills Academy for Manufacturing (The Skills Academy), an employer-led organisation that believes many businesses are tempted to save money by reducing investment in training because they cannot see immediate benefits.

Explained Bob Gibbon, Managing Director of the Skills Academy: “One of the most important lessons we have learnt from the last serious recession is the need to retain skills within manufacturing.

“When somebody leaves the industry they are often lost forever and if the UK is to recover quickly from the recession it will need world-class skills to help drive the economy forward.

“I would therefore urge business to think long and hard before considering cutting back on training and development or making unnecessary redundancies.

“If they do both the company and the UK as a whole will face more problems further down the line when the immediate crisis is over.”

Throughout the current slowdown, the Skills Academy has been working with a wide range of employers to ensure that skills training delivers a significant return on investment.

In the past research has shown that just four per cent of training fulfils its true potential and a typical company spending £10K on training - without a proper training programme - may lose up to £6K.

However the Skills Academy is pioneering a system that could see the same investment realise up to £50,000 profit.

“Many organisations treat training as a cost but they really need to see it as an investment that will lead to a competitive advantage for their company,” continued Mr Gibbon.

“Through our Learning Engine programme we identify the needs of the employer and match them to the most appropriate training – ensuring that the business receives the most appropriate and cost effective skills support at a time when they need it most.

“In a recession, this type of support is more important than ever because businesses may need to adjust their focus or adapt to a new pace of work. Their whole business model might need to change and they will need the right skills set to react,” he added.



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