Business comments on the Leitch Review on skills

5 December 2006

On the Leitch Review on Skills Colin Willman, FSB National Education Chairman, commented:

“Lord Leitch’s review on skills is a constructive first step towards providing businesses with the capable workforce that they need. He is right to say that skills provision must be led by demand from businesses. The requirements of small firms must be a priority because they employ 58% of the private sector workforce. Our average member employs four people. They need bite-sized courses, based in the workplace, to avoid losing a large proportion of their workforce when only one member of staff is being trained.

“However, the Government must also act urgently to improve basic education in schools. Our members are frequently frustrated at the poor levels of literacy and numeracy, as well as punctuality and presentation, of school leavers. Businesses will do their bit in training their employees but the foundations must be laid at school. The Government is failing its exams on that subject.”

The FSB’s 2006 member survey found that many employers are keen to train their staff and that:

45% of firms responding stated they had encountered literacy or numeracy shortages amongst new staff.
52% of small firms say that with financial incentives they would be able to pursue more training for employees.
Wage compensation to small firms for lost staff who are on training courses would encourage 37% of small firms to engage in such training.
18% of small firms are seeking to grow through investment in staff training.
76% of small firms undertake staff training. However this only takes into account formal training, all firms have carried out training of a more or less formal nature in the past two years.

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