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 CIPD PRESS RELEASE 21 October 2008
CIPD advises government to target SME training
spend at management level to "drive SMEs from
recession to resilience"
The Chartered Institute of Personnel and
Development (CIPD) welcomes today's announcement
of £350 million extra support for skills
training for SMEs, but warns that investment
must be effectively targeted if it is to reap
tangible benefits for the UK economy.
The CIPD advises that the best way to improve
productivity across the workforce is to
concentrate spend on training frontline managers.
CIPD research shows that UK people management
capability is extremely poor - just 37% of
employees believe their manager helps to
improve their performance and poor people
management remains one of the biggest causes
of stress and conflict at work.
Further research estimates that management
deficiencies account for 10 - 15% of the
productivity gap in the UK and the government's
own research confirms that management training
further improves workforce skills development
threefold. The management capability of SMEs
in the UK is of particular concern but it is
also an area where government spend could make
a real impact.
Dr John McGurk, Learning, Training and Development
adviser, says:
"At a time when workers are likely to be under
increasing pressure both at work and at home
the business case for greater investment in
people management skills is strengthened, as
the morale and resilience of employees is
fundamental to long-term competitiveness.
This can only be achieved with trained managers
leading engaged and motivated employees.
"If government is serious about making a
long-term impact on UK productivity and not
just a knee-jerk response to the impending
recession, then the people management skills
of our workforce should be high on its agenda.
Today's reallocation of funding should be about
driving SMEs from recession to resilience.
"The opening up of funding beyond the small pot
government currently allocates to leadership
and management is welcomed. However CIPD calls
on government to allocate a dedicated proportion
of the Train to Gain budget for management and
leadership training to improve the long-term
performance of UK plc, particularly in the SME
sector, where manager-owners have little direct
experience of managing others.
"The CIPD has consistently urged businesses of
all sizes to continue investment in staff training
especially throughout the economic downturn, when
staff skills and motivation become crucial to
achieving business objectives. Cutting investment
in learning and development also means that
employers will risk struggling to compete when
the economy picks up again.
"The reduction in the level of bureaucracy will
be well received by business, who according to
our own research, cite the burden and complexity
of the paperwork involved as a primary deterrent
to state funded training."
Notes to editors:
* Dr John McGurk is available for interview.
* The Chartered Institute of Personnel and
Development (CIPD) has over 130,000 members
and is the leading professional institute for
those involved in the management and development
of people.
CIPD press enquiries:
Jemma Walsh / Anna Wallace
CIPD Press Office
151 The Broadway, London SW19 1JQ
020 8612 6400
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