Increased training helps fill widening skills gap

Edited by the Engineeringtalk editorial team May 14, 2004

One in three employers (32%) are predicting major changes in their skill needs over the next two years, according to research from the Recruitment Confidence Index (RCI).

One in three employers (32%) are predicting major changes in their skill needs over the next two years, according to research from the Recruitment Confidence Index (RCI).

A further 59% of employers expect minor changes in their skill needs, and only 8% say skills will remain the same.

The vast majority of employers (87%) would prefer to develop skills in-house and more than three in four organisations (77%) say they will be increasing the amount of training they offer staff, to meet skill gaps.

However, two out of three organisations (66%) accept that they will have to recruit new skills, suggesting they cannot rely on training and development alone.

In a further twist, employers also recognise that they can attract and retain better job candidates by offering training and development programmes.

More than two in three (70%) include skills training in job offers to prospective employees.

Commenting on the findings, Professor Shaun Tyson from Cranfield School of Management, which carries out the RCI research for the Daily Telegraph, said: "The research implies that employers see themselves investing more in individual employees' development".

"In a way, this is a reaction not just to changing skill needs but also to labour shortages." "In some areas of the country, notably the South East, these skill shortages are becoming particularly severe".

"The ageing population, which means employers can no longer rely on a ready pool of young recruits, is compounding the problem".

"Employers should respond by looking at how they retrain workers, regardless of age, on a continuous basis." Stephen Gardner, Director of Work-based Learning at the Learning and Skills Council, which sponsored the research special said: "The results reinforce existing research which has shown that the skills required for jobs are changing".

"Employers should start to address this shortfall by training existing staff through work-based programmes such as apprenticeships tailored to their specific business needs".

"Too many are trying to fill the skills gap by recruiting skills rather than through education and training." Stephanie Richards, Recruitment Research Manager at the Daily Telegraph, said: "Training is about more than just providing your organisation with skills, it's also about attracting and retaining the best staff".

"Candidates of all ages have wised up to the importance of training as part of the package and are looking for employers who will develop and use their skills as well as offer good financial rewards." The RCI's research also found that: 90% of employers believe the training they provide has a direct impact on bottom-line business results; on average, the organisations surveyed spend 5% of the pay bill on training; and 63% provide staff with externally accredited training.