UK businesses are investing in up-skilling their workforces. Rachael Bartlett looks at the evidence from a conference provider’s perspective that nurturing UK talent is a key recession-beating tactic
The good news is that the UK’s ‘talent factory’ appears to be in good health. Having analysed a variety of business barometer reports, training surveys and skills pledges, our view at Warwick Conferences is that the vast majority of business leaders continue to demonstrate a willingness to train their way out of the current economic downturn.
Evidence from the following organisations have given us grounds for optimism:
Whilst the recession is undoubtedly heaping added pressure upon already stretched training budgets, most organisations are still implementing their training plans in order to ensure they have motivated staff with the right skills to take advantage of the business opportunities that arise when conditions improve.
In October last year, Peter Mandelson echoed a joint statement from the Confederation of British Industry and the Trade Union Council. ‘Those that invest in training are less likely to fail,’ he said, urging, ‘businesses to invest in skills and training to ensure that they are well placed to take advantage of the opportunities when global economic conditions improve.’
Additionally, we have found almost universal agreement among these organisations advising businesses that cutting training budgets continues to represent a false economy – and, more importantly, UK businesses are heeding that advice. Among the bodies and sectors that have voiced their support for training are Skills for Logistics – which surveyed 4,500 companies before concluding that ‘especially in the current economic climate training staff is crucial to performance’. Additionally, the utilities industry’s own research found that found that 40% of respondents see personal development through training as key in retaining talent.
Effective targeting/delivery
Employers are sensibly looking to ensure they target and deliver training more effectively, rather than just make indiscriminate budgetary cuts, according to the CBI. Companies need to adapt to the changing economic landscape and quite often looking outside of their business and challenging how or where training has previously been delivered, can deliver some innovative and effective solutions.
Staff training versus staff reward
The examination of various research sources, including the CIPD, highlighted that companies’ expenditure on staff incentives and reward or recognition programmes has been scaled back in recent months as non-essential expenditure is scrutinised.
However, staff training and staff reward are not mutually exclusive. While the majority of organisations (66%) cite a strong reward and recognition structure as crucial to retaining staff, the second highest retention mechanism is the availability of personal development/training opportunities (52%). With many organisations implementing pay and/or recruitment freezes, this presents an opportunity to think ‘outside of the box’ about non-financial rewards.
Training can be used to engage, motivate and retain a workforce – it can even increase the likelihood of attracting talent discarded by competitors.
Past recessions
Trends from past downturns suggest that cuts in corporate training are inevitable, though likely to be proportionate to cuts in the employment market (statistics for the recession of the early 1990s showed a 1% drop in the total number of people receiving training, in line with the drop in employment). However, according to the IoD’s latest findings, four out of five business leaders report that their companies have either maintained or increased spending on training during the six months to June as a means of boosting morale and increasing productivity.
There a real difference in attitudes to training between this and previous recessions. Whilst cost efficiencies in other areas are being made, nearly 90% of directors are planning to at least maintain their investment in training during the next six months – though businesses must be vigilant and flexible in order to identify the opportunities and threats that a rapidly changing economy presents.
How to get the most out of your training/event provider
It is encouraging to see that businesses are still committed to developing their people and I would urge all conference and event providers to play their part in helping UK businesses train their way out of recession by doing their utmost to deliver training and events that are not only fit for purpose but deliver greater value than ever before to their customers who are facing tough times.
The following checklist is based on feedback we have received from our customers and sets out some of the main areas you can maximise value from your provider.
- Challenge the status quo. The recession is an opportunity to reappraise the way in which events are delivered and save both time and money in the process. Dual purpose events, for example, can return double the value!
- Room and service. In addition to four walls and a roof, venues can supply insight, ideas and additional services, so take advantage of your provider’s event expertise.
- Size isn’t everything. Whether hosting eight or 800 delegates, choose appropriate facilities and establish what is included in the package you have purchased and what is considered an additional cost option.
- Get engaged. Whether the event being delivered is purely for training or combines this with team-building and rewarding staff, interactivity is key to extracting maximum value as well as transferring knowledge.
- Speak easy. Whilst the chairman’s speech at the annual conference may be a company tradition, they might not be the most appropriate speaker for every event. External trainers and even celebrity or VIP guest speakers can transform an event into an occasion, so set egos aside.
- No such thing as a free lunch. Make the most of breaks and leisure time by providing opportunities for team-building or networking.
- Be accommodating. Consider whether your delegates require rooms during their stay. For events requiring an early start or late finish, providing suitable accommodation can actually deliver good value.
- Consider time and travel. During straitened times the cost of an event in terms of delegate time and travel expenditure shouldn’t be underestimated. Think about location and how quick/easy a venue is to reach, and the most cost effective means of getting there.